The Myanmar Companies Act will reform the regulation of companies, encourage more investment from overseas, and authorise foreign investors to purchase shares on The Yangon Stock Exchange. It is expected that The Act will become law before the end of the year, as confirmed by Mr. U Aung Naing Oo, Director General of the Directorate of Investment and Company Administration (DICA).
The Myanmar Companies Act (formerly the Burma Companies Act) was enacted in 1914 and has served as the legal foundation for incorporated business in Myanmar.
The new Act will provide many benefits together with strong incentives to encourage further foreign investment in Myanmar.
Investors from overseas will be able to take up to 35% equity in a Myanmar company and the company will retain its classification as a Myanmar Company. Currently, any overseas equity investment changes the company status to that of “foreign ownership”.
It is expected that the figure of 35% could well go higher and act as a further catalyst for more foreign investment as the economy grows. Overseas Investors will also be authorised to purchase shares listed on The Yangon Stock Exchange. New funds arriving from overseas will add liquidity – take note – this could make share prices soar.
We meet many companies seeking to establish a new entity in Myanmar or join forces with an existing company. It is vital you follow the correct procedures for company incorporation, with the legal framework best suited to your needs. You must also obtain staff visas, stay permits and of course office space and all the items needed to operate as quickly as possible. We can help you with all of these requirements. We also provide a wide range of ongoing corporate support services.
If you are in hurry to get trading, we can provide you with staff, who are immediately available and on our payroll. They would be 100% dedicated to your commercial operations.
As the Myanmar economy grows and widens, more demand is being recorded for products and services across all sectors. Call us now to discuss how you can start trading in Myanmar today.
In summary these are the types of companies in Myanmar:
Joint ventures between local and foreign business partners
Joint ventures with relevant Government departments and organisations
Local branches of foreign companies
Part of the FocusCore assist and support service helps you apply with the legal framework for:-
Incorporation and registration of company
Financial reporting and audit requirements
Share allocation and capital raising
Appointment of Board of Directors
General meetings and other procedures