Sole Proprietorship Registration in Myanmar

Sole Proprietorship in Myanmar

Myanmar comprises a robust economy with an estimated population of approximately 55 million people. The largest metropolis is the Yangon, which is now known as the commercial and intellectual hub. With the growing economic liberalization, Myanmar has its horizon expanded to the global market to gain popularity.

The new Companies Law 2017 of Myanmar will allow foreign investors to trade in the country. Also, despite being the fastest–growing economies in Southeast Asia, they will need to be presented appropriately in the global market. If one wants to set up a retail, beverage, food, or fashion nosiness, then there will be no minimum cap needed for foreign ownership.

A sole proprietorship in Myanmar is a form of entity that is commonly adopted for small businesses in Myanmar. There are few formal regulations in this entity where a sole proprietorship business structure will need only one owner, and their liability will be unlimited towards the liabilities and debts of the business. No minimum capital requirements are there in Myanmar.

Benefits of Sole Proprietorship registration in Myanmar

As it gradually opens to global markets, Myanmar will provide many advantages to sole proprietors. Some of the advantages are mentioned below to help you understand sole proprietorship in Myanmar before doing sole proprietorship registration in Myanmar:

1. Agreement for Double taxation

Myanmar has gotten into some double taxation avoidance treaties that will allow traders to conduct business seamlessly between India, Laos, Indonesia, Malaysia, and Bangladesh. These treaties will help you reduce production and manufacturing costs, which makes Myanmar a viable place for setting up business.

2. Location

One of the greatest business and international trade locations is Myanmar. It connects Bangladesh and India and also provides the gateway to Laos, China, and Thailand. Myanmar, being the largest country in Southeast Asia, added a perk in conducting international trade.

3. Special Economic zones (SEZ)

Foreign companies get huge benefits from the sole proprietorship registration in Myanmar underneath SEZ provisions. The advantages, like the tax holidays, custom exemptions, and machinery importing needed for industrial use, are covered under the SEZ, which would induce foreign and local beings to establish businesses. After the establishment of a SEZ zone business, the government gives extra profits for the removal of any burdensome rules for company formation in Myanmar.

Eligibility for sole proprietorship registration in Myanmar

In Myanmar, business registration is comparatively easy because of the huge number of national resources; foreign investors can set up their businesses easily there. They can also get profits like SEZ, tax holidays for short periods, etc. The eligibility criteria that one has to follow to be eligible for a sole proprietorship registration in Myanmar are as follows:

1. Foreign Nationals

For starting a sole proprietorship registration in Myanmar foreign nationals are eligible. However, they will have to acquire an office that is registered in Myanmar for their business operating there. They need to show proof of their Myanmar residence to acquire a business permit in Myanmar.

2. Capital Requirements

There will be no requirement for the minimum capital required to establish a sole proprietorship in Myanmar. Also, the government infrastructures have to set an independent limit for minimum capital that depends upon the nature of the business.

3. Registered office

In Myanmar, the proprietor should register with an address that proves the business correspondence. It is one of the compulsory needs to set up a sole proprietorship in Myanmar. The company can rent or lease the office for particular years. Foreign companies will also be eligible to lease the premises after acquiring authorization from the government.

Other requirements for Sole Proprietorship registration in Myanmar

There are some other requirements that one should abide by for Sole proprietorship registration in Myanmar, which are mentioned as follows:

1. Sole proprietors should not, particularly with the company registration bureau, register themselves
2. A sole proprietorship business can start without getting a permit from the commission.
3. One should obtain a permit for trading locally as well as international
4. The company should pay for the obedient corporate tax
5. Every company should be responsible for carrying out within the first 18 months an annual general meeting of company formation.
6. The company should carry out the Directorate of Investment and Company (DICA) registration, regardless of the company type
7. There must be a comprehensive explanation of the principal activities of the business

Documents for Sole proprietorship registration in Myanmar

The documents that are needed according to the sole proprietorship registration in Myanmar laws for setting up a business are:

