Overview of Banking in Myanmar
The Central Bank of Myanmar, which assumed power upon the creation of the state of Burma, is responsible for overseeing and regulating the financial sector in Myanmar. The Union Bank of Burma was once known as the nation's banking industry, which has expanded significantly. With a nominal GDP of US$76.09 billion in 2019 and an estimated purchasing power adjusted GDP of US$327.629 billion in 2017, according to data from the World Bank, Myanmar's economy has grown quickly. According to the Central Bank of Myanmar Law, the Central Bank of Myanmar (CBM), together with four state-owned banks and 19 domestic commercial banks, was created in 1990.
Currency in Myanmar
The Myanmar Kyat (MMK), divisible into 100 pyas, is used as the country's official unit of exchange. In addition to notes for 50 pyas, MMK 1, MMK 5, MMK 10, MMK 20, MMK 50, MMK 100, MMK 200, MMK 500, MMK 1,000, MMK 5,000, and MMK 10,000, the Myanmar Kyat is also available in other denominations.
Additionally, coins in 1 MMK, 5 MMK, 10 MMK, 50 MMK, and 100 MMK are also in circulation. The US Dollar (USD) has been used in Myanmar as an alternative currency, mostly for large purchases and transactions at upscale shops and hotels. But it's crucial to remember that Myanmar is progressively ceasing to utilize the US dollar. In reality, the nation outlawed the use of the US dollar for domestic transactions in 2022.
Pros of opening a bank account in Myanmar
- Serves as evidence: A corporate account provides verifiable evidence that your company is a separate legal entity. It ensures that every company transaction is accurately recorded and makes it simple to follow financial operations.
- Protects company assets: Having a corporate account keeps your company's funds safe and will give a sense of confidence. By keeping personal and corporate finances separate, creditors are prevented from seizing money or committing fraud against your company.
- Make Authorized Representatives available: You have the freedom to designate authorized signatories who may manage financial transactions on the company's behalf after your business account is set up. As a result, you may assign tasks to others and concentrate on other essential company operations.
- Encourage solid banking relationships and streamline the loan application process: Having a business account facilitates developing solid connections with banks and other financial organizations; when looking for loans or other forms of finance for upcoming business development, this may be advantageous. The approval of loans is streamlined, and the possibility of getting money is increased with a good banking connection.
- Improve Your Business's Image: The auditing procedure is made more accessible by maintaining a bank account since it gives precise and well-organized records of financial activities. This ultimately helps to produce a favourable audit report and improves your company's reputation. A bank account also promotes confidence in the government and draws potential investors, opening doors for company expansion and capital investment.
How to choose the right bank?
- Selecting the Correct Bank: When opening a bank account in Myanmar, choosing the appropriate bank is a crucial choice. To make sure that the chosen bank fulfils your unique demands and provides the needed services.
- Comparing bank offerings and services: It's critical to contrast the services and products offered by several banks before selecting one. Think about things like the different bank account options, interest rates provided, account fees, and charges.
- Branch Network and Accessibility: Take into account the bank's branch network and its accessibility from your home or place of employment. You can access banking services, make deposits or withdrawals, and get support when you need it more easily if your bank has a large branch network.
- Customer Support and Service: A key component of banking is customer service. Your banking experience may be improved and made more convenient by a bank that offers exceptional customer care and assistance. Take into account elements like having a dedicated customer care hotline available, being attentive to questions or problems, and the bank's general reputation for client satisfaction
Important Documents to Open a Bank Account in Myanmar
- Company registration Certificate
- Valid Passport or VISA
- Application form to open the bank account
- Certificate of Incorporation
- Memorandum of Association and Article of Association
- Initial deposit of USD /EUR/SGD 100 (may vary from bank to bank)
- Tax Identification Number
- List of shareholders
- Import/Export registration (copy)
Procedure to Open a Bank Account in Myanmar
- Select a bank:To choose which bank in Myanmar best meets your company's needs, some research is evitable. Think about elements like prices, client attention, and specialized services.
- Obtain the Required Documents: The documentation requirements for various banks may vary, but you should typically put together the essential required documents. As we covered previously, make sure you have the required documentation.
- Fill out the form completely: Complete the bank account application form by precisely entering all the necessary data and by carefully reading the terms and conditions.
- Deposit Money: Depending on the bank and the nature of your company activity, many banks have a minimum initial deposit requirement for opening a bank account. Before making the deposit, ask your preferred bank about the precise conditions for deposits.
- Submit the Required Documents: The Incorporation certificate, the Articles of Association, the personal identity documents, the bank references, the company strategy, and an organizational chart outlining the structure and ultimate beneficial owners should all be submitted.
- Access Your Bank Account: After the bank accepts the establishment of your account, you can access your account. You can conduct standard banking functions, such as making transactions, checking balances, and reviewing transaction history.
How will Enterslice Help You?
- Enterslice can help with this procedure by offering insightful advice and direction. They can help you better understanding the various bank options.
- Enterslice can also assist you in selecting the kind of bank that best fits your needs by examining your unique requirements, financial objectives, and preferences.
- Our team of experts can help you fill out the application and ensure that all the required information is provided accurately.
- Enterslice can also assist you with gathering the necessary supporting documentation.
- Enterslice can make this procedure simpler for you. To ensure that you fully comprehend the process of opening a bank account, by providing comprehensive instructions.