Monday, December 3, 2018

DICA promotes MyCO new registry system at Commerce Fair


TO promote the online company registry system, the Directorate of Investment and Company Administration (DICA) put up two booths with MyCO kiosks at the Myanmar Commerce Fair, which was held on 1st and 2nd December at the Yangon Convention Centre.


The kiosks were set up to facilitate company registrations and re-registrations. The booths also displayed the Myanmar Companies Law, the Myanmar Investment Law and Regulations (Myanmar and English versions) and handled visitor queries.

To help implement the Myanmar Companies Law 2017, the MyCO website was opened on 1 August to register and re-register companies. However, the MyCO registry system experienced a traffic overload due to a large number of visitors, resulting in a server error which forced it to shut down temporarily for a few days. The website recommenced on 6 August.

The DICA has set up MyCO kiosks at its head office and regional offices. The kiosks are open to the public, and users who urgently require company filing services can access the kiosks without paying any service fees, according to the DICA.

Under the Myanmar Companies Law, all companies have to re-register on the Myanmar Companies Online (MyCO) system or apply to DICA for re-registration by 31 January, 2019. Companies which fail to re-register will be cancelled from the list of registered companies.

The new Myanmar Companies Law provides exemptions to small companies, allowing such companies to be set up with a single shareholder and a single director.

There will be no extension of company registration and no blacklisting under the new law, which also ensures easier decision-making and shortens the work process. Under the law, small companies no longer need to submit financial reports. It also allows foreigners holding a 35-per cent stake to engage in export/import, get insurance, and take part in the stock market. They can establish a foreign-owned company, if they control more than 35-percent of the stock. Foreign-listed companies can also register as overseas corporations and enter the stock market. However, those businesses will be allowed under the supervision of respective regulators of the stock market.

Out of 70,000 companies in Myanmar, 15,000 are joint ventures between foreign and local companies. To keep pace with the current business environment, the Myanmar Companies Act 1914 was amended, and after almost four years, the Myanmar Companies Law was instituted.

The Myanmar Investment Commission (MIC) has also merged two investment laws into one, trying to make it more secure for both local and foreign investors by setting up some rules and also releasing notifications.

According to the Myanmar Investment Law, Region and State investment committees can endorse investment proposals with a capital of not more than $5 million (Ks6,000 million), to facilitate the verification process of investment projects.

To increase investments in the Regions and States, the MIC has been granting tax incentives to investors, depending on the development status of the States and Regions. The less developed regions (Zone 1) attract income tax exemptions of seven years, while moderately developed regions (Zone 2) enjoy a five-year tax holiday, and adequately developed regions (Zone 3) are exempt for three years.

Additionally, the MIC has prioritised sectors for investment. They include agriculture and its related services, including value-added production of agricultural products, livestock production, breeding and production of fishery products; export promotion industries; import substitution industries; power sector; logistics industries; education services; healthcare industry; and construction of affordable housing and establishment of industrial estates.

The DICA has held events in the regions and states to raise awareness about the Myanmar Investment Law and the Myanmar Companies Law.

GNLM
Ref; The Global New Light of Myanmar

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