Market entry and structuring

In addition to the basic choice of what type of entity and ownership structure to utilize, there are a number of regulatory considerations relevant to a decision to enter the Myanmar market – and to continuing operations for businesses that are already active here.

We can advise you on a comprehensive range of key legal, permitting, tax and compliance issues and risks under the relevant Myanmar regulatory frameworks, including:

• foreign investment and ownership restrictions;
• investment licensing requirements and the processes, conditions, information and timelines relevant for obtaining operating approvals and permits;
• the availability of land ownership and leasehold rights and approval and registration requirements for land acquisition and leasing or subleasing of land and buildings;
• approval requirements for foreign lending, withholding tax and corporate income tax aspects of financing costs and the legal and practical implications for obtaining security over Myanmar assets;
• advice on available avenues for repatriation of profits, including paying dividends or utilizing alternative mechanisms such as management fees and other intra-group payments, and the associated processes, approvals timeframes and tax implications;
• foreign exchange management advice in relation to permitted inbound and outbound transfers of debt and equity capital, interest, licensing fees and payments for goods or services and related approvals and notifications; and
• advice on the import licensing and customs clearance processes and documentation, including import taxes, customs duties and withholding taxes.

We can also analyze your existing or proposed new business or project and provide specific guidance on the:

• different characteristics and requirements – and the pros and cons – of available types of operating entities and help you to choose the most appropriate vehicle for your planned business or activities;
• tax treatment of the proposed activities and business entity across corporate income tax, capital gains tax, commercial tax, withholding taxes, import taxes and special goods tax, including the potential availability of tax holidays or reductions, loss carry-forward rules, and deductibility of expenses for corporate income tax purposes;
• investment licences and operating licences and permits required for your intended activities, including the criteria, processes and likely timeframes for application and grant of licences and permits; and
• if you are considering incorporating a company, implications of different local and foreign shareholding structures for Myanmar licensing and taxation purposes and requirements for resident directorships.