The MoC also held a seminar on 30 July 2018 to provide further explanations and clarifications. However, as these were verbal discussions, further examination on the relevant law and notifications would be needed.
The newsletters introduced 4 categories of companies:-
|A||100% foreign owned and JV companies to be incorporated in Myanmar and wishes to
register as a wholesaler or retailer
|B||Established foreign or JV companies in Myanmar but that currently do not have the right to
wholesale or retail goods and wishes to register as a wholesaler or retailer
|C||Established foreign or JV companies currently permitted to do wholesale or retail business|
|D||cal companies carrying out wholesale and retail business|
A common question has been whether investors will need to commit all of the capital at the time the business is established. The newsletters set out the timing for the required capital inputs as summarized in the table below:-
||Year 1||Year 2||Year 3||Year 5|
|A & B||50%||30%||20%||-|
|C||To be reviewed at year 5 during renewal process in
Below is a list of the categories of goods set out as prioritized goods that will be allowed to be sold via wholesale or retail:-
1 Consumer goods
2 Foodstuff – certain agricultural products, aquatic and animal products, instant food and certain beverages
3 Household goods
4 Kitchen appliances
5 Pharmaceutical products and medical equipment
6 Animal feed and medicine
7 Stationery8 Furniture
9 Sports equipment
10 Telecommunication equipment
12 Construction materials
13 Electrical goods
14 Industrial chemicals
15 Seeds and agricultural equipment
16 Farming tools
19 Motorcycles and accessories
20 Spare parts for motor vehicles and heavy machinery
22 Home decorations
24 Artwork, musical instruments and accessories
In addition to the above prioritised list of goods, we understand that there may be an additional list of restricted products. We have not seen a draft list of restricted goods and will continue to update our clients if and when this list is released.
KPMG can assist in assessing your investments into Myanmar or reassessing new market opportunities. KPMG is experienced in advising clients looking at investing into Myanmar via acquisition of existing businesses or making greenfield investments into Myanmar.
Our team of dynamic professionals has the necessary experience in dealing with the intricacies of investing into Myanmar and will be able to offer practical advice and solutions. Please reach out to us to discuss and understand the impact to your investment in Myanmar.
KPMG Client Alerts highlight the latest tax and regulatory developments, impending changeto law or regulations, current practices and potential problem areas that may impact your company. As certain issues discussed herein are time sensitive, it is advisable to make your plans accordingly.
“Client Alert” is issued exclusively for the information of clients and staff of KPMG Advisory (Myanmar) Ltd and should not be used or relied upon as a substitute for detailed advice on the basis for formulating business decisions.