Investment law update myanmar garment manufacturers. Myanmars upcoming new companies act and revised foreign investment law. Myanmars investment outlook for 2018 asean business news. Myanmar legislation includes volumes of codified laws enacted between 1841 to 1954, known as the burma code, in addition to numerous special laws, notifications, rules and regulations enacted from time to time.
This is the unofficial english translation of the new. Dec, 2012 the fil replaces the previous foreign investment law of 1988 1988 law and ushers in policies and provisions aimed at encouraging foreign investment for the purposes of jumpstarting the development of the wealth, infrastructure and productivity in myanmar. Union means the republic of the union of myanmar b. The amended foreign investment law the law of the union assembly no. Myanmar s upcoming new companies act and revised foreign investment law. Introduction this month has marked some significant milestones for myanmar also known as burma which, as a former pariah state, has recently emerged as the new investment hotspot in asia due to its rich natural resources and untapped markets. The mil repealed the 2012 foreign investment law the fil. In 2016 the government of myanmar introduced a new myanmar investment law mil foreign investment law fil. The union of myanmar foreign investment law the state law and order restoration council law no. The investment challenges in a context where the economy is still dominated by the interests of the military and their connected crony businessmen are obvious. Myanmars foreign direct investment rush recedes financial. Jul 03, 2012 currently, foreign investment in myanmar is concentrated in oil and gas, minerals and power.
Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Summary of amendments on 2nd november 2012, president thein sein signed into law the longawaited new foreign investment law. While the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Kpmg in myanmar your investment resource for thailands. There will be a new type of myanmar investment commission mic approval process, referred to as the mic endorsement. Wanning day of thadingyut the union parliament hereby enacts the following law. Applicants depending on the type of applicant, different authorities shall be. The role of foreign direct investment fdi in myanmar. Myanmar foreign direct investment 20122019 data 2020. Combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor.
The new fiscal year will start on april 1, which also marks the start of new laws and economic policies for myanmar. Myanmar s parliament passed a first draft of the fil on 7 september 2012, only for it to be returned by the president with instructions to temper some of its more protectionist provisions. Foreign investment by country directorate of investment and. In 2017, the century old companies law was substantially revised. If there is a delay, we will finish by the end of this fiscal year, at the end of march, he added.
Combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor citizen investor includes enterprises established only by citizens which is at odds with the draft of the new companies law. Aung hla tun, myanmar parliament passes investment law. New myanmar foreign investment law enacted charltons. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. With new foreign investment laws and the lifting of economic sanctions by western countries, myanmar is opening rapidly to the global. Jun 04, 20 myanmar foreign investment law june 4, 20 by thiha as a foreign investor it is important that you understand the objectives of the foreign investment law as we want to invest responsibly, by focusing our investment into areas that are profitable for us and at the same time is beneficial to the myanmar people. The guide to employment permits for foreign workers in myanmar. Nov 03, 2012 myanmar s new foreign investment law allows overseas firms to fully own ventures and offers tax breaks and lengthy land leases, state media said on saturday, releasing details of legislation.
In addition, the government revised myanmars investment law that serves to bring the countrys investment law under one regulatory roof by combining the myanmar citizen investment law and the myanmar foreign investment law. Summary of amendments, we have now had sight of an unofficial translation of the longawaited new foreign investment law, signed into law by president thein sein on 2 november 2012. Sd thein sein president republic of the union of myanmar. Myanmar foreign investment law implementing rules table of contents prohibited activities joint ventures restricted activities procedural information on 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. Through these laws, foreign investors may choose to establish a foreign branch office in myanmar. The new law has prompted debate about the role of foreign investment in national development and how it might affect other local interests. The government seeks to push development into manufacturing, real estate, agriculture and services, areas that are virtually untouched currently by foreign investment. Foreign investment overview for myanmar myanmar 2016. Pdf the role of foreign direct investment fdi in myanmar. The draft law combines elements of the myanmar companies act of 1914 and the special companies act of 1950, reworked in hopes of attracting foreign investment, said deputy minister for planning and finance u maung. We will circulate a more detailed summary once the text of the new law becomes available.
The myanmar law information system is a website providing service of the myanmar law information sel font zawygione pyidaungsu by menu all search union laws subordinate legistration of union laws region or state laws self administrated zonedivision laws treaty precedent schedules or forms. Vdb loi new 2012 myanmar foreign investment law now in. Foreign investors can now hold up to 35 percent of shares in a local company. Myanmar continued to strive for attracting foreign investment into the country in the current 201718 fiscal year which began in april. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18. Myanmar s new foreign investment law allows overseas firms to fully own ventures and offers tax breaks and lengthy land leases, state media said on saturday, releasing details of legislation. Oct 14, 2016 with the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the presidents office is all that is required to see it passed. Further to our legal update dated 9 november 2012 myanmar s foreign investment law. The new myanmar investment law, which was recently passed, will come into effect on april 1 and its implementation and enactment will spell. Jan 23, 2017 the new law provides corporate tax reductions for foreign businesses investing in myanmar and eases conditions for longterm real estate leases. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. You can get new foreign investment law 2012 both english and myanmar versions in the following link. The republic of the union of myanmar pyidaungsu hluttaw. Companies investing in myanmar under the foreign investment law or set up under the myanmar special economic zone law msezl can apply for work permits for foreigners in managerial or supervisory roles or for those holding technical.
The myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 and the myanmar citizens investment law 20 on 18th october 2016. Foreign direct investment in myanmar increased by 734. Now available for download, the vdb loi translation of the 2012 myanmar foreign investment law law nr. Jun 29, 2017 the mil repealed the 2012 foreign investment law the fil. It was the first decline in international inflows since the 2012 20 fiscal year. Myanmar state media details new foreign investment law reuters. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. The foreign investment law the pyidaungsu hluttaw law no.
