Economy Profile 2015 Doing Business 2015
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Doing Business 2015 Myanmar
Economy Profile 2015
Myanmar
Doing Business 2015 Myanmar 2
© 2014 The International Bank for Reconstruction and Development /
The World Bank
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ISBN (paper): 978-1-4648-0351-2
ISBN (electronic): 978-1-4648-0352-9
DOI: 10.1596/978-1-4648-0351-2
ISSN: 1729-2638
Cover design: Corporate Visions, Inc.Doing Business 2015 Myanmar 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 6 Starting a business ..................................................................................................................... 16 Dealing with construction permits ........................................................................................... 23 Getting electricity ....................................................................................................................... 30 Registering property .................................................................................................................. 36 Getting credit .............................................................................................................................. 41 Protecting minority investors ................................................................................................... 47 Paying taxes ................................................................................................................................ 57 Trading across borders .............................................................................................................. 61 Enforcing contracts .................................................................................................................... 66 Resolving insolvency .................................................................................................................. 74 Labor market regulation ........................................................................................................... 77 Distance to frontier and ease of doing business ranking ...................................................... 84 Resources on the Doing Business website .............................................................................. 87
Doing Business 2015 Myanmar 4
INTRODUCTION
Doing Business sheds light on how easy or difficult it is 1, 2014 (except for the paying taxes indicators, which
for a local entrepreneur to open and run a small to cover the period January–December 2013).
medium-size business when complying with relevant
The Doing Business methodology has limitations. Other
regulations. It measures and tracks changes in
areas important to business—such as an economy’s
regulations affecting 11 areas in the life cycle of a
proximity to large markets, the quality of its
business: starting a business, dealing with construction
infrastructure services (other than those related to
permits, getting electricity, registering property, getting
trading across borders and getting electricity), the
credit, protecting minority investors, paying taxes,
security of property from theft and looting, the
trading across borders, enforcing contracts, resolving
transparency of government procurement,
insolvency and labor market regulation.
macroeconomic conditions or the underlying strength of
In a series of annual reports Doing Business presents institutions—are not directly studied by Doing Business.
quantitative indicators on business regulations and the The indicators refer to a specific type of business,
protection of property rights that can be compared generally a local limited liability company operating in
across 189 economies, from Afghanistan to Zimbabwe, the largest business city. Because standard assumptions
over time. The data set covers 47 economies in Sub- are used in the data collection, comparisons and
Saharan Africa, 32 in Latin America and the Caribbean, 25 benchmarks are valid across economies. The data not
in East Asia and the Pacific, 26 in Eastern Europe and only highlight the extent of obstacles to doing business;
Central Asia, 20 in the Middle East and North Africa and they also help identify the source of those obstacles,
8 in South Asia, as well as 31 OECD high-income supporting policy makers in designing regulatory reform.
economies. The indicators are used to analyze economic
More information is available in the full report. Doing
outcomes and identify what reforms have worked, where
Business 2015 presents the indicators, analyzes their
and why.
relationship with economic outcomes and presents
This economy profile presents the Doing Business business regulatory reforms. The data, along with
indicators for Myanmar. To allow useful comparison, it information on ordering Doing Business 2015, are
also provides data for other selected economies available on the Doing Business website at
(comparator economies) for each indicator. The data in http://www.doingbusiness.org.
this report are current as of JuneDoing Business 2015 Myanmar 5
CHANGES IN DOING BUSINESS 2015
As part of a 2-year update in methodology, Doing Finally, the name of the employing workers indicator set
Business 2015 incorporates 7 important changes. First, has been changed to labor market regulation, and the
the ease of doing business ranking as well as all topic- scope of this indicator set has also been changed. The
level rankings are now computed on the basis of indicators now focus on labor market regulation
distance to frontier scores (see the chapter on the applying to the retail sector rather than the
distance to frontier and ease of doing business ranking). manufacturing sector, and their coverage has been
Second, for the 11 economies with a population of more expanded to include regulations on labor disputes and
than 100 million, data for a second city have been added on benefits provided to workers. The labor market
to the data set and the ranking calculation. These regulation indicators continue to be excluded from the
economies are Bangladesh, Brazil, China, India, aggregate distance to frontier score and ranking on the
Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian ease of doing business.
Federation and the United States. Third, for getting
Beyond these changes there are 3 other updates in
credit, the methodology has been revised for both the
methodology. For paying taxes, the financial statement
strength of legal rights index and the depth of credit
variables have been updated to be proportional to 2012
information index. The number of points has been
income per capita; previously they were proportional to
increased in both indices, from 10 to 12 for the strength
2005 income per capita. For enforcing contracts, the
of legal rights index and from 6 to 8 for the depth of
value of the claim is now set at twice the income per
credit information index. In addition, only credit bureaus
capita or $5,000, whichever is greater. For dealing with
and registries that cover at least 5% of the adult
construction permits, the cost of construction is now set
population can receive a score on the depth of credit
at 50 times income per capita (before, the cost was
information index.
assessed by the Doing Business respondents). In addition,
Fourth, the name of the protecting investors indicator set this indicator set no longer includes the procedures for
has been changed to protecting minority investors to obtaining a landline telephone connection.
better reflect its scope—and the scope of the indicator
For more details on the changes, see the “What is
set has been expanded to include shareholders’ rights in
changing in Doing Business?” chapter starting on page
corporate governance beyond related-party transactions.
