On 21st August 2018 we setup a JV company between a Burmese lady and her Singapore business partner. The shareholding structure was fixed at 65%/35% between the Burmese lady and the Singapore partner and we registered it with DICA as a local company. We submitted on 21st August 2018 and received the approval within the same day from DICA. The client is in the marketing communication business.
We successfully registered another 65/35 JV company on 1st October 2018. As usual we received same day approval from DICA. This client is in the automotive parts distribution business.
For those that are not familiar with the new Myanmar Companies Law 2017 – a JV company with a 65%/35% shareholding structure between Myanmar citizen and foreigner respectively is treated as a “local” company. That means that the JV company is able to apply for an import permit; hold land, building or other immovable assets; and it can apply for business permits that are only issued to Myanmar citizen. This structure is ideal for Myanmar citizen that wants to enter a new area of business but do not have the capital or the technical knowhow for that industry.
Take note that a 100% foreign owned company or a foreign JV where the Myanmar citizen’s equity share is <65% of total equity is not eligible to apply for import permit (in general) or hold land/building as assets.
If you are a Singapore registered company you can get up to 70% funding from Enterprise Singapore for market entry into Myanmar. To learn more click here.
If you are interested to incorporate such as “local” JV company please fill up the form here .
