Starting a Business in Myanmar: The Strategic Guide for Expats

Published on May 4, 2026 and written by Cyril Jarnias

Setting up your own structure in Myanmar is far from a formality. The country combines both significant economic potential – a market of nearly 55 million inhabitants, very low labor costs, a strategic position between India, China, and ASEAN – and one of the highest levels of political, legal, and operational risk in the world. For an expatriate, the question is therefore not just “how” to create a company, but above all “under what conditions” and “for what type of project.”

Good to know:

This guide provides a comprehensive analysis of the Myanmar context for investors, covering the legal framework, types of entities, registration, taxation, and incentives. It also addresses major political risks, banking difficulties, and proposes alternative entry strategies such as joint ventures or using an Employer of Record. The goal is to offer a realistic view of the possibilities, limitations, and situations requiring extreme caution.

Understanding the Myanmar context before getting started

Before any thought about forms or bylaws, it is essential to take stock of the environment in which your future company will operate.

Myanmar is described as a “frontier” market: a country with very high potential but high risk, where the rules of the game can change quickly. Since the 2021 military coup, the economy has contracted, the kyat currency has lost more than half its value against the dollar, and international sanctions target many entities linked to the military. The country is on the FATF blacklist for money laundering and terrorist financing risks.

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Myanmar’s available labor force is estimated at nearly 23.8 million people.

The risk landscape is therefore simultaneously political (conflicts, instability, personal security), regulatory (frequent changes, discretionary enforcement of laws), financial (high inflation, exchange controls, difficulty repatriating profits), and reputational (possible links to sanctioned entities). Any entrepreneurial strategy for an expatriate in Myanmar must integrate this reality from the business plan stage.

Legal framework and key authorities for foreign investors

Setting up a company in Myanmar is based on a set of laws and authorities that intersect. Understanding who does what is essential to avoid losing months in administrative red tape.

Key laws

Several texts form the backbone of business and investment law:

Caution:

The legal landscape for foreign businesses and investors in Myanmar is structured by several key laws. The Myanmar Companies Law (MCL) of 2017 governs the incorporation and operation of companies. Investments are regulated by the Myanmar Investment Law (MIL) of 2016 and its implementing rules of 2017, which define incentives and obligations. Specific regimes exist for special economic zones (2014 law) and certain types of companies (Special Company Act of 1950). Sectoral and land restrictions for foreigners are provided for by other texts. Finally, a formal framework for international arbitration exists, with the adoption of a 2016 law and ratification of the New York Convention, although local judicial practice may present challenges.

The concept of a “foreign company” is decisive: any company in which more than 35% of shares are held, directly or indirectly, by non-nationals is considered foreign, with consequences for its access to certain sectors and land ownership.

Key institutions

Three public actors hold most of the levers:

Tip:

To invest in Myanmar, it is essential to interact with three main institutions. The Directorate of Investment and Company Administration (DICA) is the official company registry and manages the online platform Myanmar Companies Online (MyCO), used for incorporation and monitoring. The Myanmar Investment Commission (MIC) reviews and approves investment projects, issues permits, and handles disputes. Finally, the Central Bank of Myanmar controls capital flows, exchange rules, and oversees crucial operations such as foreign borrowing and dividend repatriation.

For an expatriate entrepreneur, these three contacts form the indispensable triangle of any structured project: DICA to create and maintain the company, MIC to secure an incentive regime and lease, Central Bank to organize the cross-border financial dimension.

What legal forms are available for an expatriate in Myanmar?

The choice of structure determines the degree of control, the level of capital to commit, access to certain sectors, and the level of risk. The MCL offers a relatively wide range.

Private company limited by shares

The Private Company Limited by Shares is the most commonly used form, including by foreign investors. It offers several advantages for an expatriate:

– Only one shareholder and one director are required,

– No legal minimum capital is imposed by the MCL,

– Members’ liability is limited to the amount of their contributions.

In practice, DICA often requires a practical minimum capital (e.g., around 300,000 MMK), and certain activities (industry, trading, services) come with thresholds inherited from previous regulations or set by investment:

For companies seeking a MIC permit, these currency thresholds often become unavoidable.

At least one director must be “ordinarily resident” in Myanmar (presence of at least 183 days out of 12 months, or permanent residence). For public companies, at least one of the three minimum directors must be a Myanmar citizen and resident.