24 of the Doing Business 2015 report. For more details
Fifth, the resolving insolvency indicator set has been
on the data and methodology, please see the “Data
expanded to include an index measuring the strength of
Notes” chapter starting on page 114 of the Doing
the legal framework for insolvency. Sixth, the calculation
Business 2015 report. For more details on the distance to
of the distance to frontier score for paying taxes has
frontier metric, please see the “Distance to frontier and
been changed. The total tax rate component now enters
ease of doing business ranking” chapter in this profile.
the score in a nonlinear fashion, in an approach different
from that used for all other indicators (see the chapter
on the distance to frontier and ease of doing business
ranking).Doing Business 2015 Myanmar 6
THE BUSINESS ENVIRONMENT
For policy makers trying to improve their economy’s
regulatory environment for business, a good place to start ECONOMY OVERVIEW
is to find out how it compares with the regulatory
environment in other economies. Doing Business provides
an aggregate ranking on the ease of doing business
Region: East Asia & Pacific
based on indicator sets that measure and benchmark
regulations applying to domestic small to medium-size Income category: Low income
businesses through their life cycle. Economies are ranked
from 1 to 189 by the ease of doing business ranking. This Population: 53,259,018
year's report presents results for 2 aggregate measures:
the distance to frontier score and the ease of doing GNI per capita (US$): 869
business ranking. The ranking of economies is determined
by sorting the aggregate distance to frontier (DTF) scores. DB2015 rank: 177
The distance to frontier score benchmarks economies
with respect to regulatory practice, showing the absolute DB2014 rank: 178*
distance to the best performance in each Doing Business
Change in rank: 1
indicator. An economy’s distance to frontier score is
indicated on a scale from 0 to 100, where 0 represents the
DB 2015 DTF: 43.55
worst performance and 100 the frontier. (See the chapter
on the distance to frontier and ease of doing business). DB 2014 DTF: 42.19
The 10 topics included in the ranking in Doing Business
2015: starting a business, dealing with construction Change in DTF: 1.36
permits, getting electricity, registering property, getting
credit, protecting minority investors, paying taxes, trading * DB2014 ranking shown is not last year’s published
across borders, enforcing contracts and resolving ranking but a comparable ranking for DB2014 that
insolvency. The labor market regulation indicators captures the effects of such factors as data
(formerly employing workers) are not included in this corrections and the changes in methodology. See
year’s aggregate ease of doing business ranking, but the the data notes starting on page 114 of the Doing
data are presented in this year’s economy profile. Business 2015 report for sources and definitions.
The aggregate ranking on the ease of doing business
benchmarks each economy’s performance on the
indicators against that of all other economies in the Doing
Business sample (figure 1.1). While this ranking tells much
about the business environment in an economy, it does
not tell the whole story. The ranking on the ease of doing
business, and the underlying indicators, do not measure all
aspects of the business environment that matter to firms
and investors or that affect the competitiveness of the
economy. Still, a high ranking does mean that the
government has created a regulatory environment
conducive to operating a business.Doing Business 2015 Myanmar
THE BUSINESS ENVIRONMENT
Figure 1.1 Where economies stand in the global ranking on the ease of doing business
Source: Doing Business database.Doing Business 2015 Myanmar THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy regional average (figure 1.2). The economy’s rankings stands in the aggregate ranking on the ease of doing (figure 1.3) and distance to frontier scores (figure 1.4) business is useful. Also useful is to know how it ranks on the topics included in the ease of doing business relative to comparator economies and relative to the ranking provide another perspective. Figure 1.2 How Myanmar and comparator economies rank on the ease of doing business Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Myanmar 9 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Myanmar (Scale: Rank 189 center, Rank 1 outer edge) Figure 1.4 Distance to frontier scores on Doing Business topics - Myanmar (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Myanmar 10
THE BUSINESS ENVIRONMENT
Just as the overall ranking on the ease of doing business tells Doing Business introduced the distance to frontier score. This
only part of the story, so do changes in that ranking. Yearly measure shows how far on average an economy is from the
movements in rankings can provide some indication of best performance achieved by any economy on each Doing
changes in an economy’s regulatory environment for firms, Business indicator.
but they are always relative.
Comparing the measure for an economy at 2 points in time
Moreover, year-to-year changes in the overall rankings do allows users to assess how much the economy’s regulatory
not reflect how the business regulatory environment in an environment as measured by Doing Business has changed
economy has changed over time—or how it has changed in over time—how far it has moved toward (or away from) the
different areas. To aid in assessing such changes, most efficient practices and strongest regulations in areas
covered by Doing Business (figure 1.5).
Figure 1.5 How far has Myanmar come in the areas measured by Doing Business?
Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on
each Doing Business indicator since 2010, except for getting credit, paying taxes, protecting minority investors and resolving insolvency
which had methodology changes in 2014 and thus are only comparable to 2013. The measure is normalized to range between 0 and 100,
with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2015 report for
more details on the distance to frontier score.
