Myanmar Economy Profile - Doing Business 2019
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Doing Business 2019 Myanmar
Economy Profile
Myanmar
Page 1
Doing Business 2019 Myanmar
Economy Profile of Myanmar
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Myanmar
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Myanmar
Ease of Doing Business in DB 2019 Rank
Region East Asia & Pacific
190 1
Myanmar
Income Category Lower middle income 171
DB 2019 Ease of doing business score
Population 53,370,609
0 100
City Covered Yangon 44.72
DB 2019 Ease of Doing Business Score
0 100
80.60: Malaysia (Rank: 15)
67.96: Indonesia (Rank: 73)
67.23: India (Rank: 77)
63.41: Regional Average (East Asia & Pacific)
51.26: Lao PDR (Rank: 154)
44.72: Myanmar (Rank: 171)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Myanmar
1
28
55
81
82
Rank
109
126
136
136 144
152
168 164
163
178
185 188
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Myanmar
100
80 77.33
70.35
63.94
Score
60 55.67
52.30
47.67
40
25.00 24.53
20.39
20
10.00
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Myanmar
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Myanmar
Starting a Business - Myanmar
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement MMK 0
City Covered Yangon
Indicator Myanmar East Asia & OECD high Best Regulatory
Pacific income Performance
Procedure – Men (number) 12 6.8 4.9 1 (New Zealand)
Time – Men (days) 14 25.9 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 24.8 17.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 12 6.9 4.9 1 (New Zealand)
Time – Women (days) 14 26.0 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 24.8 17.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 4.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Myanmar and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
83.29: Regional Average (East Asia & Pacific)
82.78: Malaysia (Rank: 122)
81.22: Indonesia (Rank: 134)
80.96: India (Rank: 137)
77.33: Myanmar (Rank: 152)
60.93: Lao PDR (Rank: 180)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Myanmar
Figure – Starting a Business in Myanmar – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
14 20
12
Cost (% of income per capita)
15
10
Time (days)
8
10
6
4
5
2
0 0
1 2 3 4 5 6 7 8 9 10 11 12
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Myanmar
Details – Starting a Business in Myanmar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Conduct a name check at the Company Registration Office (CRO) at the 1 day Kyat 1,000 (form fee)
Directorate of Investment and Company Administration (DICA)
Agency : The Company Registration Office (CRO) at the Directorate of
Investment and Company Administration (DICA)
On the first visit to the Companies Registries Office (CRO) at the Yangon Directorate of
Investment and Company Administration (DICA) office, the proposed name for the new
business must be checked and cleared. There is an electronic database at DICA 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 business owner or
representative can wait in the office.
The required application form can be purchased from DICA or downloaded from their
website
(https://dica.gov.mm/sites/dica.gov.mm/files/uploads/pdf/name_check_form_f.pdf). The
above fees must be paid on submission of the form in person to DICA.
2 Request business incorporation certificate 1 day Kyat 5,100
Agency : Directorate of Investment and Company Administration (DICA) (application fee)
Once the name check is complete, the following documents are automatically generated
by CRO based on the information provided on the application form (to conduct name
check) and are checked for accuracy by the applicant:
1. Application cover letter
2. Declaration of registration (Form 1)
3. Situation of registered office form
4. Statement of company objectives
5. Directors’ details (Form 26)
6. Memorandum of Association
7. Articles of Association
The applicant checks the accuracy of the generated documents, and goes back to the
directors/shareholders to obtain relevant signatures on the application form and
memorandum and articles of association.
3 Obtain signature of the directors before a lawyer or certified public 1 day Kyat 40,000 for
accountant witnessing the
Agency : Law, Audit or Accounting firm signature of the
The memorandum and article of association need to be signed by the shareholder and memorandum and
then a Lawyer or CPA signs as a witness. The cost of witnessing the signature of
articles of association
memorandum and article of association is about MMK 40,000-50,000 (The fee depends
on the law or accounting firm).
