3.1. – A sole proprietorship is owned by an individual and operates under their name. No registration is needed, and the owner’s liability is unlimited.

3.2.  – A partnership’s rights and obligation are governed by the Partnership Act of 1932. The number of partners is limited to twenty, registration is not compulsory, and all are considered unlimited.

3.3.  – For foreign enterprises, the most common company type is a limited company – either a private limited liability company or a public limited liability company. All limited companies are required to register under either the Myanmar Companies Act (CA) or the Union of Myanmar Foreign Investment Law (MFIL), and if one share is owned by a foreign member, a company is classified as a foreign company. A private limited liability company is limited to fifty members, and share transfers are restricted, and there’s no public subscription. A public limited liability company must have a minimum of seven shareholders.

3.4.  – A foreign investor can set up a joint venture, either as partnership or a limited company, with a Myanmar partner. According to the new Investment Law of 2012, for Joint Ventures, all minimum capital requirements have been dropped and the joint venture can be fully foreign owned. Any stake ratio between the partners is permitted.

3.5.  – A foreign company can set up a branch office under the Myanmar Companies Act (CA) or the Union of Myanmar Foreign Investment Law (MFIL). Under the CA, a branch office does not need a Myanmar Investment Commission permit, can be a manufacturing or service company, and must register and then apply for a trade permit. Under the MFIL, a branch office must obtain a Myanmar Investment Commission permit, a trade permit and a registration certificate.

3.6. – A foreign company can establish a representative office in Myanmar. It can liaise with the head office and conduct research, but it cannot generate revenue or engage in business.