Myanmar, usually known as Burma, is a Southeast Asian nation. Its official name is the Republic of the Union of Myanmar. It is the biggest nation in Mainland Southeast Asia, with a population of over 54 million people in 2017. Myanmar is bounded to the northwest by Bangladesh and India, to the northeast by China, to the east and southeast by Laos and Thailand, and to the south and southwest by the Andaman Sea and the Bay of Bengal. Naypyidaw is the country's capital, while Yangon is its major city (Rangoon).
The Tibeto-Burman-speaking Pyu city-states in Upper Myanmar and the Mon kingdoms in Lower Myanmar were among the first civilizations in the region. The Bamar people arrived in the upper Irrawaddy valley in the ninth century, and with the founding of the Pagan Kingdom in the 1050s, the Burmese language, culture, and Theravada Buddhism gradually became prevalent in the nation. The Pagan Kingdom was defeated by Mongol invasions, and various fighting nations arose. When the Taungoo dynasty reunified the kingdom in the 16th century, it briefly became Southeast Asia's biggest empire.
The Konbaung dynasty reigned over contemporary Myanmar and briefly conquered Manipur and Assam in the early nineteenth century. After three Anglo-Burmese Wars in the nineteenth century, the British East India Company acquired control of Myanmar's governance, and the nation became a British colony. Myanmar was recaptured by the Allies after a short Japanese occupation and won independence in 1948. Following a coup in 1962, it was turned into a military dictatorship led by the Burma Socialist Programme Party.
For the majority of its independent years, the nation has been engulfed in severe ethnic violence, with its many ethnic groups embroiled in one of the world's longest-running civil wars. The United Nations and various other organizations have cited frequent and systematic human rights breaches in the nation throughout this period. Following a general election in 2010, the military junta was formally dissolved in 2011, and a nominally civilian administration was created. This, along with the release of Aung San Suu Kyi and political prisoners, as well as successful elections in 2015, improved the country's human rights record and foreign relations, leading to the relaxation of trade and other economic sanctions, despite the fact that the country's treatment of its ethnic minorities, particularly in relation to the Rohingya conflict, was condemned by international organizations and many nations.
The Burmese military (Tatmadaw) took control in a coup d'état after the 2020 Myanmar general election, in which Aung San Suu Kyi's party gained a commanding majority in both chambers. The globally denounced coup has resulted in continued large demonstrations in Myanmar, as well as severe political repression by the military. In order to remove Aung San Suu Kyi from public life, the military imprisoned her and accused her with offenses ranging from corruption to breach of Covid guidelines, all of which have been branded as "politically motivated" by impartial observers.
Myanmar is a member of the East Asia Summit, the Non-Aligned Movement, ASEAN, and BIMSTEC, but not the Commonwealth of Nations, despite formerly being a part of the British Empire. It is a nation rich in jade and gemstones, as well as oil, natural gas, teak, and other mineral resources. Myanmar is well endowed with renewable energy; it has the greatest solar power potential among the Great Mekong Subregion nations. In 2013, its nominal GDP was $56.7 billion, while its PPP GDP was $221.5 billion. Myanmar has one of the world's greatest economic disparities, owing to the military junta's control over a substantial section of the economy. According to the Human Development Index, Myanmar ranks 147th out of 189 nations in terms of human development as of 2020.
Employees are entitled to ten paid days off each year.
Myanmar recognizes sixteen public holidays.
The employee is entitled to 26 weeks of sick leave each year, with the first 30 days reimbursed. A medical certificate must be shown by an employee. To be eligible for this leave, the employee must have worked for at least 6 months.
Maternity leave is compensated for 14 weeks for mothers. The leave can begin six weeks before and eight weeks beyond the projected due date.
For the birth of a child, fathers are entitled to 15 days of paid paternity leave.
There are no provisions in the legislation that address this.
Mothers can take 4 weeks of paid childcare leave after their maternity leave expires if they have several children.
Adoption Leave: Parents who adopt a child under the age of 12 months can take up to 8 weeks of paid childcare leave.
Up to 6 days of casual leave each year. Three days at a time is the greatest amount of time that may be taken. Unused vacation time cannot be carried over to the next year.
