The New Citizens Investment Law was enacted on 31 July 2013, repealing the Myanmar Citizens Investment Law of 1994. This law only applies to Myanmar investors wishing to establish a Myanmar Citizen Company with the Myanmar Investment Commission (“MIC”). The main purpose of this new law is to align it with the Foreign Investment Law of 2 November 2012, foreseeing similar benefits for the foreign and Myanmar investor incorporating their company with the MIC, such as tax exemptions and guarantee against expropriation, amongst others.
This new law does not apply to foreign or joint venture companies because of the definition of Myanmar company under the Myanmar Companies Act in accordance to which a company with even one foreign shareholder holding even one share would be treated as a foreign company.
Nevertheless, this new law has an indirect impact on foreign investors as it is believed that shares of a Myanmar company may now also be transferred or sold to a foreigner. This is a considerable development towards cooperation between local and foreign companies in Myanmar, but we will have to wait to see how this will be implemented in practice. Furthermore, the New Citizens Investment Law details the procedure for investment by Myanmar companies with more clarity and transparency.Other Key Myanmar Legal Updates – July/August 2013
Myanmar Securities Exchange Law (¼)
Myanmar New Central Bank Law (2/4)
Myanmar Accedes to the New York Convention (¾)
New Myanmar Citizens Investment Law (4/4)