Setting up a company does not mean that it is the end of all your troubles; rather, it can be considered as the beginning of a long and arduous journey. There are many things which need to be done by the responsible owner of the company or else the company may have to have to face specific drastic results. These decisions should be taken as early as possible after setting up a company in Myanmar as these steps will not only affect them but will also have a significant impact on the shareholders of the company.
Let’s first try to understand the present economic situation of Myanmar.
Present Economic Condition
The Asian Development Bank (ADB), states that Myanmar will grow economically at a steady rate for at least the next two years. The abundance of natural resources, free availability of raw materials and availability of cheap workforce will allow the country to strike new partnerships with foreign companies and find new and innovative ways to bring in Foreign Direct Investments in the country. As of now, Myanmar is ranked 171 among 190 countries in ease of doing business by The World Bank, which is mostly due to lack of infrastructure. Performing company registration in Myanmar at this point would be very attractive as the Government of the country is already taking steps to improve the condition of the economy. At present, the economy of Myanmar is steadily increasing and is expected to grow further as there will be a massive inflow if FDI.
Now let’s have a look at the various steps which need to be taken after successful incorporation of a company in Myanmar:
Steps to be Taken after Myanmar Company Incorporation
After the setting up of a company in the country, the company must follow the rules and regulations as described in the Myanmar Companies Act 1914. These regulations are as follows:
- The first and foremost activity to be done is to introduce 50% of the total capital allocated for the business to your company.
- Within one month of the share allotment date, all the company must get themselves registered for the total allotment of shares. This Myanmar company registration will cost them 2,500 kyats.
- The management of the company needs to submit a list of all the shareholders and directors of the company. This list would not only consist of the names of the director and shareholders but will also contain other details like address, education etc. In case there is a change in the circumstances of the directors, managers, or managing agents of the company, the changes should be notified to the relevant authorities within 14 days of the appointed date or 14 days from when the changes have occurred.
- After the company is officially registered, it is necessary for a company to make a letterhead and an official seal for the company. The Seal should have the name of the company etched in easily readable characters.
- The companies should inform the concerned authority about their registered offices and the correspondence address of the company. This information should be submitted to DICA, and in case of any change in the address, the changed address should be notified to DICA within 28 days of making the change.
- All the employees of the company and the company, on the whole, must register itself for taxation and social security with relevant authorities.
- Whenever the company passes a different or unique resolution within the company, it is required that the company duly informs DICA of this resolution within 15 days from the date the decision is set.
- A foreign company is required to submit all the financial statements and the books of accounts of the representatives’ office and the headquarters of the company along with the comprehensive annual reports for every fiscal year.
- Companies should hold the AGM within 18 months of the date of incorporation and should conduct the AGM once every calendar year within 15 months of the previous meeting.
The steps mentioned above should be kept in mind by every businessman and entrepreneur who is all set on incorporating a company in Myanmar. Having a plan will give a purpose to the company after its setup and will assist you at all times. If you are looking for a helping hand which will provide the answers that your business requires, then you should avail the services of Business Setup Worldwide.
Business Setup Worldwide will help you to establish your business in Myanmar and will provide you with the various services that are required both before and after the setting up of a business. BSW also offers several other services such as company secretarial services, intellectual property services, etc. which would help you and your business in the future. For any help or assistance do contact us, we will be glad to assist you.