INVESTMENT

Myanmar is committed to providing a secure, accessible and conducive investment environment for both foreign business people and Myanmar citizens.

The Myanmar Investment Law, enacted in 2016, vastly simplified the process for investment applications and offers a number of tax breaks, incentives, guarantees, rights and protections for business ventures. The Myanmar Investment Commission (MIC) is a government-appointed body formed under the Myanmar Investment Law, with functions including:

Acting as Myanmar’s investment promotion agency
Facilitating investment
Providing investment policy advice
Reviewing incentives
Encouraging responsible business
Facilitating an investment grievance mechanism

INVESTMENTS REQUIRING A MIC PERMIT

Investors are required to submit a proposal to the MIC, if the investments are:

Essential to the national strategy
Large and capital-intensive projects
Likely to cause a large impact on the environment and the local community
Using state-owned land and buildings
Designated by the Government to require the submission of a proposal to the MIC

INVESTMENT ACTIVITIES WHICH ARE STRATEGIC FOR THE STATE

Information, communication, medical, bio or similar technologies, logistics/energy infrastructure, urban development, new cities, natural resources, media etc. (investment value exceeding US$20 million)
Cooperation with a government organisation (investment value exceeding US$20 million)
Investment made in a border region or conflict affected area
Investment made across the national border
Investment made across states and regions
Occupying or using more than 1,000 acres of land for agricultural related purposes
Occupying or using more than 100 acres of land for non-agricultural related purposes

PROMOTED SECTORS

Agriculture and its related services (except cultivation and production of tobacco and virginia)
Plantations and conservation of forests, and other businesses with forests
Livestock production, breeding and production of fishery products, and related services
Manufacturing (except manufacturing of cigarettes, liquor, beer, and other harmful products to health)
Establishment of industrial zones
Establishment of new urban areas
City development activities
Construction of roads, bridges and railway lines
Construction of seaports, river ports and dry ports
Management, operation and maintenance of airports
Maintenance of aircrafts
Supply and transport services
Power generation, transmission and distribution
Production of renewable energy
Telecommunication businesses
Education services
Health services
Information technology services
Hotels and tourism
Science research development business

RESTRICTED INVESTMENT ACTIVITIES

Allowed to be carried out only by the Union	Security and defence , arms and ammunition, national postage stamps, air traffic services, pilotage services, natural forest and forest area, radioactive metals, control of electric power system and inspection of electrical business
Not allowed for foreign investors	Publishing and distribution of periodicals in ethnic languages, fresh water fisheries, establishment of quarantine station for export and import of animals, pet care services, forest products, prospecting, exploration, feasibility study and production of mineral for small and medium scale, tour-guide service, mini-market, convenient store
Allowed for JV	Research activities related with fishery, manufacturing and domestic distribution of all kind of confectionary including those of sweet, cocoa and chocolate, development, sale and lease of residential apartments and condominiums, local tour services
To be carried out with the approval of the relevant Ministry	Publishing of periodical newspaper in foreign languages, cable TV, laboratory services for the animal diseases diagnosis, aircraft repair and maintenance, wood-based industries, private hospital services, 100 acres and above urban development projects

TYPES OF INVESTMENT

100% INVESTMENT	JOINT VENTURE (JV)	CONTRACT	OTHER INVESTMENT FORMS
Foreign investors may invest without any local partners in permitted sectors	Joint ventures may be created with foreign, local and government entities	Foreign investors may act under a mutually-agreed upon contract	These include build operate-transfer (BOT) and build-operate-own (BOO) investments

GUARANTEES

According to Section 52 (Chapter XIV) of the Myanmar Investment Law, there will be no expropriation of investments – except under the following conditions:

It is necessary for the public interest
It occurs in a non-discriminatory manner
It is in accordance with due process of law
On payment of prompt, fair and adequate compensation

On the other side, investors have certain obligations – including incorporating and operating under existing laws of the Republic of the Union of Myanmar. Others concern land use, leasing and mortgaging, environment protections, sale or transfer of assets and other aspects of the process.

INVESTMENT SCREENING APPLICATIONS AND GUIDANCE ISSUANCE

HOW TO APPLY FOR AN INVESTMENT PERMIT

HOW TO APPLY FOR AN MIC ENDORSEMENT

TAX INCENTIVE APPLICATION ASSESSMENT PROCEDURE

INVESTORS HAVE A DUTY TO…

Respect and comply with the customs, traditions and traditional culture of the ethnic groups in the Union
Establish and register a company or sole proprietorship or legal entities or branches of such entities under the laws in order to invest
Abide by the terms and conditions, stipulations of special licenses, permits, and business operation certificates issued to them, including the rules, notifications, orders, and directives and procedures issued by this Law and the applicable laws, terms and conditions of contract and tax obligations;
Carry out in accordance with the stipulations of the relevant department if it is, by the nature of business or by other need, required to obtain any license or permit from the relevant Union Ministries government departments and governmental organizations, or to carry out registration
Immediately inform the Commission if it is found that natural mineral resources or antique objects and treasure trove not related to the investment permitted above and under the land on which the investor is entitled to lease or use and not included in the original contracts. If the Commission allows, the investor shall continue to carry out the investment in such land, and if not allowed, the investor shall transfer and carry out, by obtaining the permission, at the substituted place which is selected and submitted by him
Not make any significant alteration of topography or elevation of the land on which he is entitled to lease or to use, without the approval of the Commission
Abide by the applicable laws, rules, procedures and best standards practiced internationally for this investment so as not to cause damage, pollution, and loss to the natural and social environment and not to cause damage to cultural heritage
List and keep proper records in books of accounting and annual financial statements, and necessary financial matters relating to the investments performed by a Permit or an Endorsement in accordance with internationally and locally recognised accounting standards
Close and discontinue the investment only after payment of compensation to employees in accordance with applicable laws for any breach of employment contracts, closure of investment, sale and transfer of investment, discontinuation of investment, or reduction of workforce
Pay wages and salaries to employees in accordance with applicable laws, rules, procedures, directives and so forth during the period of suspension of investment for a credible reason
Pay compensation and indemnification in accordance with applicable laws to the relevant employee or his successor for injury, disability, disease and death due to the work
Supervise foreign experts, supervisors and their families, who employ in its investment, to abide by the applicable laws, rules, orders and directives, and the culture and traditions of Myanmar
Respect and comply with the labour laws
Have the right to sue and to be sued in accordance with the law
Pay effective compensation for loss incurred to the victim, if there is damage to the natural environment and socioeconomic losses caused by logging or extraction of natural resources which are not related to the scope of the permissible investment, except from carrying out the activities required to conduct investment in a Permit or an Endorsement
Allow the Commission to inspect in any places, when the Commission informs the prior notice to inspect the investment
Take in advance a Permit or an Endorsement of the Commission for the investments which need to obtain prior approval under the Environmental Conservation Law and the procedures of environmental impact assessment, before undertaking the assessment. Such investments shall be submitted the situation of environmental and social impact assessment to the Commission during the permitted investment period