Setting Up a Company in Myanmar
Myanmar's investment environment requires careful assessment in 2026 — this guide covers the legal framework, MIC permit process, and the due diligence considerations for foreign investors.
Myanmar's investment environment has been materially affected by political developments since February 2021 and carries heightened risk for foreign investors including sanctions exposure, operational challenges and governance concerns. Investors with existing or planned operations should conduct thorough legal and political risk due diligence with specialist counsel before proceeding. This guide describes the legal framework as it stands; it is not an endorsement of investment at this time.
Key facts for 2026
| Parameter | Detail |
|---|---|
| Corporate income tax | 22% (standard rate) |
| Commercial Tax (VAT equivalent) | 5% on most goods and services |
| Foreign ownership | 100% permitted for most activities with MIC permit |
| MIC permit tax holiday | 3–7 years depending on zone and sector |
| Sanctions risk | US, EU and UK sanctions apply to designated entities — verify before transacting |
Myanmar Investment Commission (MIC) Permit
Foreign companies wishing to invest in Myanmar must register with the Directorate of Investment and Company Administration (DICA) and, for qualifying investment activities, obtain a Myanmar Investment Commission (MIC) Permit or an MIC Endorsement. MIC Permit holders receive tax holidays (3 years in Yangon/Mandalay, 5 years in designated zones, 7 years in remote areas), import duty exemptions on capital goods, and guarantees against nationalisation. The Myanmar Companies Law 2017 governs corporate registration through the DICA's online MyCO system.
Special Economic Zones
Myanmar operates three SEZs — Thilawa (near Yangon, the most developed), Dawei and Kyaukphyu. Thilawa Zone A offers a 7-year CIT exemption and 5-year 50% reduction thereafter for qualifying manufacturers. SEZ entities can be 100% foreign-owned. Operational continuity in Dawei and Kyaukphyu has been affected by post-2021 political disruptions and infrastructure delays.
Due diligence considerations
US, EU and UK sanctions programmes have designated a range of Myanmar military-linked entities, banks and individuals. Companies operating in Myanmar must screen all counterparties, banking relationships and supply chain participants against applicable sanctions lists. Certain sectors — including jade and ruby mining — are subject to targeted import bans under US law. Legal counsel with sanctions expertise should be engaged before any Myanmar transaction or incorporation.
Frequently asked questions
Can a foreigner own 100% of a Myanmar company?
Yes, for most activities with an MIC Permit. Restricted activities include certain agricultural land ownership, broadcasting and specific retail activities requiring local partnership.
What is the corporate tax rate in Myanmar?
22% standard rate. MIC Permit holders receive tax holidays of 3–7 years. SEZ entities in Thilawa Zone A pay 0% for 7 years, 50% reduction for the following 5.
What sanctions apply to Myanmar?
US, EU and UK sanctions target military-linked entities, individuals and sectors. All foreign investors must screen counterparties and supply chains before proceeding. Sanctions lists are updated regularly and specialist legal advice is essential.
Official sources
This guide is general information prepared by ARM Management and is current as at July 2026. It does not constitute legal advice or a recommendation to invest. Myanmar carries elevated political and sanctions risk; specialist legal counsel is essential before any investment decision.