THINN HTUT THIDAR CEO UNIVERSAL LINK SERVICE · PDF filethinn htut thidar ceo universal link...

THINN HTUT THIDARCEO

UNIVERSAL LINK SERVICE CO., LTDUNIVERSAL LINK SERVICE CO., LTD

CHINA1.35 Billion

LAO7 Million

THAILAND66 Million

INDIA1.21 Billion

BANGLADESH152 Million 63 Million

BAY OF BANGOL

TOTAL : 2.848 BILLION

40.3% OF WORLD POPULATION

ANDAMAN SEA

2UNIVERSAL LINK SERVICE

CO., LTD


CO., LTD

INDIA

BILATERAL TRADE AGREEMENTASEAN – INDIA FREE TRADE AREABIMST-ECMYANMAR-INDIA JOINT TRADE COMMITTEEMYANMAR-INDIA BORDER TRADE COMMITTEE

PREFERENCES

COUNTRY OF ORIGIN;DOUBLE TAXATION AVOIDANCE AGREEMENT;PREFERENTIAL TREATMENTS GIVEN UNDER WTO & BIMST-EC


CO., LTD

CHINA

BILATERAL TRADE AGREEMENTASEAN – CHINA FREE TRADE AREAGMSMYANMAR-CHINA JOINT TRADE COMMITTEEMYANMAR-CHINA BORDER TRADE COMMITTEE

PREFERENCES

COUNTRY OF ORIGIN;PREFERENTIAL TREATMENTS GIVEN UNDER WTO & GMS.

Largest Investor inMyanmar with the amountof 14.2 Billion USD


CO., LTD

THAILAND

BILATERAL TRADE AGREEMENTASEAN FREE TRADE AREAGMSMYANMAR-THAILANND JOINT TRADE COMMITTEEMYANMAR-THAILAND BORDER TRADE COMMITTEE

PREFERENCES

COUNTRY OF ORIGIN;DOUBLE TAXATION AVOIDANCE AGREEMENT (CAME INTO FORCE ON 1ST JAN’2012);PREFERENTIAL TREATMENTS GIVEN UNDER WTO, ASEAN & GMS.

2nd Largest Investorin Myanmar with theamount of 9.6 BillionUSD


CO., LTD

REGIONAL MARKET 600 MILLION


CO., LTD

Double Taxation Avoidance Agreement With : Thailand

SingaporeMalaysia

IndonesiaVietnam

PREFERENCES

ASEAN FREE TRADE AREA – AFTAASEAN ECONOMIC COMMUNITY - AEC

ASEAN COUNTRY OF ORIGIN (CO)ASEAN INTEGRATION SYSTEM OF PREFERENCES (AISP)

ASEAN’S & WTO’S SPECIAL AND PREFERENTIAL TREATMENTS TO MYANMAR


CO., LTD

ü FOUNDER MEMBER OF WTO;

ü MOST FAVOURED NATION – MFNTREATMENT RECEIVED;

ü PRERFERENTIAL AND DIFFERENTIALTRETMENTS RECEIVED;

ü DUE TO PROGRESSIVE REFORMSANCTIONS ARE REMOVED;

ü GSP SCHEME APPLIED BY EU COUNTRIES;

ü EXISTING EXPORT MARKET IN AFRICA;

ü THE MOST ATTRACTIVE COUNTRY IN THEWORLD IN 21ST CENTURY;


CO., LTD

AGRICULTURE SECTOR

Country’s Total area : 676, 590 km2

Land area: 653, 520 km2

Water surface: 23, 070 km2

Agricultural land: 119, 840 km2

AGRO-BASED INDUSTRY IS MAJOR CONTRIBUTOR

OF INDUSTRIAL SECTOR AND COUNTRY’S GDP

WITH 35.6%.