Public company, associations, and specific structures

The Public Company Limited by Shares is intended for large-scale operations or a possible stock exchange listing (Yangon Stock Exchange). It requires a minimum of three directors and enhanced governance obligations.

Good to know:

Structures such as ‘company limited by guarantee,’ ‘unlimited company,’ or ‘business association’ exist but are generally intended for non-profit organizations or specific arrangements. They are rarely suitable for an individual expatriate entrepreneur.

A Non-Profit Organization (NPO) may be relevant for a humanitarian, educational, or cultural project, but bear in mind that economic activities are regulated and that NGO regulations are politically sensitive.

Branch, “overseas corporation,” and representative office

As an alternative to creating a subsidiary, a foreign group can register an “overseas corporation,” i.e., the extension of its parent company in Myanmar. This is commonly referred to as a branch. This type of structure:

Example:

A foreign branch in Myanmar allows 100% control by the foreign investor. It operates under the registration number of its parent company and is taxed on its locally generated profits at the specific rate applicable to branches, often cited as 22% instead of the standard corporate tax rate. Its scope of activity, generally operational, remains defined and limited by Myanmar’s legal framework.

The representative office, on the other hand, is limited to liaison, market research, or promotional activities without local invoicing. It often serves as an exploratory step before a heavier investment.

Joint ventures and mixed capital structures

The MIL and its sectoral notifications organize a system of graduated restrictions. Some activities are reserved for the State, others completely closed to foreigners, and still others open only through a joint venture with a local partner.

In mandatory joint ventures, the minimum Myanmar participation is generally 20% of the capital. In other cases, up to 35% foreign ownership is possible without changing the status of a “local company.”

For an expatriate, the joint venture becomes the entry path into sectors such as agriculture for certain value chains, local services, or activities considered sensitive. It can also be a pragmatic way to navigate a complex administrative and cultural environment, provided thorough due diligence is conducted on the local partner, their political connections, and their exposure to sanctions.

Steps and requirements for registering your company

Myanmar has significantly modernized its company formation procedure. Officially, most of it is now done online via the MyCO portal. In practice, you need to combine documentary rigor, patience, and realism about timelines.

Preparing your project: name, address, governance

Before opening a MyCO account, several elements must be finalized:

– A unique company name, including the legal form (“Limited”) and submitted in English, possibly with a Myanmar version.

– A registered office address in Myanmar, mandatory from incorporation. For majority foreign-owned companies, a commercial lease of at least two years is generally required, with renewals subject to approval.

– The identity of shareholders (individuals or legal entities) and directors, ensuring compliance with the requirement of one resident director.

– The possible ultimate holding company to be declared.

Good to know:

The corporate object of your company must comply with the lists of restricted or prohibited activities published by the MIC. Certain sectors are closed to foreign investors, including some freshwater fisheries, small-scale retail below a certain floor area, publishing of periodicals in local languages, and artisanal mineral extraction.

Online registration via MyCO

The typical process unfolds in several stages:

Example:

Company registration in Myanmar via the MyCO portal involves several key steps. First, create and activate a user account with a valid email address. Next, complete all company information: name, legal form, address, activity, share capital, as well as details on shareholders, directors, and the contact person. Then upload the required documents, which may include the application form (such as Form A1), the articles of association (possibly the DICA model), identity copies of directors and shareholders, certificates of incorporation for corporate shareholders, various letters of consent, a registered office declaration, and the Memorandum and Articles of Association under the old procedure, with certified translations if necessary. Finally, pay the fees online by card or through the local MPU system, or in cash directly at the DICA counter.

DICA then reviews the file. In the absence of questions, the certificate of incorporation is generally issued within two to seven working days after full submission. Some sources mention overall timelines of 5 to 10 days, or even 3 to 4 weeks if additional information is requested.

The essential company data is then published on MyCO, which serves as a public register accessible 24/7.

Administrative registration costs

Fee schedules evolve, but the following orders of magnitude are found in the texts:

To this, add fees for a local advisor (typically between 500 USD and over 1,000 USD for a simple formation), the creation of the official seal, translation costs, occasional notarization, and the commercial lease.

Tax formalities and post-incorporation licenses

Once the company is formed, the work is not over. To be able to operate, you need to:

Good to know:

To set up a business in Myanmar, you need to: obtain a Tax Identification Number (TIN) free of charge and quickly from the Internal Revenue Department; register for commercial tax (equivalent to VAT) if applicable; open a business bank account, a step that can be complex due to exchange controls and compliance requirements, especially for companies linked to sanctioned countries; and finally, apply for required sectoral licenses, such as a license from the Yangon City Development Committee, a private industrial registration, an export/import certificate, a wholesale/retail registration, or health clearances depending on the business sector.

