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THINN HTUT THIDARCEO
UNIVERSAL LINK SERVICE CO., LTDUNIVERSAL LINK SERVICE CO., LTD
CHINA1.35 Billion
LAO7 Million
THAILAND66 Million
INDIA1.21 Billion
BANGLADESH152 Million 63 Million
BAY OF BANGOL
TOTAL : 2.848 BILLION
40.3% OF WORLD POPULATION
ANDAMAN SEA
2UNIVERSAL LINK SERVICE
CO., LTD
3UNIVERSAL LINK SERVICE
CO., LTD
INDIA
BILATERAL TRADE AGREEMENTASEAN – INDIA FREE TRADE AREABIMST-ECMYANMAR-INDIA JOINT TRADE COMMITTEEMYANMAR-INDIA BORDER TRADE COMMITTEE
PREFERENCES
COUNTRY OF ORIGIN;DOUBLE TAXATION AVOIDANCE AGREEMENT;PREFERENTIAL TREATMENTS GIVEN UNDER WTO & BIMST-EC
4UNIVERSAL LINK SERVICE
CO., LTD
CHINA
BILATERAL TRADE AGREEMENTASEAN – CHINA FREE TRADE AREAGMSMYANMAR-CHINA JOINT TRADE COMMITTEEMYANMAR-CHINA BORDER TRADE COMMITTEE
PREFERENCES
COUNTRY OF ORIGIN;PREFERENTIAL TREATMENTS GIVEN UNDER WTO & GMS.
Largest Investor inMyanmar with the amountof 14.2 Billion USD
5UNIVERSAL LINK SERVICE
CO., LTD
THAILAND
BILATERAL TRADE AGREEMENTASEAN FREE TRADE AREAGMSMYANMAR-THAILANND JOINT TRADE COMMITTEEMYANMAR-THAILAND BORDER TRADE COMMITTEE
PREFERENCES
COUNTRY OF ORIGIN;DOUBLE TAXATION AVOIDANCE AGREEMENT (CAME INTO FORCE ON 1ST JAN’2012);PREFERENTIAL TREATMENTS GIVEN UNDER WTO, ASEAN & GMS.
2nd Largest Investorin Myanmar with theamount of 9.6 BillionUSD
6UNIVERSAL LINK SERVICE
CO., LTD
REGIONAL MARKET 600 MILLION
7UNIVERSAL LINK SERVICE
CO., LTD
Double Taxation Avoidance Agreement With : Thailand
SingaporeMalaysia
IndonesiaVietnam
PREFERENCES
ASEAN FREE TRADE AREA – AFTAASEAN ECONOMIC COMMUNITY - AEC
ASEAN COUNTRY OF ORIGIN (CO)ASEAN INTEGRATION SYSTEM OF PREFERENCES (AISP)
ASEAN’S & WTO’S SPECIAL AND PREFERENTIAL TREATMENTS TO MYANMAR
8UNIVERSAL LINK SERVICE
CO., LTD
ü FOUNDER MEMBER OF WTO;
ü MOST FAVOURED NATION – MFNTREATMENT RECEIVED;
ü PRERFERENTIAL AND DIFFERENTIALTRETMENTS RECEIVED;
ü DUE TO PROGRESSIVE REFORMSANCTIONS ARE REMOVED;
ü GSP SCHEME APPLIED BY EU COUNTRIES;
ü EXISTING EXPORT MARKET IN AFRICA;
ü THE MOST ATTRACTIVE COUNTRY IN THEWORLD IN 21ST CENTURY;
9UNIVERSAL LINK SERVICE
CO., LTD
AGRICULTURE SECTOR
Country’s Total area : 676, 590 km2
Land area: 653, 520 km2
Water surface: 23, 070 km2
Agricultural land: 119, 840 km2
AGRO-BASED INDUSTRY IS MAJOR CONTRIBUTOR
OF INDUSTRIAL SECTOR AND COUNTRY’S GDP
WITH 35.6%.
