Standard Operating Procedure (SOP) for Retail/Wholesale Registration Process
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1 Advance Forward Through Commerce Standard Operating Procedure (SOP) for Retail/Wholesale Registration Process
2 Advance Forward Through Commerce Procedure for Retail/Wholesale Registration Process No Process Department 1. Company Registration Directorate of Investment and Company Administration(DICA) 2. MIC s approval (or ) permit (Only for foreign companies of joint-venture companies that are required to obtain MIC s approval or permission) 3. Recommendation from the respective regions for selling 4. Retail/Wholesale Business Registration (To submit with required documentation and recommendation) Myanmar Investment Commission(MIC) Respective City Development Committee (Municipal Office) Department of Trade under Ministry of Commerce
3 The four categories are: Categories of Companies Category A: 100% foreign owned and joint venture companies that are incorporating for the first time in Myanmar and who wish to register as a wholesaler or retailer. Category B: Established foreign or joint venture companies in Myanmar but that currently do not have the right to wholesale or retail goods and who wish to register as a wholesaler or retailers. Category C: Established foreign or joint venture companies currently permitted to do wholesale or retail business (including under MIC permit or through a previous notification allowing wholesale or retail activities to foreigners). Category D: Domestic companies carrying out wholesale and retail business covered by this Notification. Advance Forward Through Commerce
4 Advance Forward Through Commerce Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure Company Category A: 1 Company Registration DICA 2 Recommendation from the respective regions for selling YCDC (or) MCDC, Regions/ States City Development Committee 3 Retail/Whole Business Registration Department of Trade under Ministry of Commerce
5 Advance Forward Through Commerce Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure Company Category B: 1 Recommendation from the respective regions for selling YCDC (or) MCDC, Regions/ States City Development Committee 2 Retail/Whole Business Registration Department of Trade under Ministry of Commerce
6 Advance Forward Through Commerce Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure Company Category C: 1 Retail/Whole Business Registration Department of Trade under Ministry of Commerce 1 Company Category D: Retail/Whole Business Registration Export/Import Office (Yangon) Export/Import Office (Mandalay) Department of Trade under Ministry of Commerce
7 Standard Operating Procedure Retail/Wholesale Business Registration Inclusion The retail/wholesale of goods sold only at a shop or location that is permitted to operate. Exclusion does not apply to other services including, Food and beverage services such as restaurants and cafes. shall not apply to goods sold through moveable distribution and door-to-door distribution services Rights of the Registered Wholesaler/Retailer A company that receives a wholesaler/retailer registration certificate shall be allowed to import goods from abroad with an exporter/importer registration certificate for its wholesale or retail services. Applying Application form (English/Myanmar) can get free download from (2 copies of the application form should be submitted with supporting documents) Advance Forward Through Commerce
8 Standard Operating Procedure Retail/Wholesale Business Registration Permission to apply may apply for registration as wholesale business or retail business or both wholesale and retail business (In third case, the investment amount is calculated by adding initial investment for the wholesale business together with the retail business) Advance Forward Through Commerce
9 1. Company registration certificate 2. MIC s approval or endorsement (copy);((only for foreign companies or foreign joint venture companies that are required to obtain MIC s approval or endorsementmic) 3. Recommendation from the relevant city development committee or township development committee of the relevant Region or State; 4. List of groups of products which will be distributed through retail or wholesale; 5. A 5 year business plan that states how the company will carry out its wholesale or retail business which shall include: Required documents for Registration Company Category A, B and C a) capital investment amount (both initial and the plan to inject capital over the next 5 years); b) distribution, sales and management plan; c) location and space; d) A description of how the company will promote the objectives of the Notification allowing retail and wholesale, such as job creation, technology transfer, consumer choice such as lower prices or better quality and promotion of small to medium enterprises. 6. The number and location of any intended new outlet; (if applicable, describe the exact location); and 7. Make a deposit of the initial investment amount from abroad to a local bank and provide a deposit receipt from the bank as evidence. If a company cannot submit the evidence in the form of a bank deposit receipt for the initial investment amount when applying for the registration, and the MOC will issue a retail/wholesale registration certificate only after receiving the evidence of the bank deposit within 30 days to any local bank from abroad.) Advance Forward Through Commerce
10 Advance Forward Through Commerce Required documents for Registration Company Category D (a)company registration certificate; (b) A business plan that states how the company will carry out its retail/wholesale business, including: (i.) a list of groups of goods for sale in the retail/wholesale distribution business; (ii.) the operating budget of the retail/wholesale distribution over the past year; (iii.) distribution, sales and management plan; and (iv.) location and space. (c ) If there are other outlets, provide the number of such outlets along with a list of groups of goods sold, and a business plan.
