Cost of Doing Business in Myanmar 2017 (PDF)
Total Page:16
File Type:pdf, Size:1020Kb
COSTOF DOING BUSINESS IN MYANMAR SURVEY REPORT 2017 Printed in: Yangon in January 2017 (Also available on the DICA website indicated below) Conducted by: Directorate of Investment and Company Administration (DICA) – Yangon Office Ministry of Planning and Finance No 1 Thitsar Road, Yankin Township Yangon Tel: 95 1 658134 Fax: 95 1 658145 URL: http://www.dica.gov.mm Supported by: Japan International Cooperation Agency (JICA) (Myanmar Office) # 701 Sakura Tower 339 BogyokeAung San Road Kyauktada Township, Yangon Tel: 95 1 255473 ~ 6 Fax: 95 1 255477 URL: http://www.jica.go.jp/english/index.html Implemented by: Myanmar Survey Research Yangon Central Railways Station Building Kungyan Street, MingalaTaungnyunt Township Yangon Tel: 95 1 370464 Fax: 95 1 254263 Email: [email protected] URL: www.myanmarsurveyresearch.com © COPYRIGHT: Directorate of Investment and Company Administration, Ministry of Planning and Finance, 2017 1 ACRONYMS AGM Annual General Meeting AOA Articles of Association CUSDEC - 2 Export Declaration Form DICA Directorate of Investment and Company Administration, Under MOPF DISI Department of Industrial Supervision And Inspection, Ministry of Industry ECD Environmental Conservation Department (for EIA/SIA), Under MNREC EIA Environmental Impact Assessment (Environmental Survey) EMP Environmental Management Plan FED Form Foreign Exchange Declaration Form FIL Foreign Investment Law FOB Free on Board IEE Initial Environmental Examination IRD Internal Revenue Department, Ministry of Planning And Finance IZ Industrial Zone JICA Japan International Cooperation Agency MACCS Myanmar Automatic Cargo Clearance System MCIS Myanmar Customs Information System MEPE Myanma Electric Power Enterprise MFTB Myanma Foreign Trade Bank, Ministry of Planning And Finance MIC Myanmar Investment Commission MIL Myanmar Investment Law MITS Myanmar Inspection and Testing Services Ltd MNREC Ministry of Natural Resources and Environmental Conservation MOA Memorandum of Association MOPF Ministry of Planning And Finance MPE Myanma Petrochemicals Enterprise National Registration Card (= Citizenship Certificate of Myanmar Nation- NRC als) OSS One Stop Service PAT Proposal Assessment Team (DICA) RFP Request for Proposal SEZ Special Economic Zone SIA Social Impact Assessment (Part of Environmental Survey) TOR Terms of Reference UMFCCI Union of Myanmar Federation of Chambers of Commerce and Industry 2 TERMS “U” is a Myanmar honorific used before the name of a man—single or married. U It is an equivalent of Mr. “Daw” is a Myanmar honorific used before the name of a woman—single or Daw married. It is an equivalent of Mrs/Ms. “Myanma” (Myanmar without “r”) is used as an adjective. It is found mostly on Myanma the names of the government economic enterprises. Myanmar traditional weight measuring unit. There are 100 ticals in a viss. Viss 1 viss = 3.6 lb = 1.65 kg CURRENCY EXCHANGE RATES Other curren- Myanmar kyat (MMK) In short Unit cies equivalent to 1 unit of the respective currency November 2016 December 2016 January 2017 United States USD 1 dollar 1,286 1,370 1,355 dollar Chinese yuan CNY 1 yuan 189 197.22 195.10 Thai baht THB 1 baht 37 38.077 37.818 Indian rupee INR 1 rupee 19 20.194 19.884 Japanese yen JPY 1 yen 12.26 11.687 11.540 Korean won KRW 1 won 1.1274 1.1425 1.1203 Singapore dollar SGD 1 dollar 925 946.43 934.48 Euro EUR 1 euro 1,410 1,432.2 1,418.3 British pound GBP 1 pound 1,517 1,683.7 1,664.9 http://forex.cbm.gov.mm/index.php/fxrate(Reference exchange rate - Central Bank of Myanmar) Inflation rates from 2010 to 2020 (Estimation: 2017 – 2020)1 The following chart shows the inflation rates from 2010 to 2016 with estimation until 2020. 1 https://www.statista.com/statistics/525770/inflation-rate-in-myanmar/ 3 CONTENTS Acronyms ------------------------------------------------------------------------------------------------- 2 Terms, currency exchange rates and inflation rates (2017-2020) ---------------- 3 Preface by Director-General of DICA ---------------------------------------------------------- 6 Executive summary ----------------------------------------------------------------------------------- 7 Demographic information – Myanmar -------------------------------------------------------- 9 Introduction --------------------------------------------------------------------------------------------- 12 1 Land, space and building 1.1 Land lease ------------------------------------------------------------------------------ 15 1.2 Space for lease ------------------------------------------------------------------------ 17 1.3 Condominium --------------------------------------------------------------------------- 22 1.4 Land sales------------------------------------------------------------------------------- 