Source: Doing Business database.Doing Business 2015 Myanmar 11
THE BUSINESS ENVIRONMENT
The absolute values of the indicators tell another part of regulation—such as a regulatory process that can be
the story (table 1.1). The indicators, on their own or in completed with a small number of procedures in a few
comparison with the indicators of a good practice days and at a low cost. Comparison of the economy’s
economy or those of comparator economies in the indicators today with those in the previous year may
region, may reveal bottlenecks reflected in large numbers show where substantial bottlenecks persist—and where
of procedures, long delays or high costs. Or they may they are diminishing.
reveal unexpected strengths in an area of business
Table 1.1 Summary of Doing Business indicators for Myanmar
Best performer globally
Indonesia DB2015
Myanmar DB2015
Myanmar DB2014
Malaysia DB2015
Thailand DB2015
Lao PDR DB2015
Indicator
China DB2015
India DB2015
DB2015
Starting a Business
189 189 128 158 155 154 13 75 New Zealand (1)
(rank)
Starting a Business (DTF
22.85 20.25 77.43 68.42 68.84 68.95 94.90 87.98 New Zealand (99.96)
Score)
Procedures (number) 11.0 11.0 11.0 11.9 10.0 6.0 3.0 4.0 New Zealand (1.0)*
Time (days) 72.0 72.0 31.4 28.4 52.5 92.0 5.5 27.5 New Zealand (0.5)
Cost (% of income per
155.9 176.7 0.9 12.2 21.1 5.7 7.2 6.6 Slovenia (0.0)
capita)
Paid-in min. capital (%
6,190.1 7,016.0 0.0 111.2 35.5 0.0 0.0 0.0 112 Economies (0.0)*
of income per capita)
Dealing with
Hong Kong SAR,
Construction Permits 130 134 179 184 153 107 28 6
China (1)
(rank)
Dealing with
Hong Kong SAR,
Construction Permits 64.93 62.98 43.75 30.89 59.03 68.50 82.49 88.77
China (95.53)
(DTF Score)Doing Business 2015 Myanmar 12
Best performer globally
Indonesia DB2015
Myanmar DB2015
Myanmar DB2014
Malaysia DB2015
Thailand DB2015
Lao PDR DB2015
Indicator
China DB2015
India DB2015
DB2015
Hong Kong SAR,
Procedures (number) 13.0 13.0 22.0 25.4 17.0 22.0 13.0 7.0
China (5.0)
Time (days) 128.0 128.0 244.3 185.9 211.0 107.0 74.0 113.0 Singapore (26.0)
Cost (% of warehouse
8.8 9.9 7.6 28.2 4.3 0.6 1.3 0.1 Qatar (0.0)*
value)
Getting Electricity
121 124 124 137 78 128 27 12 Korea, Rep. (1)
(rank)
Getting Electricity (DTF
66.78 65.24 66.35 63.06 76.90 65.29 86.67 91.71 Korea, Rep. (99.83)
Score)
Procedures (number) 5.0 5.0 5.5 7.0 5.0 5.0 5.0 4.0 12 Economies (3.0)*
Time (days) 91.0 91.0 143.2 105.7 90.7 134.0 32.0 35.0 Korea, Rep. (18.0)*
Cost (% of income per
2,801.7 3,175.5 459.4 487.7 353.6 1,650.4 46.3 66.1 Japan (0.0)
capita)
Registering Property
151 151 37 121 117 77 75 28 Georgia (1)
(rank)
Registering Property
52.26 52.20 80.67 60.40 60.74 71.06 71.16 83.04 Georgia (99.88)
(DTF Score)
Procedures (number) 6.0 6.0 4.0 7.0 5.0 5.0 8.0 2.0 4 Economies (1.0)*
Time (days) 113.0 113.0 19.4 47.0 27.4 98.0 13.5 2.0 3 Economies (1.0)*
Cost (% of property
7.2 7.2 3.6 7.0 10.8 1.1 3.3 6.3 4 Economies (0.0)*
value)
Getting Credit (rank) 171 169 71 36 71 116 23 89 New Zealand (1)
Getting Credit (DTF
10.00 10.00 50.00 65.00 50.00 35.00 70.00 45.00 New Zealand (100)
Score)
Strength of legal rights
2 2 4 6 4 7 7 3 3 Economies (12)*
index (0-12)Doing Business 2015 Myanmar 13
Best performer globally
Indonesia DB2015
Myanmar DB2015
Myanmar DB2014
Malaysia DB2015
Thailand DB2015
Lao PDR DB2015
Indicator
China DB2015
India DB2015
DB2015
Depth of credit
0 0 6 7 6 0 7 6 23 Economies (8)*
information index (0-8)
Credit registry coverage
0.0 0.0 33.2 0.0 46.4 3.5 56.2 0.0 Portugal (100.0)
(% of adults)
Credit bureau coverage
0.0 0.0 0.0 22.4 0.0 0.0 78.6 52.7 23 Economies (100.0)*
(% of adults)
Protecting Minority
178 178 132 7 43 178 5 25 New Zealand (1)
Investors (rank)
Protecting Minority
29.17 29.17 45.00 72.50 60.83 29.17 74.17 65.83 New Zealand (81.67)
Investors (DTF Score)
Extent of conflict of
interest regulation 2.0 2.0 5.0 6.7 6.0 3.3 8.7 7.7 Singapore (9.3)*
index (0-10)
Extent of shareholder
governance index (0- 3.8 3.8 4.0 7.8 6.2 2.5 6.2 5.5 France (7.8)*
10)
Strength of minority
investor protection 2.9 2.9 4.5 7.3 6.1 2.9 7.4 6.6 New Zealand (8.2)
index (0-10)
United Arab Emirates
Paying Taxes (rank) 116 115 120 156 160 129 32 62
(1)*
Paying Taxes (DTF United Arab Emirates
68.64 68.01 67.44 55.53 53.66 66.10 83.95 77.99
Score) (99.44)*
Payments (number per Hong Kong SAR,
31.0 31.0 7.0 33.0 65.0 35.0 13.0 22.0
year) China (3.0)*
Time (hours per year) 154.5 154.5 261.0 243.0 253.5 362.0 133.0 264.0 Luxembourg (55.0)
Trading Across Borders
103 135 98 126 62 156 11 36 Singapore (1)
(rank)
Trading Across Borders 70.02 63.22 71.68 65.47 77.46 52.96 89.94 83.57 Singapore (96.47)Doing Business 2015 Myanmar 14
Best performer globally
Indonesia DB2015
Myanmar DB2015
Myanmar DB2014
Malaysia DB2015
Thailand DB2015
Lao PDR DB2015
Indicator
China DB2015
India DB2015
DB2015
(DTF Score)
Documents to export
8 9 8 7 4 10 4 5 Ireland (2)*
(number)
Time to export (days) 20.0 25.0 21.0 17.1 17.0 23.0 11.0 14.0 5 Economies (6.0)*
Cost to export (US$ per
620.0 670.0 823.0 1,332.0 571.8 1,950.0 525.0 595.0 Timor-Leste (410.0)
container)
Cost to export (deflated
620.0 709.0 823.0 1,332.0 571.8 1,950.0 525.0 595.0
US$ per container)
Documents to import
8 9 5 10 8 10 4 5 Ireland (2)*
(number)
Time to import (days) 22.0 27.0 24.0 21.1 26.0 26.0 8.0 13.0 Singapore (4.0)
