New Companies Act: To Reduce Some Burdens For SMEs & Develop Corporate Governance

New Myanmar companies act will ease some burdens for SMEs enterprises, develop corporate governance as well as promote the growth of capital market, according to DICA.

The  current  Myanmar  Companies  act,  which  served  as  the  legal  foundation  for  incorporated business  in  Myanmar,  was  enacted  in  1914,  resulting  some  provisions  are  inconformity  with the current situation, according to DICA.

DICA  also  added  that  the  new  draft  of  Myanmar  Companies  Act  will  not  only  simplify  the procedure  for  corporate  business  but  also  promote  collaboration  between  Myanmar  company and foreign firms, as well as facilitate foreign investment in capital market, especially YSX. 

DIRECTOR  GENERAL,  DICA,  AUNG  NAING  OO:  "...  If  we  look  at  the  exiting  Myanmar companies act which was actually promulgated in 1914,... So some of the provisions are not in line with the current situation.... Our idea is not drafting a new law, but based on the existing law, we have  upgraded some of the provisions  to be in line  with the current  situation and to help,  promote  the  SMEs  and  small  companies  in  Myanmar.  Also  there  will  be  more  focus  on the corporate governance in the country.... 

Official  of  UMFCCI  said  the  new  company  law  will  really  help  some  foreign  companies  to  do business  in  Myanmar  and  local  companies  can  promote  their  business  in  collaboration  with their foreign counterparts. 

JOINT  SECRETARY  GENERAL,  UMFCCI,  AYE  LWIN:  We  welcome  this  new  draft  Myanmar companies  act  as  it  will  ease  in  doing  business  corporation.   I  think,  it’s  really  supportive  for us.  But even though we have many benefits, it should be involved some regulations to protect local  entrepreneurs,  as  well  as  it  also  need  to  create  fairground  conditions  for  the  foreign entrepreneurs. And we need to strengthen law enforcement. 

 DICA  hopes  to  submit  this  new  proposed  Myanmar  Companies  Act  to  Parliament  within  two months, with the expectation to be able to enact within this year.