10UNIVERSAL LINK SERVICE
CO., LTD
AGRICULTURE SECTOR
ü HYBRID SEEDS PRODUCTION
ü FERTILIZER PLANT
ü PESTICIDES PRODUCTION AND REPACKAGING
ü AGRICULTURAL RESEARCH AND
DEVELOPMENT
ü AGRICULTURAL MACHINERY AND
EQUIPMENTS PRODUCTION
ü VEGITABLES PRODUCTION AND RELATED
SERVICE
ü DEVELOPMENT OF MODERNIZED FARMING
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF AGRICULTURE
11UNIVERSAL LINK SERVICE
CO., LTD
AGRICULTURE SECTOR
ü AGRO-BASED FOOD STUFF PRODUCTION AND
DISTRIBUTION
ü BEVERAGES PRODUCTION AND DISTRIBUTION
ü CEREALS RELATED FOOD STUFF PRODUCTION
AND DISTRIBUTION
ü FOOD STUFF CANNING AND DISTRIBUTION
ü YEAST PRODUCTION AND DISTRIBUTION
ü RUBBER AND PLASTIC MATERIALS PRODUCTION
AND DISTRIBUTION
NEED TO FORM JOINT VENTURE WITH LOCAL CITIZENS WITH MAXIMUM 80%
12UNIVERSAL LINK SERVICE
CO., LTD
FISHERY SECTOR
Shelf area:230,000 km
Length of coastline:3,000 km
Swamp Land:0.5 Million Hector
Production:4 Million Ton / Year
Export Volume0.5 Billion USD5th largest contributor to GDP
13UNIVERSAL LINK SERVICE
CO., LTD
FISHERY SECTOR
ü BEES AND BEES PRODUCTS PRODUCTION
ü FISHING NET PRODUCTION
ü CONSTRUCTION OF FISH PORT AND FISH
BIDDING MARKET
ü TESTING AND LABORATORY SERVICE FOR FISH
PRODUCTS
ü SEA FISH AND FRESH WATER FISH FARMING
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF LIVESTOCK & FISHERY
14UNIVERSAL LINK SERVICE
CO., LTD
FORESTRY SECTOR
ØForests covering about 50percent of its total land area.
ØMajor exporter of teak in theworld, takes up 75 percent ofthe world market.
ØAbout 8% of Total Export.
ØPotentials for Value addedproduction of Minor ForestProducts:Bamboo, Cane, Rattan
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CO., LTD
FORESTRY SECTOR
ü NATURE PARK ESTABLISHMENT
ü WOOD BASED INDUSTRY AND OTHER SERVICES
ü ECOTOURISM
ü WOOD EXTRACTION BY LONG TERM LEASING OF
FOREST AREA
ü FOREST PLANTATION FOR PRODUCTION OF
TEAK, HARD WOOD, RUBBER, BAMBOO, CANE
ü WOOD AND WOOD BASED VALUE ADDED
PRODUCTS PRODUCTION AND TRADING
ü LOG EXTRACTION AND EXPORT
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF ENVIRONMENT CONSERVATION AND
FORESTRY
16UNIVERSAL LINK SERVICE
CO., LTD
FORESTRY SECTOR
ü SAWN TIMBER PRODUCTION:
FOREIGN SHARE NOT MORE THAN 25%
ü SEMI FINISHED WOOD PRODUCTS:
FOREIGN SHARE NOT MORE THAN 35%
ü CAPITAL INTENSIVE HIGH TECH PRODUCTION:
FOREIGN SHARE NOT MORE THAN 49%
NEED TO FORM JOINT VENTRUE WITH LOCAL CITIZEN
17UNIVERSAL LINK SERVICE
CO., LTD
MINING SECTOR
EasternHighlands
Central Belt
WesternRanges
Lead, ZincCopperSilverTungstenAntimonyIron
PorphyryCopperGoldCoalOil & Gas
NickelChromitePGM
Jade is second largest
export item with the amount
of USD 2.2 Billion.
2.8 Billion USD investment
by 64 Enterprises.
18UNIVERSAL LINK SERVICE
CO., LTD
MINING SECTOR
ü MINERALS EXPLORATION :
NOT MORE THAN 2 YEARS
ü PRELIMINARY TESTING:
NOT MORE THAN 3 YEARS
ü FEASIBILITY STUDY:
NOT MORE THAN 2 YEARS
ü MASS PRODUCTION : INITIAL 15 YEARS,
EXTENDABLE 5 YEARS EACH FOR 4 TIMES
ü PEARL PRODUCTION : INITIAL 15 YEARS,
EXTENDABLE 5 YEARS EACH FOR 2 TIMES
ü PRODUCTION AND EXPORT OF INDUSTRIAL RAW,
SUCH AS, COAL, GRANITE, ETC.
