KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ......

22
Foreign Investment Law and Investment Procedures in Myanmar July 12, 2013 KPMG in Myanmar

Transcript of KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ......

Page 1: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

Foreign Investment Law and

Investment Procedures in Myanmar

July 12, 2013

KPMG in Myanmar

Page 2: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

Ⅰ New Foreign Investment Law

and Its Guidelines

Page 3: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

2 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

1. Revision of Myanmar Foreign Investment Law

2011

• The government announced to make revisions in the foreign investment law (FIL) which

was originally issued in 1988。

August, 2012

• The amended bill (New FIL) was approved by the House of Representatives (the lower

house of the Assembly of the Union)

September,2012

•The new FIL was approved by the Assembly of the Union and sent to the president.

•President Thein Sein returned the proposed law back to the Assembly of the Union with 16

further amendments.

November, 2012

•After a careful deliberation of the Assembly of the Union and after the president signed the

proposal, the new FIL was made effective on the 2nd of November, 2012.

January, 2013

•The Ministry of National Planning and Economic Development (MPED) and Myanmar

Investment Commission (MIC) issued detailed regulations of the new FIL. (Notification of

MPDE No.11/2013 and Notification of MIC No.1/2013 )

Page 4: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

3 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

2. Comparison of FIL - Old and New

The major changes in the New Foreign Investment Law are summarized below ;

Old FIL New FIL

(1) Timeframe of MIC

approval

Not mentioned • MIC shall notify their acceptance of the

application documents within 15 days from the

submission.

• Within 90 days from their acceptance , MIC shall

conclude their review.

(2) Term for land lease Land lease can be done only from

the government.

Lease term was not mentioned.

• Possible to lease lands both from private

entity/person as well as the government .

• Lease term can be 50 years and apply extension

of the next 10 years twice (70 years in total).

(3) Foreign Capital Ratio Not mentioned

Prohibited business for foreign

capital was described

• Business allowable only for JV with Myanmar

partners

⇒Equity ratio by foreign capital should be less

than 80%(60% for some business)

• Other than the restricted business

⇒Foreign capital can own 100% equity

(4) Tax incentives Corporate tax exemption for 3 years Corporate tax exemption for 5 years

Page 5: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

4 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

2-1. Summary of the Investment Incentive

Old FIL New FIL Special Economic Zone Act (Draft)

Corporate

income Tax

Tax holiday for the first 3 years

from the commencement of

business

Tax holiday for the first 5 years

from the commencement of

business

• Tax holiday for the first 5 years in the

Promotion Zone, and 7 years in the

Export Processing Zone.

• Half tax-rate reduction for the next 5

years after the end of tax holiday

• For another 5 more years、if the profits

are reinvested in the business within a

year, half tax-rate reduction is available

for the earning from the re-invested

business

Import Duty

•Duty exemption for ;

- imported machinery and

equipment during the

construction period

- imported building material

• Duty exemption for

- imported raw materials and

parts for manufacturing for the

first 3 years from the

commencement of business

Same as left

•Duty exemption for all materials/parts,

machinery and equipment imported by

the companies in the Export processing

Zone.

•Duty exemption for imported

machinery/equipment and motor vehicle

for the first 5 years in the other zones.

After the period, half tax-rate reduction

shall be applied for the next 5 years.

Special

Privilege on

Land Lease

•Foreign capital company shall

lease land only from the

government.

•By the Notification No. 39 in

2011, land lease of private-

owned land became available

•Leasing of private owned land

as well as government owned

land

•Possible to sublease it and

pledge it as collateral

•Lease term can be 50 years with

extension of 10 years + 10 years

• Lease term for the land in SEZ can be

50 years with extension of another 25

years.

Page 6: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

5 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

3. Promoted Businesses by FIL

【Investment-promoting Business】(Old FIL)

1) promotion and expansion of exports;

2) development of natural resources that require heavy

machinery

3) manufacturing and production with advanced technology

4) supporting the business of production and services

involving large capital

5) development of employment opportunities

6) bringing out of business which would save energy

consumption

7) regional development

【Investment-promoting Business】(New FIL)

1) Supporting the main objectives of the economic development

plan, business which cannot be affordable and which are financially

and technologically insufficiency by the Union and its citizen;

2) Development of employment opportunities

3) Promotion and expansion of exports;

4) Production of import substituted goods;

5) Production of products which require mass investment;

6) Acquisition of high technology and development of

manufacturing business by high technology;