Cost to import (US$ per
610.0 660.0 800.0 1,462.0 646.8 1,910.0 560.0 760.0 Singapore (440.0)
container)
Cost to import (deflated
610.0 698.4 800.0 1,462.0 646.8 1,910.0 560.0 760.0
US$ per container)
Enforcing Contracts
185 185 35 186 172 99 29 25 Singapore (1)
(rank)
Enforcing Contracts
27.31 27.31 68.21 25.81 37.28 57.49 69.39 70.05 Singapore (89.54)
(DTF Score)
Time (days) 1,160.0 1,160.0 452.8 1,420.0 471.0 443.0 425.0 440.0 Singapore (150.0)
Cost (% of claim) 51.5 51.5 16.2 39.6 115.7 31.6 37.3 15.0 Iceland (9.0)
Procedures (number) 45.0 45.0 37.0 46.0 40.0 42.0 29.0 36.0 Singapore (21.0)*
Resolving Insolvency
160 159 53 137 75 189 36 45 Finland (1)
(rank)
Resolving Insolvency
23.51 23.51 55.31 32.60 46.75 0.00 65.61 58.73 Finland (93.85)
(DTF Score)Doing Business 2015 Myanmar 15
Best performer globally
Indonesia DB2015
Myanmar DB2015
Myanmar DB2014
Malaysia DB2015
Thailand DB2015
Lao PDR DB2015
Indicator
China DB2015
India DB2015
DB2015
no
Time (years) 5.0 5.0 1.7 4.3 1.9 1.0 2.7 Ireland (0.4)
practice
no
Cost (% of estate) 18.0 18.0 22.0 9.0 21.6 10.0 36.0 Norway (1.0)
practice
Outcome (0 as
no
piecemeal sale and 1 as 0 0 0 0 0 1 1
practice
going concern)
Recovery rate (cents on
14.7 14.7 36.0 25.7 31.7 0.0 81.3 42.3 Japan (92.9)
the dollar)
Strength of insolvency no
5.0 5.0 11.5 6.0 9.5 7.0 11.5 5 Economies (15.0)*
framework index (0-16) practice
Note: DB2014 rankings shown are not last year’s published rankings but comparable rankings for DB2014 that capture the effects of such
factors as data corrections and changes to the methodology. Trading across borders deflated and non-deflated values are identical in
DB2015 because it is defined as the base year for the deflator. The best performer on time for paying taxes is defined as the lowest time
recorded among all economies in the DB2015 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and
VAT or sales tax. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice”
mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a
competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the
relevant indicator.
* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number
of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website
(http://www.doingbusiness.org).
Source: Doing Business database.Doing Business 2015 Myanmar 16
STARTING A BUSINESS
Formal registration of companies has many WHAT THE STARTING A BUSINESS
immediate benefits for the companies and for
business owners and employees. Legal entities can INDICATORS MEASURE
outlive their founders. Resources are pooled as
several shareholders join forces to start a company. Procedures to legally start and operate a
Formally registered companies have access to company (number)
services and institutions from courts to banks as well
Preregistration (for example, name
as to new markets. And their employees can benefit
verification or reservation, notarization)
from protections provided by the law. An additional
benefit comes with limited liability companies. These Registration in the economy’s largest
limit the financial liability of company owners to their business city1
investments, so personal assets of the owners are not
Postregistration (for example, social security
put at risk. Where governments make registration
registration, company seal)
easy, more entrepreneurs start businesses in the
formal sector, creating more good jobs and Time required to complete each procedure
generating more revenue for the government. (calendar days)
What do the indicators cover? Does not include time spent gathering
information
Doing Business measures the ease of starting a
business in an economy by recording all procedures Each procedure starts on a separate day (2
officially required or commonly done in practice by procedures cannot start on the same day).
an entrepreneur to start up and formally operate an Procedures that can be fully completed
industrial or commercial business—as well as the online are recorded as ½ day.
time and cost required to complete these procedures. Procedure completed once final document is
It also records the paid-in minimum capital that received
companies must deposit before registration (or
within 3 months). The ranking of economies on the No prior contact with officials
ease of starting a business is determined by sorting Cost required to complete each procedure
their distance to frontier scores for starting a (% of income per capita)
business. These scores are the simple average of the
distance to frontier scores for each of the component Official costs only, no bribes
indicators. No professional fees unless services required
To make the data comparable across economies, by law
Doing Business uses several assumptions about the Paid-in minimum capital (% of income
business and the procedures. It assumes that all per capita)
information is readily available to the entrepreneur
and that there has been no prior contact with Deposited in a bank or with a notary before
officials. It also assumes that the entrepreneur will registration (or within 3 months)
pay no bribes. And it assumes that the business:
Is a limited liability company, located in the Has a start-up capital of 10 times income per
largest business city and is 100% domestically capita.
owned1.
