Myanmar

Expand Business in Myanmar

Global Upside helps businesses expand into Myanmar by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with the laws and regulations of Myanmar.

The hiring and incorporation processes in Myanmar are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Myanmar. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Naypyidaw

Currency

Burmese Kyat (K)

Language

Burmese

Government

Parliamentary System

Country Overview

Located in Southeast Asia, Myanmar is essentially an agricultural economy. The nation has abundant natural resources, including gas and oil, gold, silver, and precious stones.

  • Myanmar primarily exports timber, natural gas, rice, vegetables, fish, and clothes.
  • The main imports of Myanmar are non-electric machinery and transport equipment.
  • Myanmar is the world’s largest producer of jade, a precious green gemstone.

Options for setting up a legal entity in Myanmar include:

Limited Liability Company (LLC)

A limited liability company (LLC) is a form of an entity set up that requires a minimum of 2 investors and the liability of the investors is limited to their shared contribution.

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Joint Venture Company

A joint venture company is a business entity set up that is formed by a foreign company with a local company.

Public Limited Company

A public limited company is a business entity set up needs a minimum of 7 investors. The requirements are the same as a limited liability company.

Branch Office

Foreign companies that want to start an establishment in Myanmar can open a branch office.

Representative Office

A representative office is a form of an entity set up that cannot engage in any activities which involve commercial activities and income generation. It can only engage in market research and promotional activities.

It takes a minimum of twelve to fourteen weeks to establish a legal entity set up in Myanmar.

A written employment contract, between an employer and employee, within 30 days of employment is mandatory. Generally, the employer must use the standard employment agreement published by the Government.

The terms that need to be stipulated in the employment contract of Myanmar are:

  • Type of employment
  • Job location
  • Probation period
  • Remuneration and benefits
  • Term of contract
  • Working hours and overtime
  • Holidays and leaves
  • Meals during working hours
  • Accommodation and uniform
  • Medical treatment
  • Arrangement for transportation and traveling
  • Regulations to be followed by the employees
  • Training courses
  • Responsibilities of the employer and employee
  • Terminating and making a new employment contract with mutual consent between the parties
  • Dispute resolution
  • Amending and supplementing terms and conditions of the contract
  • Obligations of the employer and employee
  • Any additional provisions
  • Termination clauses and resignation

The public holidays in Myanmar are:

  • Jan. 1: International New Year
  • Jan. 4: Independence Day
  • Jan. 13: Kayin New Year Day
  • Feb. 12: Union Day
  • Mar. 2: Peasant’s Day
  • Mar. 26-27: Full Moon Day of Tabaung
  • Mar. 27-29: Armed Forces Day
  • Apr. 13-19: Thingyan Festival
  • May 01: World Worker’s Day
  • May 25: Full Moon Day of Kasone
  • July 19: Martyr’s Day
  • July 23: Full Moon Day of Waso (Beginning of Buddhist Lent)
  • Oct. 19-21: Full Moon Day of Thadingyut (End of Buddhist Lent)
  • Nov. 17-18: Full Moon Day of Tazaungmone
  • Nov. 28-29: National Day
  • Dec. 24-25: Christmas Day
  • Dec. 31: New Year Eve Day

The payroll frequency, in Myanmar, is monthly.

Financial statements must be prepared per the Myanmar Financial Reporting Standards (MFRS), which are identical to the 2010 versions of IFRS Standards.

Corporate Tax

The corporate tax rate in Myanmar is 25%.

Value Added Tax (VAT)

There is no VAT in Myanmar.

Currently, there are no specific laws related to data protection in Myanmar.

Provisions for the protection of privacy and security of communications are set out in the:

  • “Constitution of the Republic of the Union of Myanmar 2008 (‘the Constitution’)”
  • “Law Protecting the Privacy and Security of Citizens (Union Parliament Law 5/2017) 8 March 2017 (‘the Privacy Law’)”

Anti-Bribery & Anti-Corruption Law

The Anti-Corruption Law 2013 and the Myanmar Penal Code (Chapters IX and XIA) regulate the bribery of public officials.

1. Bribery of Public Officials

For Individuals:

i) Imprisonment for 3 to 15 years

ii) Monetary fine

For Businesses:

According to the Myanmar Penal Code, there are no separate legal consequences for legal entities. The penalties are the same for legal entities and individuals.

2. Bribery of Private Officials

For Individuals:

i) Imprisonment for 7 to 10 years

ii) Monetary fine

For Businesses:

According to the Myanmar Penal Code, there are no separate legal consequences for legal entities. The penalties are the same for legal entities and individuals.