1

Small and Medium Enterprise Development Law

(The Pyidaungsu Hluttaw Law No. 23, 2015)
Small and Medium Enterprise Law
(The Pyidaungsu Hluttaw Law No. 23, 2015)
6th Waning of Tagu, 1376 ME
(9 April, 2015)
The Pyidaungsu Hluttaw hereby enacts this Law.
Chapter (1)
Name and Definition
1.

This law shall be called The Small and Medium Enterprise Development Law.

2.

The following expressions contained in this Law shall have the meanings given
hereunder.
(A)

The Small Enterprise means the following enterprises in which the

value of the land is not included in the capital investment
(1) The enterprise, if it mainly works on manufacturing business, which
shall not be more than 50 employees as regular basis or not be more
than 500 million kyats capital investment;
(2) The enterprise, if it is labour intensive or mainly works for
piecework business, which shall not be more than 300 employees as
regular basis or not be more than 500 million kyats capital
investment;
(3) The enterprise, if it mainly works on wholesale business, which shall
not be more than 30 employees as regular basis or not be more than
100 million kyats turnover of previous year;
(4) The enterprise, if it mainly works on retail business, which shall not
be more than 30 employees as regular basis or not more than 50
million kyats turnover of previous year;
(5) The enterprise, if mainly works on service business, which shall not
be more than 30 employees as regular basis or not more than 100
million kyats turnover of the previous year;

(6) The enterprise, if it is the business apart from the above sub-section
(1), (2), (3), (4) and (5), which shall not be more than 30 employees
as regular basis or not be more than 50 million kyats turnover of
previous year;
(B)

The Medium Enterprise means the following enterprises in which the

value of the land is not included in the capital investment(1) The enterprise, if it mainly works on manufacturing business,
which shall not be more than 300 employees as regular basis or not
be more than above 500 million kyats to 1,000 million kyats capital
investment;
(2) The enterprise, if it is labour intensive or mainly works for
piecework business, which shall not be more than 600 employees
as regular basis or not be more than 1,000 million kyats capital
investment;
(3) The enterprise, if it mainly works on wholesale business, which
shall not be more than 60 employees as regular basis or not be
more than 300 million kyats turnover of previous year;
(4) The enterprise, if it mainly works on retail business, which shall
not be more than 60 employees as regular basis or not more than
100 million kyats turnover of previous year;
(5) The enterprise, if mainly works on service business, which shall
not be more than 100 employees as regular basis or not more than
above 100 million kyats to 200 million kyats turnover of the
previous year;
(6) The enterprise, if it is the business apart from the above sub-section
(1), (2), (3), (4) and (5), which shall not be more than 60
employees as regular basis or not be more than above 50 million
kyats to 100 million kyats turnover of previous year;

(C)

The Entrepreneur means the person or business association that are

Myanmar citizen with fully own operations and investment which

operate small enterprise or medium enterprise or both of small and

medium enterprise;
(D)

The business association means a non-profit association, the

association which cooperate with them, sister association, subassociation and branch unit which are established by entrepreneurs in
line with the existing laws.

(E)

Central Committee means the central committee of small and medium

enterprise development.

(F)
(G)
(H)

(I)

(J)

The Working Committee means the working committee of the small

and medium enterprise development.
Agency means the small and medium enterprise development agency.
Agency branch offices mean the branch offices which are opened in the
respective States or Regions and Self-administered Regions or Selfadministered Areas or Union Territory with the permission of the
Central Committee and Working Committee.
One-Stop Service Team means the team which is formed and
appointed by the local administration body in order to implement
registration of small and medium enterprises, provide services for the
application of permits and implement the tasks prescribed by the law in
the respective States or Regions and Self-administered Regions or Selfadministered Areas or Union Territory.
Fund means small and medium enterprise development fund established
according to this law.

(K)

Fund Management Body means the fund management board of the

small and medium enterprise development.

(L)

The Responsible Ministry means the Ministry assigned by the Union

Government to take mainly responsibility in the implementing of small
and medium enterprise development;

(M)
(N)

(O)

The Respective Ministries means the ministries related to the

implementation of small and medium enterprise development.
The Bank means the company to serve as commercial bank or
development bank in Myanmar licensed by the Central Bank to do the
developing bank business. In this expression, the licensed foreign bank
also include.
The Entrepreneurship means the innovation of marketable and more
useful technology, products, manufacturing and services.

(P)

(Q)

The Registration Permission means the registration permission of

Agency for small and medium enterprises with the specifications in
order to enjoy the rights contained in this law.
Loan Information Department means the department established with
the permission of the Central Bank of Myanmar to collect the related
loan information or the other suitable information to identify the worth
of the borrowers who contact with financial institutions to get the loan,
and to inform those collected information to the financial institutions.
Chapter (2)
Objective

3.