Has a turnover of at least 100 times income per
Has between 10 and 50 employees. capita.
Conducts general commercial or industrial Does not qualify for any special benefits.
activities.
Does not own real estate.
1
For the 11 economies with a population of more than 100 million, data for a second city have been added.Doing Business 2015 Myanmar 17 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Myanmar? largest business city of an economy, except for 11 According to data collected by Doing Business, starting a economies for which the data are a population-weighted business there requires 11.0 procedures, takes 72.0 days, average of the 2 largest business cities. See the chapter costs 155.9% of income per capita and requires paid-in on distance to frontier and ease of doing business minimum capital of 6190.1% of income per capita (figure ranking at the end of this profile for more details. 2.1). Most indicator sets refer to a case scenario in the Figure 2.1 What it takes to start a business in Myanmar Paid-in minimum capital (% of income per capita): 6190.1 Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Myanmar 18 STARTING A BUSINESS Globally, Myanmar stands at 189 in the ranking of 189 average ranking provide other useful information for economies on the ease of starting a business (figure 2.2). assessing how easy it is for an entrepreneur in Myanmar The rankings for comparator economies and the regional to start a business. Figure 2.2 How Myanmar and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2015 Myanmar 19
STARTING A BUSINESS
What are the details?
Underlying the indicators shown in this chapter for
STANDARDIZED COMPANY
Myanmar is a set of specific procedures—the
bureaucratic and legal steps that an entrepreneur
must complete to incorporate and register a new Legal form: Limited Liability Company
firm. These are identified by Doing Business through
collaboration with relevant local professionals and Paid in minimum capital requirement: MMK
the study of laws, regulations and publicly available 50,000,000
information on business entry in that economy. City: Yangon
Following is a detailed summary of those procedures,
along with the associated time and cost. These Start-up Capital: 10 times GNI per capita
procedures are those that apply to a company
matching the standard assumptions (the
“standardized company”) used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators measure).
Table 2.2 Summary of time, cost and procedures for starting a business in Myanmar
Time to
No. Procedure Cost to complete
complete
Obtain reference letter from the ward chief
Yangon is divided into 4 districts, and 33 townships. Each township is
then divided into a certain number of wards, which is the smallest
administrative unit grouping several households or ‘each block’. The
1 ‘ward chief’ provides a letter confirming the address of the new 2 days no charge
business.
Agency: Ward Chief
Obtain criminal history from the township police station
After obtaining the reference letter from the ward, the relevant
township police station signs a letter containing your criminal history. 1 day no charge
2
Agency: Township police station
Conduct a name check at the Company Registration Office (CRO) at
the Directorate of Investment and Company Administration (DICA)
On the first visit to the CRO at the Yangon DICA office, and after having paid as part of
obtained the letters from the ward and police station, the proposed 1 day company
3
name for the new business must be checked and cleared. There is an
incorporation fees
electronic database since October 2012 that makes it easier to check
and to complete this procedure within the same day. The request is
made and depending on the workload the check will be done in either
a few minutes or a few hours at most, in the meantime the businessDoing Business 2015 Myanmar 20
Time to
No. Procedure Cost to complete
complete
owner or representative can wait in the office.
Agency: the Company Registration Office (CRO) at the Directorate of
Investment and Company Administration (DICA)
* Request temporary business incorporation certificate
Once the name check is complete, the following documents are
automatically generated based on the info provided on the application
form and are checked for accuracy by the applicant:
o Application form (company name, list of directors with ID# and
addresses, start-up capital, address)
o Memorandum of Association (for local company, only Burmese
version is required, though for English there is also a standardized
format available)
o Business plan of activities
o Photocopy of the family certificate for each director (includes dates of 1 day,
birth, relationship, occupation, ID#, ethnicity, citizenship, religion). This simultaneous with Kyat 1,000
4
is a standard form which each family already has in possession. previous (application fee)
o Pledge of directors (affidavit) procedure
o Ward reference letter
o Criminal history letter from the township police station
The applicant checks the accuracy of the generated documents, and
goes back to the directors to obtain their signatures on the
memorandum and articles of association.
Agency: Yangon Directorate of Investment and Company Administration
(DICA)
Obtain signature of the directors before a lawyer or certified public
accountant
Kyat 40,000 for
The memorandum and articles of association are signed before a lawyer witnessing the
or CPA. The cost of witnessing the signature of the memorandum and signature of the
5 1 day
articles of association are about 40,000 Kyat. memorandum and
articles of
Agency: Law or Accounting firm association
Payment of registration fees
Kyat 1 million
Payment of registration fees occurs at the accounts department in the (registration fees) +
same DICA building. Kyat 15,000
6 1 day
(administrative
Agency: Yangon Directorate of Investment and Company Administration
fees) + Kyat 1,000
(DICA)
(stamp duty)Doing Business 2015 Myanmar 21
Time to
No. Procedure Cost to complete
complete
Obtain temporary certificate of incorporation
After making the payments, the applicant returns to the Company
Registration Office to obtain the temporary certificate, which is
generated automatically. It needs to be reviewed and signed by the
Assistant Director and the Deputy Director of the CRO. This can be
done in 1 day if all is ready and the directors are available, but usually paid as part of
7 takes a few more days. This temporary certificate allows entrepreneurs 3 days company
to begin operating the business immediately while waiting for the incorporation fees
permanent certificate, and is valid for 6 months.
