Explore the untapped potential of Myanmar: neighbor to Southeast Asia’s largest economies!
Myanmar stands as a strategic gateway of Asia’s two largest economies, China and India, presenting exciting opportunities and untapped potential for business growth. With its integration into ASEAN markets, abundant natural resources, young workforce, and improving infrastructure, the country has significant potential for long-term business development.
By establishing your presence in Myanmar, you access an emerging market and position your business at the crossroads of Asia’s most dynamic economies. However, businesses may have concerns around recent political volatility—an Employer of Record (EOR) offers a risk-free alternative, enabling you to tap into its human resources without creating a legal entity here.
In this guide, we explore the steps for standard company registration in Myanmar, cost considerations, and how an employer of record (EOR) can simplify the process.
The business benefits of registering your company in Myanmar
Myanmar offers opportunities for businesses seeking growth in Southeast Asia.
Here’s why registering your company in Myanmar is a strategic move:
- Myanmar’s emerging middle class and expanding economy present untapped opportunities.
- Positioned between China, India, and ASEAN nations, it connects businesses to major global markets.
- Skilled and affordable labor makes Myanmar an attractive destination for businesses.
- Tax exemptions and Special Economic Zones encourage foreign investment.
- Ongoing investments in transport and energy infrastructure make market entry more business-friendly.
Next, we’ll break down the differences between traditional company registration and Employer of Record (EOR)—so you can select the best approach for your business.
What is the difference between standard company registration and expanding through an EOR?
When setting up a business in Myanmar, you can either register your own entity or partner with an EOR. Each option offers distinct advantages tailored to different business needs.
Here’s a comparison:
Aspect | Standard company registration | Employer of Record (EOR) |
Purpose | Establishes a legal entity for full operational and financial control. | Enables hiring and operations in Myanmar without creating a local entity. |
Control | Grants full decision-making authority over all business functions. | Delegates compliance and administrative responsibilities while retaining team oversight. |
Cost | Requires upfront expenses, including incorporation fees, office setup, and ongoing maintenance. | Predictable monthly fees with no entity setup costs. |
Compliance | Requires full adherence to local laws, tax regulations, and labor codes. | EOR handles all compliance obligations, reducing legal risks and administrative burdens. |
Setup Time | Lengthy process, often taking weeks to months to complete. | Quick setup, enabling operations to start within weeks. |
Scalability | Ideal for businesses planning long-term, significant local investments. | Highly flexible, allowing businesses to scale up or down quickly based on market needs. |
For businesses seeking speed, flexibility, and cost efficiency, an EOR offers a low-risk alternative to traditional company registration—allowing you to enter the market, adjust team size, and scale operations with ease.
Let’s explore how an EOR can simplify operations in Myanmar and support your business goals.
How EOR simplifies Myanmar company registration
Establishing your business in Myanmar can be exciting, but setting up a legal entity can feel risky, given the current political climate. That’s where an Employer of Record (EOR) comes in.
An EOR helps you quickly hire, onboard, and pay local talent without the need to set up a legal entity. This makes entering the Myanmar market faster, simpler, and more cost-effective.
With an EOR, your business can
- Skip lengthy entity registration and start operations in weeks, not months.
- Ensure accurate payroll processing and tax filings, fully compliant with Myanmar’s regulations.
- Navigate Myanmar’s complex labor laws and tax requirements confidently with the EOR’s expertise.
- Eliminate the high costs of setting up and maintaining a local entity, redirecting resources toward growth.
- Expand your team quickly and adapt to changing market demands without long-term commitments.
- Tap Myanmar’s talent pool without navigating local recruitment challenges or bureaucratic barriers.
- Offer competitive, locally compliant benefit packages while the EOR manages the administration.
- Reduce exposure to legal risks since EOR manages all statutory obligations.
With an EOR, you bypass the procedural hurdles of setting up in Myanmar and focus on what matters most—building your team and driving growth.
A Step-by-Step Guide to Registering a Company in Myanmar
For business owners planning to establish a company in Myanmar, understanding the associated costs is essential.
Here’s a breakdown of the steps:
Step 1: Choose a business structure
Select a structure that fits your business goals and complies with Myanmar’s legal framework. The most common options include:
- Private company limited by shares: Ideal for small businesses with limited liability for shareholders.
- Public company limited by shares: Suitable for large corporations planning to attract public investment.
- Overseas corporation: Allows foreign businesses to operate under their parent entity.
- Business associations: Designed for collaborative initiatives and shared goals.
Step 2: Reserve your company name
Submit a unique company name to the Directorate of Investment and Company Administration (DICA) for approval. Search whether the name you’ve chosen is available on the DICA website—ensure it complies with Myanmar’s naming conventions and avoids duplication.
Step 3: Prepare the required documents
You will need the following documents:
- Company constitution
- Details of shareholders and directors
- Proof of registered office address
- Detailed business plan
- Company name reservation approval
- Declaration of registration – Form 1
- Certificate of Translation
- Articles of Association (AoA)
- Director details – Form 26
- Capital investment declaration
- Declaration of legal version
- Work permits or business visas (if applicable)
Step 4: Register with DICA
Submit your incorporation application through the Myanmar Companies Online (MyCO) platform. Provide the required documents, pay the applicable fees, and await review by the DICA. Once approved, you’ll receive a Certificate of Incorporation.
Step 5: Obtain licenses and permits
Apply for any industry-specific licenses or permits required to operate legally.
This could include environmental permits for manufacturing businesses or tourism licenses for hospitality ventures.
Step 6: Open a corporate bank account
Open a business bank account to manage capital and operations. Options include traditional banks in Myanmar or global providers like Multiplier for international transactions.