Companies must file an annual return with DICA, pay an annual fee (about 50,000 MMK to remain compliant), and maintain statutory registers at the registered office.

Focus on the investment regime: MIC permit, incentives, and restrictions

For a project of significant size – factory, infrastructure, energy, agribusiness, export-oriented activity – the question of a MIC permit or endorsement quickly arises. This also determines access to tax and land incentives.

When is a MIC permit or endorsement required?

The MIL requires submitting an investment proposal to the MIC for certain types of projects, notably:

– activities strategic to the nation (defense, key energy, major infrastructure);

– highly capital-intensive projects;

– investments with major environmental or social impact (particularly in sensitive regions);

– use of state-owned real estate (land, buildings);

– categories of activities designated as requiring a permit.

Good to know:

In addition to standard projects, some may opt for an ‘endorsement,’ a lighter procedure that still allows requesting incentives and long-term leases. Whatever path is chosen, the MIC systematically verifies the project’s compliance with the list of restricted activities, the soundness of the business plan, financing, and governance.

The full MIC permit process can take four to six months, depending on project complexity and the political context.

Possible incentives and benefits

Myanmar’s investment regime seeks to attract capital into sectors deemed priority. The planned benefits notably include:

– corporate income tax (CIT) exemptions for a period of three to seven years, depending on the geographic zone (less developed, intermediate, or developed);

– exemptions or reductions of customs duties on the import of machinery, equipment, construction materials, and raw materials during the construction phase and the first years of operation;

– the possibility of accelerated depreciation (up to 1.5 times the normal rate) on certain assets;

– deductions on reinvested profits;

– land leases of up to thirty years (with possible extensions), easing the restrictions imposed on foreigners by real estate law.

Good to know:

Companies benefiting from the MIL are in principle guaranteed that their investment will not be nationalized, a key point in a context of distrust towards the authorities.

A system of sectoral restrictions

At the same time, investment activities are classified into several categories:

– reserved for the central state (most of defense, management of natural forests, certain control of electricity grids, stamp issuance, etc.);

– prohibited for foreign investors (e.g., small freshwater fisheries, tourist guides, printing of certain official documents, mini-markets under 10,000 square feet, etc.);

– open only through a joint venture with a Myanmar entity;

– open but requiring prior approval from the supervising ministry.

Any activity not listed is, in principle, open. The MIC updates these lists taking into account feedback from the private sector and the current economic policy, with a tendency to ease rather than restrict in sectors deemed key (fertilizers, cement, pharmaceuticals, electric vehicles, agriculture).

Corporate taxation: what an expatriate entrepreneur should anticipate

Setting up a business in Myanmar involves navigating a hybrid tax system, where written law exists but practical application can remain opaque. Nevertheless, a few reference points are relatively stable.

Corporate tax and branch regime

The standard corporate tax rate is around 22 to 25% of net profits, depending on the period. Special regimes apply:

– 17% for companies listed on the Yangon Stock Exchange;

– higher rates for the oil and gas sector;

– no tax on profits from exports under certain regimes.

Resident companies (incorporated in Myanmar) are, in principle, taxed on their worldwide income, whereas non-resident companies or those simply registered with the MIC are taxed only on Myanmar-source income. A branch (“overseas corporation”) is taxed on its local profits, sometimes at a slightly different rate from the standard rate.

Good to know:

A 2% advance tax may apply to the value of imported or exported goods, but it is then creditable against the annual tax. Exemptions exist for imports related to the initial construction phase and for raw materials needed during the first three years of operation for projects benefiting from a MIC license.

Other taxes: capital gains, withholding tax, indirect taxes

Capital gains on asset sales are generally taxed at 10%. Above a certain threshold of annual disposal value, the tax becomes payable (some texts mention 5 or 10 million MMK as the threshold). For the oil and gas sector, rates can climb to 40-50%, with progressive scales depending on the amount of profit.

Dividends are not subject to withholding tax, whether paid to residents or non-residents. Interest paid to non-residents is, however, subject to potential withholding, in a range up to 15%. Royalties may be subject to withholding of 15 to 20% depending on the case, unless reduced by a double taxation treaty.

