Foreign Investment

Overview

Myanmar is committed to provide a secure, accessible and conducive environment for foreign investors.
The Foreign Investment Law, enacted in 2012, vastly simplified the process for investment application and offers a number of tax breaks, incentives and guarantees rights and protections for foreign business ventures.
Likewise, the Myanmar Investment Commission (MIC) was restructured and its members are stakeholders from the government, the private sector and academe. The MIC approves new investment proposals and provides regular market updates.

Types of Investment

100% Investment

- Foreign investors may invest without any local partners in permitted sectors.

Joint Venture (JV)

- Joint ventures may be created with foreign, local and government entities.

Contract

- Foreign investors may act under a mutually-agreed upon contract.

Other investment forms

- These include build operate-transfer (BOT) and build-operate-own (BOO) investments.

For any of these investment types, the government guarantees:

  • No nationalization
  • No suspension of investment without sufficient cause
  • The right to transfer money in the foreign currency of the original investment
On the other side, investors have certain obligations, including incorporating and operating under existing laws of the Republic of the Union of Myanmar. Others concern land use, leasing and mortgaging, environment protections, sale or transfer of assets and other aspects of the process

How to Apply for a Foreign Investment Permit

First, an investor must submit a proposal to MIC according to predefined criteria. MIC will then:
  • Scrutinize the proposal and accept or reject it within 15 days
  • Once accepted, MIC will review the proposal and either refuse it or issue a permit within 90 days.
When an investor is granted a permit, it may begin operations after finalizing any necessary contracts with government entities, organizations or individuals. In some cases MIC can grant parties permission to amend the terms of their contractual agreements, in accordance with the Foreign Investment Law.

Detailed List of Investor Rights and Obligations

According to Section 17 and 18 (Chapter VIII) of the Foreign Investment Law, investors have the right to…
  • The legal sale, exchange or transfer of assets with MIC approval
  • Sell some or all of company shares
  • Expand the business or increase foreign capital with MIC approval 
  • Request a re-evaluation and amendment of the benefits provided to the investor in accordance with existing laws
  • Address and seek reparations for grievances in accordance with existing laws
  • Request additional benefits when investing and expanding operations to adopt new technology, enhance the quality of products, increase production volume and reduce harmful environmental impact
  • Apply for special tax exemptions and reliefs for investments that benefit the development of the nation in less developed and remote areas
According to Section 17 and 18 (Chapter VIII) of the Foreign Investment Law, investors have the right to…
  • The legal sale, exchange or transfer of assets with MIC approval
  • Sell some or all of company shares
  • Expand the business or increase foreign capital with MIC approval 
  • Request a re-evaluation and amendment of the benefits provided to the investor in accordance with existing laws
  • Address and seek reparations for grievances in accordance with existing laws
  • Request additional benefits when investing and expanding operations to adopt new technology, enhance the quality of products, increase production volume and reduce harmful environmental impact
  • Apply for special tax exemptions and reliefs for investments that benefit the development of the nation in less developed and remote areas
Source Credit : Directorate of Investment and Company Administration (http://www.dica.gov.mm/en/foreign-investment)

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