The objectives of this law are as follows:

(A) to easily access the information related to business, technical support and
financial support for the small and medium enterprise;
(B) to reach local and international markets and enhance the competitiveness
of small and medium enterprise;
(C) to increase employment opportunity and income of the people through the
development of small and medium enterprises;
(D) to reduce the difficulties and obstacles in business operations of small and
medium enterprises.
Chapter (3)
Basic Principles

4.

The basic principles of this law are as follows:

(A) laying down the policy in order to thrive and development of small and
medium enterprises, to reduce difficulties and obstacles of enterprises, to
provide necessary financial support, to provide legal advice and
management;
(B) Undertaking necessary measures for small and medium enterprises in
order to compete not only in the local market but also in the foreign
markets with the international standardized quality products and services,
to increase the capacity of competitiveness, and to get market;
(C) Encouraging small and medium enterprises for registration which are not
yet registered in accord with the law;
(D) supporting the availability of information, technology and financial
investment to new or existing small and medium enterprises;
(E) Letting small and medium enterprises to manage on the availability of
resources with sustainable manner which has minimum impacts on natural
and socio-economic environment;

(F) encouraging the small and medium entrepreneurs to produce innovative

products, to develop services, to increase production capacity, to use
appropriate advanced technology and facilities in production and
distribution;
(G) Encouraging the development of employment opportunities and human
resources and managing the development of on-job trainings;
(H) promoting the cooperation of public, private and international
organizations for the development of small and medium enterprises;
Chapter (4)
Formation of Central Committee and Duties and Functions thereof
5.

(A) The Union Government shall form the Central Committee of the small
and medium enterprise to carry out the duties and functions contained in this
law in order to enhance the development of small and medium enterprises(1)

The President of the Union

Chairman

(2)

The Vice- Presidents

Vice-Chairman

(3)

The Union Ministers from

Members

respective Ministries
(4)

The suitable representatives and economists,

Members

experts from the business associations

(5)

The Union Minister from

Secretary

responsible ministry

6.

(B)

Joint-secretary shall be assigned from the members formed

according to the sub-section (A).

(C)

The president of the Union of Myanmar shall announce the

formation of Central Committee.

The duties and functions of the Central Committee are as follows(A) Laying down the policies and providing guidance in order to carry out for
the the development of small and medium enterprises in line with the
basic principles of this law.
(B) Promoting the development of small and medium enterprises which take
part with highest ratio in the country's category of enterprises; groups;

(C) Giving guidance to liaise with national and international organizations for
getting the financial and technical assistance;
(D) Promoting the development of the market of small and medium enterprise
in order to reach rural area;
(E) Arranging the regular development of assess to market for the investment
of local and foreign enterprises;
(F) Encouraging and promoting to scale up the necessary human resources for
the development of small and medium enterprises;
(G) Giving guidance and support for the application of technology on energy
production and effective and efficient use of energy, and technology on
environmental conservation;
(H) Coordinating and giving guidance for the use of production technology on
value addedproducts and the use of machinery, and to provide guidance
and support for emerging entrepreneurship.
(I) Coordinating with concerned government departments, organizations, local
authorities, private business owners for the sufficient facilitation of basic
infrastructures and supplies of small and medium enterprises;
(J) Formation of Working Committee and identification of duties and
functions;
(K) guiding tthe formation and empowering of Agency, Fund Management
Board and the other necessary boards;
Chapter (5)
Formation of Working Committee and Duties and Functions thereof
7.

(A) The Central Committee shall form the Working Committee as follow(1) A Vice-president

Chairman

(2) The Union Minister from the responsible ministry

Vice-Chairman

(3) The Union Minister or Deputy Ministers from the

Member

respective Union Ministry

(4) Chief Ministers of respective State or Region,
Chairman of the Nay Pyi Taw Council

Member

(5) Persons from the government departments

Member

and government organizations

(6) The suitable representatives and economist,

Members

intellectuals, experts from the business associations

(B) The Central Committee shall identify and designate the secretary and
Joint Secretary from the members of the committee formed according to
the section (A).
8.

