Standard Operation Procedure for Retail/Wholesale ......exporter/ importer registration certificate. Applying The application form can be downloaded at , and the fully completed application

Ministry of Commerce

Advance Forward Through Commerce

Standard Operation Procedure for

Retail/Wholesale Registration Process by

Notification (25/2018)

Articles included in the Notification No(25/2018)


• Objectives (Article 2)

• Definitions and Right to Sell (Article 3 and 4)

• Prescribed Conditions for Foreign Investors(Article 5 and 9)

• Exemption for Myanmar Citizen Companies (Article 6 and 16)

• Compliance for Registration Process (Article 7)

• Prohibitions (Article 8, 9 and 10)

• Tax Compliance (Article 11)

• Supervision (Article 12, 13 and 14)

• Opening of New Outlets (Article 17)

• Amendment in accordance with the needs (Article 18)

Objectives (Article 2)


❖ To afford better prices and more choice to consumers through

increased competition among retail and wholesale distributers

❖ To improve quality and volume of goods and services, and

technology [employed] through increased inputs to domestic goods

and services of sales and distribution enterprises

❖ To further development of Small-and-Medium Enterprises due to

expanding market share by domestic goods

❖ To enable operation under rules and regulations to prevent

uncompetitive practices between distributors in exploitation of

consumers

❖ To increase employment opportunities of citizens in supply chain by

increasing foreign investment inflow

Definitions and Right to Sell


• Definitions (Article 3 )

➢ Retail means the sale of goods to the public in small quantities

for consumption and not for re-sale; and,

➢Wholesale means the sale of goods in large quantities to retailers

for resale, or to manufacturers to use as input in production.

• Right to Sell (Article 4)

➢may engage in retail/wholesale for domestically produced or

imported goods, other than restricted/prohibited goods.

➢may engage in retail/wholesale in any State/Region

Development Committee.


Conditions for Foreign Investors

Note; Article 5 and 9

Type of

Business

Initial Investment

Amount

Type of investor Floor Area

Wholesale US $ 5 million and

above

100% foreign owned company

And

company where the equity ration of

citizen is less than 20%

US $ 2 million and

above

Company where the equity ratio of

citizen is more than 20%

Retail US $ 3 million and

above

100% foreign owned company

And

company where the equity ration of

citizen is less than 20%

929 square

meter and

above

US $ 700,000 (7

lakh) and above

Company where the equity ratio of

citizen is more than 20%

929 square

meter and

above

-Shall not operate retail including a minimart or convenience store with a floor area of less

than 929 square meters.

Supervision


❖ the Ministry of Commerce cooperating with relevant departments may

monitor as the following –

❖Compliance of the aforementioned Terms & Conditions,

❖Adherence to their business plan

❖ Retail and wholesale operators shall cooperate and provide necessary

data and evidence toward effective monitoring.

Article 12,13,14

Standard Operating Procedure (SOP) for

Retail/Wholesale Registration Process


Categories of Companies

• The four categories are:

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 Myan-

mar 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 bu-

siness covered by this Notification.


Standard Operating Procedure(SOP) for

Retail/Wholesale Registration Procedure

• Company Category A:

Company Registration1

Recommendation from the respective regions for selling

Retail/Whole Business Registration

2

3

DICA

YCDC (or) MCDC, Regions/ States City Development Committee

Department of Trade under Ministry of Commerce


Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure

• Company Category B:

Recommendation from the respective regions for selling

1

Retail/Whole Business Registration2

YCDC (or) MCDC, Regions/ States City Development Committee



Standard Operating Procedure(SOP) for Retail/Wholesale Registration Procedure

• Company Category C:

1 Retail/Whole Business Registration

1


• Export/Import Office (Yangon)

• Export/Import Office (Mandalay)

• Department of Trade under Ministry of Commerce

• Company Category D:

Retail/Whole Business Registration


➢Inclusion

only at a shop or location that is designated for such operations .

➢Exclusion

through moveable distribution and door-to-door distribution services.

other services, including food and beverage services such as restaurants

and cafes.

➢ Rights of the Registered Wholesaler/Retailer

can import goods for sale and distribution, it can do so by obtaining an

exporter/ importer registration certificate.

➢Applying

The application form can be downloaded at www.commerce.gov.mm, and

the fully completed application form with two extra copies should be submitted

with supporting documents.

Retail/Wholesale Business Registration


➢Permission to apply

either retail or wholesale business, or for both retail and wholesale

businesses together.

