Ease of Doing Business in
Myanmar
This page summarizes Doing Business 2014 data for Myanmar. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.
ECONOMY OVERVIEW
0.66
=Doing Business reform making it easier to do business. 
=Doing Business reform making it more difficult to do business.
Get all Data
Law Library
ContributorsStarting a Business
| DB 2014 RANK | 189 | DB 2013 RANK*** | 189 | CHANGE IN RANK | 0 |
|---|
| DB 2014 DTF** (% POINTS) | 20.29 | DB 2013 DTF** (% POINTS) | 18.99 | CHANGE IN DTF** (% POINTS) |  1.30 |
|---|
Information on
new business density and number of newly
created firms with limited liability can be found at Entrepreneurship Database.
new business density and number of newly
created firms with limited liability can be found at Entrepreneurship Database.
| Indicator | Myanmar | East Asia & Pacific | OECD |
|---|---|---|---|
Procedures (number)
| 11 | 7 | 5 |
Time (days)
| 72.0 | 37.8 | 11.1 |
Cost (% of income per capita)
| 176.7 | 29.8 | 3.6 |
Paid-in Min. Capital (% of income per capita)
| 7,016.0 | 293.3 | 10.4 |
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Obtain reference letter from the ward chief | 2 days | no charge |
| 2 | Obtain criminal history from the township police station | 1 day | no charge |
| 3 | Conduct a name check at the Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA) | 1 day | paid as part of company incorporation fees |
| * 4 | Request temporary business incorporation certificate | 1 day, simultaneous with previous procedure | 1,000 Kyat application fee |
| 5 | Obtain signature of the directors before a lawyer or certified public accountant | 1 day | The cost of witnessing the signature of the memorandum and articles of association: 40,000 Kyat. |
| 6 | Payment of registration fees | 1 day | 1 million kyat (registration fees) + 15,000 kyat (administrative fees) + 1,000 kyat (stamp duty) |
| 7 | Obtain temporary certificate of incorporation | 3 days | paid as part of company incorporation fees |
| 8 | Obtain the permanent incorporation certificate | 2 months | paid as part of company incorporation fees |
| * 9 | Pay the stamp duties for the permanent incorporation certificate | 1 day, simultaneous with previous procedure | 200,000 Kyat |
| 10 | Obtain a seal or a rubber stamp | 1 day | 2,000 Kyat |
| 11 | Register for commercial tax | 1 day | no charge |
** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...
***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.
Starting a Business in
Myanmar
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Myanmar. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Obtain reference letter from the ward chief Yangon is divided into 4 districts, and 33 townships. Each township is then divided into a certain number of wards, which is the smallest administrative unit grouping several households or ‘each block’. The ‘ward chief’ provides a letter confirming the address of the new business. | 2 days | no charge |
| 2 | Obtain criminal history from the township police station After obtaining the reference letter from the ward, the relevant township police station signs a letter containing your criminal history. | 1 day | no charge |
| 3 | Conduct a name check at the Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA) On the first visit to the CRO at the Yangon DICA office, and after having obtained the letters from the ward and police station, the proposed name for the new business must be checked and cleared. There is an electronic database since October 2012 that makes it easier to check and to complete this procedure within the same day. The request is made and depending on the workload the check will be done in either a few minutes or a few hours at most, in the meantime the business owner or representative can wait in the office. | 1 day | paid as part of company incorporation fees |
| * 4 | Request temporary business incorporation certificate Once the name check is complete, the following documents are automatically generated based on the info provided on the application form and are checked for accuracy by the applicant: o Application form (company name, list of directors with ID# and addresses, start-up capital, address) o Memorandum of Association (for local company, only Burmese version is required, though for English there is also a standardized format available) o Business plan of activities o Photocopy of the family certificate for each director (includes dates of birth, relationship, occupation, ID#, ethnicity, citizenship, religion). This is a standard form which each family already has in possession. o Pledge of directors (affidavit) o Ward reference letter o Criminal history letter from the township police station The applicant checks the accuracy of the generated documents, and goes back to the directors to obtain their signatures on the memorandum and articles of association. | 1 day, simultaneous with previous procedure | 1,000 Kyat application fee |
| 5 | Obtain signature of the directors before a lawyer or certified public accountant The memorandum and articles of association are signed before a lawyer or CPA. The cost of witnessing the signature of the memorandum and articles of association are about 40,000 Kyat. | 1 day | The cost of witnessing the signature of the memorandum and articles of association: 40,000 Kyat. |
| 6 | Payment of registration fees Payment of registration fees occurs at the accounts department in the same DICA building. | 1 day | 1 million kyat (registration fees) + 15,000 kyat (administrative fees) + 1,000 kyat (stamp duty) |
| 7 | Obtain temporary certificate of incorporation After making the payments, the applicant returns to the Company Registration Office to obtain the temporary certificate, which is generated automatically. It needs to be reviewed and signed by the Assistant Director and the Deputy Director of the CRO. This can be done in 1 day if all is ready and the directors are available, but usually takes a few more days. This temporary certificate allows entrepreneurs to begin operating the business immediately while waiting for the permanent certificate, and is valid for 6 months. | 3 days | paid as part of company incorporation fees |
| 8 | Obtain the permanent incorporation certificate The Company Registration Office will carry out internal reviews in order to issue the permanent incorporation certificate. The file is sent to the Ministry of Home Affairs, where it is checked by the Bureau of Special Investigations (BSI) and the Police. The applicant is informed by the DICA when the definitive certificate is ready to be picked up. The applicant can follow up by phone on the status of the application. The certificate is valid for 5 years. | 2 months | paid as part of company incorporation fees |
| * 9 | Pay the stamp duties for the permanent incorporation certificate Before going back to pick up the permanent incorporation certificate, the applicant pays stamp duty on the Articles of Association, which must be shown at the DICA. | 1 day, simultaneous with previous procedure | 200,000 Kyat |
| 10 | Obtain a seal or a rubber stamp According to the law, a company seal is required for a newly constituted firm to operate. However, in practice a rubber stamp is used and accepted. It can be produced in shops in downtown Yangon for a cost of 2,000 kyat. | 1 day | 2,000 Kyat |
| 11 | Register for commercial tax Registration for commercial tax (similar to VAT): companies are obliged to register with the tax authorities one month before the start of their business if the business is expected to generate turnover subject to commercial tax (a broad array of products fall into this category, including manufactured goods). Furthermore, within 10 days of starting a business the tax authorities should also be informed. DICA compiles a list of newly registered companies each month and sends this information to the relevant townships where the businesses are located. | 1 day | no charge |
Ref:worldbank
No comments:
Post a Comment