24 1.5 Space for sales ------------------------------------------------------------------------ 28 1.6 Construction costs -------------------------------------------------------------------- 31 2 Human resources 2.1 Employment ---------------------------------------------------------------------------- 33 2.2 Human resource development ----------------------------------------------------- 42 3 Government sector 3.1 Business establishment process 3.1.1 Company registration procedures --------------------------------------- 46 3.1.2 Compliance with legal requirements after registration -------------- 51 3.1.3 Essential documents for company registration renewal ------------ 52 3.2 Investment process 3.2.1 Applying for MIC permit ---------------------------------------------------- 55 3.2.2 Further information on investment --------------------------------------- 57 3.2.3 Post-permit activities -------------------------------------------------------- 65 3.3 Taxation --------------------------------------------------------------------------------- 72 4 Export/import and logistics 4.1 Customs and clearance -------------------------------------------------------------- 75 4.2 Export &import ------------------------------------------------------------------------- 80 4.3 Overseas logistics --------------------------------------------------------------------- 87 4.4 Cross-border logistics ---------------------------------------------------------------- 94 4.5 Domestic logistics --------------------------------------------------------------------- 94 4.6 Cargo handling cost------------------------------------------------------------------- 94 5 Infrastructure usage 5.1 Electricity -------------------------------------------------------------------------------- 96 5.2 Water and sewage -------------------------------------------------------------------- 99 5.3 Waste disposal and treatment ---------------------------------------------------- 100 5.4 Gas --------------------------------------------------------------------------------- 107 5.5 Fuel --------------------------------------------------------------------------------- 108 5.6 Generator ----------------------------------------------------------------------------- 110 5.7 Telecommunications 5.7.1 Mobile phone --------------------------------------------------------------- 110 5.7.2 Landline phone ------------------------------------------------------------- 112 5.7.3 Internet ----------------------------------------------------------------------- 113 4 6Business services and others 6.1 Finance and insurance 6.1.1 Finance Opening accounts --------------------------------------------------------- 115 Export and import ---------------------------------------------------------- 115 Remittance, bank guarantee and FC withdrawal ------------------- 116 Cheques and cards and miscellany ----------------------------------- 117 Bank guarantee service, remittance and costs --------------------- 117 6.1.2 Insurance Myanma Insurance -------------------------------------------------------- 119 IKBZ services --------------------------------------------------------------- 121 6.2 Business services 6.2.1 Lawyer’s services ---------------------------------------------------------- 134 6.2.2 Accounting services ------------------------------------------------------- 135 6.2.3 Translators/interpreters --------------------------------------------------- 136 6.2.4 Business consultancy ----------------------------------------------------- 136 6.3 Engineering services 6.3.1 Environment (EIA/SIA) --------------------------------------------------- 137 6.3.2 Inspection of building ----------------------------------------------------- 141 6.3.3 Inspection of fire prevention --------------------------------------------- 142 6.3.4 Industrial registration ------------------------------------------------------ 144 6.3.5 Inspection of electricity --------------------------------------------------- 145 6.3.6 Inspection of escalator and elevator ---------------------------------- 146 6.3.7 Inspection of boiler -------------------------------------------------------- 147 6.3.8 Registration of SMEs ----------------------------------------------------- 147 6.4 Mission costs 6.4.1 Hotel room rates Hotels in downtown Yangon -------------------------------------------- 149 Hotels in high-class and suburban areas in Yangon -------------- 154 6.4.2 Rent-a-car rates ------------------------------------------------------------ 156 6.4.3 Visas -------------------------------------------------------------------------- 159 6.5 Expatriate’s living costs ------------------------------------------------------------ 167 7 Thilawa Special Economic Zone 7.1 Overall procedures for commencement of business ------------------------ 176 7.2 One Stop