{"id":1309,"date":"2019-05-06T07:39:09","date_gmt":"2019-05-06T07:39:09","guid":{"rendered":"http:\/\/kyhic.kinsta.cloud\/?page_id=1309"},"modified":"2019-08-05T03:01:07","modified_gmt":"2019-08-05T09:31:07","slug":"doing-business-in-kayah","status":"publish","type":"page","link":"https:\/\/kic.gov.mm\/en\/doing-business-in-kayah\/","title":{"rendered":"Doing Business In Kayah"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"vc_tta-container\" data-vc-action=\"collapse\"><div class=\"vc_general vc_tta vc_tta-tabs vc_tta-color-vista-blue vc_tta-style-modern vc_tta-shape-rounded vc_tta-spacing-1 vc_tta-o-no-fill vc_tta-tabs-position-left vc_tta-controls-align-left \"><div class=\"vc_tta-tabs-container\"><ul class=\"vc_tta-tabs-list\" role=\"tablist\"><li class=\"vc_tta-tab vc_active\" data-vc-tab role=\"presentation\"><a href=\"#1534431071199-0e149722-1e141557129380449\" data-vc-tabs data-vc-container=\".vc_tta\" role=\"tab\" aria-selected=\"false\" id=\"tab-1534431071199-0e149722-1e141557129380449\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Business Setup<\/span><\/a><\/li><li class=\"vc_tta-tab\" data-vc-tab role=\"presentation\"><a href=\"#1534431071219-04f324a5-84a21557129380449\" data-vc-tabs data-vc-container=\".vc_tta\" role=\"tab\" aria-selected=\"false\" id=\"tab-1534431071219-04f324a5-84a21557129380449\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Regulatory<\/span><\/a><\/li><li class=\"vc_tta-tab\" data-vc-tab role=\"presentation\"><a href=\"#1534431362217-935b954d-96451557129380449\" data-vc-tabs data-vc-container=\".vc_tta\" role=\"tab\" aria-selected=\"false\" id=\"tab-1534431362217-935b954d-96451557129380449\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Tax Regime<\/span><\/a><\/li><li class=\"vc_tta-tab\" data-vc-tab role=\"presentation\"><a href=\"#1534431393202-1f318c81-3ba11557129380449\" data-vc-tabs data-vc-container=\".vc_tta\" role=\"tab\" aria-selected=\"false\" id=\"tab-1534431393202-1f318c81-3ba11557129380449\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Human Resources<\/span><\/a><\/li><li class=\"vc_tta-tab\" data-vc-tab role=\"presentation\"><a href=\"#1534431418546-d57860c0-86131557129380449\" data-vc-tabs data-vc-container=\".vc_tta\" role=\"tab\" aria-selected=\"false\" id=\"tab-1534431418546-d57860c0-86131557129380449\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Operation Cost In Kayah<\/span><\/a><\/li><\/ul><\/div><div class=\"vc_tta-panels-container\"><div class=\"vc_tta-panels\"><div class=\"vc_tta-panel vc_active accent-border-color\" id=\"1534431071199-0e149722-1e141557129380449\" data-vc-content=\".vc_tta-panel-body\"><div class=\"vc_tta-panel-heading\"><h4 class=\"vc_tta-panel-title\"><a href=\"#1534431071199-0e149722-1e141557129380449\" data-vc-accordion data-vc-container=\".vc_tta-container\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Business Setup<\/span><\/a><\/h4><\/div><div class=\"vc_tta-panel-body\">\n\t<div class=\"wpb_text_column wpb_content_element \" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3 style=\"text-align: left;\"><strong>Business Setup<\/strong><\/h3>\n<h4><strong>General information<\/strong><\/h4>\n<p>Company incorporation is carried out by DICA in accordance with the provisions of The Myanmar Companies Law(2017) and investment proposal applications are subjected to MIC (DICA is MIC secretariat).<\/p>\n<p>DICA shall issue the certificate of company incorporation and then MIC\u2019s approval will subject to investment project.<\/p>\n<h4><strong>Type of companies and basic requirements<\/strong><\/h4>\n<p>There are several ways to conduct businesses in Myanmar, as outlined below:<\/p>\n<ul>\n<li>Company limited by shares (such as private and public companies)<\/li>\n<li>Company limited by guarantee<\/li>\n<li>Overseas corporations(Need to register in DICA if they carry out business within the Union)<\/li>\n<li>Business Associations<\/li>\n<li>Special Companies (incorporated with Special Companies Act-1950)<\/li>\n<\/ul>\n<p>In case of limited liability company, foreign ownership is allowed up to 35% in local companies.This is a significant liberalization measure as foreign investors can now own up to 35% of the equity in Myanmar owned companies (directly or indirectly) without changing the company\u2019s status to a \u201cforeign company\u201d.<\/p>\n<p>There are no restrictions on the transfer of shares in companies between local and foreign shareholders, but any change in a \u201cforeign company\u201d status of a company will need to be notified to DICA.