Agency: Yangon Directorate of Investment and Company Administration
(DICA)
Obtain the permanent incorporation certificate
The Company Registration Office will carry out internal reviews in order
to issue the permanent incorporation certificate. The file is sent to the
Ministry of Home Affairs, where it is checked by the Bureau of Special
Investigations (BSI) and the Police. The applicant is informed by the paid as part of
DICA when the definitive certificate is ready to be picked up. The 2 months company
8
applicant can follow up by phone on the status of the application. The
incorporation fees
certificate is valid for 5 years.
Agency: Yangon Directorate of Investment and Company Administration
(DICA)
* Pay the stamp duties for the permanent incorporation certificate
Before going back to pick up the permanent incorporation certificate, 1 day,
the applicant pays stamp duty on the Articles of Association, which simultaneous with
9 must be shown at the DICA. Kyat 200,000
previous
procedure
Agency: Internal Revenue Department Branch Office
Obtain a seal or a rubber stamp
According to the law, a company seal is required for a newly constituted
firm to operate. However, in practice a rubber stamp is used and
accepted. It can be produced in shops in downtown Yangon for a cost 1 day Kyat 2,000
10
of 2,000 kyat.
Agency: SealmakerDoing Business 2015 Myanmar 22
Time to
No. Procedure Cost to complete
complete
Register for commercial tax
Registration for commercial tax (similar to VAT): companies are obliged
to register with the tax authorities one month before the start of their
business if the business is expected to generate turnover subject to
commercial tax (a broad array of products fall into this category,
including manufactured goods). Furthermore, within 10 days of starting
a business the tax authorities should also be informed. 1 day no charge
11
DICA compiles a list of newly registered companies each month and
sends this information to the relevant townships where the businesses
are located.
Agency: Township Internal Revenue Department Office
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Myanmar 23
DEALING WITH CONSTRUCTION PERMITS
Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION
public. But it needs to be efficient, to avoid excessive
PERMITS INDICATORS MEASURE
constraints on a sector that plays an important part in
every economy. Where complying with building
regulations is excessively costly in time and money, Procedures to legally build a warehouse
many builders opt out. They may pay bribes to pass (number)
inspections or simply build illegally, leading to Submitting all relevant documents and
hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses,
Where compliance is simple, straightforward and permits and certificates
inexpensive, everyone is better off. Submitting all required notifications and
What do the indicators cover? receiving all necessary inspections
Doing Business records the procedures, time and cost Obtaining utility connections for water and
for a business in the construction industry to obtain sewerage
all the necessary approvals to build a warehouse in Registering the warehouse after its
the economy’s largest business city, connect it to completion (if required for use as collateral or
basic utilities and register the warehouse so that it for transfer of the warehouse)
can be used as collateral or transferred to another Time required to complete each procedure
entity. (calendar days)
The ranking of economies on the ease of dealing with Does not include time spent gathering
construction permits is determined by sorting their information
distance to frontier scores for dealing with
Each procedure starts on a separate day.
construction permits. These scores are the simple
Procedures that can be fully completed online
average of the distance to frontier scores for each of
are recorded as ½ day.
the component indicators.
Procedure considered completed once final
To make the data comparable across economies, document is received
Doing Business uses several assumptions about the
business and the warehouse, including the utility No prior contact with officials
connections. Cost required to complete each procedure (%
The business: of warehouse value)
Official costs only, no bribes
Is a limited liability company operating in
the construction business and located in Will have complete architectural and
the largest business city. For the 11 technical plans prepared by a licensed
economies with a population of more than architect or engineer.
100 million, data for a second city have
Will be connected to water and sewerage
been added. Is domestically owned and
(sewage system, septic tank or their
operated.
equivalent). The connection to each utility
Has 60 builders and other employees. network will be 150 meters (492 feet) long.
The warehouse: Will be used for general storage, such as of
books or stationery (not for goods requiring
Is valued at 50 times income per capita.
special conditions).
Is a new construction (there was no
Will take 30 weeks to construct (excluding all
previous construction on the land).
delays due to administrative and regulatory
requirements).Doing Business 2015 Myanmar 24 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today? What does it take to comply with the formalities to build business city of an economy, except for 11 economies for a warehouse in Myanmar? According to data collected which the data are a population-weighted average of the by Doing Business, dealing with construction permits 2 largest business cities. See the chapter on distance to there requires 13.0 procedures, takes 128.0 days and frontier and ease of doing business ranking at the end of costs 8.8% of the warehouse value (figure 3.1). Most this profile for more details. indicator sets refer to a case scenario in the largest Figure 3.1 What it takes to comply with formalities to build a warehouse in Myanmar Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Myanmar 25 DEALING WITH CONSTRUCTION PERMITS Globally, Myanmar stands at 130 in the ranking of 189 other useful information for assessing how easy it is for economies on the ease of dealing with construction an entrepreneur in Myanmar to legally build a permits (figure 3.2). The rankings for comparator warehouse. economies and the regional average ranking provide Figure 3.2 How Myanmar and comparator economies rank on the ease of dealing with construction permits Source: Doing Business database.
Doing Business 2015 Myanmar 26
DEALING WITH CONSTRUCTION PERMITS
What are the details?