Step 7: Comply with post-registration requirements
After incorporation, you must continuously comply with various regulations.
This includes:
- Filing annual returns with DICA
- Maintaining statutory registers as per the Myanmar Companies Law (MCL)
- Holding annual general meetings (AGMs)
- Notifying company structure changes to DICA
- Maintaining a registered office
- Tax registration and compliance
- Obtaining industry-specific business licenses
- Employee registration with the Social Security Board & Labour Law Compliance
- Compliance with the Myanmar Companies Law (2017)
Many companies circumvent these steps, along with the legal hassles and risk involved in setting up a business in Myanmar, by leveraging an EOR. Not only does this prove to be faster and more efficient for businesses, it also saves them unnecessary costs.
The real costs of registering a business in Myanmar
Understanding the financial aspects of company registration in Myanmar is critical for effective planning and resource allocation. Costs can vary based on the business structure, required licenses, and operational needs.
We’ve collated a breakdown of the key cost categories involved in registering a business in Myanmar and how an Employer of Record (EOR) offers a streamlined and cost-effective alternative.
1. Registration costs
- Private company limited by shares: MMK 150,000 (approximately $72)
- Public company limited by shares: MMK 2,500,000 (approximately $1,190)
- Overseas corporation registration: MMK 300,000
- Certified copies of incorporation certificate or company certificate: MMK 10,000 per copy
- Commencement of business fee: MMK 200,000
- Share capital
- Service-related businesses: Minimum $50,000
- Manufacturing businesses: Minimum $150,000
- Other business types: No general minimum capital requirement, but specific industries may have additional stipulations.
- State fees and licensing
- Company name reservation: MMK 10,000
- Industry-specific permits and licenses: MMK 500,000–MMK 2,000,000 (varies based on business type and location).
- Legal services and notary fees
- Legal consultation and documentation preparation: MMK 500,000–MMK 1,000,000 (depending on complexity).
- Notary certification for documents: MMK 300,000–MMK 500,000.
- Annual maintenance costs
- Accounting services: MMK 1,000,000–MMK 3,000,000 annually.
- Statutory audits (for larger businesses): MMK 1,500,000–MMK 4,000,000 annually.
- Office rental fees (if applicable): $500–$1,000 per month for physical office space.
- Taxes and compliance
- Corporate income tax: 25% of taxable income.
- Commercial tax (similar to VAT): 5% on goods and services.
- Employee social security contributions: 2% of employee salaries.
- Additional costs
- Address renewals (virtual or physical): MMK 100,000–MMK 500,000 annually.
- Historical company extracts: MMK 20,000 per request.
- Official company seal: MMK 10,000–MMK 20,000
An Employer of Record (EOR) eliminates the cost of setting up an entity in Myanmar. It eliminates upfront expenses and simplifies operations so you manage payroll, compliance, and administration, all while paying one predictable monthly fee.
Let’s explore these cost savings.
Cost comparison: Standard registration vs. EOR
Here’s a side-by-side comparison of the financial implications of traditional company registration versus partnering with an EOR.
Cost aspect | Standard registration | Employer of Record (EOR) |
Setup fees | High upfront costs, including registration, legal fees, and office setup. | No setup costs; pay a single service fee. |
Share capital | Required for entity types (e.g., minimum MMK 1,000,000 for private companies). | Not required. |
Compliance costs | Includes legal filings, tax registrations, and adherence to local labor laws. | Managed entirely by the EOR at no additional cost. |
Accounting and admin | Monthly bookkeeping, payroll management, and tax filings. | Included in the EOR service package. |
Annual maintenance | Variable costs for auditing, renewals, and statutory compliance. | Fixed and predictable EOR fees. |
Scalability | Limited flexibility; requires amendments for structural changes. | Highly scalable, allowing quick team expansion or reduction. |
While the Myanmar government is actively encouraging companies to set up offices in the country, it makes sense to move cautiously. An EOR reduces risks for companies, enabling them to quickly scale up or downsize their operations here.
It offers a streamlined, cost-effective alternative to traditional registration, making it ideal for businesses seeking a scalable market entry solution in Myanmar.
Take the stress out of your Myanmar expansion with Multiplier
Expanding into Myanmar doesn’t have to be a complex affair. With Multiplier’s Employer of Record (EOR) solution, you can focus on business growth while we handle compliance, payroll, and tax requirements with precision.
Here’s how Multiplier can help you grow in Myanmar
Local hiring expertise
Multiplier manages employment contracts, onboarding, and local hiring requirements, so you effortlessly and quickly build a compliant and capable team in Myanmar.
Effortless payroll management
Say goodbye to payroll headaches. Multiplier ensures accurate payroll processing, tax compliance, and social security contributions, adhering to Myanmar’s labor laws.
Comprehensive HR solutions
Handle HR operations in Myanmar easily using our all-in-one platform. Manage onboarding, expense approvals, and time-off requests in one place so you have full visibility and control over your team.
Compliance assurance
Navigate Myanmar’s evolving labor laws and tax obligations with confidence. Multiplier ensures your business stays compliant, mitigating risks and avoiding penalties.
Attractive benefits packages
Attract and retain top talent with locally tailored benefits packages, all managed by Multiplier. We handle the administration while you focus on building a motivated team.
Reliable support
Experience dedicated support from a highly responsive team and benefit from industry-leading security standards.
Don’t let administrative hassles get in the way of your expansion plans in Myanmar. Let Multiplier take care of the complexities and risks so that you can focus on growth.
Book a demo today and see how Multiplier can help you with your Myanmar expansion plans.