<\/p>\n<p>The law allows companies with a\u00a0<strong>single shareholder and single director<\/strong>\u00a0to be established. It requires all companies established in Myanmar to appoint at least one director who is \u201cordinarily resident\u201d in Myanmar.\u00a0 A person will be considered to be ordinarily resident if they hold permanent residency or is resident in Myanmar for at least 183 days in each 12 month period.\u00a0 The period of residency will be calculated from the date of incorporation of a company (or the date of commencement of the new law for existing companies).<\/p>\n<p>Public companies must appoint at least 3 directors, and at least one of the directors must be a\u00a0<strong>Myanmar citizen<\/strong>\u00a0who is ordinarily resident in Myanmar.<\/p>\n<p><strong>No minimum capital requirements for the incorporation of company.<\/strong><\/p>\n<h4><strong>Required documents for registration<\/strong><\/h4>\n<p>New company registration is allowed in new electronic platform called\u00a0<strong><a href=\"https:\/\/www.myco.dica.gov.mm\/\" target=\"_blank\" rel=\"noopener noreferrer\">MyCo- Myanmar Companies Online<\/a>\u00a0<\/strong>with the commencement of the Myanmar Companies Law 2017.To provide a convenient and integrated service, \u201cMyCO\u201d will be launched on 1st August, 2018.<a href=\"https:\/\/www.myco.dica.gov.mm\/\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0<\/a>DICA-MyCO<a href=\"https:\/\/www.myco.dica.gov.mm\/\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0<\/a>is more efficient and requires minimal material documents.<\/p>\n<p>sources from DICA<\/p>\n<p><a href=\"https:\/\/dica.gov.mm\/en\/how-register-your-company%20\">https:\/\/dica.gov.mm\/en\/how-register-your-company%20<\/a><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><div class=\"vc_tta-panel accent-border-color\" id=\"1534431071219-04f324a5-84a21557129380449\" data-vc-content=\".vc_tta-panel-body\"><div class=\"vc_tta-panel-heading\"><h4 class=\"vc_tta-panel-title\"><a href=\"#1534431071219-04f324a5-84a21557129380449\" data-vc-accordion data-vc-container=\".vc_tta-container\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Regulatory<\/span><\/a><\/h4><\/div><div class=\"vc_tta-panel-body\">\n\t<div class=\"wpb_text_column wpb_content_element \" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3 style=\"text-align: left;\"><strong>Regulatory<\/strong><\/h3>\n<h4><strong>Myanmar Companies Law<\/strong><\/h4>\n<p>The President of the Union of Myanmar signed the Myanmar Companies Law (\u201cthe new company law\u201d) on 6 December 2017. This new law will replace the existing Companies Act that has been in use since 1914. The details of the implementation will be further announced via notifications, and expected to be in force in late-2018.<br \/>\nThe new law encompasses a wide range of regulations which provides new opportunities for local and foreign companies including shareholding authorities, reduction of share capital, and share transactions.<br \/>\nThe law streamlines company management and administration, strengthens governance and enforcement, and makes firms more competitive. It will make it easier for Myanmar public companies to attract new investment technology and expertise by permitting foreign investors to own shares.<br \/>\nThe new definition allows foreign investors to take a minority stake in companies incorporated in Myanmar to access business activities that were previously restricted to Myanmar nationals only and thereby indirectly helping to create foreign interest in companies listed on the Yangon Stock Exchange (YSX).<\/p>\n<h4><\/h4>\n<h4><strong>Myanmar Investment Law<\/strong><\/h4>\n<p>By combining the Myanmar Foreign Investment Law 2012 with the Myanmar Citizens Investment Law 2013, the new Myanmar Investment Law 2016 (\u201cMIL\u201d) came into effect in October 2016 to foster a transparent investment environment and fulfil the requirements for local and international investments.<br \/>\nFurther to the enactment of MIL, which lays down the legal framework and core principles of the investment regime, the more detailed Myanmar Investment Rules 2017 (\u201cRules\u201d) was announced on 31 March 2017 followed by the MIC Notification 13\/2017 on Classification of Promoted Sector on 1 April 2017.