4 Dec 2017
MYANMAR: Foreign Investors Allowed 35% Stake in Local Businesses Without Prior State Approval
Foreign investors will be allowed to take up to a 35% stake in a Myanmar-registered business without prior government approval under the terms of the country’s new Companies Law. At present, should an overseas investor take part ownership of such a company, the move has to be approved by the Directorate of Investment and Company Administration (DICA) and the concerned company has to re-register as a foreign-owned entity.
Under the terms of the new legislation, foreign investors will also be allowed to buy shares on the Yangon Stock Exchange (YSX) without obtaining the DICA’s approval. The government body, however, will have to be informed in any instance when a foreign investor’s stake in a local business exceeds 35%.
The new legislation is expected to help facilitate the implementation of the Myanmar Investment Law (MIL) as it is rolled out across the country. For further details, see MYANMAR: New Investment Regulations Offer Simplified Approval Procedures, Strategic Incentives and Extended Land Leases.