Joint Venture in Myanmar

Myanmar forming a joint venture partnership is essential for foreign investors with local knowledge is limited and also for owners of local projects with limited technology and access to finance. It may be an association with companies, individuals or departments of our government.

We serves as a facilitator between partners to ensure a smooth and successful joint venture partnership Myanmar at the right time. We have a team of professionals, entrepreneurs, industry experts and legal advisors will guide you to achieve a win-win partnership for both parties.

A joint venture under the FIL

Most of the joint ventures and the establishment under the Foreign Investment Law (FIL) Local partner usually provides the land, manufacturing or services local service and distribution, while the foreign partner provides the technology, the name and brand management know how.

Foreign investor must have at least 35% of the shares of the company.
Capital needed for manufacturing JV is US $ 500,000, 300,000 service JV is used.

We offer the following services to foreign investors wishing to enter the market through a joint venture Myanmar: Myanmar company registration service and Business Partner in Myanmar.

Also Read : Finding Business Partner in Myanmar (Burma)

Finding Business Partner in Myanmar (Burma)

What are the situations you want to finding a business partner of Myanmar local…?

    In regulated industries, it may be required for foreign investors to collaborate with a Myanmar citizen or company to invest in these areas. Example would be in the area of ​​retail trade, hotels, real estate, setting up factories to provide the construction industry and building local production and distribution of confectionery products for distribution and sale premises, the creation of private hospitals , etc.

If you are an entrepreneur and stock up on goods from countries such as China and Thailand, where the cost is increased rapidly from year to year due to rising wages – you may want to find a partner for local production in Myanmar which can provide you with a more competitive cost of goods. The average labor cost per worker, factory in Myanmar is like 25% of that of China.
If you are a pharmaceutical manufacturer or building and construction, for example, and want to find a reliable distributor.
If you are a company that serves the industries of oil and gas and mining geological specialist, and your service is called only when there is open competition and you need to find a local expert who can work for you on a 20-hour -semaine preferably at home. However, when there is a competition, you need your local representative to work full-time for three months in a section of a service center.

We can help you find suitable partners we have built a large database company in Myanmar, who are business owners are.

Note that if you ask your friends to recommend Myanmar distributor or joint venture partners – unless you are very familiar with the industry you want to enter – most likely present their parents or friends to you as they are very Useful and local. But it is that what you want?

If you want to work with professionals who are very objective and combs in the industrial sector – identification of entities according to the selection criteria, ensuring that these companies are legally company that owns the license for operation necessary, the activities and history to deliver the kind of saved the performance you would expect from a potential business partner, please contact us.

For your information, many people in Myanmar, including foreign ones, with the official name of the polling company, job title fantasy, beautiful business card and work site without appropriate operating license in Myanmar. You can tell from their business card, website or suits they wear? We can tell you in 10 minutes if the company is legitimate and who is the CEO!

Imagine if you spend a month of fruitless searching, trading and “build relationships” in Myanmar, in search of traces wild. What does it cost in terms of food, accommodation, transport and entertainment? Assuming your stay in a 4 star hotel, it is very likely to spend US $ 300 per day – within 30 days will spend US $ 9,000 US $ 9,000 this month excluding the cost of the flight and the time spent! Myanmar. The return air ticket, travel visa and transportation to and from the airport would cost about US $ 2,000? What is the first income in the past one month in Myanmar? The time you spend away your family – how much it costs ratio wise?

Myanmar as all emerging markets requires attention and your time. However, there are those businessmen who use their time wisely and use our service to proactively plan their trips in order to ensure that it is a short but productive.

Also Read : Compliance and Registration of Myanmar SMEs

Myanmar Business Setup Tips 2016

Commonly used business models

The inclusion of the following participating institutions available for foreign trade / investment in Myanmar (Burma):

Company with 100% share of the foreign partner

The foreign investor: company included in Myanmar (Burma), owned by foreigners increased by 100%, the creation and operation of the register of the company as a branch off the field is set, and if the individual, and the establishment and operation as the sole owner and IDF generally allows 100% foreign ownership of investments in economic activities, as may be prescribed by the government.

As is the case with MFIL, the list of economic activities are directed through the principles of job creation and export promotion and local development, and application of high technology and large investments, among others. FIL number of significant new activities, including even those relating to the “import substitution” and “the development of modern industry”.