<br \/>\nThe Rules and Notifications provide further information about the types of promoted investments, investment assessment criteria and process, tax investment applications and land rights authorization applications.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><div class=\"vc_tta-panel accent-border-color\" id=\"1534431362217-935b954d-96451557129380449\" data-vc-content=\".vc_tta-panel-body\"><div class=\"vc_tta-panel-heading\"><h4 class=\"vc_tta-panel-title\"><a href=\"#1534431362217-935b954d-96451557129380449\" data-vc-accordion data-vc-container=\".vc_tta-container\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Tax Regime<\/span><\/a><\/h4><\/div><div class=\"vc_tta-panel-body\">\n\t<div class=\"wpb_text_column wpb_content_element \" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3 style=\"text-align: left;\"><strong>Tax Regime<\/strong><\/h3>\n<p>On the taxation front, the 2018 Myanmar Union Tax Law (an update of the 2017 Union Tax law) was approved on 20 March 2018 without a tax amnesty clause which is to be drafted separately<\/p>\n<h4><strong>Corporate Income Tax<\/strong><\/h4>\n<p>Companies formed and registered under the Myanmar Companies Act 1914 or the Special Company Act 1950, including businesses that have obtained the permit of MIC are subject to an income tax rate of 25%. Tax holidays are available to companies operating with the MIC permits. Companies listed on the YSX are taxed at 20%.<\/p>\n<h4><strong>Commercial Tax<\/strong><\/h4>\n<p>Commercial tax, at rates ranging from 0% to 8%, is levied as a turnover tax on goods and services. Generally, commercial tax is imposed at the rate of 5% on a wide range of specified goods and services produced or rendered within the country, and on imported goods. All products and services are subject to 5% commercial tax except for 86 products and 30 services that are specifically exempt from commercial tax. Commercial tax is zero-rated on all exports, except for electricity (8%) and crude oil (5%). Companies registered under the MIC\/SEZ may, at the discretion of the MIC\/SEZ Committee, be granted exemption from commercial tax during certain stipulated periods.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>Specific Goods Tax<\/strong><\/h4>\n<p>With effect from 1 April 2016, the Specific Goods Tax Law was introduced to replace commercial tax on a list of specific goods that are imported into Myanmar, manufactured in Myanmar, or exported to a foreign country. There are 17 specialist goods with tax rates from 5% to 80%. Under the Specific Goods Tax Law, only a manufacturer or exporter of specific goods can claim and offset the specific goods tax incurred on purchase of raw materials\/semi-finished goods against the specific goods tax charged on sale of specific goods. On top of specific goods tax, a commercial tax of 5% will also be imposed. Specific goods tax is exempt on all exports.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>Personal Income Tax for Foreigners<\/strong><\/h4>\n<p>Resident and non-resident foreigners\u2019 salaries are taxed at the same progressive rate of 0 to 25%, with the only restriction for non-resident foreigners being their ineligibility to claim tax reliefs. A foreigner staying in Myanmar for 183 days or more during an income year is considered a resident.<br \/>\nTax reliefs applicable to resident foreigners:<br \/>\n\u2022 Basic relief (20% of the total salary income), but limited to MMK 10,000,000 \u2022 Spouse relief of MMK 1,000,000 (limited to 1 spouse) \u2022 Child relief of MMK 500,000 (per child) \u2022 Premium paid for life insurance by the employee and his or her spouse \u2022 All contributions to social security funds<br \/>\nSpecial Economic Zones (SEZs) Tax Incentive<br \/>\nInvestments in the SEZ shall be applicable under the Myanmar Special Economic Zone Law 2014. Primary attractions of the SEZs include incentives such as a five to seven years corporate tax holiday depending on the zone, 50% relief on income tax for the second five years and investors can lease land up to 75 years, i.e. 50 years plus 25 years extension.<br \/>\nDouble Taxation Agreements<br \/>\nThe Income Tax Law (ITL) provides that if the government enters into an agreement with any foreign or international organisation relating to income tax, and if the agreement is notified, the terms of the said agreement will be followed notwithstanding anything to the contrary contained in any other provisions of the ITL<\/p>\n<p>Tax treaties have been concluded with India, Indonesia, Malaysia, Singapore, Republic of Korea, Thailand, United Kingdom, Vietnam, Laos and Bangladesh. The tax treaties with Indonesia and Bangladesh have yet to be ratified.