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Thursday, September 4, 2014

Who dare? Doing business in Myanmar!

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

REGIONEast Asia & Pacific
INCOME CATEGORYLow income
POPULATION52,797,319
GNI PER CAPITA (US$)835
CITY COVEREDYangon
DOING BUSINESS 2014 RANKDOING BUSINESS 2013 RANK***CHANGE IN RANK
1821820

DOING BUSINESS 2014 DTF** (% POINTS)DOING BUSINESS 2013 DTF** (% POINTS)CHANGE IN DTF** (% POINTS)
42.3841.72down 0.66
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.

ADDITIONAL TOPIC

ADDITIONAL DATA

RELATED WEBSITES

DB 2014 RANK189DB 2013 RANK***189CHANGE IN RANK0
DB 2014 DTF** (% POINTS)20.29DB 2013 DTF** (% POINTS)18.99CHANGE IN DTF** (% POINTS)up1.30
Information on

new business density and number of newly

created firms with limited liability can be found at Entrepreneurship Database.
IndicatorMyanmarEast Asia & PacificOECD
Procedures (number)
1175
Time (days)
72.037.811.1
Cost (% of income per capita)
176.729.83.6
Paid-in Min. Capital (% of income per capita)
7,016.0293.310.4
No.ProcedureTime to CompleteAssociated Costs
1Obtain reference letter from the ward chief2 daysno charge
2Obtain criminal history from the township police station1 dayno charge
3Conduct a name check at the Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA)1 daypaid as part of company incorporation fees
* 4Request temporary business incorporation certificate1 day, simultaneous with previous procedure1,000 Kyat application fee
5Obtain signature of the directors before a lawyer or certified public accountant1 dayThe cost of witnessing the signature of the memorandum and articles of association: 40,000 Kyat.
6Payment of registration fees1 day1 million kyat (registration fees) + 15,000 kyat (administrative fees) + 1,000 kyat (stamp duty)
7Obtain temporary certificate of incorporation3 dayspaid as part of company incorporation fees
8Obtain the permanent incorporation certificate2 monthspaid as part of company incorporation fees
* 9Pay the stamp duties for the permanent incorporation certificate1 day, simultaneous with previous procedure200,000 Kyat
10Obtain a seal or a rubber stamp1 day2,000 Kyat
11Register for commercial tax1 dayno charge
* Takes place simultaneously with another procedure.
** 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.
Ref:worldbankgroup

Myanmar
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.
  • STANDARDIZED COMPANY

  • Legal Form: Limited Liability Company
  • Paid in Minimum Capital Requirement: MMK 50,000,000
  • City: Yangon
No.ProcedureTime to CompleteAssociated Costs
1Obtain 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 daysno charge
2Obtain 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 dayno charge
3Conduct 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 daypaid as part of company incorporation fees
* 4Request 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 procedure1,000 Kyat application fee
5Obtain 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 dayThe cost of witnessing the signature of the memorandum and articles of association: 40,000 Kyat.
6Payment of registration fees

Payment of registration fees occurs at the accounts department in the same DICA building. 
1 day1 million kyat (registration fees) + 15,000 kyat (administrative fees) + 1,000 kyat (stamp duty)
7Obtain 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 dayspaid as part of company incorporation fees
8Obtain 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 monthspaid as part of company incorporation fees
* 9Pay 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 procedure200,000 Kyat
10Obtain 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 day2,000 Kyat
11Register 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 dayno charge
* Takes place simultaneously with another procedure.

Ref:worldbank

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