CO., LTD

AGRICULTURE SECTOR

ü HYBRID SEEDS PRODUCTION

ü FERTILIZER PLANT

ü PESTICIDES PRODUCTION AND REPACKAGING

ü AGRICULTURAL RESEARCH AND

DEVELOPMENT

ü AGRICULTURAL MACHINERY AND

EQUIPMENTS PRODUCTION

ü VEGITABLES PRODUCTION AND RELATED

SERVICE

ü DEVELOPMENT OF MODERNIZED FARMING

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF AGRICULTURE


CO., LTD

AGRICULTURE SECTOR

ü AGRO-BASED FOOD STUFF PRODUCTION AND

DISTRIBUTION

ü BEVERAGES PRODUCTION AND DISTRIBUTION

ü CEREALS RELATED FOOD STUFF PRODUCTION

AND DISTRIBUTION

ü FOOD STUFF CANNING AND DISTRIBUTION

ü YEAST PRODUCTION AND DISTRIBUTION

ü RUBBER AND PLASTIC MATERIALS PRODUCTION

AND DISTRIBUTION

NEED TO FORM JOINT VENTURE WITH LOCAL CITIZENS WITH MAXIMUM 80%


CO., LTD

FISHERY SECTOR

Shelf area:230,000 km

Length of coastline:3,000 km

Swamp Land:0.5 Million Hector

Production:4 Million Ton / Year

Export Volume0.5 Billion USD5th largest contributor to GDP


CO., LTD

FISHERY SECTOR

ü BEES AND BEES PRODUCTS PRODUCTION

ü FISHING NET PRODUCTION

ü CONSTRUCTION OF FISH PORT AND FISH

BIDDING MARKET

ü TESTING AND LABORATORY SERVICE FOR FISH

PRODUCTS

ü SEA FISH AND FRESH WATER FISH FARMING

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF LIVESTOCK & FISHERY


CO., LTD

FORESTRY SECTOR

ØForests covering about 50percent of its total land area.

ØMajor exporter of teak in theworld, takes up 75 percent ofthe world market.

ØAbout 8% of Total Export.

ØPotentials for Value addedproduction of Minor ForestProducts:Bamboo, Cane, Rattan


CO., LTD

FORESTRY SECTOR

ü NATURE PARK ESTABLISHMENT

ü WOOD BASED INDUSTRY AND OTHER SERVICES

ü ECOTOURISM

ü WOOD EXTRACTION BY LONG TERM LEASING OF

FOREST AREA

ü FOREST PLANTATION FOR PRODUCTION OF

TEAK, HARD WOOD, RUBBER, BAMBOO, CANE

ü WOOD AND WOOD BASED VALUE ADDED

PRODUCTS PRODUCTION AND TRADING

ü LOG EXTRACTION AND EXPORT

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF ENVIRONMENT CONSERVATION AND

FORESTRY


CO., LTD

FORESTRY SECTOR

ü SAWN TIMBER PRODUCTION:

FOREIGN SHARE NOT MORE THAN 25%

ü SEMI FINISHED WOOD PRODUCTS:


ü CAPITAL INTENSIVE HIGH TECH PRODUCTION:


NEED TO FORM JOINT VENTRUE WITH LOCAL CITIZEN


CO., LTD

MINING SECTOR

EasternHighlands

Central Belt

WesternRanges

Lead, ZincCopperSilverTungstenAntimonyIron

PorphyryCopperGoldCoalOil & Gas

NickelChromitePGM

Jade is second largest

export item with the amount

of USD 2.2 Billion.

2.8 Billion USD investment

by 64 Enterprises.


CO., LTD

MINING SECTOR

ü MINERALS EXPLORATION :

NOT MORE THAN 2 YEARS

ü PRELIMINARY TESTING:


ü FEASIBILITY STUDY:


ü MASS PRODUCTION : INITIAL 15 YEARS,

EXTENDABLE 5 YEARS EACH FOR 4 TIMES

ü PEARL PRODUCTION : INITIAL 15 YEARS,

EXTENDABLE 5 YEARS EACH FOR 2 TIMES

ü PRODUCTION AND EXPORT OF INDUSTRIAL RAW,

SUCH AS, COAL, GRANITE, ETC.

