Investment in Myanmar - Bangkok Bank · Investment in Myanmar: What You Need to Know ......
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LS HORIZON (MYANMAR) LIMITED No. 94, Union Business Centre (UBC), Suite No. 05-01, 5th Floor, Nat Mauk Rd., Bo Cho Quarter, Bahan Township, Yangon 11201, Myanmar Tel/Fax: (+95) 1 860 3436 Investment in Myanmar: What You Need to Know Date: 18 July 2014 Venue: Chatrium hotel, Yangon, Myanmar LS HORIZON LIMITED 14th Floor, GPF Witthayu Tower A 93/1 Wireless Road, Lumpini, Phatumwan, Bangkok 10330, Thailand Tel: (+66) 2 627 3443 website: www.lshorizon.com Presentation for email: [email protected]
Transcript of Investment in Myanmar - Bangkok Bank · Investment in Myanmar: What You Need to Know ......
LS HORIZON (MYANMAR) LIMITED No. 94, Union Business Centre (UBC), Suite No. 05-01, 5th Floor, Nat Mauk Rd., Bo Cho Quarter, Bahan Township, Yangon 11201, Myanmar Tel/Fax: (+95) 1 860 3436
Investment in Myanmar: What You Need to Know
Date: 18 July 2014 Venue: Chatrium hotel, Yangon, Myanmar
LS HORIZON LIMITED 14th Floor, GPF Witthayu Tower A 93/1 Wireless Road, Lumpini, Phatumwan, Bangkok 10330, Thailand Tel: (+66) 2 627 3443
website: www.lshorizon.com
Presentation for
email: [email protected]
Introduction to LS Horizon
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LS Horizon is a Regional Law Firm
LS Horizon Limited
LS Horizon (Lao) Limited
LS Horizon (Myanmar) Limited
LSH Law Corporation (Singapore Associated Office)
Japanese Desk
Malaysian Desk
Korean Desk
Cambodian Desk
Indian Desk
Cooperated Offices
Jakarta Office
Hanoi Office
Ho Chi Minh Office
1. Know Conditions of Your Investment
2. Know the Investment Structure
3. Know the Corporate Partner
4. Know Your Competition
5. Know How to Comply with Myanmar Law
6. Know a Suitable Location
7. Know the Right Counsels
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Outline
1. Know Conditions of Your Investment
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100% Foreign Owned Investment is allowed.
Joint Venture with local partner is required.
Foreign Investment is not allowed (by laws/rules)
Joint Venture with state is required.
- Garment Factory - Film Studio - Hotel ranked 3 stars or over
- Production and marketing of rare earths, strategic mineral, radioactive mineral, coal - Production and marketing of explosive chemicals and flammable liquid
- Factory utilizing imported wastes - Small/medium scale production of mineral - Management of Natural Forest - Trading (in practice)
- Production and distribution of hybrid seeds - Manufacturing of purified drinking water - Large scale production of minerals - Building and lease of apartments / office - Airline Transportation / Tourism Business - Warehouse / Packaging / Hospital
1. Know Conditions of Your Investment
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Overseas Parent Company
Subsidiary Company in Myanmar
A. Countries Having Mutual Investment Guarantee Treaty/Bilateral Investment Treaty with Myanmar
China, India, Kuwait, Laos, Philippines, South Korea, Thailand and Vietnam B. Countries Having Double Taxation Agreement with
Myanmar India, Indonesia, Laos, Malaysia, Singapore, South Korea, Thailand, United Kingdom and Vietnam (Bangladesh and Indonesia – Not yet implemented) C. Countries Having Other Beneficial International
Agreement which Myanmar is also a member or party
2. Know the Investment Structure
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• Personal Investment • Partnership • Company • Branch Office • Representative Office - representative office under specific laws e.g. Financial Institution Law - branch office with limited capability
Permit under Section 27A Myanmar Companies Act is required (a.k.a. Permit to Trade)
2. Know the Investment Structure (Cont.)
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Company Branch Office Representative Office
