Myanmar Directorate of Investment and Company Administration instructs companies to open corporate accounts for financial transactions
7 December 2021
On 22 November 2021, the Myanmar Directorate of Investment and Company Administration (“DICA”) issued Directive No. 136 of 2021 stipulating that companies and organisations established under the Myanmar Companies Law (“MCL”) must open corporate accounts in their name to carry out financial transactions.
The Directive explains that it has come to light that companies have been utilising their directors’ bank accounts for financial transactions rather than opening a corporate account. Section 5(a) of the MCL provides that a company is a legal entity in its own right separate from its members, having full rights, powers and privileges. Every company is therefore required to have a corporate account.
The Directive applies to all companies and organisations registered with DICA.