The foreign investment law the pyidaungsu hluttaw law no 21 2012 the 3rd waning of thadingyut, 74 me 2nd november, 2012 the pyidaungsu hluttaw hereby enacts this law. In relation to the mil, the myanmar ministry of planning and finance has drafted the myanmar investment rules the mil rules. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment. What changes in practice under the new investment law. Jan 26, 2017 t he new myanmar investment law mil was enacted on october 18 2016, replacing the previous foreign investment law 2012 fil 2012 and citizens investment law 20. Why myanmars revised foreign investment law is over. How will the new investment law make it easier for foreign investment. The republic of the union of myanmar pyidaungsu hluttaw foreign investment law pyidaungsu hluttaw law no. The additional issuance of a longterm stay permit within myanmar, which is only available to persons holding an frc, allows foreigners to stay in myanmar for the full term of the visa.
On 30th march 2017, the ministry of planning and finance, therefore, published the myanmar investment rules mir under the myanmar investment law 2016 mil as notification no. Ministry of investment and foreign economic relations mifer. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. If you look at the new law there are actually two categories. The new myanmar investment law 2016 mil has been enacted on 18 october 2016. Myanmar to release new investment law by next year. Investment promotion and facilitation in myanmar chapter 5. I hereby sign under the constitution of the republic of the union of myanmar. Foreign investors who wish to undertake specific business activities in myanmar may rely on the foreign investment framework available under the myanmar companies act, the 2012 myanmar foreign investment law and the 2014 sez law.
Introduction fil 2012 foreign investment rules notification no. The idea is that if you also look at our previous, 2012 foreign investment law, all investment needs to be approved by the mic. New myanmar foreign investment law enacted on 2 november 2012. Myanmar state media details new foreign investment law. Myanmar s investment law and policies have been evolving over the last few years. Myanmars investment outlook for 2019 asean business news. Myanmars new foreign investment law fil was passed on november 2. The legal steps consulting group is a full service myanmar law firm with a major focus on corporate and commercial transactions. The law, enacted recently, combines the myanmar citizens investment law and the foreign investment law. Foreign investment law law firm hong kong law firms. Normally it takes at least three months to release rules and regulations following a law, maung maung win said. This was replaced by the myanmar investment law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws.
This law shall be called the foreign investment law. Investor means a myanmar citizen investor or foreign investor who invests within the union. Although the foreign investment law is repealed, the myanmar investment commission formedby that law shall have the power to perform its duties until the date that. Liberalization of the education sector, and wholesale and retail trade for foreign companies and joint venture companies have been implemented with the new legislation. The mil came into effect on 18 october 2016 and consolidated and replaced the previous foreign investment law 2012 and the citizens investment law 20. One is mics permitted business and the other one is mics approved businesses. The government announced to make revisions in the foreign investment law fil which was originally issued in 1988.
On 2 november 2012 myanmar s president thein sein endorsed the countrys new foreign investment law fil. The government is working to make foreign investment more attractive by overhauling. Outside the arbitration field, the myanmar competition law coming into force in february 2017. Myanmar is still a highrisk country, requiring a rigorous responsible investment strategy. The new mil is a consolidation of the myanmar citizen investment law 20 and the myanmar foreign investment law 2012. The investment law adopts international standards to protect investors compensation for expropriation employment the 2012 foreign investment law and the 20 myanmar citizens investment law have been merged and upgraded into one combined investment law. A new draft foreign investment bill published in 2015. Revision of myanmar foreign investment law 2011 the government announced to make revisions in the foreign investment law fil which was originally issued in 1988. Foreign investment law of 2012 open development myanmar. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18 october 2016. We would like to show you a description here but the site wont allow us.
The myanmar times sat down with myanmar investment commission secretary u aung naing oo this week to discuss what the new law means for both foreign and local businesses and how the mic plans to. An introduction to doing business in indonesia 2020. New foreign direct investment law adopted global legal. The legal system in myanmar is based on english common law.
Foreign investment law 2012 union parliament law no xxi 3 chapter i title and definition 1. Market participants in myanmar are querying the validity of an alleged new draft of myanmars foreign investment law, obtained and leaked by reuters last week, and have branded the significance of the proposed changes as overhyped. The myanmar investment law, enacted in 2016, vastly simplified the process for investment applications and offers a number of tax breaks, incentives, guarantees, rights and protections for business ventures. Commission means the myanmar investment commission formed under this law c. Embassy of the republic of the union of myanmar, london. August, 2012 the amended bill new fil was approved by the house of representatives the lower house of the assembly of the union september, 2012. This page provides the latest reported value for myanmar foreign direct investment plus. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. The following terms mentioned in this law must be interpreted as stated below. Now soon to be in force, we outline what changes in practice.
New myanmar foreign investment law enacted on 2 november. During the first four months of the fiscal year up to july, 3. Evaluation of the new foreign investment law in myanmar. The new law is set to be implemented by august 2018. Myanmar is committed to providing a secure, accessible and conducive investment environment for both foreign business people and myanmar citizens. Our young team are well qualified and have significant experience in working with foreign investors in myanmar and have a deep understanding of mynamars foreign investment law, practices and procedures. In 2018, myanmar enforced a new companies law to ease local investment opportunities. May 03, 20 on 2 november 2012, president thein sein signed into law myanmars new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988. Mar 24, 2017 the myanmar foreign investment law of 2012 introduced a work permit system for foreigners investing in myanmar. New investment law helps myanmar rebuild its economy and.
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