31 January 2018
Myanmar’s new Companies Law, which was enacted by the Union Parliament on 6 December 2017, will commence on 1 August 2018. This commencement date was announced by the Directorate of Investment and Company Administration (“DICA”) in a press statement issued on 14 December 2017.
DICA anticipates it will take approximately seven months to implement the new Companies Law, including the preparation of new forms and regulations, and the establishment of a new electronic companies registry.
The Companies Law replaces the current colonial-era Myanmar Companies Act, which dates from 1914. It will remove the antiquated requirements currently in place, such as requiring companies to seek presidential approval to change their names. Among many other changes, the Companies Law removes the requirement for companies to have at least two shareholders and for setting out the objects of the company, and amends the definition of a local company to allow foreign investors to hold an ownership interest of up to 35%.