The employer must offer a written notice of termination.
An employee must get one written and two spoken warnings prior to being terminated for misconduct. If an employee commits another infraction within 12 months of receiving the third warning, he or she may be terminated without notice or severance pay.
If the employer initiates the dismissal, wages must be paid within two business days of the employee's termination.
One month's notice will be required.
In Myanmar, probationary periods typically last up to 90 days.
Severance pay is calculated based on the duration of employment. Severance pay is equivalent to half a month's wages for employment lasting six months to one year. Severance pay is equivalent to one month's salary for an employment period of 1-2 years. Severance pay is equivalent to two months' salary for a three- to four-year employment period. Severance pay is equivalent to four months' salary for employees who have worked for the company for 4-6 years. Severance pay is equivalent to five months' salary for an employee who has worked for the company for six to eight years. Severance pay is equivalent to six months' salary for an employee who has worked for the company for eight to ten years. Severance pay is equivalent to eight months' salary for an employee who has worked for the company for ten to twenty years. Severance pay is equivalent to ten months' salary for employees who have worked for the company for 20 to 25 years. Severance pay is equivalent to 13 months' salary for employment lasting more than 25 years.
Working hours restrictions vary by industry. Employees in factories typically work 44 hours per week and eight hours per day. Adult males employed in continuous work environments may work up to 48 hours per week. Employees in a store or establishment can work up to 48 hours per week and eight hours per day on average. Employees in oil fields or mines are permitted to work up to 44 hours a week.
Each week, employees are entitled to one day of rest. Sunday is a day of rest for industry workers. Employers can select which days are rest days outside of factories. Employees are not permitted to work more than ten consecutive days without taking a day off.
Factory workers are not permitted to work more than 20 hours per week of overtime, which is normally three hours each day Monday through Friday and five hours on Saturday. Overtime for employees of shops and establishments is limited to 12 hours per week, or 16 hours in exceptional circumstances. Overtime cannot be extended past 12:00 a.m. Overtime compensation is double the regular salary.
Myanmar's minimum wage is 4,800 MMK per day, an increase from 3,600 MMK per day in 2018. Employers are required by the Payment of Wages Act to pay daily and part-time workers in cash, cheque, or bank transfer according to their fixed-wage period. All permanent workers and other monthly fee earners should be paid on a monthly basis at the conclusion of their pay cycle.
Myanmar has 24 public holidays, including ten days off for the country's New Year's festivities. Employees should be entitled to those paid days off, as well as one paid day off each week as a vacation entitlement.
If an employee becomes ill, they are entitled to 30 days of sick leave for medical treatment as long as they have the proper documentation. Maternity leave is governed by the Leave and Holidays Act of 1951. Female workers should be entitled to 14 weeks of paid maternity leave, divided into six weeks before and eight weeks after the delivery. Those who contribute to the Social Security Fund should be given more time off.
Myanmar's social security system offers healthcare to qualified workers.
In general, resident businesses are taxed on a global basis, and therefore revenue from sources outside than Myanmar is taxable.
Non-resident businesses and MIC-registered companies are solely taxed on revenue earned inside Myanmar. Income obtained from any capital assets or sources of income inside Myanmar is considered to be income earned within Myanmar. The income is usually taxed in accordance with the standard regulations for residents.
Companies incorporated in Myanmar under the Myanmar CA or Special Companies Act are subject to a tax rate of 25 percent.
Enterprises operating under the MIC or SEZ are subject to a tax rate of 25 percent.
Non-resident foreign organizations registered under the Myanmar CA or Special Companies Act, such as a branch of a foreign company are subject to a corporate tax rate of 25 percent.
Taxable persons in Myanmar are imposed a personal income tax rate from 1 percent to 25 percent. The actual percentage varies depending on the residency, type of income, and income bracket the individual belongs to.
Myanmar does not impose a value-added tax or a goods and sales tax. There is, however, a commercial, and a specific goods tax.