Myanmar has signed double taxation agreements with several Asian countries (Singapore, Malaysia, India, South Korea, Thailand, Laos, Vietnam) as well as with the United Kingdom, which can reduce the cross-border tax burden for expatriates from those countries or holding their company there.

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Base rate of the commercial tax, a value-added tax applicable to a wide range of goods and services.

Accounting and social obligations

Companies must keep annual accounts and, except for very small entities, have their financial statements audited. The country is gradually moving towards full adoption of IFRS standards, with a planned implementation ramp-up.

On the social side, employers must contribute approximately 3% of employees’ salaries to the social security system (with a monthly cap), with employees contributing an additional 2% from their side. Ignorance of labor rules (hours, leave, termination conditions, classification of employment relationships) can lead to fines, arrears of contributions, and, in extreme cases, revocation of licenses.

For an expatriate employing local staff, compliance with the Social Security Law and the Employment and Skills Development Law is imperative, especially as the reputation of foreign companies is scrutinized by civil society and NGOs.

Visas, work permits, and personal presence in Myanmar

Creating a company is not enough to justify your prolonged presence on the ground. Managing residence permits and work permits is another piece of the puzzle.

Business visas and extended stays

The standard business visa is a single-entry visa allowing a stay of 70 days. There are also multiple-entry business visas, valid for three months, six months, or one year, with a maximum of 70 days per stay. Conditions for obtaining include:

– An invitation letter on letterhead of a registered Myanmar company or chamber of commerce,

– A letter of recommendation from the employer stating the purpose of the visit,

– Provision of a copy of the certificate of incorporation and a recent extract of the inviting company issued by DICA,

– No history of immigration violations.

Only certain countries benefit from e-visa or visa-on-arrival regimes for business. In all other cases, a visit to a Myanmar embassy or consulate is necessary.

Stay permit, re-entry visa, and work permit

To exceed the 70-day limit without multiple exits, there are two complementary mechanisms:

– The stay permit, which removes the 70-day constraint and allows a continuous stay of three, six, or twelve months, but without the right of multiple entry/exit;

– The multiple-journey special re-entry visa, which allows entry and exit over a period of three, six, or twelve months.

Good to know:

After the initial entry into France with a business visa, the employer must request these residence permits from the Ministry of Immigration. The application requires providing, in addition to the business visa documents, a curriculum vitae, copies of degrees, an employment contract or offer letter, a medical certificate, as well as complete company documentation (such as a MIC permit if applicable, registration extracts, and tax attestations).

The work permit itself is issued by the Ministry of Labour. To be eligible, the company must:

– Be duly registered and tax compliant,

– Have, if applicable, a MIC permit or special economic zone status, particularly for employing foreign staff in managerial, supervisory, or technical expert positions,

– Demonstrate the need to use foreign expertise (shortage of local skills, level of specialization, etc.).

The overall process, from initial visa to work permit, can take several weeks to a few months. It is therefore necessary to plan ahead in the implementation schedule.

Alternatives to a subsidiary: Employer of Record and lightweight solutions

Given the legal and political complexity, some expatriates choose to test the market without immediately creating a local structure. One option is to use an Employer of Record (EOR).

The EOR is a local entity that becomes the legal employer of your staff on the ground, while leaving you with operational control. This structure:

Tip:

This solution fully manages payroll, tax and social declarations, and drafting of local contracts. It ensures compliance with labor law and local practices in the country. Its main advantage is enabling you to deploy a team on the ground in just a few weeks, versus the usual months. Additionally, it avoids the costs and complex steps involved in creating a local legal entity, as well as the closure costs if the project were to be abandoned.

In an environment where controls and non-compliance risks are high, an EOR solution allows an expatriate entrepreneur to focus on validating the business model, while limiting initial investment and the risks of misinterpreting labor laws.

Myanmar recruitment and staffing agencies also offer intermediate solutions (temporary staffing, subcontracting, portage), useful for short-term assignments or pilot projects.

Where are the sectoral opportunities for an expatriate?

Despite the political crisis, certain sectors still offer pockets of opportunity, especially if you target capital-light models with low exposure to conflicts.

The country remains largely agricultural, with massive needs for modernization: irrigation, mechanization, quality seeds, inputs, storage, food processing, cold-chain logistics. Any solution that improves productivity without clashing with land sensitivities can find traction.