The indicators reported here for Myanmar are based
BUILDING A WAREHOUSE
on a set of specific procedures—the steps that a
company must complete to legally build a
warehouse—identified by Doing Business through Estimated cost of
information collected from experts in construction MMK 40,386,793
construction :
licensing, including architects, civil engineers,
construction lawyers, construction firms, utility
City : Yangon
service providers and public officials who deal with
building regulations. These procedures are those The procedures, along with the associated time and cost,
that apply to a company and structure matching the are summarized below.
standard assumptions used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators cover).
Table 3.2 Summary of time, cost and procedures for dealing with construction permits in Myanmar
Time to
No. Procedure Cost to complete
complete
Obtain a land title certificate and a cadastral map at the Yangon
City Development Committee (YCDC) Land Department
BuildCo visits the Yangon City Development Committee (YCDC) Land
Department in order to request a land title certificate, which will prove
1 ownership of the land that is to be developed, and a cadastral map, 30 days MMK 40,000
which will show the plot's dimensions.
Agency: Yangon City Development Committee (YCDC) Land Department
Request and obtain a ‘pre-approval’ (or design approval) at the
YCDC Design Department
The YCDC Design Department will check that the designs, which must
be prepared by a licensed engineer, are compliant with building and 7 days no charge
2
urbanism standards and regulations.
Agency: YCDC Design Department
Receive an inspection from a YCDC technician
A YCDC technician will visit the plot of land in order to check that it
corresponds to the land certificate and designs provided and to check
the conditions for water and electricity connections. While there, the
technician also checks with neighbors to ensure there are no land
disputes or other issues. The inspector will issue a report to the YCDC,
3 and the builder will be informed when they can proceed with the 1 day no charge
permit application. Soil tests are only required by law for buildings 3
stories or higher or for large factories, though some builders prefer to
perform the soil test, regardless of the building height. In such cases,
the cost is MMK 150,000 and it takes about 2 weeks. Similarly, seismic
and environmental checks are not required for small warehouses.
Agency: YCDC Engineering Department (Building)Doing Business 2015 Myanmar 27
Time to
No. Procedure Cost to complete
complete
* Obtain a recommendation letter or certificate from the ward
The ward administrator or chief will issue a letter certifying the address
of the builder. This is usually performed through an agent. 1 day no charge
4
* Obtain consent from the neighbors
A standard consent form obtained at the YCDC must be filled out by all
the neighbors of the land which will be developed. This is usually
5 performed through an agent as well. 1 day no charge
Apply and obtain a construction permit at the YCDC Engineering
Department (Building)
The builder or representative must submit all the following in order to
begin the application process for the construction permit:
• Owner ID and family certificate
• Application forms
• Land title certificate from the YCDC Land Department
• Cadastral map from the YCDC Land Department
• Neighbor consent form completed
• Drawings and structural designs – 3 sets
6 • Bills of quantity (BQ) – 3 sets 60 days MMK 1,000,000
• Recommendation letter from the Ward
Once the application has gone through all the internal reviews at the
YCDC, BuildCo is informed that the permit is ready and is provided with
an invoice of how much is to be paid. The payment is either made at
the YCDC Engineering (Building) Office directly or at the YCDC Bank for
large amounts. About one week after the payment has been made, the
construction permit can be picked up.
Agency: YCDC Engineering Department (Building)
Request and receive foundation inspection
The Inspection Department of the YCDC will have received all the plans
submitted by BuildCo and will be ready to conduct inspections during 1 day no charge
7
construction. BuildCo is supposed to inform the YCDC at the beginning
of three stages: foundation, floors, and roofing.
Agency: YCDC Engineering Department (Building)Doing Business 2015 Myanmar 28
Time to
No. Procedure Cost to complete
complete
Request and receive flooring inspection
The Inspection Department of the YCDC will have received all the plans
submitted by BuildCo and will be ready to conduct inspections during
construction. BuildCo is supposed to inform the YCDC at the beginning 1 day no charge
8
of three stages: foundation, floors, and roofing.
Agency: YCDC Engineering Department (Building)
Request and receive roofing inspection
The Inspection Department of the YCDC will have received all the plans
submitted by BuildCo and will be ready to conduct inspections during
construction. BuildCo is supposed to inform the YCDC at the beginning 1 day no charge
9
of three stages: foundation, floors, and roofing.
Agency: YCDC Engineering Department (Building)
Request a building completion certificate from the YCDC
After construction work is completed, a building completion certificate
must be requested at the YCDC Engineering (Building) Department. 1 day no charge
10
Agency: YCDC Engineering Department (Building)
Receive final inspection to obtain completion certificate from the
YCDC
Two to three days after requesting the completion certificate, YCDC
engineers will visit the warehouse to check that it has been built 3 days no charge
11
according to the plans.
Agency: YCDC Engineering Department (Building)
Obtain completion certificate from the YCDC
After the visit, the completion certificate will be issued if there are no
problems. 21 days no charge
12
Agency: YCDC Engineering Department (Building)Doing Business 2015 Myanmar 29
Time to
No. Procedure Cost to complete
complete
* Drill well for temporary water supply
13 7 days MMK 2,500,000
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Myanmar 30
GETTING ELECTRICITY
Access to reliable and affordable electricity is vital for WHAT THE GETTING ELECTRICITY
businesses. To counter weak electricity supply, many
firms in developing economies have to rely on self- INDICATORS MEASURE
supply, often at a prohibitively high cost. Whether
electricity is reliably available or not, the first step for Procedures to obtain an electricity
a customer is always to gain access by obtaining a connection (number)
connection.