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF MINE
19UNIVERSAL LINK SERVICE
CO., LTD
MINING SECTOR
ü RARE EARTH PRODUCTION
ü STRATEGIC MINERALS PRODUCTION
ü RADIO ACTIVE MINERALS PRODUCTION
ü FINISHED PRODUCTS OF GEMS AND JEWELLERY
PRODUCTION
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS
20UNIVERSAL LINK SERVICE
CO., LTD
ELECTICITY SECTOR
ü RESOURCEFUL TO
PRODUCE HYDRO
POWER
ü HUGE DEPOSIT OF
NATURAL GAS
ü COAL MINES ARE
UNDER
EXPLOITATION
ü MAJOR FOREIGN
INVESTMENT AREA
21UNIVERSAL LINK SERVICE
CO., LTD
ELECTICITY SECTOR
ü PRODUCTION OF ELECTRICITY FROM HYDRO
POWER AND COAL ARE ONLY ALLOWED WITH
JOINT VENTURE WITH GOVERNMENT
ORGANIZATION UNDER BOT SYSTEM
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS WITH BOT SYSTEM
22UNIVERSAL LINK SERVICE
CO., LTD
TRANSPORTATION SECTOR
Dawei
Kunming
Asia Regional HubAsia Regional Hub
Africa
India
Middle East /Europe
23UNIVERSAL LINK SERVICE
CO., LTD
TRANSPORTATION SECTOR
ü CONSTRUCTION OF AIRPORT, VIP LAUNCH
SERVICE
ü AVIATION TRAINING SCHOOL
ü AIRCRAFT MAINTENANCE
ü AIR TRANSPORT SERVICE AND MARKETING
ü COMPUTERIZED AIR TICKETING
ü AIRCRAFT RENTAL WITHOUT CREWS
ü AIR FREIGHT SERVICE
ü AIR CARGO LOADING AND UNLOADING
ü AIR LINE KATHERING SERVICE
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF TRANSPORT
24UNIVERSAL LINK SERVICE
CO., LTD
TRANSPORTATION SECTOR
ü FUEL DISTRIBUTION TO THE AIRLINES
ü MINOR INSPECTION AND MAINTENANCE OF
AIRCRAFT
ü ON GROUND SERVICE FOR LANDING/
GROUNDED AND TAKE OFF TIMES
ü ON GROUND BAGGAGE HANDLING
ü AIRPORT HOTEL BUSINESS
ü AIRCRAFT SPARE PARTS SALES AND
MARKETING
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF TRANSPORT
25UNIVERSAL LINK SERVICE
CO., LTD
TRANSPORTATION SECTOR
ü ESTABLISHMENT OF MARITIME TRAINING
SCHOOLS WITH MINIUM CAPITAL OF ONE
MILLION USD
ü FREIGHT FORWARDING AGENT FOR
TRANSLINERS
ü SHIPYARD BUSINESS
ü INLAND WATER TRANSPORT AND RELATED
BUSINESS
ü CONSTRUCTION AND OTHER RELATED
BUSINESS
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS
26UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
Monywa,Kalay,
(2)
Pakhokku,Yenanchaung
(2)
Pyay (1)
Pathein,Myaungmya,
Hinthada(3)
Yangon(4) Myeik
(1)
Mawlamyine(1)
Taungyi(1)
Mandalay,Myingyan,Meikhtila
(3)
18 Industrial Zones are already developed
27UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
NAY PYI TAW(1)
PONNAKYUN (1)
PHA AN(4)
MYAWADDY(1)
PHAYA THONE ZU(1)
YADANARPON(1)
NANTOON(1)
7 Industrial Zones To be established
28UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
KYAUK PHYU SEZ(1)
THILAWA SEZ(1)
DAWEI SEZ(1)
3 Special Economic Zones
are under establishment
29UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
ü PRODUCTION AND DISTRIBUTION OF OIL AND
FAT PRODUCED FROM VEGITABLES AND
OTHERS : (NEED TO OBTAINED 80% LOCAL
CONTENT)
ü SOFT DRINKS AND BEVERAGES PRODUCTION
AND DISTRIBUTION: 20% LOCAL CONTENT AND
60% LOCAL CONTENT AFTER 3 YEARS
ü SEASONING POWDER PRODUCTION : MAINLY
USED LOCAL PRODUCTS