Duties and Functions of the Working Committee of small and medium

enterprise development are as follows:
(A)

Collecting, analyzing and submitting necessary information to the

Central Committee in order to enhance and promote the small and
medium enterprises;

(B)

Assisting the small and medium enterprise in order to overcome the

obstacles;

(C)

Supporting in linking extensively with the local and foreign markets to

extend the market;

(D)

Building the capacity of skill labour in order to fulfill the labour

requirement and create employment opportunities;

(E)

Promoting the skills by linking with the local and international

organizations respectively for the technology requirement;

(F)

Undertaking in linkages with the relevant government or private

financial institutions, investment organizations and banks to get local
and foreign financial assistance;

(G)

Supporting the scaling up of the operations of related banks and microfinance activities for the development of small and medium enterprises;

(H)

Cooperating with local and international organizations on small and

medium enterprise to receiving and dissemination of technology and
business advice;

(I)

Coordinating with the Technical Research Institutes of the government

ministries and non-government organizations;

(J)

Formation of the agency, fund management body and evaluation and

reporting body with the agreement of the Central Committee and
specifying its duties and functions;

(K)

Submitting the operation reports and the other necessary reports to the
Central Committee;

(L)

Coordinating for attaining necessary budget allocation from Union

budget for the development of small and medium enterprises;

(M)

Undertaking the duties and functions on the development of small and

medium enterprises which frequently assign by the Central Committee;

(N)

Arranging for the occurrence of linkages between the manufacturing

sectors and sale sectors in respective regions;
Chapter (6)

Formation of Evaluation and Reporting Body and Duties and Functions thereof
9.
The Working Committee shall form the evaluation and reporting body with the
suitable persons with the agreement of the Central Committee. A member who is
appointed by the Central Committee shall perform as the chairperson of the body.
10.

The duties and functions of the evaluation and reporting body are as follows(A) Assessing and evaluating the actual conditions, needs and difficulties of
small and medium enterprises;
(B) Assessing and evaluating the performance of the agency and branch
offices of the agency;
(C) Assessing and evaluating the efficiency of support services, training
schools, and financial institutions which support for the development of
small and medium enterprise;
(D) Assessing and evaluating the impact of small and medium enterprises on
natural and socio-economic environment;
(E) Evaluating in order to attain the possible support of the State on the
requirement of small and medium enterprise through the analysis of the
development of regional countries and countries around the world;
(F) Assessing and evaluating the sector growth of small and medium
enterprise, contribution in Gross Domestic Product (GDP), exports and
imports;

(G) Assessing and evaluating on job creation of small and medium

enterprises, minimum wage rate, investment and products by business
type, investment and employment,
(H) Submitting the evaluation report to the Central Committee through the
Working Committee and occasional proclamation to the public;
Chapter (7)
Formation of Agency and Agency Branch Offices and
Duties and Functions thereof
11.
The Working Committee shall form the agency which include the senior
officials from concerned government departments, government organizations, and the
suitable representatives and experts from the associations with the agreement of the
Central Committee.
12.
The person who is appointed by the agreement of the Central Committee shall
perform as the chairman of the agency. The chairman of the agency shall be regarded
as Deputy Minister level.
13.
The Director General from the responsible ministry shall perform as the
secretary of the agency.
14.

The duties and functions of the agency are as follows:

(A) Implementation of small and medium enterprise development policy;
(B) Submission of the annual progress report on enhancing the development
of the small and medium enterprise to the Central Committee through the
Working Committee;
(C) Supporting to lessen the difficulties and needs faced in terms of business
nature of small and medium enterprises;
(D) Coordination of the establishment of regional agency branch offices and
one-stop service team in order to facilitate the necessary services to small
and medium enterprises;
(E) Undertaking legal awareness activities related to the small and medium
enterprises;
(F) Providing necessary advice, organizing workshops and providing
trainings required for the development of the small and medium
enterprises;

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(G) Coordination with the respective government department and government

organizations for the establishment of the small and medium enterprises;
(H) Providing non-financial services for enhancing the availability of financial
support to small and medium enterprises in cooperation with respective
ministry, organizations, companies and banks.
(I)

Facilitating to establish the business networks by cooperating between

small and medium enterprises and local and foreign enterprises;

(J)

Urging the competition of the small and medium enterprises to promote

the innovation and market strengthening, and organizing products and
technology exhibitions;

(K) Advising and settling the disputes of small and medium enterprises, and
assisting to settle the disputes by means of tribunal;
(L) Supporting for the establishment of legal consultancy organizations and
consultancy service for business start-up related to the small and medium
enterprises;
(M) Collecting the data and statistics related to the small and medium
enterprise, checking these step by step, recording the data and using these
as necessary;
(N) Arranging the registration of small and medium enterprises according to
specification and designating the term of registration;
(O) Communicating with the international financial institutions, international
development agencies, business associations and local and international
non-government organizations for the development of small and medium
enterprises;
(P) Cooperating closely with the financial institutions for the development of
the small and medium enterprises and implementation of development
tools, and receiving advices;
(Q) Keeping the status of the small and medium enterprise until next three
years after changing and emerging from small and medium enterprise;
15.
The agency branch offices which implement the duties and functions of the
agency at regional level shall responsible operations of one-stop service teams in the
respective regions.

