Company Incorporation in Myanmar

In the last few decades, Myanmar has steadily found its footing with the right economic balance and growth to position itself as an important player in the dynamic market of Southeast Asia. Supported by rising socio-economic improvements, it is easy to understand why global businesses are continuously looking to this market for investment opportunities.

In 2020, Myanmar moved up six places to 165th on the World Bank’s Ease of Doing Business Ranking with substantial improvements in five areas: starting a business, dealing with construction permits, registering property, protecting minority investors, and enforcing contracts.

 These improvements offer significant support to the country’s overall business ecosystem while giving a boost to much-needed foreign direct investments required to foster industrial and manufacturing capabilities. In addition to that, the government has ensured the process of “starting a business is easier” by using an online platform via Myanmar Companies Online (MyCO), reducing business registration fees, and streamlining the process of incorporation. 

The Myanmar Companies Law (2017) allows companies with a single shareholder and a single director to be established. It requires all companies established in Myanmar to appoint at least one director who is ‘ordinarily resident’ in Myanmar. A person will be considered to be ordinarily resident if they hold permanent residency or is resident in Myanmar for at least 183 days in each 12-month period.  The period of residency will be calculated from the date of incorporation of a company (or the date of commencement of the new law for existing companies). Public companies must appoint at least 3 directors, and at least one of the directors must be a Myanmar citizen who is ordinarily resident in Myanmar. There are no minimum capital requirements for the incorporation of the company.

In Myanmar, company incorporation is under the jurisdiction of the Directorate of Investment and Company Administration (DICA), a secretariat of the Myanmar Investment Commission (MIC). Usually, the incorporation process involves 5 steps: (1) Name Request, (2) Appointment of Directors and Shareholders, (3) Registration with the MIC, (4) Registration with DICA, (5) Obtaining licenses and fulfilling compliances.