If a company applies to register for both retail and wholesale

business, the initial investment amount shall be the sum of the initial

investment amount stipulated.

➢Priority List of Goods Allowed to be Sold

A priority list of goods in respect of which foreign companies and

foreign joint venture companies are allowed to conduct retail/wholesale

business has been issued by the Ministry of Commerce.


Retail/Wholesale Business Registration

1. Company registration certificate (copy );

2. MIC’s permit or endorsement (copy);(only for foreign companies or foreign joint venture companies that are required to obtain MIC’s permit or endorsement);

3. Recommendation from the respective City Development Committee or Region/State Township Development Committee;

4. List of commodity categories for sale by the retail/wholesale distribution business;

5. A 5-year business plan of the company to carry out its retail/wholesale business, which shall include:

a) capital investment amount (both initial investment amount and the plan to inject capital over the next 5years);

b) sales, distribution and management plan;

c) location and size of space;

d) A description of how the company will promote the objectives of the Notification allowing retail and wholesale business, such as job creation, technology transfer, enhancing consumer choice such as through lower prices or better quality, and the promotion of small and medium enterprises.

Supporting Documents to be Submitted for Retail/Wholesale Registration

Company Category A, B and C


Note: Priority should be given to Myanmar citizens in the employment of staff in operating a retail/wholesale business.

6. The number and location of any intended new outlet(s); (if possible, describe the exact location);and,

7. Evidence of receipt by a local bank of the initial investment amount transferred from a foreign bank to it .

(The MOC will issue only a temporary retail/wholesale registration certificate if a company cannot submit evidence of receipt by a local bank of the transfer of the initial investment amount when applying for the registration, and the MOC will issue a retail/wholesale registration certificate only after receiving such evidence within 30 days.)


Company Category A, B and C



Company Category D

1. Company registration certificate;

2. A business plan that states how the company will carry out its retail/wholesale business, including:

(i.) a list of commodity categories for sale by the retail/wholesale distribution business;

(ii.) the operating budget of the retail/wholesale distribution for the past year ;

(iii.) sales ,distribution and management plan; and

(iv.) location and size of space.

3. If there are other outlets, provide the number of such outlets along with a list of commodity categories of goods sold in each retail/ wholesale outlet and a business plan .



Minimum initial Investment amount 50%

Second year

The remaining 30%

Third year

The remaining 20%

Minimum Deposit Required

to submit evidence of thebank deposit within 30 daysfrom the date of applying theretail/wholesale registrationcertificate

First step Second step Third step

The Minimum Initial Investment Amount With Respect to Goods for Sale

Company Category A and B

to submit evidence of thebank deposit no laterthan the last month ofthe second year ofbusiness operation.

to submit evidence of thebank deposit no later thanthe last month of the thirdyear of business operation.

Minimum initial Investment amount

(20%+30%=50%)

Second year

The remaining 30%

Third year

The remaining 20%

Minimum Deposit Required

20% of minimum capitalinvestment when registration (or)To submit within a month and anapproval of bank transfer/inject toany local bank at the end ofsecond year.

First step Second step Third step


Company Category B- (Domestic production and distributioncompany will sell its products and imported products)


submit evidence of the bankdeposit no later than the lastmonth of second year ofbusiness operation.

submit evidence of the bankdeposit no later than the lastmonth of third year ofbusiness operation.

fulfil the initial investment amount required specific amount of investment on products

Company Category C

(Register period) First Year Second Year Third YearFourth

Year Fifth Year

Submit evidence of theinvestment on the sale ofgoods already made fromthe start of retail/wholesale business to 30days before the date of.

Submit evidence in the form of a bankdeposit of the required initialinvestment amount for the first 5years at the time of submittingapplication to renew the retail/wholesale registration.



Requirements

Bank deposits/transfers from abroad

(Only register for retail/ wholesale)

Can carry out with any initialinvestment for products

Government bank, Private bank(Citizens/Foreigners) that are allowing Central Bank of

Myanmar

Company Category D


Specification of Sales Floor Area

Retailer

The individual outlet for a retailer must be of at least

929 square meters; this may include a small office space and storage under

one roof within the outlet. It excludes external office space, external storage,

and car parking.

Wholesaler

Depending on the types of goods

to be sold, the outlet must have

sufficient space to operate a

wholesale business.

Or

In the case of direct wholesale

distribution from a storage

area, the storage area must be

located at an appropriate

place.