Submitting all relevant documents and
What do the indicators cover? obtaining all necessary clearances and permits
Doing Business records all procedures required for a Completing all required notifications and
local business to obtain a permanent electricity receiving all necessary inspections
connection and supply for a standardized warehouse,
as well as the time and cost to complete them. These Obtaining external installation works and
procedures include applications and contracts with possibly purchasing material for these works
electricity utilities, clearances from other agencies Concluding any necessary supply contract and
and the external and final connection works. The obtaining final supply
ranking of economies on the ease of getting
electricity is determined by sorting their distance to Time required to complete each procedure
frontier scores for getting electricity. These scores are (calendar days)
the simple average of the distance to frontier scores Is at least 1 calendar day
for each of the component indicators. To make the
data comparable across economies, several Each procedure starts on a separate day
assumptions are used. Does not include time spent gathering
The warehouse: information
Is owned by a local entrepreneur, located Reflects the time spent in practice, with little
in the economy’s largest business city, in follow-up and no prior contact with officials
an area where other warehouses are Cost required to complete each procedure
located. For the 11 economies with a (% of income per capita)
population of more than 100 million, data
Official costs only, no bribes
for a second city have been added.
Excludes value added tax
Is not in a special economic zone where
the connection would be eligible for
subsidization or faster service. Is to either the low-voltage or the medium-
voltage distribution network and either
Is located in an area with no physical
overhead or underground, whichever is more
constraints (ie. property not near a railway).
common in the area where the warehouse is
Is a new construction being connected to located. Included only negligible length in the
electricity for the first time. customer’s private domain.
Is 2 stories, both above ground, with a total Requires crossing of a 10-meter road but all
surface of about 1,300.6 square meters the works are carried out in a public land, so
(14,000 square feet), is built on a plot of there is no crossing into other people's
929 square meters (10,000 square feet), is private property.
used for storage of refrigerated goods
Involves installing one electricity meter. The
The electricity connection: monthly electricity consumption will be
26880 kilowatt hour (kWh). The internal
Is 150 meters long and is a 3-phase, 4-wire
electrical wiring has been completed.
Y, 140-kilovolt-ampere (kVA) (subscribed
capacity) connection.Doing Business 2015 Myanmar 31
GETTING ELECTRICITY
Where does the economy stand today?
What does it take to obtain a new electricity connection Most indicator sets refer to a case scenario in the largest
in Myanmar? According to data collected by Doing business city of an economy, except for 11 economies for
Business, getting electricity there requires 5.0 procedures, which the data are a population-weighted average of the
takes 91.0 days and costs 2801.7% of income per capita 2 largest business cities. See the chapter on distance to
(figure 4.1). frontier and ease of doing business ranking at the end of
this profile for more details.
Figure 4.1 What it takes to obtain an electricity connection in Myanmar
Note: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology of the
getting electricity indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected
here, see the summary at the end of this chapter.
Source: Doing Business database.Doing Business 2015 Myanmar 32 GETTING ELECTRICITY Globally, Myanmar stands at 121 in the ranking of 189 average ranking provide another perspective in assessing economies on the ease of getting electricity (figure 4.2). how easy it is for an entrepreneur in Myanmar to The rankings for comparator economies and the regional connect a warehouse to electricity. Figure 4.2 How Myanmar and comparator economies rank on the ease of getting electricity Source: Doing Business database.
Doing Business 2015 Myanmar 33
GETTING ELECTRICITY
What are the details?
The indicators reported here for Myanmar are based on
OBTAINING AN ELECTRICITY CONNECTION
a set of specific procedures—the steps that an
entrepreneur must complete to get a warehouse
connected to electricity by the local distribution utility— Ministry of Electric Power
Name of utility:
identified by Doing Business. Data are collected from the (MOEP)
distribution utility, then completed and verified by
electricity regulatory agencies and independent City: Yangon
professionals such as electrical engineers, electrical
The procedures are those that apply to a warehouse and
contractors and construction companies. The electricity electricity connection matching the standard
distribution utility surveyed is the one serving the area assumptions used by Doing Business in collecting the
(or areas) in which warehouses are located. If there is a data (see the section in this chapter on what the
choice of distribution utilities, the one serving the largest indicators cover). The procedures, along with the
number of customers is selected. associated time and cost, are summarized below.
Table 4.2 Summary of time, cost and procedures for getting electricity in Myanmar
Time to
No. Procedure Cost to complete
complete
The client requests the new connection at the township
administration office
The application for a new electricity connection begins with the
contractor paying a visit to the relevant township where the warehouse is
located. At this stage, the desired load and type of equipment (air
conditioning, machines) that will operate in the warehouse must be
specified. The following documents must also be submitted:
o Building completion certificate (BCC)
o Business license or company registration certificate
o ID certificates
o Family certificate
o Ward administrator reference letter (obtained during construction
permit)
o Electrical design 49 calendar days MMK 4,051,000
1
o List of utilities
o Capacity load expected
After the inspection of the client's warehouse by the township, the
application is internally distributed among the levels of government,
from the township to the district, without the intervention of the
applicant. There are 4 districts in Yangon, divided into 33 townships.
Then the application is internally distributed from the district to the city
level (Yangon Electricity Supply Board), without the interaction of the
applicant.
Subsequently the application is distributed from the city to the national
level (Ministry of Electrical Power) without the interaction of the
applicant. At the Ministry, there is an Executive Committee meeting once
a week to decide on new connection requests to allocate capacity
according to priorities and availability. The Minister needs to sign theYou can also read
