Online licensing available after formulation of New Myanmar Companies Act

Source : The Global New Light of Myanmar
View Count : 306
Jan 12, 2017

Com pan ies can soon be registered online because the new Myanmar Companies Act that has recently been submitted to the Hluttaw will soon be enacted, said U Aung Naing Oo, the director- general of the Directorate of Investment and Company Administration (DICA).
       An online licensing system is technically and financially provided by the Asian Development Bank (ADB). The current Myanmar Companies Act was enacted in 1914. According to the current act, a business is considered a foreign-owned business if there is a foreign investment involved, which can slow the development of the country, according to DICA.
       With the new act, every business in Myanmar has to be under Myanmar Citizen ownership even though foreign businessmen seek the company license. However, setting the ownership will be dependent on a certain per cent of property which will be determined. Additionally, the new act will consider the largest shareholder in the company the owner, no matter whether this person is a Myanmar citizen or a foreigner, it is learnt. A proposal to set a basic ratio of property at 35 per cent has been submitted to the Hluttaw. This basic percentage can be changed depending on the opinions of the Ministry of Planning and Finance. Thirty-five per cent of a basic ratio means that a business having 35 per cent of foreign- owned shares will be set as a Myanmar Citizen owned enterprise whereas a company having more than the basic percentage of share property will be set as a foreign- owned business.



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