The Union Government of the Republic of the Union of Myanmar recognizes that the private sector should be the prime mover in developing the economy. Put simply: Myanmar is open for business and now is the time to consider the rich opportunities that the country offers. Myanmar has created a modern and accessible environment in which to do business by sweeping away a 100-year old Companies Act and replacing the restrictive investment laws of the past.

Taken together, the new Myanmar Investment Law (MIL) and the new Myanmar Companies Law are the regulatory foundation that engenders confidence in Myanmar as a place in which to invest. Investment, in turn, will generate the sustainable development, jobs and economic growth that Myanmar has not been able to deliver for decades.

The new MIL creates a business-friendly environment for foreign and domestic investors by simplifying procedures and making it easier to invest in Myanmar. Key elements of the MIL include:

• Most investment proposals no longer need to be screened or approved by the Myanmar Investment Commission,
• Tax ‘holidays’ of up to seven years are available for promoted sectors in certain geographic areas, and
• Funds can be transferred overseas by foreign and domestic investors.

The new Companies Law, which was enacted in December, 2017 that offers world-best practice corporate regulation. Key elements of the Companies Law include: 

• Foreign investors will be able to own up to 35% of a Myanmar company before it is considered a foreign company,
• The replacement of the inflexible Articles of Association and Memorandum of Association with a corporate Constitution,
• A company must have at least one resident director but that director 2 does not need to be a Myanmar citizen, and
• New protections for minority shareholders.

The 2015 election ushered in a new democratic government intent on reform. A 12-point economic policy was published and the formulation of a new ‘business-friendly’ environment commenced with the passage by Parliament of the new Myanmar Investment Law and Rules and the new Companies Law in 2016 and 2017.

The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to Myanmar’s economic growth and future prosperity. The Union Government of Myanmar is offering taxation incentives to encourage investment in particular industries, including agriculture, manufacturing, services and tourism, and in particular regional areas where new business activity and job creation are vital.

Although Myanmar’s economy is still developing, Foreign Direct Investment (FDI), after substantial growth from US$ 1.4 billion in 2012-13 to a peak of US$9.4 billion in 2015- 16, dropped to US$6.6 billion in 2016-17. The new regulatory regime aims to restore the growth trajectory of FDI in Myanmar. Myanmar is a member of the ASEAN Economic Community (AEC), which commenced operations at the end of 2015. AEC aims to strengthen regional cooperation and increase regional trade. AEC will provide Myanmar with the opportunity to establish itself as a vital trade hub and production base between ASEAN, China and India.