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Other Jurisdictions Southeast Asia Company Registration Guide to Starting a Wholesale Trading Foreign – Owned Company in Myanmar
KNOWLEDGE|
(1) |
Application for Wholesale License First, a recommendation letter from the relevant City/Township Development Committee (hereinafter referred to as “CDC”) is required to be applied for and obtained. Once the recommendation letter is received, the application for a Wholesale License with Ministry of Commerce (hereinafter referred to as “MOC”) should be submitted accordingly. |
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Application for Business License Every company which intends to conduct wholesale business at a specific location will need to register and obtain a relevant Business License also known as Warehouse Storage License from City Development Committee such as Yangon City Development Committee (hereinafter referred to as “YCDC”). |
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(3) |
Application for Importer Card To conduct import business in Myanmar, a company is required to register as an importer by obtaining a certificate known as Certificate of Importer Registration or Importer Card (“Impex Card”), issued by the Directorate of Trade within the MOC. |
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(4) |
Application for Import License In addition to the Importer Card, you may also apply an Import License for the particular shipments. |
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(1) |
Corporate Income Tax Return A 25% corporate income tax rate applies to companies registered under the MCL. Advance payments shall be made quarterly for corporate income tax based on the estimated total income for the year. The advance payments and any taxes withheld are creditable against the final tax liability. An annual corporate income tax return shall be filed to the Internal Revenue Department (IRD) within 3 months from the end of the financial year. |
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Commercial Tax Return In Myanmar, a commercial tax is levied as a turnover tax on goods and services. It applies to all service transactions unless the transactions are listed as exempt. The commercial tax rate generally is 5% on goods and services. Commercial tax registration shall be made 30 days in advance of the start of commercial operation (initial registration). Renewal of commercial tax registration shall be made 30 days prior to the end of the financial year. Commercial tax returns shall be filed on a quarterly basis. An annual return shall be filed within 3 months from the end of the financial year. |
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Statutory Social Security Filing and Individual Income Tax Return If a Myanmar company has five or more employees, statutory social security filing will apply. The company shall register with the Social Security Board and social security contributions shall be made on monthly basis according to the Social Security Law. The employer shall contribute 3% of an employee’s salary (presently capped at MMK9,000) while the employee shall contribute 2% of the salary (presently capped at MMK6,000). The employer shall withhold the employees’ contributions from their salaries. The employer is responsible for deducting income tax due from salaries at the time of payment to employees. A statement of the monthly deduction must be provided to the tax office within 7 days from the date of deduction. An annual salary statement shall be filed within 3 months from the end of the financial year. |
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(4) |
Special Goods Tax Special goods tax in Myanmar is similar to excise duties in other countries. It is applicable to specific goods such as tobacco products, alcohol, vehicles, jewellery or petroleum products. Rates applied to the special goods ranged from a few MMK per item per item to 60% of the sales price. |
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Customs duty Most imported goods are subject to custom duties on importation in Myanmar and required to be declared to the Myanmar Customs Department accordingly. Currently, the customs duties levied on the import of machinery, spare parts and inputs generally range from 0% to 40% of the value of the goods imported. |
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(1) |
Choose a Company Name Proposed company name cannot be similar to other names that already on file with DICA. Kaizen can check the name availability for you. Also, you can reserve a name online through DICA website. |
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(2) |
Prepare and File Certificate of Incorporation To register your company in Myanmar, the incorporation documents and registration forms with the application fee should be filed with DICA through DICA’s online system and DICA will issue the Certificate of Incorporation accordingly. |
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Open corporate bank account Once the foreign – owned company duly incorporated in Myanmar, the incorporation documents should be submitted to the bank for bank account opening. Please consider, that the authorised signatory is required to present physically on the day the account is opened for the physical verification of the signature. Kaizen can provide the assistance to open corporate bank account with a leading commercial bank in Myanmar. Please contact with our professionals for further information. |
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(1) |
Two to three English names for the Myanmar company; |
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A good quality colour scanned copy of the passport of the individual shareholders, their share ratios, class of share (e.g. ordinary share) and resident address. If the shareholder is a legal person, a good quality colour scanned copy of the company registration certificate and other documents shall be provided; |
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A good quality colour scanned copy of the passport of the directors for the Myanmar company and their resident address; |
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(4) |
The amount of registered capital for the Myanmar company; |
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(5) |
The business scope of Myanmar company (Principle business activity); |
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Certificate of Incorporation issued by DICA; |
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Company Extra Form (company’s detail information); |
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(3) |
A Company Seal and Director Stamp. |
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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