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF MINE


CO., LTD

MINING SECTOR

ü RARE EARTH PRODUCTION

ü STRATEGIC MINERALS PRODUCTION

ü RADIO ACTIVE MINERALS PRODUCTION

ü FINISHED PRODUCTS OF GEMS AND JEWELLERY

PRODUCTION

ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS


CO., LTD

ELECTICITY SECTOR

ü RESOURCEFUL TO

PRODUCE HYDRO

POWER

ü HUGE DEPOSIT OF

NATURAL GAS

ü COAL MINES ARE

UNDER

EXPLOITATION

ü MAJOR FOREIGN

INVESTMENT AREA


CO., LTD

ELECTICITY SECTOR

ü PRODUCTION OF ELECTRICITY FROM HYDRO

POWER AND COAL ARE ONLY ALLOWED WITH

JOINT VENTURE WITH GOVERNMENT

ORGANIZATION UNDER BOT SYSTEM

ONLY ALLOW JOINT VENTURE WITH GOVERNMENT ORGANIZATIONS WITH BOT SYSTEM


CO., LTD

TRANSPORTATION SECTOR

Dawei

Kunming

Asia Regional HubAsia Regional Hub

Africa

India

Middle East /Europe


CO., LTD


ü CONSTRUCTION OF AIRPORT, VIP LAUNCH

SERVICE

ü AVIATION TRAINING SCHOOL

ü AIRCRAFT MAINTENANCE

ü AIR TRANSPORT SERVICE AND MARKETING

ü COMPUTERIZED AIR TICKETING

ü AIRCRAFT RENTAL WITHOUT CREWS

ü AIR FREIGHT SERVICE

ü AIR CARGO LOADING AND UNLOADING

ü AIR LINE KATHERING SERVICE

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF TRANSPORT


CO., LTD


ü FUEL DISTRIBUTION TO THE AIRLINES

ü MINOR INSPECTION AND MAINTENANCE OF

AIRCRAFT

ü ON GROUND SERVICE FOR LANDING/

GROUNDED AND TAKE OFF TIMES

ü ON GROUND BAGGAGE HANDLING

ü AIRPORT HOTEL BUSINESS

ü AIRCRAFT SPARE PARTS SALES AND

MARKETING

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF TRANSPORT


CO., LTD


ü ESTABLISHMENT OF MARITIME TRAINING

SCHOOLS WITH MINIUM CAPITAL OF ONE

MILLION USD

ü FREIGHT FORWARDING AGENT FOR

TRANSLINERS

ü SHIPYARD BUSINESS

ü INLAND WATER TRANSPORT AND RELATED

BUSINESS

ü CONSTRUCTION AND OTHER RELATED

BUSINESS



CO., LTD

INDUSTRY SECTOR

Monywa,Kalay,

(2)

Pakhokku,Yenanchaung

(2)

Pyay (1)

Pathein,Myaungmya,

Hinthada(3)

Yangon(4) Myeik

(1)

Mawlamyine(1)

Taungyi(1)

Mandalay,Myingyan,Meikhtila

(3)

18 Industrial Zones are already developed


CO., LTD

INDUSTRY SECTOR

NAY PYI TAW(1)

PONNAKYUN (1)

PHA AN(4)

MYAWADDY(1)

PHAYA THONE ZU(1)

YADANARPON(1)

NANTOON(1)

7 Industrial Zones To be established


CO., LTD

INDUSTRY SECTOR

KYAUK PHYU SEZ(1)

THILAWA SEZ(1)

DAWEI SEZ(1)

3 Special Economic Zones

are under establishment


CO., LTD

INDUSTRY SECTOR

ü PRODUCTION AND DISTRIBUTION OF OIL AND

FAT PRODUCED FROM VEGITABLES AND

OTHERS : (NEED TO OBTAINED 80% LOCAL

CONTENT)

