All existing Myanmar companies need to re-register from 1st August 2018 on MyCo

You may have read this rather ominous news in Myanmar Times of 25th Jun 2018 that “All companies need to re-register from August 1”?

The Directorate of Investment and Company Administration (DICA) will start online registration of companies called Myanmar Companies Online (MyCO) electronic registry system starting 1st August.

All existing companies have up to 31st January 2019 to re-register on MyCO or they will be struck off the list.

We re-registered our company “Consult-Myanmar Co Ltd” on 7/8/2018 morning and received approval from DICA on the next day. Our  company registration number changed from 25FC/2013-2014 to 100066009 after the re-registration.

Since 1st August 2018 we have also successfully re-registered the following existing companies on MyCO:

  1. Consult-Myanmar Co Ltd – foreign company
  2. Lin Phone Wai Co., Ltd – local company
  3. USL JGL Myanmar Co., Ltd – local company
  4. JGL Worldwide Co., Ltd – foreign company
  5. CDE Company Limited – foreign company
  6. HTG Myanmar Engineering & Technologies Co., Ltd – foreign company
  7. Tamada Engineering Services Co., Ltd – foreign company
  8. Weeswares Pte Ltd (Myanmar Branch) – Overseas Corporation
  9. Univon Private Limited (Myanmar Branch) – Overseas Corporation

We have heard stories of companies that re-registered themselves and have yet to receive approval from DICA after 5 days as the info they submitted to DICA is different from the company information that DICA has in its hard-copy file. If the firm that you used in your original company registration is no longer in existence or is one of those firms that have very high staff turnover, chances are the info you have on your file is different from the one that DICA has in its hard-copy file.

If you want to engage our service, we charge USD 210 (inclusive of Commercial Tax) to update the information into MyCO using the standard constitution provide by DICA as well as ensuring all statutory declarations are prepared and submitted. We will ensure that after the update has been accepted by MyCO that the information is accurately captured and displayed on MyCO before 31/1/2019. Take note that each director of the company can be fined up to Kyat 10 million for none compliance with the New Myanmar Company Law.

 If you are interested to engage our service to update MyCO please fill out the form at the end of this page.

Separate from updating your company info on MyCo – is the aspect of how the new company law affects you.

For existing limited liability company, you need to be aware of the followings changes in the New Company Law:

1 Must spend ≥ 183 out of 365 days in the fiscal year in Myanmar. This director can be a foreigner.
2 The different classes of shares allow the investors to create different class of shares with different voting rights, distribution of capital. Shares with no voting rights can also be issued.
3 The 65% Myanmar ownership is determined by both the percentage of equity and voting right held by the Myanmar citizen or entity. Technically such a JV company can own land, can apply for import licence, can get an inbound and outbound tour licence, can apply for a overseas employment agent licence, etc.
4 Directors’ Duties is now clearly defined as:

  • duty to act with care and diligence;
  • duty to act in good faith in the company’s best interest;
  • duty regarding use of position;
  • duty regarding use of information;
  • duty to comply with the New Companies Law and constitution;
  • duty to avoid reckless trading;

I would like to highlight that if you are currently a Limited Liability Service Company you have the option of:

  1. Reducing the shareholder to just 1 person. If you have a subsidiary where 99% of share held by parent company and 1% held by a director – you may want to convert it to a full subsidiary where 100% of the share is held by the parent company.
  2. Reducing the director to just 1 (resident) director. If your spouse is currently the other director (so as to make 2 directors under the previous law) you may want to remove it as under the new law the director has a lot of duties and responsibilities.
  3. Appoint an Ordinarily Resident Director i.e. he/she spend ≥ 183 out of 365 days in the fiscal year in Myanmar.
  4. Adding a local Myanmar shareholder that has ≥ 65% voting share so that you can get apply for an import licence.

If you are currently a Branch or a Rep Office:

  • You need to re-register your branch or rep office as an Overseas Corporation
  • You need to appoint an Authorized Officer who is a resident officer of Myanmar i.e. he/she spend ≥ 183 out of 365 days in the fiscal year in Myanmar.

If you are interested to engage our service to update MyCO please fill out the form below: