Author: Eitra Myo
Pursuant to Notification No. 25 of 2018 issued by the Ministry of Commerce on 9 May 2018, 100% Foreign Direct Investment companies (“FDI Companies”) and Joint Venture companies with local partners (“JVs”) are allowed to carry out retail or wholesale businesses in Myanmar.
In accordance with the notification, all products manufactured in the country and/or imported from overseas except restricted products may be sold and distributed by wholesale or retail businesses within the Myanmar States and Regions under their relevant rules and procedures.
It bears noting that these permissions are limited by some restrictions. For example, the permission on operating retail/wholesale businesses is limited by an initial investment amount.
For FDI Companies and JVs with a local equity ratio of less than 20%, the minimum initial investment amount for wholesale and retail businesses is USD 5 million and 3 million respectively. For JVs with a local equity ratio exceeding 20%, the minimum initial investment amount is USD 2 million for wholesaler and 0.7 million for retailer respectively. The aforementioned amounts do not include any land lease costs.
FDI Companies and JVs are also restricted to invest in small retail spaces with a floor area of 929 square metres or less, such as mini markets and convenience stores.
Companies that are desirous of starting retail or wholesale businesses in Myanmar are required to apply for a Retail/Wholesale Business Licence at Ministry of Commerce. FDI Companies and JVs are required to obtain endorsement and/or a permit to apply the licence from the Myanmar Industry Commission.
If you want to know more general or legal information about investing on retail and wholesale businesses in Myanmar, please do not hesitate to contact us.
Vanessa Ng, COO
+65 6535 8100
Eitra Myo, Legal Manager
May Myat Thu, Corporate Affairs Executive
Written by: Eitra Myo