4 Payment of stamp duty and registration fees 1 day Kyat 250,000
Agency : Directorate of Investment and Company Administration (DICA) (registration fee) +
Starting from April 1, 2018, registration fee is kyat 250,000. In addition, the stamp duty Kyat 50,000 (stamp
applies to the registration of articles of association and the registration of memorandum duty for articles of
of association as follows:
association) + Kyat
- the stamp duty for for registration of articles of association is kyat 50,000 in case share
15,000 (stamp duty
capital is below kyat 100,000,000, and kyat 150,000 if share capital is above kyat
for memorandum of
100,000,000 (point 10 of Schedule 1 of the Myanmar Stamp Duty Act);
association)
- the stamp duty for registration of memorandum of association is kyat 15,000 if it is
accompanied by the articles of association, and kyat 150,000 otherwise (point 39 of
Schedule 1 of the Myanmar Stamp Duty Act).
Payment of registration fee and stamp duties can be done at the one-stop-service for
company registration at DICA.
5 Open Bank Account 1 day no charge
Agency : Bank
After paying registration fees DICA issues a letter to confirm that the company has been
registered. The applicant takes this letter to a bank and opens an bank account in the
company's name.
6 Obtain certificate of incorporation 3 days included in procedure
Agency : Directorate of Investment and Company Administration (DICA) 2
After opening a bank account, the applicant returns to the CRO (DICA) to submit
evidence of bank account to DICA and to obtain the incorporation certificate. It needs to
be reviewed and signed by the Assistant Director and the Deputy Director of the CRO.
The applicant is informed by the DICA when the definitive certificate is ready to be
picked up. The certificate is valid for 5 years.
Page 8Doing Business 2019 Myanmar
7 Submit certification of registration documents (CRD) 1 day Kyat 25,000 for Form
Agency : Directorate of Investment and Company Administration (DICA) 6(VI) + Kyat 25,000
Entrepreneurs submit Form VI (Return of Allotments) and Form XXVI (Particulars of for Form 26(XXVI)
Directors, Managers and Managing Agents and of any changes therein) to DICA. Form
VI (Return of Allotments) shows the shareholders and how many shares have been
allotted to such shareholders, as well as whether they are paid or unpaid. Upon
incorporation of a company, a Form VI showing the shares initially subscribed to by the
shareholders must be submitted to DICA. Additional Forms VI must submitted to DICA
for every allotment of shares in the company during the lifetime of the company. Form
XXVI (Particulars of Directors, Managers and Managing Agents and of any changes
therein) must be filed with DICA upon incorporation and updated to reflect any changes
to the particulars therein throughout the lifetime of the company.
8 Obtain a seal or a rubber stamp 1 day Kyat 2,000
Agency : Sealmaker
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 of 2,000-3,500 kyat.
9 Register with the Tax Office 1 day no charge
Agency : Tax Office
A limited liability company must register with the Myanmar tax authorities. Currently,
there are no clear guidelines on the registration process; the current practice is for
companies to submit necessary information and documents to the tax office. The tax
office will assign a Matter Coding to each taxpayer, although this is not considered a
TIN. TIN will only be issued if the company is registered under the Large Taxpayers
Office. Newly established companies are initially registered under the Medium Taxpayers
Office.
10 Register for commercial tax 1 day no charge
Agency : Township Internal Revenue Department Office
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.
DICA compiles a list of newly registered companies each month and sends this
information to the relevant townships where the businesses are located. Certificate of
Commercial Tax Registration has to be renewed annually.
11 Registration of employees at the Labor office in township 1 day no charge
Agency : Township Labor office
Registration of employees at the ministry is mandatory for labor tax purposes.