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF INDUSTRY
30UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
ü CIGARETTES PRODUCTION : 50% LOCAL
CONTENT AND ALEAST 90% EXPORT
ü PERFUME AND COSMETICS PRODUCTION AND
DISTRIBUTION : NEED LOCAL CONTENT 50%
WITHIN 5 YEARS PRODUCTION
NEED TO GET PRIOR APPROVAL FROM MINISTRY OF INDUSTRY
31UNIVERSAL LINK SERVICE
CO., LTD
INDUSTRY SECTOR
ü PRODUCTION AND DISTRIBUTION OF VARIOUS
PAINTS WHICH ARE USED CHEMICALS :
ALLOWED MAXIMUM 70%
ü VACCINES PRODUCTION AND DISTRIBUTION
ü CHEMICALS PRODUCTION USED FROM
IMPORTED RAW MATERIALS : ALLOWED WITH
LIMITED PERIOD
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS
32UNIVERSAL LINK SERVICE
CO., LTD
HEALTH SECTOR
ü PRIVATE HOSPITAL/ SPECIALIST HOSPITAL/
CLINIC
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS
33UNIVERSAL LINK SERVICE
CO., LTD
EDUCATION SECTOR
ü VOCATIONAL TRAINING SCHOOLS
ESTABLISHMENT AND DEVELOPMENT
ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS
34UNIVERSAL LINK SERVICE
CO., LTD
HUMAN RESOURCE SECTOR
POPULATION BY AGE
(2011-12 in Million)
AGE GROUP MALE FEMALE TOTAL %
0 – 14 9.2 9.4 18.6 29
15 – 29 8.1 8.4 16.5 26
30 – 49 8.9 9.0 17.9 28
50 – 64 3.2 3.6 6.8 11
65 and Above 1.8 1.9 3.7 6
TOTAL 31.2 32.3 63.5 100
HOW TO START THE BUSINESS IN MYANMAR
UNIVERSAL LINK SERVICE CO., LTD
FOREIGN BUSINESS
MANUFACTURING
SERVICES
TRADING IS NOT ALLOWED
CHALLENGES VS OPPORTUNITIES
UNIVERSAL LINK SERVICE CO., LTD
o LAND AND FACTORY AVAILABILITY
Ø Limited space owned by Governmentaround Yangon area;
Ø Private owned land prices are skyrocketing;
Ø In the industrial zones based on thelocation price per square meter isUSD 1.5/- to 2.5/- per month (Privateowned)
CHALLENGES VS OPPORTUNITIES
UNIVERSAL LINK SERVICE CO., LTD
o ELECTRICITY AVAILABILITY
Ø Given 8 hours per day duringSummer time (Feb to June)
Ø Required own generator;
Ø Fuel requirement for powergeneration;
Ø Mainly rely on Hydro Power;
CHALLENGES VS OPPORTUNITIES
UNIVERSAL LINK SERVICE CO., LTD
o SKILLFUL LABOUR AVAILABILITY
Ø Limited Skillful Human Resources;
Ø Education and Knowledge Gap betweenUrban and Rural areas;
Ø Need time for capacity building;
CHALLENGES VS OPPORTUNITIES
UNIVERSAL LINK SERVICE CO., LTD
o LOGISTICS
Ø Development of Roads, Rails & Waterway Infrastructure;
Ø Port facilities;
Ø Transportation facilities;
CHALLENGES VS OPPORTUNITIES
UNIVERSAL LINK SERVICE CO., LTD
o FINANCIAL INSTITUTIONS
Ø Limited Source of Financing;
Ø Government Financial Institution Vs PrivateFinancial Institutions;
Ø Need time for Financial reforms;
Ø Limited human resources in Financial Sector;
CHALLENGES VS OPPORTUNITIES
o INFORMATION AVAILABILITY
Ø Limited Source of Information;
Ø Many publications but mostly inMyanmar Language;
Ø One Stop Service Information Centre?
CHALLENGES VS OPPORTUNITIES
o INFORMATION TECHNOLOGY
Ø Limited Source of Supply;
Ø weak in infrastructure;
Ø cost of information is relatively high
HOW TO SET UP A BUSINESS IN MYANMAR ?