7) Supporting the business of production and services involving

large capital;

8) Bringing out of business which would save energy consumption;

9) Regional development;

10) Exploration and extraction of new energy and the emergence of

renewable energy sources such as bio‐basic new energy;

11) Development of modern industry;

12) Protection and conservation of environment;

13) Causing to support for enabling to exchange the information and

technology;

14) Not affecting the sovereign power and the public security;

15) Intellectual enhancement of citizens;

16) Development of bank and banking in accordance with the

international standards;

17) Emergence of the modern services required for the Union and

citizens;

18) Causing to be sufficient the local consumption of the energy and

resources of the Union in terms of short term and long term period;

Page 7: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

6 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

4. Prohibited and Restricted Business for Foreign Capital

Foreign Investment Law

(Cap. 2 Article 4)

Prohibited Business areas

MIC Notification

No.1/2013

ListⅠ. Prohibited

Business Areas

MIC Notification

No.1/2013

ListⅡ. Economic activities to

be allowed in the form of

joint venture

MIC Notification

No.1/2013

List Ⅲ. Economic activities

to be approved on special

conditions

Business areas considered to be available for 100% foreign capital

<All Business Areas>

Banking and Financial services, Wholesale and Retail Trading

Page 8: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

7 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

4-1. Economic Activities Prohibited for Foreign Investment

Foreign Investment Law

Chapter 2 Article 4 (a) Business which can affect the traditional cultures

and customs of the national races within the Union

(b) Business which can affect the public health

(c) Business which can cause damages to he natural

environment and ecosystem

(d) Business which can bring hazardous or

poisonous wastes into the Union

(e) The factory which produce or the business which

use hazardous chemicals under international

agreements

(f) Manufacturing business and services which can

be carried out by the citizens by issuing laws

(g) Business which can bring the technologies,

medicines, instruments which is being tested abroad

or not approved

(h) Business of farming agricultures, short-term and

long term agriculture which can be carried out by

citizens by issuing rules

(i) Business of breeding which can be carried by the

citizens by issuing rules

(j) Business of the Myanmar Marine Fisheries which

can be carried out by the citizens by issuing rules

(k) Business of foreign investment to be carried out

within 10 miles from border line connection the

Union territory and other countries except the areas

stipulated as economic zones under the permission

of the Union

(f)Manufacturing services that Myanmar citizens are able to conduct

according to the enforced regulations

(A) Manufacturing

1. Conservation and management of forests 2. Production of traditional

medicine in Myanmar 3. Oil drilling up to 1,000 feet 4.Small and medium-sized

mining 5. Cultivation of medicinal plants to be used in Myanmar traditional

medicine 6. Manufacture and sale of iron scrap and parts 7.Production of

traditional food 8. Manufacturing of religious antiquities 9. Manufacturing of

materials related to traditional culture 10.Production of handicrafts

(B) Services 1. Private traditional clinic 2. Sale of traditional medicine 3. Development of

traditional medicine 4. Ambulance service 5. Aged care facility 6. Cafeteria,

transportation, laundry, management of railway services 7. Agency services 8.

Electricity supply of 10MW or less

9.Publication in Myanmar language or other ethnic minority language,

newspaper and other media

(h) Short-term and long-term agricultural plantations Myanmar citizens

can conduct according to the enforced regulations

1. Small-scale agriculture firm

2. Cultivation in agriculture firms that does not use modern facilities or

technology

(i) Livestock industry that Myanmar citizens can conduct

1. Small-scale livestock industry

2. Traditional livestock industry that does not use advanced technology

(j) Myanmar fishing in inshore fishing waters that Myanmar citizens can

conduct according to the enforced regulations

1. Deep off shore fisheries for saltwater fish, shrimps and other marine

products in Myanmar territory

2. Fishing in coasts and rivers

Page 9: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

8 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

5-1. Manufacturing Industry (1)

Ⅰ.Prohibited Economic Activities

Manufacturing and related services of Arms and ammunition for the national defense.

Agriculture and Manufacturing which are not compliance with Fertilizer Law, Seed Law and Agricultural Laws

promulgated from time to time.

Production of Ozone-depleting substances

Production of organic matter that are prohibited by Stockholm Agreement

Production or use of hazardous substances which are prohibited by environmental and conservation Law, Rules

and Procedures promulgated from time to time.

