Myanmar Special Economic Zones

Myanmar Special Economic Zones

business registration in Myanmar SEZsIn order to attract foreign investment, the Myanmar government has recently established three Special Economic Zones (SEZ) to attract more foreign investment: i) Thilawar SEZ ii) Dawei SEZ iii) and Kyuakpyu SEZ. These special economic zones are expected to be operational by 2016. However, the authorities have already adopted in 2014 a law fixing tax benefits and other incentives to be awarded to foreigners forming a company in a Myanmar Special Economic Zone.

The tax benefits of the Myanmar Special Economic Zones

Our Clients registering a business in a Myanmar SEZ will benefit from i) 100% exemption from corporate income tax during five years and 50% exemption during the five following years ii) no import duties on equipment, machinery and some raw material and iii) ability to carry forward losses during up to five years.

Thilawa special economic zone

Thilawar SEZ is situated in Yangoon Division – the major port city in Myanmar – with convenient access to Yangon International Airport and Yangoon business center. This SEZ targets multinationals from the business sectors of manufacturing, technology, forest products, and agriculture.

Dawei special economic zone

Dawei SEZ is located in Tanintharyi region with land and sea routes to Thailand, Cambodia, and Vietnam. This SEZ targets multinationals from the business sectors of: leather products, furniture, steel production, fertilizer, oil refinery, and vehicle manufacturing.

Kyaukpyu special economic zone

Kyaukpyu SEZ is situated on Myanmar’s western coast, with fast sea route to India and China; land and air transportation is being implemented in this SEZ to improve logistics between China and Myanmar. This SEZ targets multinationals from the business sectors of: exportation, oil and gas, logistics, and service industry.

Table comparing different free trade zones in Myanmar

Summary at a GlanceThilawar SEZDawei
SEZ
Kyaukpyu
SEZ
Incorporation time3 months3 months3 months
How long to open company bank account?1 month1 month1 month
Allowed to sign sales contracts with Myanmar ClientsNoNoNo
Allowed to invoice Myanmar ClientsNoNoNo
Tax holidays in Myanmar5 years5 years5 years
Corporate bank accountFirst Private BankYoma BankAGD Bank
Physical office space requiredYesYesYes
Allowed to import raw materials?YesYesYes
Allowed to export goods?YesYesYes
Wholly foreign ownedYesYesYes
Can the entity hire expatriate staff in Myanmar?YesYesYes
Do you visit Myanmar for company incorporation?NoNoNo
Minimum number of directors222
Minimum number of shareholders222
Tax registration certificate requiredYesYesYes
Individual shareholders allowedYesYesYes
Corporate shareholders allowedYesYesYes
LLC company allowedYesYesYes
Can apply for immigration visasYesYesYes
Annual audited financial statementsYesYesYes
Annual tax return to be submittedYesYesYes

Contact us

For additional information on our free zone company services in Myanmar, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
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