12 Registration with the Social Security Board for social security benefits 1 day no charge
Agency : Social security board
Company needs to register employees at the social security office for health and pension
fund benefits.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Myanmar
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Myanmar
Dealing with Construction Permits - Myanmar
Standardized Warehouse
Estimated value of warehouse MMK 83,252,302
City Covered Yangon
Indicator Myanmar East Asia & OECD high Best Regulatory
Pacific income Performance
Procedures (number) 15 15.1 12.7 None in 2017/18
Time (days) 95 133.5 153.1 None in 2017/18
Cost (% of warehouse value) 3.7 1.9 1.5 None in 2017/18
Building quality control index (0-15) 9.0 9.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Myanmar and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.96: Malaysia (Rank: 3)
73.81: India (Rank: 52)
70.71: Regional Average (East Asia & Pacific)
70.35: Myanmar (Rank: 81)
67.94: Lao PDR (Rank: 99)
66.57: Indonesia (Rank: 112)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
2.5
90
80
Cost (% of warehouse value)
2
70
60
Time (days)
1.5
50
40
1
30
20 0.5
10
0 0
1 *2 *3 *4 5 6 *7 8 9 10 11 12 13 * 14 * 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Myanmar
Figure – Dealing with Construction Permits in Myanmar and comparator economies – Measure of Quality
15 14.0
13.0 13.0
Index score
10 9.0 9.1
6.5
5
0
Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific
Details – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a land title certificate and a cadastral map at the Yangon City 30 days MMK 12,945
Development Committee (YCDC) Land Department
Agency : Yangon City Development Committee (YCDC)- City Planning and Land
Administration Department
BuildCo visits the Yangon City Development Committee (YCDC) Land Department in
order to request a land title certificate, which will prove ownership of the land that is to
be developed, and a cadastral map, which will show the plot's dimensions.
2 Obtain Soil Investigation Report 21 days MMK 832,523
Agency : Private company
BuildCo needs to obtain a soil investigation report prior to submitting application for
building permit. The report can be obtained from any private company conducting such
geotechnical studies, and the cost of the report is based on median estimates)
3 Obtain consent from the neighbors 1 day no charge
Agency : 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 performed through an agent as well.
4 Obtain a recommendation letter or certificate from the ward 1 day no charge
Agency : Ward
The ward administrator or chief will issue a letter certifying the address of the builder.
This is usually performed through an agent.
5 Obtain debt clearance letter from YCDC Township Executive Office 7 days no charge
Agency : 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 urbanism standards and regulations.
6 Apply and obtain a construction permit at the YCDC Engineering 30 days MMK 504,000
Department (Building)
Agency : 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
• Certified Cadastral map from the YCDC Land Department
• Neighbor consent form completed
• Drawings and structural designs – 3 sets
• Bills of quantity (BQ) – 3 sets
• Recommendation letter from the Ward stating that the applicant is alive and was applied
by the applicant signed by himself.
• Soil Investigation Report.
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.
Page 12Doing Business 2019 Myanmar
7 Receive an inspection from a YCDC technician 1 day no charge
Agency : YCDC Engineering Department (Building)
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, and the
builder will be informed when they can proceed with the 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.
8 Request and receive foundation inspection 1 day no charge
Agency : YCDC Engineering Department (Building)
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 of three stages: foundation, floors, and
roofing.
9 Request and receive flooring inspection 1 day no charge
Agency : YCDC Engineering Department (Building)
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 of three stages: foundation, floors, and
roofing.
10 Request and receive roofing inspection 1 day no charge
Agency : YCDC Engineering Department (Building)
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 of three stages: foundation, floors, and
roofing.
11 Request a building completion certificate from the YCDC 1 day MMK 126,000
Agency : YCDC Engineering Department (Building)
After construction work is completed, a building completion certificate must be requested
at the YCDC Engineering (Building) Department.
12 Receive final inspection to obtain completion certificate from the YCDC 3 days no charge
Agency : YCDC Engineering Department (Building)
Two to three days after requesting the completion certificate, YCDC engineers will visit
the warehouse to check that it has been built according to the plans.
13 Obtain completion certificate from the YCDC 21 days no charge
Agency : YCDC Engineering Department (Building)
After the visit, the completion certificate will be issued if there are no problems.
Request and obtain an excavation permit from YCDC for the well 5 days MMK 40,000
14 Agency : YCDC Engineering Department (Building)
Drill well for water supply 7 days MMK 1,600,000
15 Agency : Private Firm
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Myanmar
Details – Dealing with Construction Permits in Myanmar – Measure of Quality
Answer Score
Building quality control index (0-15) 9.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents;
Available only on
request.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction Minimum number 1.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management.
