Directors, shareholders in absence of AR disallowed to set up new companies

SHAREHOLDERS and directors of those companies which failed to file annual returns (AR) are not allowed to set up new companies, according to the Business and Finance Consulting Team of Myanmar Enterprise Solutions. In recent days, the Directorate of Investment and Company Administration responded to those businesses seeking a business permit to resubmit only after they have tackled failing AR cases in line with the Myanmar Companies Law, companies received that remark. “The directors and shareholders of those suspended companies which failed to submit AR are no longer granted to set up a new one. It is a kind of warning. The authorities want the companies to deal with the old ones first,” Myanmar Enterprise Solutions posted on its Facebook page. However, there is no certainty whether directors and shareholders of the companies that have been struck off the register are blacklisted or not. This action aims to avoid unnecessary bloated business operations, according to Myanmar Enterprise Solutions. As a result of this, directors and shareholders of the companies are required to strictly adhere to the laws than before. They should not have stayed as the company struck off, and should have followed a systematic dissolution process. Therefore, companies are encouraged to check their status via https://www.myco.dica. by entering their company name or registration number in the search box if they are found to be suspended, they need to deal with this as soon as possible. At present, there are thousands of companies that fail to file AR before the due date and over 400 are declared suspended every month for the absence of AR. As per DICA’s report, newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns. The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving that notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.

Source: GNLM

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.