The Myanmar Investment Law (MIL) 2016 introduces two categories of investment approval procedures, one is a MIC permit and the other one is an investment endorsement. These are generally referred to as MIC Permit Procedure and Investment Endorsement Procedure. The introduction of investment endorsement procedures has significantly simplified and eased the investment procedures in Myanmar. It is not possible to apply for both, a MIC permit and an endorsement.

Before the MIL, any investor had to submit a proposal to MIC for a permit, regardless of the business size if they intended to benefit from MIC incentives. According to the MIL, far fewer proposals will be screened and permitted by the MIC. Investors shall submit a proposal to the Commission and invest after receiving the permit for the following investment activities stipulated in the rules:

(a) Investment activities that are essential to the national strategy;

(b) Large capital-intensive investment projects;

(c) Projects which are likely to cause a large impact on the environment and the local community;

(d) Investment activities which use state-owned land and buildings; and

(e) Investment activities which are designated by the government to require the sub-mission of a proposal to the Commission.

If investors are not in the category of investment activities which require an MIC permit as described above (under Section 36 of the MIL), the investors are not to require to submit a permit proposal to the MIC.

However, in order to enjoy the right to use land under Chapter XII, and one or more of the exemptions and reliefs under Sections 75, 77 and 78 of the law, the investors should undergo an investment endorsement application process.

The following chapters of the guidebook will provide more detailed navigational guide for investors to identify the procedures which they should undergo given the specifications and details of their proposed investment project.

The purpose of this section is to provide a quick checklist so investors can navigate themselves which investment procedures (MIC permit or Endorsement) they will need to undergo or they do not need to undergo through either of these procedures. Based on the detailed information of the investors’ project, they can check the project according to the screening checklist, the detailed stipulations in the MIL and related Rules and Notifications and know which procedure will apply to their proposed project, at which institutions they should submit the project to and for which procedures (e.g to MIC for MIC permit or Endorsement, or to Region/State Investment Committee in Region and States for Endorsement).

By checking the project according the navigation checklist, investors should also read the relevant sections of the Law, Rules and Notifications. The result of this navigation process is mainly for the use of the investors when working on their project proposals. In most case, it is advisable that investors should start with the step of inquiring information from the related investment Division at DICA or from the Region/States DICA Office. MIC will issue a non-binding guidance on whether the investor needs to apply for a permit and if incentives are available.

When applying for MIC Permit under Section 36 of the Myanmar Investment Law, investors in the sectors of Mining, Oil and Gas, Power and Other Services shall have to submit the following documents in their MIC Permit Application Package:
1 Endorsement Application Form (4-A)
2 Copy of company registration certificate
3 Copies of identification card/passport
4 Financial documents (bank statement)
5 Joint venture agreement (only in the form of JV)
6 List of machinery and equipment (to be imported)
7 List of raw materials
8 Construction materials (not available locally)
9 Land rights authorization (Form 7-A)
10 Evidence of land ownership
11 Land lease agreement (draft)
12 Location map/layout plan
13 Recruitment of employees (local/foreign)
14 Social security for employees, social welfare plan, CSR program, firefighting system
15 Production plan
16 In submitting a proposal, in accordance with Section 36 of MIL, any proposal having the following conditions shall be submitted through the relevant ministry:
(a) having a significant ownership interest in the investment by government organization;
(b) having been granted or intending to grant concessions to the investor by government department and government organization; or
(c) being required or authorized by law to do so by government department and government organization

investment endorsement application form:
1 Endorsement application form (4-B)
2 Copy of company registration certificate
3 Copies of identification card/passport
4 Joint Venture contract (Draft) (if Joint Venture)
5 List of machinery and equipment (to be imported)
6 List of raw materials
7 Land rights authorization (Form 7-B)
8 Land lease agreement (draft)
9 Evidence of land ownership/location map/layout plan
10 Recruitment of employees (local/foreign)
11 Production plan
12 Financial documents (bank statement)
13 CMP contract (only for CMP basis)
14 Amount of annual service and service plan, if service enterprises
15 According to the type of enterprise, permission of relevant organization or License or Permit or equivalent documents (Section 38)
16 Social security for employees, social welfare plan, CSR program, firefighting system

Major laws and regulations related to investment in Myanmar are listed below. The above guides should be read in reference with these laws and regulations:

– Myanmar Investment Law (The Pyidaungsu Hluttaw Law No. 40/2016) on 18th October, 2016
– Myanmar Investment Rules (Government of the Republic of the Union of Myanmar Ministry of Planning and Finance Notification No. 35 / 2017 on 30th March, 2017).
– Notification No. 123 /2016, (16th November, 2016) by Myanmar Investment Commission of the Republic of the Union of Myanmar regarding the Announcement on Deadline Submission of Investment Proposals in accordance with Myanmar Foreign Investment Law and Myanmar Citizens Investment Law.
– Notification No. 10 / 2017 by the Myanmar Investment Commission of The Republic of the Union of Myanmar on (22nd February 2017) regarding Designation of Development Zone.
– Notification No. 11/2017 by the Myanmar Investment Commission of the Republic of the Union of Myanmar on (3rd March 2017), prescribing investment capital amount for investment activities for State and Regional Investment Committees to issue endorsement order.
– Notification No. 13 /2017 by the Myanmar Investment Commission of the Republic of the Union of Myanmar on (1st April, 2017), regarding Classification of Promoted Sector.
– Notification No. 15 /2017 by the Myanmar Investment Commission of the Republic of the Union of Myanmar on (10th April, 2017), prescribing the List of Restricted Investment Activities.

This investment policy supports the implementation of the Government of the Republic of the Union of Myanmar’s 12-point Economic Policy.

1. Responsible and mutually beneficial foreign investment are welcomed.
2. The Myanmar Investment Commission and relevant government agencies will facilitate foreign investment through transparent, clear and expeditious procedures.
3. The establishment of supportive environment for all investors with macroeconomic stability, rule of law, credible dispute settlement procedures, and a reliable banking system the proper functioning of economic infrastructure will be carried out.
4. As foreign investments is very crucial for national development, the Union Government will-

(a) establish a predictable regulatory framework with non- discriminatory treatment between foreign and local businesses.

(b) protect businesses from disputed seizures.

(c) protect the right to transfer profits and other repatriations in accordance the law after payment of taxes and other payment obligations.

(d) provide longterm land lease for approved investments in accordance with the law.

5. Local and foreign investors must comply with the principles of responsible business conduct including in relation to environmental and natural resources matters.
6. Foreigners are not permitted to conduct certain businesses relating to national secu-rity, and culture and social affairs. These restricted business activities will be made publicly available.
7. The following investments will particularly be welcomed and encouraged:

(a) Productivity-enhancing and value-adding agro-based industries with linkages to regional and global supply chains.

(b) Activities that enable technology transfer and value added domestic production.

(c) Activities that support the development of small and medium enterprises.

(d) Investments for rapid infrastructure development.

(e) Investments that create job opportunities and delivery of vocational education support development of human capacity.

(f) Investments to be made in economically less developed regions.

(g) Investment to develop industrial cities and special economic clusters.

(h) Investments related to tourism.

Reference from www.dica.gov.mm