Company incorporation is carried out by DICA in accordance with the provisions of The Myanmar Companies Law(2017) and investment proposal applications are subjected to MIC (DICA is MIC secretariat).
DICA shall issue the certificate of company incorporation and then MIC’s approval will subject to investment project.
Type of companies and basic requirements
There are several ways to conduct businesses in Myanmar, as outlined below:
- Company limited by shares (such as private and public companies)
- Company limited by guarantee
- Overseas corporations(Need to register in DICA if they carry out business within the Union)
- Business Associations
- Special Companies (incorporated with Special Companies Act-1950)
In case of limited liability company, foreign ownership is allowed up to 35% in local companies.This is a significant liberalization measure as foreign investors can now own up to 35% of the equity in Myanmar owned companies (directly or indirectly) without changing the company’s status to a “foreign company”.
There are no restrictions on the transfer of shares in companies between local and foreign shareholders, but any change in a “foreign company” status of a company will need to be notified to DICA.
The law allows companies with a single shareholder and single director to be established. It requires all companies established in Myanmar to appoint at least one director who is “ordinarily resident” in Myanmar. A person will be considered to be ordinarily resident if they hold permanent residency or is resident in Myanmar for at least 183 days in each 12 month period. The period of residency will be calculated from the date of incorporation of a company (or the date of commencement of the new law for existing companies).
Public companies must appoint at least 3 directors, and at least one of the directors must be a Myanmar citizen who is ordinarily resident in Myanmar.
No minimum capital requirements for the incorporation of company.
Required documents for registration
New company registration is allowed in new electronic platform called MyCo- Myanmar Companies Online with the commencement of the Myanmar Companies Law 2017.To provide a convenient and integrated service, “MyCO” will be launched on 1st August, 2018. DICA-MyCO is more efficient and requires minimal material documents.
sources from DICA