Company Category A,B and C

Shopping Mall

the space must be above 929 square

meters and be suitable for a mall. The owner of the

mall or a mall operator must apply for registration but

individual shop owners that are

operating in the mall will not be required

to apply for registration.


To inform opening a new outlet

Whole/Retail registered company

Outlets

To wish to open a new outlet, they must inform to the MOC 90 days in

advance.

-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


Registration and Extension Fees

Registration Fees5 years from the date of

registration(period )

MMK 50,000

Extension of registration Fees

Apply 2 months in advance before the expiry date of the

existing registration

MMK 50,000

1. Company Letter Head

2. List of company directors

3. List of shareholder

4. a business plan for 5 years

(5) years

(5) years


Expired Penalty Fees

Penalty Fees

MMK 20,000

2 months after the expired date

After the expired registration date

MMK 30,000

4 months after the expired date


Suspension of Retail/Wholesale Registration Certificate

Does not renew the registration within four

months after the expiration date

The retail/wholesale registration will be suspended

The right to import

retail/wholesale goods will also be

suspended.

Fails to provide evidence of receipt of the minimum investment amount by a local bank within 30 days from

the date of receiving temporary registration

such temporary registration will be

cancelled.


Sanctions for Non-Registered Business

Retail/Wholesale

company with

specific investment

amount

Warning to register

- First time

- Second time

Exporter Importer Registration Certificate

After the warning

period

Foreign Company

(Or)

Local Company

Registration certificate will be suspended and importing of goods will be terminated


Sanctions for failing to deposit the initial investment amount

Retail/Wholesale

Company

Warning to register

- First time

- Second time

Exporter Importer Registration Certificate

After the warning

period

Foreign Company

(Or)

Local Company

Registration certificate will be suspended and importing of goods will be terminated


1. Consumer Goods(Including Clothing, Clock and Watch, Cosmetics Products)

2. Foodstuff including the following categories of commodities-

✓ Agricultural produce(except prohibited commodities for importing and selling due

to the needs of the country)

✓ Marine Products

✓ Animal Products

✓ Instant Foods

✓ Soft Drinks

✓ locally produced beverages

3. Household Goods (Ceramics, Pottery, Glass including glassware products)

4. Kitchenware

5. Medicine and Medical Products, Hospital Equipments

6. Animal Feed and Veterinary Medicine


The Priority List of Categories of Products on Wholesale and Retail distribution for foreign companies and joint venture companies

7. Stationery

8. Furniture

9. Sports Goods

10. Communication Devices(Including Camera and Phone)

11. Electronic Goods

12. Construction material and Equipment

13. Electrical Goods

14. Chemical for Industrial Use

15. Seeds, Agricultural Inputs and Products used for Agriculture

16. Agricultural Machinery and Equipment

17. Machines, Mechanical Appliances and Parts

18. Bicycles



19. Motorcycle, Accessories and Parts

20. Automobile Parts, and Parts of Machinery and their accessories

21. Toys

22. Home Decoration Products and accessories (Including Flowers and Plants)

23. Souvenir and Handicrafts Products

24. Art Materials, Musical Instruments and Accessories (excluding Antiques)

Remark:

✓ When selling the listed items under a retail/wholesale registration certificate, they

must prioritize local products to sell by adding values to the products.

✓ When importing goods from abroad, companies shall comply with the laws,

regulations, procedures and rules of relevant Ministries as may be applicable to

the goods.

✓ The Priority List of products groups may be amended as necessary.



Applying Companies for wholesale/Retail License

No Company Name Company Category Type of Registration

1 MYCARE Unicharm Co.,Ltd.100% foreign

Wholesale

2 Pacific Andaman (SEA) Co.,Ltd.,

JV

Wholesale

3 AEON Orange Co.,Ltd., JV Retail

4 City Mart Holding Co.,Ltd100% Myanmar citizen

Retail

5 SUZUKI (MYANMAR) MOTOR Co.,Ltd100% foreign

Applying


List of Companies that Retail /Wholesale business registration card issued

Applying Companies for wholesale/Retail License

No Company Name Company Category Type of Registration

1 Myanmar Convenience Store Co.,Ltd. 100% myanmar citizen Retail

2 Denko Trading Co., Ltd. 100% myanmar citizen Wholesale/Retail

3 Thiri Cosmetic Co.,Ltd. (Mistine) 100% myanmar citizen Wholesale/Retail


List of Myanmar Companies that are not eligible for retail/wholesale

business according to investment amount is less than US $ 700,000 (7 lakh)


33