XII. COMPANIES AND FOREIGN INVESTMENT

Myanmar is moving towards a market-oriented economy from a centrally planned economy since late 1988. The Government introduced a number of economic reforms to promote private business activities and promulgated the Union of Myanmar Foreign Investment Law in November 1988, to attract foreign investment.

Business Enterprises

Table 12.01 shows the number of registered exporters, importers, limited companies, partnerships, and joint venture companies limited. Limited companies are incorporated under the Myanmar Companies Act and joint venture companies limited are formed under the Foreign Investment Law.

Foreign Investment

Foreign investors may form a limited company with 100% equity or a joint venture company with at least 35% of equity capital, after a permit is obtained from the Foreign Investment Commission ( now called Myanmar Investment Commission ). Form of incorporation can be sole proprietorship, partnership or limited company. If the investment involves a state enterprise, incorporation must be made under the Special Companies Act.

Table 12.02, 12.03 and 12.04 provide statistics on foreign investment of permitted enterprises by sector, by country and by organization respectively.