Separation of Entity
from Investors
Yes No No
Number of Required
Investors
At least 2 1 Parent Company 1 Parent Company
Status under
Myanmar Companies
Act
Foreign Foreign Foreign
Requirement of
Permit to Trade
Yes Yes Yes
Requirement of
Minimum Foreign
Capital to be Brought
In
Yes Yes Yes
Corporate Income Tax 25% 35% -
Tax Residency Resident Non-resident Non-resident
2. Know the Investment Structure (Cont.)
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Investment under Myanmar Companies Act Only
Investment under Foreign Investment Law
Investment under Special Economic Zones Law
- Normal Mode of Investment - Location is not limited - No privileges
- Certain Businesses are supported - Location is not limited but subject to the discretion of the MIC (Myanmar Investment Commission) - Privileges are available
- Certain Businesses are supported - Location is limited to only SEZs (Special Economic Zones) - Privileges are available
3. Know the Corporate Partner
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Partner
A. Trustworthiness, Reputation and Experience B. Necessity of Good Joint Venture Agreement C. In case of dependence on your partner - Proper documentation - Due diligence D. In case that American elements involves Beware of restrictions of USA - Specially Designated Nationals List (SDNs List) - Application through US Treasury Department’s Office of Foreign Asset Control’s (OFAC)
Partner
4. Know Your Competition
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A. Myanmar is yet to enact generic competition law.
B. Some businesses are reserved for state-owned economic enterprises or their joint venture or granted with limited numbers of licenses.
C. Your competitors may evade taxes to be priced e.g. customs and commercial tax. tax liability may be claimed by the Government within 60 years
D. Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is a good source for market research. Investor may consider application for membership of the UMFCCI.
5. Know How to Comply with Myanmar Law
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Taxes
Labour
Myanmar Standard
Consumer Protection
Permits and Licenses
Account and Audit
Corporate Documentation and Filing
Annual General Meeting
Environment and Social Impact Management
newly enacted laws
Monitoring for New Laws
6. Know a Suitable Location
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A. Land is crucial for application under Foreign Investment Law.
B. Lands in Myanmar is quite highly priced. Careful selection of a plot of land for your investment is recommended.
C. Your partner may contribute the rights under long-term lease over that land. Beware of overpricing. D. All foreigners/foreign companies cannot acquire immovable property in Myanmar including land and building. Only long-term lease over such immovable property is allowed under Foreign Investment Law 2013 / Special Economic zones Law 2014.
Types of Investment Maximum Period to Lease Land
Normal Company 1 year
Company under Foreign Investment Law
50 + 10 + 10 years
Company under Special Economic Zones Law
50 + 30 years
6. Know a Suitable Location (cont.)
7. Know the Right Counsels
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LS Horizon (Myanmar) Limited 271, KBZ Bank-Bahan Branch Building, 6th Floor, Shwegondine Road, Bahan Township, Yangon Tel. +95 (1) 860 3172, Fax: +95 (1) 860 3171 Email: [email protected]
Thailand Head Office LS Horizon Limited GPF Witthayu Tower A , 14th Floor, 93/1 Wireless Road, Lumpini, Phatumwan, Bangkok, Thailand 10330 Tel: (+66) 2 627 3443
Lao PDR Office LS Horizon (Lao) Limited Simuong Commercial Center, Unit 4/1.1, 4th Floor, Fa Nguam Road, PhiaVat Village, Sisatanak District, Vientiane Tel: +856 (21) 217 762, +856 (21) 217 768
Singapore Office LSH Law Corporation 112 Robinson Road #07-01 Robinson 112 Republic of Singapore 068902 Tel: (+65) 6223 2998
Thank you.
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LS Horizon (Myanmar) Limited 271, KBZ Bank-Bahan Branch Building, 6th Floor, Shwegondine Road, Bahan Township, Yangon Tel. +95 (1) 860 3172, Fax: +95 (1) 860 3171 Email: [email protected]
Thailand Head Office LS Horizon Limited GPF Witthayu Tower A , 14th Floor, 93/1 Wireless Road, Lumpini, Phatumwan, Bangkok, Thailand 10330 Tel: (+66) 2 627 3443
Lao PDR Office LS Horizon (Lao) Limited Simuong Commercial Center, Unit 4/1.1, 4th Floor, Fa Nguam Road, PhiaVat Village, Sisatanak District, Vientiane Tel: +856 (21) 217 762, +856 (21) 217 768
Singapore Office LSH Law Corporation 112 Robinson Road #07-01 Robinson 112 Republic of Singapore 068902 Tel: (+65) 6223 2998
