Commission means the myanmar investment commission formed under this law c. While there is no specific rule on the minimum investment threshold for the grant of an mic permit under the myanmar foreign investment law, the mic has generally expected a minimum investment. The legal and regulatory framework of foreign investment. Foreign investment law 2012 and citizen investment law 20 to improve on. Law of 1987, foreigners are restricted from owning land.
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. Foreign investment law burmese and english myanmar law. Myanmar companies law english and burmese version from dica pdf 1. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. Pdf the role of foreign direct investment fdi in myanmar. 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.
The expressions in these rules shall have the same meanings in the myanmar investment law. Myanmar is in the midst of rapid economic and social change, with dramatic consequences for land tenure. International investment law understanding concepts and. Foreign direct investment in myanmar increased by 734.
As of november 2015, 1024 enterprises have been permitted to conduct business under the myanmar foreign investment law. Evaluation of the new foreign investment law in myanmar. Foreign exchange regulation act central bank of myanmar. Fallow and virgin lands management law 2012 foreign investment law 2012 special economic zones law 2012. Oct 27, 2016 while the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Central bank of myanmar notice allowing foreign investment in myanmar. The new law is set to be implemented by august 2018. Moreover, the myanmar investment law defines fet very differently from the way that investment. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Licensing of foreign investment in real estate 11 chapter 3. New myanmar foreign investment law enacted on 2 november.
The government of the union of myanmar has been striving hard. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. The myanmar government is in the process of passing additional investor friendly laws and regulations to promote foreign investment. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. Pursuant to the mil, when doing business in myanmar, foreign investors can. The study was based on secondary data source of myanmar over the. Myanmar investment law, the ministry of planning and finance, with the approval of the union government, hereby issues these rules. The myanmar foreign investment law also expressly provides that recipients of an mic permit will not be nationalised during the term of their investment. Positioning myanmar as an attractive new investment destination in southeast asia 8thmeeting of the asiapacific foreign direct investment fdi network united nations conference centre, bangkok, thailand 2526 september 2018. Types of land farmland paddy land and several types of nonpaddy land non.
The legal and regulatory framework of foreign investment in myanmar s power sector september 15, 2017 as myanmar increasingly liberalizes, decentralizes and opens its power sector to foreign investment, foreign ipps are faced with a legal and regulatory framework that is in full transition. 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. However, these separate legal regimes created the perception of an uneven playing field for foreign investors on the one hand and domestic investors on the other. Guide to the myanmar investment law berwin leighton paisner. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday.
Myanmar foreign investment tracking project the unofficial myanmar language translation of this response is available here 1. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Land law stamp duty in myanmar seminar, 4 august 2016. May 03, 20 foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the myanmar investment commission the mic. With the mil affecting all investments in myanmar, no matter how large or small, or whether being made by local or. A guide to the myanmar investment law the passing of the myanmar investment law 402016 mil has brought about significant changes to myanmars investment framework affecting both myanmar and foreign investors.
Construction permits and change of land use 19 chapter 6. The amended foreign investment law the law of the union assembly no. It shall also include investments stipulated under section 40. Regulation and protection of investment in myanmar chapter 4. Investor protection market access entry procedures investment incentives to reduce complex and lengthy entry process, to increase transparency reform the incentive scheme from blanket approval to targeted incentive.
The mil, the investment rules and the myanmar companies law 2017 are the key pieces of legislation underpinning the governments efforts to attract foreign investment to myanmar. Under the myanmar investment law mil, foreign companies investing under a permit from the myanmar investment commission mic can enter into a 50year lease agreement with two 10year extensions. Myanmar investment law burmese version18102016 approved 1. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. Foreigners are allowed to lease land, and the lease duration is a maximum of one year. The information in this book give insights into the business opportunities that exit in myanmar and the practical steps that need to be taken to bring them to fruition. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. In the current reform process, smallholders are reclaiming their legal land rights at the same time that foreign investment is flooding the country, placing all previous land use arrangements under increasing pressure.
Ministry of investment and foreign economic relations mifer. However, bylaws implementing the new mil have not been issued yet and as such the rules issued under the old myanmar foreign investment law continue to be in effect to the extent that they are not contrary to the new mil. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. It was the first decline in international inflows since the 201220 fiscal year. Myanmar investment guide 2018 directorate of investment and. These rules shall be called the myanmar investment rules. The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to myanmars economic growth and future prosperity. Positioning myanmar as an attractive new investment. Where any foreign exchange is acquired by any person other than an authorized dealer for any particular purpose, or where.
The government of the republic of the union of myanmar the. This update to the most important investment related legislation helps establish the coherent legal framework for both domestic and foreign investors. Oct 19, 2016 myo aung myanmar, retirement work in home. Foreign investors may also wish to locate in an sez and for this they will need to apply for an sez permit.
Myanmars investment outlook for 2018 asean business news. Foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the. The republic of the union of myanmar pyidaungsu hluttaw. This page provides the latest reported value for myanmar foreign direct investment plus. Myanmar investment guide 2018 directorate of investment.
A revised draft of the myanmar companies law was approved by cabinet last week and has been forwarded to parliament. Does your company have investments or operations in myanmar or is it seriously considering investing or operating there. Myanmar investment law directorate of investment and. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmar foreign direct investment 20122019 data 2020.
Fet is among the most farreaching, and widely criticized, investor rights that investment treaties grant to foreign investors. These include the myanmar companies law and implementing rules, the condominium law rules, and the mining law amendment act rules. The new myanmar companies act takes effect from 1 august 2018. The following expressions contained in this law shall have the meaning given hereunder. Attorneygeneral lawauditorgeneral lawlaw amending the myanmar red cross society act, 1959adaptation of expressions lawunion of myanmar foreign investment law. Important land laws transfer of property act 1882 upper myanmar land and revenue regulations 1889. Foreign direct investment and economic transformation in myanmar 2 ii. This law shall be called the foreign investment law. Myanmar continued to strive for attracting foreign investment into the country in the current 201718 fiscal year which began in april. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. 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.
New investment law helps myanmar rebuild its economy and. Pursuant to the mil, when doing business in myanmar, foreign investors can benefit from significant tax exemptions and other benefits. Investor means a myanmar citizen investor or foreign investor who invests within the union in accordance. 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. The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to set up their own enterprises, via mechanisms to assist access to finance and land.
Union government means the union government of the. Investment promotion and facilitation in myanmar chapter 5. Myanmar myanmar investment law investment laws navigator. Myanmar investment law burmese version18102016 approved. However, companies registered under the myanmar investment law mil are permitted to repatriate investments and profits in the foreign currency in which the investments were made, subject to the approval of the investment commission and the central bank of myanmar. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law. While the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Fdi in myanmar was on the rise even before the new investment law was being drafted, a trend continued during extensive public discussion and debate about the legislation. During the first four months of the fiscal year up to july, 3.
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