Doing Business in Myanmar

Do you want to expand your business into Myanmar or hire employees there? Here are some key things you need to know about a Myanmar expansion.

Myanmar Economy Overview

Currency

Myanmar Kyat (MMK)

Working hours

44 hours/week

Public/bank holidays

20+ public holidays (varies by year)

Capital

Naypyidaw

Languages

Burmese (official), with over 100 minority languages spoken across the country

Population

~55 million

Minimum hourly salary

MMK 600

Tax year

1st Oct – 30th Sept (Myanmar Fiscal Year)

Date format

DD/MM/YYYY

Misclassification penalties

Misclassifying employees as independent contractors in Myanmar can result in fines, back payments of social security contributions, and legal consequences. Employers are obligated to comply with the Social Security Law and the Employment and Skills Development Law, and non-compliance can lead to enforcement action by labor authorities, including license revocation or penalties.

Fun fact

Myanmar is home to more than 2,200 ancient Buddhist temples in Bagan, a UNESCO World Heritage Site and one of Southeast Asia’s greatest archaeological treasures.

Myanmar is an interesting business destination offering rewarding investment opportunities and a favorable regulatory environment. Previously known as Burma, the country experienced fairly rapid economic growth of around 6% per year between 2011 and 2019, according to the World Bank.

The Asian country has further attracted international investment for its low labor costs. Myanmar is rich in natural resources, such as oil and gas, and offers preferential foreign business treatment owing to its Investment Law of 2016.

If you are thinking of doing business in Myanmar, you can take advantage of the country’s investment potential in addition to tax exemptions. To make global workforce expansion easier and more efficient this guide looks at Myanmar’s business regulations along with hiring a professional recruitment agency or an Employer of Record (EOR) to remain compliant.

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Overview of Myanmar's Economy

Myanmar has a promising economy driven by the oil and gas sector, agriculture, and manufacturing. The country’s largest exports are crude oil and natural gas, which total around $3.49 billion per year. Another developing sector in the Asian country is tourism, which generated more than $2 billion in 2019.

The Myanmar GDP reached $64.82 billion in 2023 and is expected to grow moderately in 2025; however, factors such as its strategic location and advancements in agriculture, fishing, and textile manufacture are expected to contribute to further economic development. Despite political challenges and the setback of COVID-19, Myanmar has shown economic recovery and remains a major exporter of precious stones, oil, natural gas, and iron ore.

Economic Indicator	Details
GDP (Nominal, 2023 est.)	~$64.82 billion USD
GDP Growth Rate (2025 est.)	~3.2% (moderate growth expected)
Major Industries	Oil and gas, agriculture, manufacturing, fishing, textiles, precious stones, tourism
Top Employers	Government, energy sector companies, agricultural cooperatives, garment and textile manufacturers
Labor Force Size	~23.8 million
Unemployment Rate (2024)	~1.8%
Business Incentives	Duty reductions under the ASEAN Free Trade Area, tax exemptions for qualifying foreign investments
Key Economic Drivers	Oil and gas exports (~$3.49 billion annually), agricultural development, textile and garment production, tourism revenue, mineral exports

Along with its valuable exports, Myanmar is a member of the ASEAN Free Trade Area, providing reductions on specific duties and exemptions for qualifying foreign investors.

Taxes

Employer tax: 5%

Social Security Contribution

3% of employee salary (capped at MMK 300,000 per month)

Other Contributions

Varies slightly depending on sector and local labor office guidance

Employee tax: 2%–25%

Social Security Contribution

2% of monthly salary (up to the contribution ceiling)

Personal Income Tax (PAYE)

Progressive tax ranging from 0% to 25%, based on monthly income levels

Income tax

Myanmar imposes a progressive personal income tax ranging from 0% to 25%.

Resident taxpayers are taxed on worldwide income
Non-residents are taxed only on Myanmar-sourced income

Corporate income tax is generally 25%, but may vary based on business type and incentive eligibility. The country also offers tax holidays and exemptions to qualifying foreign investors through the Myanmar Investment Commission (MIC).

Business Regulation in Myanmar

To expand your company and workforce in Myanmar, it is important to remain aware of the local labor laws to maintain compliance. Understanding these regulations simplifies hiring in Asia and reduces the risk of being penalized by the state.

Company registration

As per the Myanmar Companies Law and the Special Companies Act, before incorporating a company, it must be registered. The law applies to both Myanmar nationals and foreigners.

To proceed with registering a company in Myanmar, your business must have a unique name that you can check online at the Directorate of Investment and Company Administration (DICA). Complete the online registration forms and pay the requested fee. Once registered, you can proceed with the incorporation of a subsidiary or branch.

Investment laws

Myanmar’s Investment Law of 2016 governs both local and international investments. The purpose of this law is to encourage responsible and transparent investment in the country in support of job creation and economic stability. Foreign companies favor the Myanmar Investment Law (MIL) because it offers tax exemptions in agriculture, telecommunications, manufacturing, healthcare, and research.

The law exempts certain goods from customs duties and allows land leases for up to 30 years. The MIL guarantees that it will not nationalize foreign investment. To proceed with investment in certain industries and activities, international companies must obtain a permit from the Myanmar Investment Commission (MIC).

