New Companies Law: Hope To Support Progress Of Myanmar Future Business

Myanmar business community hopes the new Myanmar companies Law which is still in the pipeline for inter-ministerial review to have the same result after Myanmar Investment Law has been passed by both houses of parliament on 5th October, according to U Aung Naing Oo from DICA. 

DICA also said that the current Myanmar companies act was enacted in 1914 and some rules are not supportive to the recent business sector.

As about 80% of Myanmar businesses are in informal sector, the new Myanmar companies Law will help not only to bring Myanmar’s corporate governance framework closer to international standards, but also to reduce compliance costs for business firms, according to the Director General of DICA. 

Director General, DICA , Aung Naing Oo: “In the new law, we only need the single share holder and single director…According to the new law, those small company, they don't need to provide annual auditor financial report to us. .. Our idea is to pave the way for the family business... to be registered one in Myanmar... because there are number of family businesses which are not properly registered in our office or in any other government agencies..."

Industry experts also hope that the new companies act will allow foreign investors to buy shares on the Yangon Stock Exchange. 

President, MAMDA, Dr. Soe Tun: There needs to change the recent Myanmar companies Act. It needs to allow certain percentage of foreign investment in Myanmar companies. The businesses do not grow widely, as there are only small numbers of local traders in YSX. So, we are waiting for the new Myanmar companies’ law, and MAPCO will be listed once after the law enforced. 

DICA also added Myanmar business community still needs a lot of development but assured that Myanmar business will be much easier after 2017. 

Director General, DICA , Aung Naing Oo: "... We need a lot of development especially for local businesses... because they are not that ready to compete with the international, multinational corporation…. They also need a firming legal framework, which must have less regulatory burden and less compliance cost...... The law is enforced, enacted, there will be online registry in Myanmar. From 2017 onward, Myanmar's future for business…will be much, much easier than that of current situation..." 

According to DICA, the new Myanmar companies Law will be submitted to the upcoming parliament session.