Page 14Doing Business 2019 Myanmar
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Myanmar
Getting Electricity - Myanmar
Standardized Connection
Price of electricity (US cents per kWh) 8.3
Name of utility Yangon City Electricity Supply Corporation(YESC)
City Covered Yangon
Indicator Myanmar East Asia & OECD high Best Regulatory
Pacific income Performance
Procedures (number) 6 4.3 4.5 3 (25 Economies)
Time (days) 77 65.0 77.2 18 (3 Economies)
Cost (% of income per capita) 1147 625.1 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 1 4.0 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Myanmar and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
99.27: Malaysia (Rank: 4)
89.15: India (Rank: 24)
86.38: Indonesia (Rank: 33)
75.06: Regional Average (East Asia & Pacific)
55.67: Myanmar (Rank: 144)
52.77: Lao PDR (Rank: 156)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Myanmar
Figure – Getting Electricity in Myanmar – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1000
70
Cost (% of income per capita)
800
60
50
Time (days)
600
40
30 400
20
200
10
0 0
1 *2 3 4 5 *6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Myanmar and comparator economies – Measure of Quality
8
8
7 6.5
6
5.8
Index score
5
4.0
4
3
2
2
1
1
0
Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific
Page 17Doing Business 2019 Myanmar
Details – Getting Electricity in Myanmar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request new connection at utility 28 calendar days MMK 2,487,212.6
Agency : Yangon Electricity Supply Corporation (YESC) Township 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 NRC National Registration Card
o Family certificate
o Ward administrator reference letter (obtained during construction permit)
o Electrical design
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 58
townships. The application is then internally distributed from the district to the city level
(Yangon Electricity Supply Corporation), without the interaction of the applicant.
Once the application has received the approval of all levels – township and district – the
contractor is informed and he/she can go back to the township office to pick up the
invoice which will indicate the fees that need to be paid to the state in relation to the
connection to the electrical grid. The payment of the administrative fees provided by the
township is made at a designated state-owned bank.
2 Receive site inspection by technician from utility 1 calendar day MMK 0
Agency : Yangon Electricity Supply Corporation (YESC) Township Office
The utility technician will inspect to see how far the warehouse is from the main
transmission line, the posts, etc. A map of the necessary connection works is made.
3 Await completion of connection works by licensed electrician 21 calendar days MMK 15,717,850
Agency : Private contractor
A licensed electrician hired by the client carries out the connection works. A transformer
is required for any connections above 30 kVa and the client buys it. The time of the
procedure depends on whether the transformer is imported from Japan or China, which
clients prefer to do in the majority of cases.
4 Obtain meter installation by utility 21 calendar days MMK 442,379.76
Agency : Yangon Electricity Supply Corporation (YESC) Township Office
Upon the completion of the connection works, the customer goes to Yangon Electricity
Supply Corporation (YESC) Township Office to fill up the application form for the meter
box installation, together with information on the size of transformer (160 kVA for our
case study). The YESC Township Office will approve it and submit it to the YESC
District Office, which in turn approves it and submits it to the YESC Head Office Testing
and Supporting Unit. The Testing and Supporting Unit approves it, obtains a required
meter box from YESC warehouse, and checks the functioning of the meter box. Then, the
YESC Head Office sends the application, together with the meter box, back to the YESC
District Office for approval on the meter box, after which back to the YESC Township
Office for approval of the meter box. While the process should be internal with various
level of YESC offices, in practice the customer often follows up to expedite - i.e. the
customer will take the form from YESC Township Office to District Office and again to
Head Office Testing and Supporting Unit to get the necessary approvals
5 Receive inspection of connection works and internal wiring by Ministry of 7 calendar days MMK 0
Industry
Agency : Ministry of Industry
An engineer from the inspection office of the Ministry of Industry is informed by the
township and conducts an inspection of the connection works and internal wiring, mostly
to check compliance with safety standards.
Page 18Doing Business 2019 Myanmar
6 Receive inspection of transformer by inspector from township office 4 calendar days MMK 450,000
Agency : Yangon Electricity Supply Corporation (YESC) Township Office
Once the meter box is attached, the customer writes an application letter to the YESC
Township Office to inform them that the transformer is installed and attached to the meter
box, together with a list of material used with details (e.g. size of 160 kVA, manufacturer
of transformer) and photos (two-pole transformer). The inspector from YESC Township
Office will make a site visit only at this stage (and this is a different team from the meter
installation team in Procedure 4).
