Private Limited Company (Ltd)
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Company formation in Myanmar
The Ltd is best suited for: Companies entering Myanmar's frontier market with first-mover opportunity, Natural resource and extractive industry companies (oil, gas, mining, gems), Telecoms and infrastructure companies serving Myanmar's underdeveloped market, Manufacturers seeking low-cost labour and ASEAN trade access. The standard corporate income tax rate is 22%. Companies with MIC permits may receive tax holidays of 3โ7 years depending on the zone and sector. Commercial tax (similar to VAT) is 5% on most goods and services, with higher rates on specific items (cigarettes, alcohol, gems). Withholding tax on dividends is 0% for resident shareholders. Withholding tax on payments to non-residents varies: 2.5% on interest, 15% on royalties, and 2.5% on payments for services. Capital gains tax is 10% on disposal of capital assets. The Special Economic Zone Law provides additional incentives including income tax exemptions of 5โ7 years for developers and investors in designated SEZs (Thilawa, Dawei, Kyaukphyu).
- Companies entering Myanmar's frontier market with first-mover opportunity
- Natural resource and extractive industry companies (oil, gas, mining, gems)
- Telecoms and infrastructure companies serving Myanmar's underdeveloped market
- Manufacturers seeking low-cost labour and ASEAN trade access
Key Facts
Step-by-Step Formation Process
Reserve a company name with DICA
Submit a name reservation application through the Directorate of Investment and Company Administration (DICA) online system (MyCO โ Myanmar Companies Online). The name must be unique and can include both English and Myanmar script. DICA checks the name against existing registrations.
Prepare incorporation documents and constitution
Draft the company constitution (or adopt the model constitution under the Myanmar Companies Law 2017). Prepare shareholder details, director appointments, registered office address, and business activity descriptions. Foreign directors must provide notarised and apostilled passport copies. A local registered office in Myanmar is required.
Register the company through MyCO
Submit the complete incorporation application through the MyCO online portal, including the constitution, shareholder and director details, and registered office confirmation. DICA reviews and processes the application. Upon approval, the company receives a Certificate of Incorporation and a unique registration number.
Register for tax, apply for MIC permit if applicable, and open a bank account
Register with the Internal Revenue Department (IRD) for corporate income tax and commercial tax. If the investment qualifies under the Myanmar Investment Law (MIL), apply to the Myanmar Investment Commission (MIC) for an investment permit โ which unlocks tax holidays, land use rights, and other incentives. Open a corporate bank account at a licensed bank (KBZ Bank, AYA Bank, CB Bank, or a foreign bank branch).
Required Documents
- Passport copies (notarised and apostilled) for all shareholders and directors
- Company constitution or adoption of the model constitution
- Director and shareholder particulars form
- Registered office address confirmation (lease agreement)
- Declaration of compliance signed by a director or company secretary
- MIC application (if seeking investment incentives)
Cost Overview
Tax Treatment
The standard corporate income tax rate is 22%. Companies with MIC permits may receive tax holidays of 3โ7 years depending on the zone and sector. Commercial tax (similar to VAT) is 5% on most goods and services, with higher rates on specific items (cigarettes, alcohol, gems). Withholding tax on dividends is 0% for resident shareholders. Withholding tax on payments to non-residents varies: 2.5% on interest, 15% on royalties, and 2.5% on payments for services. Capital gains tax is 10% on disposal of capital assets. The Special Economic Zone Law provides additional incentives including income tax exemptions of 5โ7 years for developers and investors in designated SEZs (Thilawa, Dawei, Kyaukphyu).
Pros & Cons
- Frontier market with significant untapped potential โ 55 million population with growing consumer demand
- ASEAN and RCEP membership provides trade framework access to major Asian markets
- Rich natural resources โ oil, gas, gems, timber, and minerals
- Low labour costs โ among the lowest in ASEAN
- Myanmar Companies Law 2017 modernised the legal framework with MyCO online registration
- Severe political instability since the February 2021 military coup โ sanctions, conflict, and governance uncertainty
- International sanctions from the US, EU, and UK restrict many financial transactions and sectors
- Extremely weak infrastructure โ power, internet, transport, and logistics are unreliable
- Currency crisis โ Myanmar kyat (MMK) has depreciated dramatically since 2021
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.