• SETTING UP OF REPRESENTATIVE OFFICE;
• SETTING UP OF BRANCH OFFICE
• COMPANY INCORPORATION
• INVESTMENT PROPOSAL SUBMISSION
UNDER THE FOREIGN INVESTMENT LAW
BUSINESS SET UP IN MYANMAR
BRANCH OFFICE
Ø ALLOWED TO BE FORMED AS MANUFACTURING OR SERVICE
Ø FORMED UNDER FOREIGN INVESTMENT LAW NEEDS TOAPPLY MIC PERMIT
Ø CORPORATE TAX RATE IS 35%
REPRESENTATIVE OFFICE
Ø NOT ALLOWED TO PERFORM DIRECT COMMERCIAL OR REVENUEGENERATION ACTIVITIES
COMPANY INCORPORATION IN MYANMAR
APPLYING LAWS
Ø MYANMAR COMPANY ACT;
o 100%o JOINT VENTURE WITH INVIDUAL, COMPANY,
COOPERATIVES OR STATE OWNEDENTERPRISES;
Ø FOREIGN INVESTMENT LAW
o MANUFACTURING : 100% or JV or underProduction Sharing Contract with State OwnedEconomic Enterprises for Oil & Gas and Miningsectors;
o SERVICE: 100% or JV
COMPANY INCORPORATION IN MYANMAR
MYANMAR COMPANY ACT
Ø AT LEAST TWO SHAREHOLDERS & TWO DIRECTORS
REQUIRED DOCUMENTS
o MOTHER COMPANY’S EVIDENCES
o LAST TWO YEARS AUDIT REPORT
o BANK RECOMMENDATION LETTER AND STATEMENTS
o BOARD OF DIRECTOR’S RESOLUTION
THOSE HAVE TO TRANSLATE IN ENGLISH, NOTARIZED AND
ENDORSED AT MYANMAR EMBASSY.
COMPANY INCORPORATION IN MYANMAR
REQUIRED INFORMATION
o NAME OF COMPANY INCORPORATED IN MYANMAR
o OFFICE/BUSINESS ADDRESS IN MYANMAR
o DIRECTORS’ PASSPORT COPIES AND RESIDENCE ADDRESS
o AUTHORIZED CAPITAL / PAID UP CAPITAL
o NUMBER OF SHARES AND PER SHARE VALUE
o NAME OF MANAGING DIRECTOR/ AUTHORIZED PERSON
COMPANY INCORPORATION IN MYANMAR
REQUIRED DATA FOR INVESTMENT PROPOSAL
o LIST OF FOREIGN EXECUTIVES
o FUEL REQUIREMENTS
o ELECTRICITY REQUIREMENT
o WATER REQUIREMENT
o EQUIPMENT & RAW MATERIAL REQUIREMENT
o BUILDING & LAND REQUIREMENT
COMPANY INCORPORATION IN MYANMAR
REQUIRED DATA FOR INVESTMENT PROPOSAL
o GOODS TO BE PRODUCED
o AMOUNT OF EXPORT AND LOCAL SALES
o VALUE OF MACHINERIES AND EQUIPMENTS
o VOLUME AND VALUE OF ANNUAL PRODUCTION
o LABOUR REQUIREMENT
o ANNUAL INCOME
COMPANY REGISTRATION AND FEE
o COMPANY INCORPORATED IN MYANMAR NEED TO REGISTER
AT DIRECTORATE OF INVESTMENT AND COMPANY
ADMINISTRATION – DICA, MINISTRY OF NATIONAL PLANNING
AND ECONOMIC DEVELOPMENT
o REGISTRATION FEE IS MMK ONE MILLION (ABOUT USD 1200/-)
REPATRIATION
ü Businesses are allowed to repatriate their annual profitafter deduction of tax which needs to pay by thebusiness;
ü Allowed to repatriate the transfer of shares which isdone by proper share transfer according to the existinglaws ;
ü Business capital and other income after liquidation ofthe business or after expiring of investment permit;
REPATRIATION
ü The excess capital and income by downsizing of thebusiness which gets approval from MIC;
ü Individual income earned by foreigner after deductionof tax;
ü any business capital or business income orcompensation received by investor after approval ofMIC ;
REQUIRED DOCUMENTS FOR REPATRIATION
ü Application Form as per Permit to Transfer ForeignCurrency Form (13) ;
ü Audit Report of the Investment Business;
ü Bank Statement;
THANK YOU FOR YOUR KIND ATTENTION
THINN HTUT THIDARCEO
UNIVERSAL LINK SERVICE CO., LTD
[email protected] , [email protected], 951 - 218406