The inspector will then produce a report to YESC Township Office and submit it to the
YESC District Office for approval to discharge the transformer (i.e. connectivity), which
then submits to the YESC Head Office for approval. Upon the YESC Head Office’s
approval, the District Office will issue a connection permit to the customer and
commission to discharge the transformer. Four engineers must be present at the time of
discharging: from the YESC District Office, YESC Head Office Testing and Supporting
Unit, YESB Head Office Distribution Department, and YESC Township Office.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Myanmar
Details – Getting Electricity in Myanmar – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 1
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 22.0
System average interruption frequency index (SAIFI) 21.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.moee.gov.
mm/mm/ignite/page/
593
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Myanmar
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Myanmar
Registering Property - Myanmar
Indicator Myanmar East Asia & OECD high Best Regulatory
Pacific income Performance
Procedures (number) 6 5.4 4.7 1 (4 Economies)
Time (days) 85 72.6 20.1 1 (New Zealand)
Cost (% of property value) 4.1 4.5 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 5.5 16.3 23.0 None in 2017/18
Figure – Registering Property in Myanmar and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
80.38: Malaysia (Rank: 29)
64.93: Lao PDR (Rank: 85)
61.67: Indonesia (Rank: 100)
57.56: Regional Average (East Asia & Pacific)
52.30: Myanmar (Rank: 136)
43.55: India (Rank: 166)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Myanmar – Procedure, Time and Cost
Time (days) Cost (% of property value)
4.5
80
4
70
Cost (% of property value)
3.5
60
3
Time (days)
50
2.5
40
2
30 1.5
20 1
10 0.5
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Myanmar
Figure – Registering Property in Myanmar and comparator economies – Measure of Quality
30 27.5
25
Index score
20
16.3
14.5
15
10.5
10 8.7
5.5
5
0
Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific
Details – Registering Property in Myanmar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain a land clearance certificate and map at the Yangon City 31 days MMK 13,145; (The
Development Council (YCDC) Land Administration Department official fee schedule
Agency : Yangon City Development Council (YCDC) City Planning and Land is:
Administration Department
On a first visit to the YCDC Land Administration Department, it is the responsibility of
- Form fees: 200 kyat
the land owner (seller) to request two things: a certified copy of the land record and a
map specifically produced for property sale which is valid for 1 year. For the land
- For the certified
clearance certificate there is a pilot system on the YCDC where it can be requested
online, but it is still under development. map:
10,125 kyat for zone
1 (most recently
developed zone);
12,945 kyat for zone
2 (second developed
zone); and
15,225 kyat for zone
3 (first developed
zone))
2 Request and obtain appraisal from the township Inland Revenue 18 days no cost (paid in
Department stamp duty)
Agency : Township Inland Revenue Department
The buyer will take the certified copy of the land record and the map obtained at the
YCDC to the relevant township Inland Revenue Department branch where the property is
located. After application, an ‘appraisal committee’ will decide the value of the property
according to the location and other considerations. The appraisal committee meets once a
week, and once the case has been reviewed the interested parties are informed of the
value so that they may proceed to pay the stamp duty upon it.
3 Pay stamp duty at the Township Inland Revenue Department 1 day MMK 3,330,092.08;
Agency : Township Inland Internal Revenue Department (2% Stamp duty + 2%
The buyer pays the 2% stamp duty + 2% additional tax on the property value as Additional tax)
established by the appraisal committee. In cases where the buyer cannot show the legal
origin of the funds, additional fees of around 30% of the established property value will
apply in order to ‘legalize’ the money being used for the transaction.
4 Register new land title at the Land Records Department of the Ministry of 31 days MMK 3,500;
Agriculture and Irrigation (Between 1,000 and
Agency : Land Record department, Ministry of Agriculture and Irrigation 6,000 kyat)
After payment of the stamp duty, the buyer visits the Ministry of Agriculture and
Irrigation in order to register the new land title.
5 Announce the property transfer in the newspaper 3 days MMK 18,000;
Agency : Local news papers, such as Weekly Eleven, Myanmar Business Today (Approximately
or the Myanmar Times 18,000 kyat for
The parties must announce the agreement for property transfer in one of the state publication in a local
newspapers. Anyone with claims to the property or other objections has 2 weeks
newspaper)
(officially) to come forward, though usually a month will go by before the final name
change can be made in the books.
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