If you want to expand your company in Myanmar, informally known as Burma, the first thing you need is a registered subsidiary. However, incorporating in the country is often more difficult than you may expect, as you have to learn a whole new set of laws and how to set up a Myanmar subsidiary. Do you have the time, knowledge, and energy to set up a subsidiary while continuing to run your company? If not, you can rely on Globalization Partners for a fast and easy expansion process.
We use Myanmar subsidiary outsourcing to help companies around the world expand to Myanmar without setting up their own subsidiary. Instead, you can use our infrastructure to start working in Burma in as little as a day or two without any worries about compliance.
How to Set up a Myanmar Subsidiary
Do you know how to set up a Burmese subsidiary based on your location and type of entity? Many companies don’t understand how the incorporation process changes depending on certain factors. First, you need to find the best city or region within the country with the friendliest incorporation laws. If you’re not familiar with the different locations, work with an expert who can recommend the right place for your office.
You should also decide on the entity that will support your business goals. In Myanmar, you can incorporate as a limited liability company (LLC), joint venture company, public limited company, branch office, or representative office. If you want to work like a resident company, we recommend incorporating as an LLC since it will give you more freedom. However, if you’ll handle only a few activities, you should use a branch or representative office structure.
If you decide to set up your Myanmar subsidiary as an LLC, you should follow these steps:
- Request a unique company name
- Acquire a Business Incorporation Certificate
- Sign the application before a lawyer or certified accountant
- Pay all government fees
- Open an in-country bank account
- Submit the declaration of registration
- Create two copies of the Memorandum and Articles of Association printed in both Myanmar and English
- Submit a translation certificate by a competent translator
- Submit a full list of directors
- And more
Myanmar Subsidiary Laws
You have to follow a specific set of Myanmar subsidiary laws when establishing an LLC in Burma. For example, you’ll need two shareholders and two directors. Your shareholders can be individuals or corporations and do not need to live in the country. However, if your company includes foreign investments, you should get approval from the Myanmar Investment Commission (MIC) before working. Companies with foreign shareholders need $50,000 in paid-up share capital for service industries and $150,000 for manufacturing industries.
Although LLCs have the most freedom to operate, they also need to follow some stricter guidelines. All LLCs must provide authorities with an annual financial return, make quarterly corporate tax payments, and submit annual financial statements. Foreign-owned companies may also undergo an audit.
Benefits of the Myanmar Subsidiary Setup Process
Although the Burmese subsidiary setup process can take weeks, months, or even a year, you do get to benefit from working in the country. Many companies decide to expand as an LLC because it gives them even more benefits. Your parent company will have limited liability from the subsidiary, which protects both structures and gives them a degree of independence.
Globalization Partners provides these benefits and more faster. When you choose Myanmar subsidiary outsourcing with us, we’ll help you work through our existing subsidiary in a day or two. Our team will handle hiring, onboarding, benefits, compensation, and payroll while you spend your time focused on growing your business.
What You Need to Incorporate
If you’re planning your own incorporation, we recommend creating a plan for your expected time and finances. Start by delegating tasks and clearing key executives’ schedules for the weeks during the incorporation process. You can also talk to your finance department about how much it will cost to incorporate and complete the entire process. If you don’t have a Myanmar subsidiary laws expert on your team, look at hiring a third-party expert who can help you stay compliant.
Work With Globalization Partners Today
Globalization Partners wants to see you succeed in Myanmar and beyond. Contact us today for more information about Myanmar subsidiary outsourcing.