The opportunities in Myanmar are tremendous but it is only with the right approach that one can succeed. the core mantra is the selection of the right business module.
- The basic proposal should be kept “low cost” to fund up-gradation programmes.
- Technology should be kept simple for the world at large to understand.
- A few business models that can be introduced include IT outsourcing, enterprise level software development for back office, hotels, factories and health institutes.
- The other fields where there is a scope of opportunity include mining, oil exploration, hydro power, inbound tourism and IT education.
- Other core areas include smart phone applications, scanning inventory management and improvement in the connectivity sector.
- Knowledge corridor: Education, in terms of both technical and business management is also a key potential sector to explore with students preferring to study abroad.
- US financial sanctions have been suspended for one year.
- The direct transfer of funds, for business purposes, to Myanmar is now possible.
- Indian Banks initially could only transfer funds for business transactions to Myanmar via Singapore and not directly. However, with the lifting of sanctions on 4 Banks, funds can now be sent directly to Myanmar.
- MICB, (Myanmar Investment and Commercial Bank) continues to deal with Indian Banks for direct remittance from India.
- With Myanmar moving towards positive reforms, growing foreign trade and businesses will further strengthen the nation’s economy and progress.
With rising interest in the country’s economy, Indian organisations can now look at being a part of Myanmar’s growing fiscal development by providing their expertise on areas sic as facilitation, incubation and legal tax compliance and advisory services for enterprises planning to enter the business space in the country.
Fast track registration can be executed in 3 to 4 weeks from DICA (Department of Investment and Company Administration).
This will enable Indian companies to provide ‘start-up’ facilitation services for smooth entry of enterprises to establish themselves in Myanmar.
Indian companies will provide insight into all legal, banking and other necessary mandates for the new company to independently handle the formalities on its own.
Assistance in terms of offering necessary back-end support such as setting up of virtual offices can be provided for the enterprise to establish a firm foothold in the business scenario.
Myanmar, with its business friendly policies, provides the ideal corridors for foreign companies to exponentially grow.
These polices along with the support of Indian companies, would further generate growing interest for Indian enterprises to venture into Myanmar’s market.
The minimum capital requirement amounts to $50,000, of which 50% is payable as a first instalment, immediately after the registration has been obtained.
The tax implication on a local company is 25% whereas a non-resident company has to pay 35%.
Under special Myanmar Foreign Investment Law and Economic Zone Rules, repatriation of profits and capital are allowed after paying tax. Areas such as Manufacturing, Infrastructure, Power Plants and Aviation will be allowed, although the process deems to be lengthy.
Separate registrations are required for each vertical of any business.
Service related activities are allowed if the company is set up as a service company.
Similarly, the license for Manpower services has to be separately obtained from the Ministry of Labour, etc.
With Myanmar’s growing economic progress through foreign investments, the manpower cost is quite reasonable However, the rent for the office and accommodation has sky rocketed. Such high rentals are dissuading some foreign companies from starting operations and rethinking on investments.
Indian enterprises can benefit by playing a major role in providing their support of facilitation of foreign ventures to successfully establish their businesses in Myanmar.