ü SOFT DRINKS AND BEVERAGES PRODUCTION

AND DISTRIBUTION: 20% LOCAL CONTENT AND

60% LOCAL CONTENT AFTER 3 YEARS

ü SEASONING POWDER PRODUCTION : MAINLY

USED LOCAL PRODUCTS

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF INDUSTRY


CO., LTD

INDUSTRY SECTOR

ü CIGARETTES PRODUCTION : 50% LOCAL

CONTENT AND ALEAST 90% EXPORT

ü PERFUME AND COSMETICS PRODUCTION AND

DISTRIBUTION : NEED LOCAL CONTENT 50%

WITHIN 5 YEARS PRODUCTION

NEED TO GET PRIOR APPROVAL FROM MINISTRY OF INDUSTRY


CO., LTD

INDUSTRY SECTOR

ü PRODUCTION AND DISTRIBUTION OF VARIOUS

PAINTS WHICH ARE USED CHEMICALS :

ALLOWED MAXIMUM 70%

ü VACCINES PRODUCTION AND DISTRIBUTION

ü CHEMICALS PRODUCTION USED FROM

IMPORTED RAW MATERIALS : ALLOWED WITH

LIMITED PERIOD



CO., LTD

HEALTH SECTOR

ü PRIVATE HOSPITAL/ SPECIALIST HOSPITAL/

CLINIC



CO., LTD

EDUCATION SECTOR

ü VOCATIONAL TRAINING SCHOOLS

ESTABLISHMENT AND DEVELOPMENT



CO., LTD

HUMAN RESOURCE SECTOR

POPULATION BY AGE

(2011-12 in Million)

AGE GROUP MALE FEMALE TOTAL %

0 – 14 9.2 9.4 18.6 29

15 – 29 8.1 8.4 16.5 26

30 – 49 8.9 9.0 17.9 28

50 – 64 3.2 3.6 6.8 11

65 and Above 1.8 1.9 3.7 6

TOTAL 31.2 32.3 63.5 100

HOW TO START THE BUSINESS IN MYANMAR

UNIVERSAL LINK SERVICE CO., LTD

FOREIGN BUSINESS

MANUFACTURING

SERVICES

TRADING IS NOT ALLOWED

CHALLENGES VS OPPORTUNITIES


o LAND AND FACTORY AVAILABILITY

Ø Limited space owned by Governmentaround Yangon area;

Ø Private owned land prices are skyrocketing;

Ø In the industrial zones based on thelocation price per square meter isUSD 1.5/- to 2.5/- per month (Privateowned)



o ELECTRICITY AVAILABILITY

Ø Given 8 hours per day duringSummer time (Feb to June)

Ø Required own generator;

Ø Fuel requirement for powergeneration;

Ø Mainly rely on Hydro Power;



o SKILLFUL LABOUR AVAILABILITY

Ø Limited Skillful Human Resources;

Ø Education and Knowledge Gap betweenUrban and Rural areas;

Ø Need time for capacity building;



o LOGISTICS

Ø Development of Roads, Rails & Waterway Infrastructure;

Ø Port facilities;

Ø Transportation facilities;



o FINANCIAL INSTITUTIONS

Ø Limited Source of Financing;

Ø Government Financial Institution Vs PrivateFinancial Institutions;

Ø Need time for Financial reforms;

Ø Limited human resources in Financial Sector;


o INFORMATION AVAILABILITY

Ø Limited Source of Information;

Ø Many publications but mostly inMyanmar Language;

Ø One Stop Service Information Centre?


o INFORMATION TECHNOLOGY

Ø Limited Source of Supply;

Ø weak in infrastructure;

Ø cost of information is relatively high

HOW TO SET UP A BUSINESS IN MYANMAR ?