And FIL states that these sectors may be subject to restrictions on foreign ownership: issues that may affect public health, natural resources and environment, activities related to manufacturing industries dedicated to the citizens of Myanmar to be determined in foreign investment rules to be issued by the Ministry of National Planning and Economic Development and Services (“Rules”), it will be the identification of issues related to agriculture and livestock and fisheries, as in the rules.

Also Read : Company Registration in Myanmar

Restrictions on exactly these sectors, if any, will be determined by rules issued within the approval of the FIL 90 days. It will be on legislation by consent of the Government of Myanmar Ministry of National Planning. At the time of this writing, it has not yet been issuing standards. We recommend that you keep in touch with DFDL updates.

Joint venture

The foreign investor: Myanmar be included in the creation and operation of the company under a contractual joint venture / unincorporated. You will need to be approved by the MIC under the FIL proposed joint ventures. MFIL under the old provision requiring foreign party to a joint venture to contribute at least 35% of joint ventures have been canceled securities. Instead, the IDF states that the minimum requirements for foreign investment will be in accordance with the rules described above.

Distribution arrangements or agencies

A foreign entity that: appoint a representative business / agency involved in Myanmar citizens or 100% company-owned Myanmar arrange the sale or purchase of the citizen / company Myanmar

Home Legal formalities for the establishment of a company or registered branch
MIC Statement
This is because the foreign company to be registered under the FIL present a proposal prepared for the MIC model. MIC and evaluates foreign investment proposal and issue a microphone set certain terms and conditions allow.
Large projects, should think seriously about investing in the IDF, which provides significant tax and other incentives. However, if such investments comply with a strict set of rules and subject to important conditions. For smaller investments, or foreign investor who does not want to go through the procedures of the IDF, the company has been formed under the Act and regulations Myanmar Companies (“Companies Act”) without obtaining a permit under the FIL and you can proceed with the inverter directly to the application for a permit to trade.

Speaking to Trade

Under the Companies Act, all foreign companies seeking to do business in Myanmar (even if the project was that since the approval procedure is in accordance with the FIL and issued a statement MIC) obtaining a “license to operate “(a” trading license “) of the Ministry of National Planning and Economic Development before starting business in Myanmar (Burma). A “foreign company” of listed companies in Myanmar (Burma), with shareholders and at least one is not a citizen of Myanmar, but does not include the government or state-owned economic enterprises, the company is one of the shareholders.
At present, the submission of the request for permission to trade, together with an application to establish a foreign company, to the registry office for the registration of companies. When a permit for the IDF, the necessary measures to enable the implementation of trade and firm basis to be followed only after issuing a statement FIL is applied.
Talking to trade is valid for three years from the date of issue, and not renewable. There is no explicit prohibition against the establishment of commercial enterprises owned by foreigners in Myanmar (Burma). However, today, we are not issuing permits for commercial enterprises. This situation has evolved in practice, not law.

Capital requirements

The granting of any foreign company is required to bring a statement to Myanmar (Burma) in foreign currency “issued and paid up capital” (“Capital”) in the amount specified by the Commission of the capital structure of the Ministry of National Planning and Economic Development.
FIL sets the minimum foreign investment is determined by the rules above. Minimum investment away from the FIL companies under the Companies Act capital is US $ 150,000 US industrial company $ 50,000 for company services
The composition of society, and must be deposited at least 50% of capital in a bank in Myanmar after the preconditions for issuing the notification and before issuing permits for trade conditions. You must provide the rest of Myanmar’s capital during the period. Generally 1-3 years.

The requirements of foreign investors

A foreign company registeration in Myanmar (Burma) must be: an appointed external auditor shortly after incorporation. It held its first annual general meeting within 18 months of incorporation. An annual return with the Office of the log file Registrar of Companies within 21 days of the Annual General Meeting of the company, including the following: the list of members and management; details of the capital structure of the company. Details of any mortgage on the assets of the company. Certification that the company has not issued any invitation to the public to subscribe for shares. To maintain accounting records and legal records (members and register of shareholders and share transfers, and managers, mortgages and taxes, etc.), to provide audited financial statements of the company (prescribed) for each accounting period the members of the General Meeting of Shareholders of the company.

Currency restrictions

It is known that the coin Myanmar “kyat” and referred to as the “Ks” or MMK. The central bank has put Myanmar (the “CBM”) for the kyat from April 1, 2012, and the average rate is about 850 MMK to US dollar. Before April 1, 2012, Myanmar was a system of exchange of two levels involving “the official rate” and “market price”.