1. Company’s name
2. Company registration certificates
3. Business Primary activities
4. Declaration done in Compliance with the Companies Act 2017 of Myanmar
5. A business correspondence address in Myanmar
6. The company director's name
7. Land rights authorization
8. Layout plan
9. Annual service and investment plans
10. The bank statement of the company
11. Recruitment details of employee
12. Minimum capital pays
13. Production plan
14. Land lease agreements

Step for Sole Proprietorship Registration in Myanmar

Doing sole proprietorship registration in Myanmar is a process where you will need to follow some particular steps for the registration of your company, which is conferring to the sole proprietorship law in Myanmar, which are mentioned as follows:

Step 1- Name check

For Sole Proprietorship registration in Myanmar, the foreign company should check whether the proprietor's name is appropriate and available for registration. The name check should then be submitted to the entrepreneur to the Directorate of Investment and Company (DICA), which is in charge of the company registrations for local and foreign businesses under the Company Law 2017 in Myanmar.

Step 2- Appointment of Director

For the sole proprietorship registration in Myanmar, it will not be much hassle and will be necessary to appoint the director. The entrepreneurs themselves are the directors. The directors can also be foreign nationals.

Step 3- Register and abide by MIC

For the sole proprietorship registration in Myanmar, the entrepreneur should submit a project proposal to the Myanmar Investment Commission (MIC) to receive the Foreign Investment permit. The Myanmar Investment Commission (MIC) would further connect the acceptance or refusal of the project suggestion within 15 days. Once your proposal is accepted, the commission will review it. The organization will then provide the acknowledgement, which will be done in 90 days.

The assessed aspects will be as follows:

• Check whether the foreign investment laws are compatible with the proposal.
• The financial feasibility of the proposal is projected
• The company must obey Myanmar laws and be suitable and financially sound.

The Directorate of Investment and Company (DICA) also acclaims that the sole proprietors secure the land tenancy before the submission of their project proposal. The language which is used should be in a form that should be in English.

Step 4- Registration of DICA

This is the most important step for a sole proprietorship in Myanmar to register with the Directorate of Investment and Company (DICA). Foreign businesspersons should register with the Directorate of Investment and Company (DICA) to operate workably in Myanmar. A person can submit their MIC and DICA registration forms for approval together, even if the content of the form can be different.

Once the Directorate of Investment and Company (DICA) favours the registration form then they will issue the temporary warrant. This will then permit them to office confirm in Myanmar. Therefore, be eligible for obtaining as the permit to trade as the registration certificate.

The applicant should also submit a transfer of proof of the lowest capital in a bank account registered in Myanmar. They should also make submission of the signed letter of conditions for getting a permanent registration certificate with the permit to trade.

Step 5- Obtain a license with Compliance

The last step for a sole proprietorship in Myanmar is to acquire a license that complies with Myanmar business laws. After they have obtained both the Directorate of Investment and Company (DICA) and Myanmar Investment Commission (MIC) permits then they will be liable for conducting commercial activities in Myanmar.

Start your Sole Proprietorship Registration in Myanmar with Enterslice

Enterslice is a leading consultancy firm that offers you comprehensive assistance with sole proprietorship registration in Myanmar ensuring a seamless and legally compliant procedure for entrepreneurs. Our teams will guide you in the registration process, in opening a bank account, and in post-registration Compliance.

Our consultants at Enterslice will formulate a strategic plan for the establishment and operation of the business depending on your business needs. We will formulate a budget and develop the cash flows of your business. We provide services to review internal control processes and conduct business reviews. We also provide advisory for the issues which are related to business management.

Our experts in the legal department will provide you with legal advice on the operation of a business, finances, IP protection, etc. Enterslice will draft the necessary legal papers for your business and complete the required paperwork. We will make sure that all the legal and regulatory compliances are made. Enterslice will provide advice on tax-related compliances and provide advisory on tax policies. We provide assistance in the calculation and filling of the taxes. Our tax experts form plans for the reduction of potential tax liabilities. Enterslice offers you tailor-made solutions that are suited to your needs.

By choosing Enterslice, entrepreneurs can streamline their registration process, gain a clear understanding of their legal obligations, and focus on growing their businesses with confidence in Myanmar's dynamic market.