• SETTING UP OF REPRESENTATIVE OFFICE;

• SETTING UP OF BRANCH OFFICE

• COMPANY INCORPORATION

• INVESTMENT PROPOSAL SUBMISSION

UNDER THE FOREIGN INVESTMENT LAW

BUSINESS SET UP IN MYANMAR

BRANCH OFFICE

Ø ALLOWED TO BE FORMED AS MANUFACTURING OR SERVICE

Ø FORMED UNDER FOREIGN INVESTMENT LAW NEEDS TOAPPLY MIC PERMIT

Ø CORPORATE TAX RATE IS 35%

REPRESENTATIVE OFFICE

Ø NOT ALLOWED TO PERFORM DIRECT COMMERCIAL OR REVENUEGENERATION ACTIVITIES

COMPANY INCORPORATION IN MYANMAR

APPLYING LAWS

Ø MYANMAR COMPANY ACT;

o 100%o JOINT VENTURE WITH INVIDUAL, COMPANY,

COOPERATIVES OR STATE OWNEDENTERPRISES;

Ø FOREIGN INVESTMENT LAW

o MANUFACTURING : 100% or JV or underProduction Sharing Contract with State OwnedEconomic Enterprises for Oil & Gas and Miningsectors;

o SERVICE: 100% or JV


MYANMAR COMPANY ACT

Ø AT LEAST TWO SHAREHOLDERS & TWO DIRECTORS

REQUIRED DOCUMENTS

o MOTHER COMPANY’S EVIDENCES

o LAST TWO YEARS AUDIT REPORT

o BANK RECOMMENDATION LETTER AND STATEMENTS

o BOARD OF DIRECTOR’S RESOLUTION

THOSE HAVE TO TRANSLATE IN ENGLISH, NOTARIZED AND

ENDORSED AT MYANMAR EMBASSY.


REQUIRED INFORMATION

o NAME OF COMPANY INCORPORATED IN MYANMAR

o OFFICE/BUSINESS ADDRESS IN MYANMAR

o DIRECTORS’ PASSPORT COPIES AND RESIDENCE ADDRESS

o AUTHORIZED CAPITAL / PAID UP CAPITAL

o NUMBER OF SHARES AND PER SHARE VALUE

o NAME OF MANAGING DIRECTOR/ AUTHORIZED PERSON


REQUIRED DATA FOR INVESTMENT PROPOSAL

o LIST OF FOREIGN EXECUTIVES

o FUEL REQUIREMENTS

o ELECTRICITY REQUIREMENT

o WATER REQUIREMENT

o EQUIPMENT & RAW MATERIAL REQUIREMENT

o BUILDING & LAND REQUIREMENT


REQUIRED DATA FOR INVESTMENT PROPOSAL

o GOODS TO BE PRODUCED

o AMOUNT OF EXPORT AND LOCAL SALES

o VALUE OF MACHINERIES AND EQUIPMENTS

o VOLUME AND VALUE OF ANNUAL PRODUCTION

o LABOUR REQUIREMENT

o ANNUAL INCOME

COMPANY REGISTRATION AND FEE

o COMPANY INCORPORATED IN MYANMAR NEED TO REGISTER

AT DIRECTORATE OF INVESTMENT AND COMPANY

ADMINISTRATION – DICA, MINISTRY OF NATIONAL PLANNING

AND ECONOMIC DEVELOPMENT

o REGISTRATION FEE IS MMK ONE MILLION (ABOUT USD 1200/-)

REPATRIATION

ü Businesses are allowed to repatriate their annual profitafter deduction of tax which needs to pay by thebusiness;

ü Allowed to repatriate the transfer of shares which isdone by proper share transfer according to the existinglaws ;

ü Business capital and other income after liquidation ofthe business or after expiring of investment permit;

REPATRIATION

ü The excess capital and income by downsizing of thebusiness which gets approval from MIC;

ü Individual income earned by foreigner after deductionof tax;

ü any business capital or business income orcompensation received by investor after approval ofMIC ;

REQUIRED DOCUMENTS FOR REPATRIATION

ü Application Form as per Permit to Transfer ForeignCurrency Form (13) ;

ü Audit Report of the Investment Business;

ü Bank Statement;

THANK YOU FOR YOUR KIND ATTENTION

THINN HTUT THIDARCEO


[email protected] , [email protected], 951 - 218406

THINN HTUT THIDAR CEO UNIVERSAL LINK SERVICE · PDF filethinn htut thidar ceo universal link...

Documents

Transcript of THINN HTUT THIDAR CEO UNIVERSAL LINK SERVICE · PDF filethinn htut thidar ceo universal link...