Manufacturing and marketing of construction materials whose composition includes asbestos

Ⅱ. Economic Activities to be Allowed only in the Form of Joint Venture with Myanmar Citizens

Manufacture and sale of the following products:

Hybrid seeds

High-yield seeds and local seeds

Grain products (biscuits, various noodles, etc)

Confectionary

Preserving, manufacturing, canning and marketing of

other food products except milk and dairy products

Malt, malt liquors and non-aerated products

All kinds of spirits beverages and non-beverages

All kinds of ice

Purified drinking water

Cordage, rope, twine of textile fibers

Enamelware, cutlery, crockery of all kinds

Plastic wares

Rubber and plastic

Hides, skins and leathers of all kinds (foot wears,

handbags, etc) except synthetic leather

Various paper products

Paper, paperboard including carbon paper, waxed

paper, toilet paper, etc.

Chemical products using domestic natural resources

Flammable materials, liquid, gas, aerosol

Oxidants (Oxygen, Hydrogen, Peroxide) and

compressed gas (Acetone, Argon, Hydrogen, Nitrogen,

Acetylene)

Corrosive chemicals (Sulfuric acid, Nitric acid)

Industrial chemical gases, including compressed,

liquefied and solid forms

Pharmaceutical raw materials

High-tech vaccine

Structural metal framework for buildings, girders,

prefect and precast concrete

Locomotive wagon, coaches and locomotive engine

Page 10: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

9 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

5-1. Manufacturing Indsutry (2)

Ⅲ.Economic Activities Allowed on Certain Conditions

Type of Economic Activities Condition

Production of oil and fats from vegetables, animals

and other substances

Local raw materials must be used at least 80%

Production of soft beverages, aerated and non-aerated

products

Local raw materials must be used at least 20%

Local cropping raw materials must be used at least

60% after 3 years factory completion

Production of seasoning powder Local raw materials must be used 100% within first 3

years

Production of cigarette Local raw materials must be used at least 50% which

is bought by the income earned after exporting local

Virginia

Export 90% of products

The list of local raw materials to be used and exporting

program must be attached in the investment proposal

Production of perfume and cosmetics Local raw materials must be used at least 50% within 5

years after the completion of factory

Manufacturing and marketing of chemical products

such as paint, varnish, polish, dye, thinner and lacquer

ware paint

Up to 70% of foreign capital is allowed

※Business areas which are required to comply the various regulations and to obtain

approvals of specific government ministries are omitted from the above list.

Page 11: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

10 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

5-2. Real Estate Development and Infrastructure Project (1)

Ⅰ.Prohibited Economic Activities

Management of electricity distribution network

Trading of electric power

Inspection services of electrical equipment

Air navigation services

Sea navigation services

Ⅱ. Economic Activities Allowed only in the Form of Joint Venture

Construction of road network and railway such pier, highway, subway, etc.

Development of international standard resort facilities and golf course

Development or sale or lease of residential apartment condominium

Development or sale of commercial building and office building

Development , sale and lease of residential apartments in the residential areas connected to the industrial zone

Development of general public housing

Development of New Town

Building new ships and repairing services at docks

Page 12: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

11 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

5-2. Real Estate Development and Infrastructure Project (2)

Ⅲ.Economic Activities Approved under Certain Conditions

Economic Activities Condition

Hydropower and coal-fired thermal power plants Only in the form of joint venture with Myanmar

government and on BOT contract

Construction and lease of office buildings and

commercial buildings

100% foreign investment can be accepted only on

BOT contract

In the case of joint venture with Myanmar、Myanmar

partner shall contribute the land lease title as capital in

kind

※ Business areas which are required to comply the various regulations and to obtain approvals of specific

government ministries are omitted from the above list.

Page 13: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

12 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

5-3. Trading and Service Business (1)

Ⅰ.Prohibited Economic Activities

Integrated management of media and publishing business

Printing and publishing in Burmese and in other minority ethnic languages

【Financial services and Wholesale and Retail trading is not covered by the Foreign Investment Law. In principal these

business are prohibited for foreign capital investments】

Ⅱ. Economic Activities Approved only in the Form of Joint Venture

Ship transport services of passengers and freight

Warehousing and port services by container depot

Traditional medicine clinics and private hospitals

Tourism and travel industry

Page 14: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

13 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Ⅲ.Economic Activities Approved under Certain Conditions (1)

