Guide to Invest in Myanmar
Since the adoption of the market-oriented economic system, the Union of Myanmar - Foreign Investment Law (FIL) was enacted on 30 November 1988.
In order to oversee and administer the Foreign Investment Law (FIL) and Myanmar Citizen's Investment Law (MCIL); the Myanmar Investment Commission (MIC) was formed with the Government of the Union of Myanmar Notification No. ( 7/94) on 3 August 1994. The commission was reformed with the Notification No.(59/99) on 3 December 1999. The Commission consists of five full time members and five part time members. All of the members are Ministers.
The Myanmar Investment Commission (MIC) is an initial approving authority for foreign investment proposals just like Board of Investment (BOI) of Thailand and Economic Development Board (EDB) of Singapore. It undertakes the responsibility to Trade Council and Cabinet.
In order to provide more specific guidance to foreign investors, a notification listing the types of economic activities allowed for foreign investment has been issued. It is not an exhaustic list but it covers most activities with the exception of those reserved under the State-owned Economic Enterprises Law (SEE Law). However, if a foreign investor is interested in an activity not specified in the notification or an activity defined in the SEE Law, he can apply to MIC stating his interest and reasons as to why it will be mutually beneficial to the State and to himself for the activity to be undertaken. If MIC is satisfied that the proposed activity will indeed be in the interest of our Nation, it may put up the application for approval from Trade Council and Cabinet.
The FIL allows that foreign investment activities can be undertaken either in the form of wholly foreign - owned or a joint venture with any Myanmar partner, either an individual, a private company, a co-operative society or a State-owned enterprise.
In all joint ventures, the minimum share of the foreign party is 35 percent of the total equity capital. BOT ( Built Operate and Transfer ) system is allowed for hotel and real estate project, while PSC ( Production Sharing Contract) system is allowed for exploration and extraction of the natural resources.