Pyidaungsu Hluttaw Law No. 40/2016
Myanmar Investment Law
The Myanmar Investment Law is the core statute for local and foreign investors. This guide explains MIC permits, endorsements, tax incentives, land-use rights and investor protections — and how Competency Business Solutions helps you apply them in practice.
What is the Myanmar Investment Law?
The Myanmar Investment Law (Pyidaungsu Hluttaw Law No. 40/2016) was enacted on 18 October 2016. It replaced the Foreign Investment Law (2012) and the Myanmar Citizens Investment Law (2013) with a single regime for both Myanmar and foreign investors.
Together with the Myanmar Investment Rules (2017), the law is administered by the Myanmar Investment Commission (MIC) through the Directorate of Investment and Company Administration (DICA). Company incorporation still follows the Myanmar Companies Law 2017; the Investment Law sits on top of that when you want MIC approval, incentives or long-term land rights.
Role of the Myanmar Investment Commission
The MIC is the government body formed under the Myanmar Investment Law. It screens proposals, grants permits and endorsements, awards tax and land-use benefits, monitors compliance, and handles investment grievances.
- Review and approve investment proposals and endorsements
- Grant tax incentives and long-term land-lease rights
- Promote responsible investment and advise on policy
- Monitor projects against the permit conditions and environmental standards
MIC Permit vs MIC Endorsement
Not every company needs MIC approval. Under the Myanmar Investment Law, a Permit is mandatory for specified project types. An Endorsement is optional — investors apply when they want incentives such as tax relief or a long land lease.
| Route | When it applies | What you obtain |
|---|---|---|
| MIC Permit | Strategic or large capital projects; significant environmental or social impact; use of state-owned land or buildings; or activities designated by the Government | Right to carry out the investment, plus eligibility for incentives if approved |
| MIC Endorsement | Other investments that do not require a Permit but want benefits | Tax exemptions or reliefs, customs duty concessions, land-lease rights |
Typical Permit triggers include information and energy infrastructure, natural-resource projects, border or conflict-affected areas, and large land footprints (for example more than 1,000 acres for agriculture or 100 acres for non-agriculture), subject to the latest MIC notifications.
Investor rights and guarantees
Chapter XIV of the Myanmar Investment Law protects investors from expropriation except where it is necessary in the public interest, non-discriminatory, follows due process, and prompt, fair and adequate compensation is paid.
- Equal treatment — Myanmar and foreign investors are covered by the same statute.
- Transfer of funds — capital, profits and dividends may be transferred in foreign currency in accordance with applicable financial rules.
- Dispute resolution — mediation, Myanmar courts, or arbitration as agreed in the investment documents.
- No nationalisation without the conditions above.
Those rights come with duties: incorporate under Myanmar law, keep proper accounts, respect labour and environmental rules, and honour the terms of the Permit or Endorsement.
Tax incentives under the Myanmar Investment Law
Promoted investments may receive an income-tax exemption that varies by development zone, plus customs-duty relief on qualifying machinery, equipment and construction materials. Reinvested profits and approved R&D spend can attract further relief. All incentives are discretionary — they are granted by the MIC, not automatic on incorporation.
| Zone | Typical profile | Income-tax holiday |
|---|---|---|
| Zone 1 | Less developed regions | Up to 7 years |
| Zone 2 | Moderately developed regions | Up to 5 years |
| Zone 3 | Developed regions | Up to 3 years |
Promoted and restricted sectors
The MIC publishes lists of promoted, restricted and prohibited activities. Promoted sectors — including agriculture and related services, manufacturing (with health-related exceptions), power and renewables, logistics, education, health, hotels and tourism, and IT — are the usual candidates for tax benefits.
Some activities are reserved for the Union (defence, certain natural resources, air-traffic services). Others are closed to foreign investors or allowed only through a Myanmar joint venture. Always verify the current MIC notification before you lock a shareholding structure.
Land use and leasing rights
Foreign investors cannot own land in Myanmar. With an MIC Permit or Endorsement, they may lease land for up to 50 years, with two possible extensions of 10 years each. Longer terms can be considered in remote or underdeveloped areas. Leases must be registered under the Registration Act.
Employment and responsible investment
The Myanmar Investment Law expects investors to hire Myanmar citizens for unskilled roles, train local staff for management, pay wages in line with labour law, and complete environmental and social impact assessments where required. Responsible conduct is both a legal duty and a practical condition for keeping MIC benefits.
How to apply under the Myanmar Investment Law
- Choose the vehicle. Incorporate a company, branch or joint venture under the Myanmar Companies Law and confirm whether the activity is promoted, restricted or prohibited.
- Screen the project. Decide if a Permit is mandatory or whether an Endorsement is enough for the incentives you need.
- Prepare the file. Business plan, shareholder documents, land documents, sector licences, and EIA/IEE papers if the project is environmentally sensitive.
- File with the MIC / DICA. Submit the proposal or endorsement application and respond to queries.
- Receive the order and comply. Calendar tax-holiday start dates, land registration, progress reports and any special conditions.
Competency Business Solutions supports the full path: Myanmar company formation, MIC Permit and Endorsement filing, tax registration, accounting and ongoing compliance. If you are still mapping the market, start with our Myanmar business guide.
Official texts
Use the official instruments alongside this commentary:
Myanmar Investment Law FAQ
Is the Myanmar Investment Law the same as the Companies Law?
No. The Companies Law 2017 governs incorporation and corporate administration. The Myanmar Investment Law 2016 governs investment screening, MIC approval, incentives and investor protections. Most foreign investors need both.
Do I always need MIC approval to invest in Myanmar?
No. A Permit is required only for the categories listed in the law and MIC notifications. Many trading and services companies operate after DICA incorporation alone. Apply for an Endorsement when you want tax holidays or a long land lease.
Can a foreigner own 100% of a Myanmar company?
In many sectors, yes. Restricted activities may require a Myanmar joint-venture partner, and a short list of businesses remains closed to foreign investors. Check the latest MIC restricted-list notification before you incorporate.
How long does an MIC application take?
Timing depends on sector, land, and whether an environmental assessment is required. A complete Endorsement file is typically faster than a full Permit for a strategic project. We map the timeline during scoping so the investment committee has a realistic close date.
Who can help with a Myanmar Investment Law filing?
Competency Business Solutions prepares MIC Permit and Endorsement applications, coordinates with DICA, and handles the accounting and tax work that follows approval. Contact us before you commit capital or sign a land lease.
Invest under the Myanmar Investment Law with a clear file
We structure the company, prepare the MIC submission, and keep the tax and reporting calendar after approval — so your project is compliant from day one.
This page is a practical overview of the Myanmar Investment Law for business owners. It is not legal advice. Incentives, restricted lists and procedures change by MIC notification — confirm the current position before you file.