Caution:

Despite the withdrawal of major Western brands, the textile sector retains an industrial fabric and a skilled workforce attractive to regional players, underscoring the crucial importance of due diligence in supply chains.

Digital services – online marketing, SEO, web development, translation, localization – benefit from the gradual expansion of the internet and digitization, even if connectivity remains intermittent and politically controlled. Local digital marketing, translation, or consulting agencies already operate, sometimes with hybrid on-shore/off-shore teams.

Other niches potentially accessible to an expatriate entrepreneur with little physical capital include: compliance and due diligence consulting, cross-cultural and management training, interpretation services in a context where many international players struggle to understand the local landscape.

Risks, compliance, and responsibilities of the expatriate entrepreneur

Setting up a business in Myanmar today involves more than capital: it implies a heavy ethical and legal responsibility, both towards employees and local communities, as well as the laws of your home country.

Sanctions, corruption, and reputational risks

Many segments of the economy are controlled, directly or indirectly, by military conglomerates sanctioned by the United States, the EU, or the United Kingdom. The UN has documented these networks, and several state banks as well as mining or energy companies have been added to sanctions lists.

For an expatriate, this means: a new environment, cultural challenges, necessary adaptation, and often an opportunity for personal and professional growth.

Tip:

To operate in Myanmar while limiting legal and reputational risks, it is crucial to: avoid any partnership, joint venture, or business relationship with sanctioned entities or their subsidiaries; secure the services of a bank that legally accepts transactions with this country, as many Western institutions refuse them; and implement rigorous anti-corruption procedures, as bribes and informal payments are common in administration, the judiciary, and certain logistics.

A misstep can lead not only to financial sanctions but also to prosecution in your home country under extraterritorial laws (such as France’s Sapin II Law, FCPA, UK Bribery Act).

Social context, human rights, and local impact

Reports from international organizations point to a serious deterioration of human rights, the use of forced labor in certain sectors linked to the military, repression of trade union freedom, and a generally very unfavorable environment for workers. The country ranks among the worst in the world for workers’ rights, and a significant portion of the population lives below the poverty line.

The expatriate entrepreneur cannot ignore these realities. Before setting up, it is essential to:

Tip:

To ensure the responsibility of a project, it is crucial to analyze its potential impact on local communities and the environment, considering in particular access to land, resource use, and working conditions of subcontractors. It is also necessary to favor sectors and partners that are not associated with recognized abuses, for example by avoiding certain mines, unsustainable tropical timber exploitation, or controversial hydroelectric projects. Finally, it is recommended to establish and enforce internal standards that go beyond Myanmar’s legal minimum, especially in the areas of occupational health and safety, wages, and freedom of association.

Arbitration, dispute resolution, and legal uncertainty

On paper, the ratification of the New York Convention and the adoption of rules close to UNCITRAL open the door to international arbitration. In reality, judicial independence is limited, judicial corruption is documented, and the enforcement of decisions is uncertain.

Important contracts should include arbitration clauses outside Myanmar (e.g., in Singapore), under neutral law, and provide for mediation mechanisms. Even so, a dispute with a local partner or authority can turn into a prolonged operational crisis.

A realistic strategy for an expatriate: caution, phasing, and flexibility

Creating your business “from scratch” in Myanmar, in the current context, is not impossible but requires a very structured approach. A few principles can serve as a guiding thread:

Tip:

To establish yourself in Myanmar, favor low-capital, mobile, and resilient business models (services, digital, consulting, training, light B2B) rather than heavy investments. Begin with a light presence via a commercial partnership, a representative office, or an Employer of Record to test the market and form a small team. Only undertake the full registration procedures (MyCO) and MIC permit when your business model is proven and a multi-year horizon is feasible. Build your network through chambers of commerce, professional associations, NGOs, and structures specialized in responsible business conduct to obtain recent, unfiltered feedback. Finally, systematically integrate stress scenarios (banking freeze, internet shutdowns, travel difficulties, administrative closures) into your business plan.

Creating your business in Myanmar, for an expatriate, ultimately amounts to walking a tightrope between opportunity and extreme risk. The legal framework exists, procedures are digitized, tax incentives are real; but the political, security, and financial environment constantly undermines the foundations of any project.

Good to know:

This guide aims to equip decisions for a successful implementation. It recommends adopting a pragmatic approach: assess risks lucidly, start with a limited pilot phase, choose suitable sectors and partners, adopt an agile structure, and implement exemplary governance to remain compliant and responsible.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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