11 Minimum Initial Investment Capital for Products Company Category A and B Minimum Deposit Required Minimum initial Investment amount 50% Second year The remaining 30% Third year The remaining 20% First step Second step Third step to submit evidence of the bank deposit within 30 days from the date of applying the retail/wholesale registration certificate to submit evidence of the bank deposit no later than the last month of the second year of business to submit evidence of the bank deposit no later than the last month of the third year of business operation. Advance Forward Through Commerce
12 Minimum Initial Investment Capital for Products Company Category B- (Domestic production and distribution company will sell its products and imported products) Minimum Deposit Required Minimum initial Investment amount (20%+30%=50%) Second year The remaining 30% Third year The remaining 20% First step Second step Third step 20% of minimum capital investment when registration (or) To submit within a month and an approval of bank transfer/inject to any local bank at the end of second year. submit evidence of the bank deposit no later than the last month of second year of business operation. submit evidence of the bank deposit no later than the last month of third year of business operation. Advance Forward Through Commerce
13 Minimum Initial Investment Capital for Products Company Category C fulfil the initial investment amount required specific amount of investment on products (Register period) First Year Second Year Third Year Fourth Year Fifth Year Submit evidence of the investment on the sale of goods already made from the start of retail/ wholesale business to 30 days before the date of. Submit evidence in the form of a bank deposit of the required initial investment amount for the first 5 years at the time of submitting application to renew the retail/wholesale registration. d. Advance Forward Through Commerce
14 Advance Forward Through Commerce Requirements Company Category D (Only register for retail/ wholesale) Can carry out with any initial investment for products Bank deposits/transfers from abroad Government bank, Private bank(citizens/foreigners) that are allowing Central Bank of Myanmar
15 Advance Forward Through Commerce Specification of ground floor area Company Category A,B and C Retailer At least 929 square meter ground floor (include small office space and storage under one roof within the outlet) Excluding in external office, storage and car parking area Shopping Mall Suitable area to open mall above 929 square meters suitable for a mall. The owner of a mall or a mall operator must apply for a registration but individual shop owners that are operating in the mall will not be required to apply for a registration Wholesaler the outlet must have sufficient space to operate a wholesale business Or In the case of direct wholesale distribution from a storage, the storage must be located at an appropriate place.
16 To inform opening a new outlet -Department of Trade, Nay Pyi Taw - Export/Import Office(Ygn and Mdy) - Location and space to open - Shop name with Business Plan - Recommendation from the Respective City Development Committee (Municipal Office) To Director General, Department of Trade Outlets To wish to open a new outlet, they must inform to the MOC 90 days in advance. Whole/Retail registered company Advance Forward Through Commerce
17 Advance Forward Through Commerce Registration and Extension Fees Registration Fees 5 years from the date of registration (period ) (5) years 50,000 MMK Extension of registration Fees Apply 2 months in advance before the expiry date of the existing registration (5) years 50,000 MMK 1. Company Letter Head 2. List of company directors 3. List of shareholder 4. a business plan for 5 years
18 Advance Forward Through Commerce Expired Penalty Fees After the expired registration date 2 months after the expired date 20,000 MMK Penalty Fees 4 months after the expired date 30,000 MMK
19 Suspension of Retail/Wholesale Registration Certificate Does not apply for an extension of the registration after 4 months from the expired date Suspension of registration certificate Will be cancel the importation of goods If there is no approval of specific investment injection Within a month of temporary registration Suspension/ cancelling temporary registration certificate Advance Forward Through Commerce
20 Advance Forward Through Commerce Taking Action for Non-Registered Business Warning to register - First time - Second time After the warning period Foreign Company (Or) Local Company Exporter Importer Registration Certificate Retail/Wholesale company with specific investment amount Registration certificate will be suspended and importing of goods will be terminated
21 Taking Action for failing to deposit the initial investment amount Warning to register - First time - Second time After the warning period Foreign Company (Or) Local Company Exporter Importer Registration Certificate Retail/Wholesale company with specific investment amount Registration certificate will be suspended and importing of goods will be terminated Advance Forward Through Commerce
22 22 Advance Forward Through Commerce
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