Jan 18, 2017

New Myanmar Companies Act Sent to Parliament

An updated version of the Myanmar Companies Act has been sent to Parliament for approval, a senior official said last week. The new law seeks to overturn the outdated 1914 Burma Companies Act and will bring about much needed regulatory change for companies operating in Myanmar.

A revised draft of the law, approved by cabinet last week, outlines new provisions which aim to bal-ance the opportunities and rights of foreign and local joint venture companies, said U Aung Naing Oo, Director General of the Directorate of Investment and Company Administration (DICA). One such provision changes the ratio of foreign investment that defines a 'foreign company' from one percent, up to more than 35 percent. But, U Aung Naing Oo added, this is changeable based on the recommendations of the Ministry for Planning and Finance, and depending on what is needed for economic development.

“Before the submission to parliament, even a company with a one-percent share owned by a foreign investor is labeled a foreign company. That is major obstacle for the country's development,” said U Aung Naing Oo. The change could help pave the way for foreigners to buy shares on the Yangon Stock Exchange.

Source: Myanmar Business Today