Minimum investment to be brought in by a foreign service company under the Act is 50,000 USD. The registration process under the Act requires one to follow the same last two steps (mentioned below) as MFIL companies have to. Under the Act, the “Permit to Trade” is valid only for two years. The renewal needs the same documents as when applying for the first time. The incorporation process for this sort of business takes only two to three months.
Companies with one 100% foreign investment and in a joint venture with Myanmar government and nationals can be registered under the law. For the latter case, minimum foreign share equity must be 35%. Despite minimum capital requirement specified at 500,000 USD, the business entities invest a minimum of 1,000,000 USD to 2,000,000 USD in practice, depending on size and nature of the investment. In the case of a joint venture with the government, the company could opt to enjoy a local company status under Special Company Act (1950).
Companies under this law have to apply for the permit of Myanmar Investment Commission (MIC) first to be able to enjoy three years’ tax holiday which is a period of construction or first three years of business activities during which companies are exempted from paying customs duty.
Essential documents required for this process are:
A logo of the trademark in the exact color
Apart from a joint venture with the government, as it is regarded as a local company, every business entity needs a “Permit to Trade” issued by the Directorate of Investment and Company Registration (DICA).
The following documents are required to apply for “Permit to Trade:”
On receipt of approval of the application, “Conditions” attached thereto must be agreed, signed and returned to DICA.
With a photocopy of the “Permit to Trade” attached, the application for incorporation of the company has to be filed.
The following data are required for this purpose:
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