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100% ownership for foreign companies, says Myanmar’s draft of new foreign investment rules

Posted on : 08 May, 2012

 

It’s welcoming news for foreign investors as the new investment regulations and economic reforms take shape in the resource-rich Myanmar. Ahead of a possible end to U.S. and European sanctions in the former Burma, Western investors are exploring their opportunities for businesses and trade.

 

As part of the economic liberalization, the draft of the new investment law suggests that foreigners can now either have 100% ownership of companies, or set up joint ventures with at least 35% foreign capital with Burmese citizens or government departments, and may be granted a 5-year tax holiday from the start of commercial operations. According to the draft, they can also lease land from the state or from private citizens who have permission to use land. 

 

Further, to reassure investors about a reversal of reforms and seizure of assets, the draft law according to a Reuters translation says "The government gives a guarantee that permitted businesses will not be nationalized during the period allowed in the contract or extended in the contract other than by giving compensation based on current prices in the market, in the interest of the general public.”

 

In anticipation of the Foreign Investment Law Amendment Bill, CMT is putting together the New Myanmar Investment Summit 2012 on 20-21 June in Yangon, where global investors, experienced industry players and government officials convene to share their expertise and knowledge on structuring joint ventures, aspects of land lease requirements, taxation planning considerations, new employment law and other subjects related to the investment reforms in Myanmar.

 

Register here to reserve seats or forward your queries to hafizah@cmtsp.com.sg

 

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