Citizens of the majority of nations must apply for a visa before traveling to Myanmar. There are, however, several nations whose residents may get a Myanmar visa via a streamlined process: online or on arrival. Furthermore, nationals of a few specified nations are free from needing a visa if they are going for a short period of time, such as for business or vacation.
If you are a citizen of one of the following countries and are visiting Myanmar for tourist or business, you are free from a Myanmar visa for stays of up to 14 days: Brunei, Cambodia, Indonesia, Laos, the Philippines, Thailand (only if arriving by air), and Vietnam.
The exception only applies to regular passport holders.
Myanmar visas are classified according to the manner of application and the reason for which you will visit the country.
Regular Myanmar visas are obtained at the local embassy or consulate depending on the purpose of travel; Myanmar visas are classified as follows:
Myanmar Tourist Visas are granted to foreigners who want to visit the nation for tourism or other leisure activities.
Myanmar Business Visas are provided to foreigners who want to do business in the nation (attend meetings or conferences, negotiate, etc.).
Myanmar Social Visas are granted to ex-Myanmar nationals or foreigners with familial ties to Myanmar people.
Myanmar Employment Visas are granted to foreigners who want to work in Myanmar.
Myanmar Crew Visas are granted to members of the aircrew.
Myanmar Transit Visas are provided to foreigners who must transit through Myanmar on their route to another nation. This sort of visa has a 24-hour validity period.
There are three options for visa-required foreigners to get a visa for Myanmar:
At a Myanmar embassy or consulate; online (Myanmar eVisa); or on arrival.
A Myanmar visa is valid for three months after it is granted, during which time it may be used to enter the country; if it is not used within three months, the visa will expire.
A Stay Permit and Multiple Journey Special Re-entry Visa are necessary if a foreigner want to remain and work in Myanmar for an extended length of time. The Stay Permit is valid for one entrance and may be awarded for three months to one year.
Applications for Stay Permits and Multiple Journey Special Re-entry Visas are handled by the Myanmar Ministry of Immigration and Population.
An employer contract in Myanmar must be in written and signed by both parties within 30 days of employment. Employment contracts must at the very least contain information about the job, holidays, working hours, leaves, benefits, termination, and probationary period. Employment contracts must be registered with the appropriate Township Labor Office.
Employers may undertake pre-employment background checks, and some do so via a third party. Employers may not physically engage in an applicant's background check, and the checks must not breach any privacy regulations.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Myanmar Kyat
Do you know how to establish a Burmese subsidiary depending on your location and company type? Many businesses are unaware of how the incorporation process varies based on many criteria. First, you must locate the finest city or area in the nation with the most hospitable incorporation legislation. If you are unfamiliar with the various locations, consult with an expert who can propose the best location for your office.
You should also choose the corporation that will help you achieve your company objectives. You may form a limited liability company (LLC), a joint venture business, a public limited company, a branch office, or a representative office in Myanmar. We suggest forming as an LLC if you wish to function like a resident firm since it will provide you more flexibility. However, if you will only be handling a few operations, a branch or representative office structure should be used.
If you intend to incorporate your Myanmar subsidiary as an LLC, you need take the following steps:
1. Request a one-of-a-kind business name.
2. Obtain a Certificate of Business Incorporation
3. Sign the application in the presence of a lawyer or a qualified accountant.
4. All government fees must be paid.
5. Open a bank account in your home country.
6. Provide the registration declaration; print two copies of the Memorandum and Articles of Association in Myanmar and English; and submit a translation certificate from a qualified translator.
7. Please include a complete list of directors.
When forming an LLC in Myanmar, you must adhere to a certain set of Myanmar subsidiary laws. You'll need two shareholders and two directors, for example. Individuals or businesses may be your shareholders, and they do not have to dwell in the nation. However, if your firm contains foreign capital, you must get permission from the Myanmar Investment Commission (MIC) before beginning operations. Companies having foreign shareholders must have $50,000 in paid-up share capital in the service industry and $150,000 in paid-up share capital in the manufacturing industry.
Although LLCs have the greatest operating flexibility, they must also adhere to stringent regulations. All LLCs are required to file an annual financial report, pay quarterly corporation taxes, and submit yearly financial statements. Foreign-owned businesses may also be audited.