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Chapter (8)
The Role of Business Associations
16.
The business associations shall closely work with the Central Committee and
the other related organizations in order to follow and implement the basic principles of
this law.
17.
The business associations shall cooperate each other for the growth and
development of the small and medium enterprises and the development of their
business standard.
Chapter (9)
The Responsibility and Rights of Entrepreneur
18.

The responsibility and rights of entrepreneur are as follows(A) Registration of small and medium enterprises in line with the
specifications to enjoy the rights contained in this law;
(B) Changing freely of advanced technology and management in order to
respond on the change of economic or social environment and for
business development;
(C) Reporting by entrepreneur when its capital investment, number of labour
and turnover of last year specified as small and medium enterprise are not
comply with one of these specifications according to this law, returning
register certificate and re-register within the permitted period;
(D) Keeping statistics and records of business and receiving inspection as
necessary;
(E) Having the rights to present the grievances to the agency through the
agency branch office;
(F) Having the rights to link with government and non-government technical
research institutes, and local and international organizations through the
agency for energy production and effective and efficient use of energy,
environmental conservation , the production of value-added products and
the use of machinery;
(G) Having the rights to participate in local and international training courses,
workshops, seminars, exhibitions and competitions with the arrangement
of the agency;

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(H) Having the rights to apply for getting financial assistance and other
services from the government ministries, government organizations and
private organizations through the agency;
(I)

Having the rights to apply for getting loans in accord with the business
plan for the development of small and medium enterprises;

(J)

Having the rights to participate in the local and international business

networks with the arrangement of agency;
Chapter (10)

Formation of Fund Management Body and Duties and Function thereof

19.
The Working Committee shall form the Fund Management Body with the
suitable persons according to specifications with the agreement of the Central
Committee. A member of the body who is appointed by the Central Committee shall
perform as the chairperson.
20.

The duties and functions of the fund management body are as follows(A) Calculating and presenting to the Working Committee for projecting and
allocating in the debit and credit of annual budget account in order to
provide low interest loan services for the development of small and
medium enterprises;
(B) Proposing the support fund which can be used for the supporting activities
of small and medium enterprise development to the Central Committee
through the Working Committee;
(C) Establishing the small and medium enterprise development fund with the
State's support fund, grant from local and international financial
institutions, donation from the donors and the service fees received from
the State's services;
(D) Coordinating for the cooperation between the local and foreign
organizations that would like to make investment and the registered small
and medium enterprise in accord with the existing laws;
(E) Arranging and certifying for the direct access to finance of the registered
small and medium enterprises from the Small and Medium Enterprise
Development Bank and concerned banks which receive one of the loans in
which the special loans with low interest rate imposed by the government
for the small and medium enterprise development, possible non-interest

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loan from the local and foreign banks, financial institutions and
investment organizations;
(F) Utilizing the fund for the matters of the development of the small and
medium enterprises;
(G) Establishing the financial information unit to support for getting the
normal loan, low interest loan, non-interest loan and grant aids for the
small and medium enterprises;
(H) Negotiate with the credit guarantee companies and corporations allowed
by the Ministry of Finance in order to protect the losses in borrowing
money by small and medium enterprises;
21.
The fund management body shall carry out in consultation with the Ministry of
Finance and the Central Bank of Myanmar under the supervision of the Working
Committee for the effective implementation of the financial matters.
Chapter (11)
One-stop Service System
22.
The respective ministries shall designate the officials, who have capacity to
undertake one-stop service system, by giving authority to work in the one-stop service
team for the development of small and medium enterprises.
23.
The officials who are implementing the one-stop service system shall cooperate
with the agency branch offices.
Chapter (12)
Collecting and Maintaining the Information and Dissemination
24.
The agency shall coordinate and cooperate the followings with the respective
departments and organizations to carry out the information collection, having records
and utilize these as necessary related to the small and medium enterprise
(A) Providing information on market, technology and investment through the
online networks and disseminating thorough the information media;
(B) Coordinating for the establishment of local and international market
advisory centers;
(C) Coordinating with concerned department to develop e-commerce system
for the local and international buyers and sellers;