Economic Activities Conditions

Marine and water way transport and related services Only in the form of joint venture with Myanmar

government

The hospitals and clinics by foreign capital Only in the form of joint venture with Myanmar

government

Health Spa services Operate only in 3-Star and above hotels, or in 5-Star

Boutique hotels

Casino business for foreigners only Approval by Myanmar government

Operate only in hotels in restricted areas

Myanmar citizens are not allowed to play

Hotel Business 100% foreign capital shall be allowed only for 3-Star

and above hotels

5-3. Trading and Service Business (2)

Page 15: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

14 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Ⅲ.Economic Activities Approved under Certain Conditions (2)

Economic Activities Condition

Large-scale retail trading Only large-scale retail businesses such as

supermarkets, department stores, shopping center, etc

Floor Area

・Department hypermarket⇒50,000 square feet or more

・Supermarket ⇒12,000~20,000 square feet or more

Should not be located near to the existing local stores

Priority in trading of domestic products

In the case of joint venture, Myanmar capital shall hold

at least 40% interests

Small and medium-sized retail trading Government may approve after 2015

Minimum investment of USD 3 million or more

Trading of motorcycle and automobile will be

excluded

Franchise Business Foreign capital may become only franchisor

(Franchisees shall be local capital only)

5-3. Trading and Service Business(3)

Page 16: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

15 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Ⅲ.Economic Activities Approved under Certain Conditions (3)

Economic Activity Condition

Wholesale trading Require the recommendation from Ministry of

Commerce (It may require large amount of investment,

high technology involvement )

Warehouse Business Only large-scale warehouses

In the case of joint venture, Myanmar capital shall hold

at least 40% interests

Restaurant, beverage shop in large-scale retail facility Require area of 2,000-4,000 square feet in supermarket,

5,000 and above square feet in department store

Publishing in foreign languages In the case of joint venture, Myanmar capital shall hold

at least 51% interests

At least 2/3 of officers and other key staff must be

Myanmar citizen

5-3. Trading and Service Business (4)

※ Business areas which are required to comply the various regulations and to obtain

approvals of specific government ministries are omitted from the above list.

Page 17: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

Ⅱ Procedures for Foreign

Investment in Myanmar

Page 18: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

17 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

1. Types of Foreign Investment

Corporation of 100% Foreign Capital

Corporation in the Form of Joint Venture with Local Capital

Branch of Foreign Corporation

Business activities can be carried out in the same manner as

corporation of 100% foreign capital

Representative offices can also be registered as “ Branch of a

Foreign Company” under Companies Act

Page 19: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

18 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

2. Registration and Approval Procedure

Branch of a foreign

corporation

Service Company

(excluding prohibited or

restricted business)

DICA

DICA

MIC

DICA

MIC

Registration of company

and the business permit

Approval of MIC

Approval of MIC

Restricted Business by

FIL

Businesses eligible for

incentives by FIL

Business required

approval of the relevant

ministries

Relevant ministries

Inquiry Approval and Conditions

Registration of company

and the business permit

Registration of company

and the business permit

Page 20: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

19 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

3. Company Registration and Business Permit

Temporary Permit

Completion of the

Procedures

Submission of the

application form

(Form A)

Review by DICA

Payment of

Registration Fee

Acceptance of the

conditions by the

investor

Payment of 50%

of the minimum

capital

Business

Minimum Capital

Service USD 50,000

Manufacturing USD 150,000

Company

Registration /

Proposed

Conditions for

Business Permit 2 months

5 years

Payment of the

full capital

Page 21: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

20 © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with

KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other

member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

4. Myanmar Investment Commission (MIC) Approval

Draft land lease agreement

Review by Union Attorney

General office

Prior explanation to

relevant Ministries and

Agencies

Preparation of

Application Form

(Form1)

and the Business

Plan and other

attachments

Submission to MIC

Referral to relevant

Ministries and Agencies Review of the

application

documents

Issuance of

MIC Certificate

※ 【Minimum Capital】 In previous FIL, the minimum capital for Manufacturing - USD500,000 、 Service Business - USD 300,000 In the new FIL, the minimum capital is not explicitly Mentioned. It is assumed to differ on case-by-case basis。

90 days

Page 22: KPMG in Myanmar - Stock Exchange of Thailand Procedures in Myanmar July 12, 2013 KPMG in Myanmar ... Myanmar fishing in inshore fishing waters that Myanmar citizens can conduct according

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated

with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any

other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Yasuhide Fujii, CPA Japan

Managing Director

KPMG Advisory (Myanmar) Ltd.

[email protected]

+95-1-527-103 / +95-1-514-862