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><div class=\"vc_tta-panel\" id=\"1534431393202-1f318c81-3ba11557129380449\" data-vc-content=\".vc_tta-panel-body\"><div class=\"vc_tta-panel-heading\"><h4 class=\"vc_tta-panel-title\"><a href=\"#1534431393202-1f318c81-3ba11557129380449\" data-vc-accordion data-vc-container=\".vc_tta-container\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Human Resources<\/span><\/a><\/h4><\/div><div class=\"vc_tta-panel-body\">\n\t<div class=\"wpb_text_column wpb_content_element \" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3><strong>Human Resource<\/strong><\/h3>\n<h4><strong>Labour Law\/ Employment act<\/strong><\/h4>\n<p>The existing Labour Laws in Myanmar include: Workmen\u2019s Compensation Act (1923), Factories Act (1951), Leave and Holidays Act (1951), Employment Restriction Act (1959), Labour Organization Law (2011), Settlement of Labour Dispute Law (2012), Social Security Law (2012), Employment and Skill Development Law (2013), Minimum Wages Law (2013), Payment of Wages Law (2016), Shops and Establishments Law (2016), Oilfields (Labour and Welfare) Act (951), Income Tax Law (1974) as amended by Union Tax Law 2016.<br \/>\nThese laws govern labour-related matters and deal with subjects such as holidays, working hours, leave of absence, wages, overtime, social welfare, woman and child labour, compensation and work rules.<br \/>\nWhen appointing personnel in an organisation formed under a permit or endorsement issued by the MIC, preference is given to citizens.<br \/>\nUnder the MIL, investors shall appoint only Myanmar citizens for unskilled labour. For the skilled citizen workers and technicians, the foreign investors must enter into an employment contract within 30 days of appointment in accordance with the Ministry of Labour, Employment and Social Security.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>Labour costs<\/strong><\/h4>\n<p>In March 2018, the government set a new daily minimum wage at MMK 4,800 per day for eight working hours per day which is applicable to enterprises across all sectors and industries but small businesses with less than 10 employees are excluded. The previous rate is MMK 3,600 set in 2015. Although there has been an increase, the minimum wage rate is still the lowest in Southeast Asia. According to the National Wages and Productivity Commission in Manila 2018, Myanmar\u2019s monthly minimum wages were estimated at around USD 80.28 per month which less than the monthly wage of USD 110.34 in Laos, USD 140 in Cambodia and USD 147.47 in Vietnam.2<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><div class=\"vc_tta-panel\" id=\"1534431418546-d57860c0-86131557129380449\" data-vc-content=\".vc_tta-panel-body\"><div class=\"vc_tta-panel-heading\"><h4 class=\"vc_tta-panel-title\"><a href=\"#1534431418546-d57860c0-86131557129380449\" data-vc-accordion data-vc-container=\".vc_tta-container\"><i class=\"vc_tta-icon fa fa-angle-double-right\"><\/i><span class=\"vc_tta-title-text\">Operation Cost In Kayah<\/span><\/a><\/h4><\/div><div class=\"vc_tta-panel-body\">\n\t<div class=\"wpb_text_column wpb_content_element \" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3><strong>Operation Cost In Kayah<\/strong><\/h3>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Business SetupRegulatoryTax RegimeHuman ResourcesOperation Cost In KayahBusiness Setup Business Setup General information Company incorporation is carried out by DICA in accordance with the provisions of The Myanmar Companies Law(2017) and investment proposal applications are subjected to MIC (DICA is MIC secretariat). DICA shall issue the certificate of company incorporation and then MIC\u2019s approval will subject&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/pages\/1309"}],"collection":[{"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/comments?post=1309"}],"version-history":[{"count":4,"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/pages\/1309\/revisions"}],"predecessor-version":[{"id":2090,"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/pages\/1309\/revisions\/2090"}],"wp:attachment":[{"href":"https:\/\/kic.gov.mm\/en\/wp-json\/wp\/v2\/media?parent=1309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}