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Chapter (13)
Human Resources Development and Supporting Technology
25. The agency shall coordinate the followings with the concerned departments and
organizations to enhance the production capacity and competitiveness of the small and
medium enterprises
(A) Seeking and transferring appropriate technologies
(B) Providing advice on production technology and trainings which support in
the utilization of modern machineries;
(C) Encouraging and cooperating for the establishment of the laboratories that
will check the quality of the products;
(D) Exchanging technology between the local and international public
institutions, organizations and private organizations;
(E) Arranging deserved reward in accord with the business performance in
order to promote the innovation;
(F) Providing support for the application of new technologies, achieved from
the research results, from pilot stage to commercial production;
(G) Supporting in the human resource development activity by undertaking
the capacity building programme for the small and medium entrepreneurs;
Chapter (14)
Market Finding and Linkages
26.
The agency shall coordinate and cooperate the followings with the concerned
departments and organizations for market promotion of the small and medium
enterprises
(A) Encouraging the export oriented actions;
(B) Ensuring the understanding and familiar of the business operators on
principles and practices of the international markets;
(C) Supporting for market penetration and receiving the market shares;
(D) Arranging for taking place of standardization which can link with the
international market, and for easy and smooth trade;

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(E) Ensuring the understanding and familiar of the business operators on

customs and trade producers, and for receiving appropriate relaxation;
Chapter (15)
Coordination for Customs Concerns
27.
The agency shall present the advice to undertake tax exemption and reliefs
regarding the followings to the concerned departments and organizations with the
guidance of Working Committee, for the development of small and medium
enterprises and having competitiveness(A) Production of new annotative products through research;
(B) Operating small and medium enterprises which include in the list
prioritized business category in the less economic development areas;
(C) Undertaking the manufacturing of recycling products by using byproducts and wastes;
(D) Undertaking the factory modification for energy production, effective and
efficient use of energy, reutilization;
(E) Undertaking the resettlement of small and medium enterprises due to
devastation of natural disaster;
Chapter (16)
Supporting Entrepreneurship and Business Start-up
28.
The agency shall coordinate and cooperate the followings with the concerned
departments and organizations in order to make more investment by entrepreneurs
who work on entrepreneurship works, with the guidance of Working Committee (A) Giving tax relief;
(B) Leasing the land to establish factory or the place for business with
reasonable rate;
(C) Establishing the business consultancy services, and suggesting and
resolving the difficulties;
(D) Supporting for the establishment of joint-venture business;

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Chapter (17)
Registration
29.

The agency shall

(A) Allow the small and medium enterprise to register if they could present
the respective license, permission or certificate;
(B) Allow the small and medium enterprise to register, if the businesses are
comply with the followings, which are not necessary to have license,
permission or registered certificate
(1) There is no hazard on the health of public who staying around;
(2) There is minimum impact on the natural and socio-economic environment
and can provide conservation work comply with specification;
(3) There is safeguarding of fire.
(4) There is no hazard on health and work place;

30.
The small and medium enterprises may carry out registration, getting business
license and necessary recommendations at the respective one-stop service centre;
31.
The agency shall terminate the register when one of the following matters
occur
(A) Returning of registered certificate by entrepreneur;
(B) Termination of business according to the existing laws.
(C) Expiring of limited three year period on changing business status which
beyond the definition of small and medium enterprise;
Chapter (18)
General
32.
The Central Committee, according to the law, shall succeed and carry out the
duties and functions of the Central Committee of Small and Medium Enterprises,
which form before enacting this law. .
33.
The Working Committee, according to the law, shall succeed and carry out the
duties and functions of the Working Committee of the small and medium enterprises,
which form before enacting this law.

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34.
In order to undertake the prescriptions contained in this law, the responsible
ministry shall take responsible the office works of the Central Committee, the
Working Committee, the agency, Fund Management Body, Evaluation and Reporting
Body, agency branches offices and one-stop service centre and shall take into
account of the expenditures. .
35.
The responsible ministry shall specify the honorarium and expense of the
members of the Central Committee, the Working Committee, the Agency, the Fund
Management Body and the Evaluation and Reporting Body, who are not government
officials, with the agreement of the Union Government.
36.
The terms of the personnel at Union level in this law are normally the same as
the terms of the President.
37.

In the implementation of the duties and functions prescribed in this law

(A) The responsible ministry may promulgate the necessary law
enforcements, rules and regulations with the agreement of the union
government.
(B) The Central Committee, the Working Committee, and the responsible
ministry may promulgate the necessary notifications, order, directive,
and rules and regulations.
(C) The agency may promulgate the necessary order and directives with the
agreement of the Working Committee.

I hereby sign under the constitution of the Republic of the Union of Myanmar.

(Sd.) Thein Sein

President of the Union
Republic of the Union of Myanmar

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