Accounting / financial information for companies and branches of foreign companies in Myanmar
Financial statements

The financial statements must be prepared in accordance with accounting standards Myanmar (“MAS”). MAS is based on the International Financial Reporting Standards and International Accounting Standards issued by the International Accounting Standards.

Audit Requirements

It requires that the taxpayer for companies to submit audited financial statements, together with the annual tax return. For the purposes of the tax, to audit the financial statements of the companies by a public accountant licensed by the Accounting Council of Myanmar.

At the end of fiscal year

The fiscal year is from April 1 to March 31 and can not be varied. This is mandatory even for branches of foreign companies that may have different year-end.

Myanmar plans to SEZs in the state of Rakhine in exports to China and India

Based on official reports, Myanmar plans to devote area in Rakhine State for the development of the special economic zone aimed at attracting investors from ASEAN countries and export their products to China and India, According to the Business Standard article.

Myanmar is a strategic gateway between ASEAN, India and China, own of 1737 hectares in the village of economic zones is the gateway Kyaukphyu shortest and most economical for trade in goods between China and India entry, Xinhua said.

Kyaukphyu play a key role in the development sectors in the huge potential of the country, such as industry, forestry, fisheries, oil and natural gas, as well as service delivery.

The first phase of development of special economic zones Kyaukphyu of the three elements of the project, a deepwater port, an industrial zone and a residential area built.

And it will take place in the industrial park project in the area of ​​the plot of the 8.5 km south of Kyaukphyu where there are five areas of the village, while the deep water port in project 1 is in the island north of the site and making the port of unfinished projects in the depths of the seas 2 located north Yanpye.

Residential construction project is located 12 km from Kyaukphyu involve two areas south of town.

The master plan includes three cities, including Kyaukphyu be established as a basis for the development of the industry, while cities are Yanpye development based on agriculture and Manaung area of ​​the city for the development of ecological tourism zone.

Also Read : Myanmar SMEs and Industry Policy

While the article stated that the invitation for expression of interest process, which began in 2014, stressed the ownership of Myanmar from the inside in case negotiations bidding in March and sharing video on what to expect when investing in Kyauk View Special Economic Zones.

According to the article, the project will begin in February 2016 with an initial area of ​​100 hectares for the development of an industrial zone, it is estimated that the project will be mostly 20 to 30 years to complete.

He said the project, once successfully implemented, will contribute to strengthening the economic integration of ASEAN and reap substantial economic benefits that can improve the economic sector in the country, and promote development in the state of Rakhine, and the creation of Kyaukphyu around as the basic pillar of economic development of the country’s experts.

Myanmar second plan drawn up for a period of 5 years to support the economy

 

Myanmar wording of the second five-year plan ( 2016-17 to 2020-2021 thousand ) aims to promote economic growth by encouraging investment in the public and private sectors through the manufacturing process, as reported by the agency Xinhua news.

Xinhua reported that the Second Five Year Plan will be implemented in the mandate of the new government, which is expected to start in April next year, fiscal 2016-17.

In this article, President U Thein Sein, who is also the president of Myanmar ( MPC ) project proposal at the meeting of the Monetary Policy Committee in Nay Pyi Taw achieve collaboration between the public and private sectors (PPP) in achieving the objectives of sustainable development in the key areas of health and education and the supply of electricity.

Also Read : Compliance and Registration of Myanmar SMEs

National Plan period and the second five-year plan of 20 long-term comprehensive national development ( NCDP ) from 2011-2031 should serve as a framework for future projects, U Thein Sein said.

Featured Article in the First Five-Year Plan 2011-12 to 2015-16, the priority of the monetary policy committee in the basic need for food, clothing and shelter to the public in line with the change of direction of the country, said U Thein Sein, emphasizing the need to implement things in the three months remaining before the end of the five-year plan First at the end of 2015-16, when the current government’s mandate expires and the new government takes office depending on the results of the November 8th elections.

Myanmar age 20 NCDP was framed by the current government in partnership with the United Nations Development Programme (UNDP) and the Asian Development Bank (ADB) and the Economic Research Institute for ASEAN and East Asia (ERIA).

The report added NCDP goal is to increase the country’s GDP to US $ 180 billion in 2030-31 and per capita GDP of US $ 3,000.