Myanmar draft Companies Regulations have just been released by the Directorate of Investment and Company Administration (DICA). The new Companies Law of 2017 rejuvenates the antique Burma Companies Act which has served as a legal structure for business since 1914.
This reform ambitions to structure a foreign investment favorable legal framework and to liberalize several sectors of the Burmese economy, one of the key innovation of the new Companies Law is the possibility now offered to foreigners to have up to 35% capital ownership in domestic companies. The Yangon Stock Exchange for non-Myanmar customers.
The government also intends to promote its online company registration system: once the law has been enacted, existing companies will have until 31 January 2019 to re-register through the electronic system and all new applications will be submitted through this system.
Even though the reform has been unanimously welcomed by the private sector, the government decision to delay its implementation has raised concerned among the business community: William Greenlee, Partner at DFDL and former chair of American chamber’s legal committee, argued the announcement resulted in “a loss of potential foreign investment enthusiasm”.
Consultations on the draft regulations end on May 31, 2018 and the law is expected to come into force on August 1, 2018.
Consultations on the draft law end in May 31, the law is expected to come into force on August 1.
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