Tax policies

Myanmar has a progressive tax system. Individual income tax is 25%, and capital gains tax is charged at 10%. Capital gains tax is restricted on resident investors because of Myanmar’s tax treaties.

There is no corporate tax on exports, but the crude oil sector pays 5%, and the electricity industry pays 8%. Businesses registered under Myanmar’s Foreign Investment Law benefit from a corporate tax holiday of up to seven years.

Myanmar also has a double taxation relief treaty with India, the United Kingdom, Vietnam, and Singapore. Employers in Myanmar must pay social security contributions of 3% of employees’ wages to provide benefits such as compensation for workplace injuries.

Benefits of Doing Business in Myanmar

From affordable taxes to a skilled labor force, discover the multitude of benefits of doing business in Myanmar:

Untapped market potential: Myanmar’s manufacturing sector has tremendous investment potential as the country advances operations in automotive, construction, and machinery. The textile industry is another untapped market, having exported $2.7 billion worth of garments between 2016 and 2017. The construction sector is making strides toward advancements in infrastructure, while the energy sector remains in high demand. Investors will also find economic opportunities in the healthcare and finance sectors.
Strategic location: Myanmar is located at the borders of Southeast Asia and Southern Asia, facilitating ease of access to the Indian Ocean. It is a gateway to major business destinations, including China and India.
Government reforms: The Companies Law provides international standards for the formation and registration of businesses in Myanmar. Company registration has moved from in-person applications to online registration with MyCo. Reforms in trade policies include tax exemptions on qualifying goods, and the Myanmar government has focused on investment incentives through foreign investment law.

Downsides of Doing Business in Myanmar

International businesses can take advantage of lower labor costs and a favorable trade and transport location; however, it is important to be mindful of potential challenges and how to overcome them:

Political instability: Community initiatives and international programs are aimed at future resolution.
Regulatory challenges: Developing business regulations can cause processing delays while reforms in the law create confusion. Fortunately, companies partnering with service providers such as a Myanmar EOR are updated on changing business laws and overcoming regulatory red tape.
Infrastructure limitations: Myanmar has experienced power shortages, particularly in its rural areas; however, the Myanmar Energy Master Plan aims to advance energy infrastructure by combining wind, solar, hydropower, coal, and natural gas by 2030.

Road infrastructure is a problem in the Asian country, but the National Transport Master Plan is undertaking road upgrades along with adequate access to rural areas as per ASEAN standards.

International Expansion Into Myanmar

As an international business, you have several options to legally expand in Myanmar, including registering a local entity or branch or hiring a recruitment agency, Professional Employer Organization (PEO), or an EOR. The following describes the entities and employment service providers in more detail:

Myanmar Employer of Record (EOR)

An EOR in Myanmar will keep your company compliant and provide efficient hiring solutions. A professional EOR is a legal employer of the labor force offering payroll management, onboarding, offboarding, benefits administration, and compliance with the Myanmar Labor Law.

Learn more about EOR in Myanmar

Myanmar Professional Employer Organization (PEO)

A PEO in Myanmar manages HR and legal compliance. The HR service provider is a co-employer assisting companies with payroll, benefits administration, and employee onboarding. A PEO is best if you already have an entity in Myanmar and require payroll and HR support.

Recruitment Agency

A recruitment agency assists with local hiring. An expert recruiter is familiar with talent acquisition and matching skilled employees to your job requirements while abiding by employment laws. They make hiring a Myanmar workforce faster and simpler.

Subsidiary Incorporation

Before incorporating a subsidiary, businesses must register with DICA. Once registered, setting up a local entity involves several steps:

Choose a business structure such as an LLC or joint venture.
Documents including director and shareholder information, a capital investment declaration, and a detailed business plan must be prepared.
If foreign workers are hired, work permits must be obtained.
Incorporation documents such as Articles of Incorporation and a Memorandum of Association must be submitted.
The Myanmar Ministry of Planning and Finance must issue a tax ID.
A local bank account must be opened and business licenses obtained.

Branch Registration

Registering a branch in Myanmar provides low entry costs and options to assess market viability. To register a branch, businesses must have a legally established foreign company and prepare the Memorandum of Association and Articles of Incorporation. A branch in Myanmar allows complete foreign ownership, eliminates limited liability requirements, and has fewer corporate filings, making it faster to set up.

Staffing Agency

A staffing agency in Myanmar specializes in short-term and project-based workforce solutions. If you are looking for a contract or seasonal worker, a staffing agency can connect you to flexible workforce solutions.

Business Opportunities in Myanmar

Myanmar is rich in natural resources and presents significant growth potential despite its regulatory challenges. The country has made strides in economic recovery since the devastation of the pandemic in 2020 and has focused on welcoming international investment through its tax incentives and foreign investment laws.

In addition to its developing agriculture, tourism, and manufacturing sectors, Myanmar has the lowest labor costs in Asia and is strategically located for ease of trade with business hubs such as China and India.

To help you compliantly and efficiently hire top talent in Myanmar, Remote People can provide market entry solutions and workforce expansion support. Remote People focuses on growing your global team so you can expand your reach.