Myanmar to pass new company law

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Yangon fogMyanmar plans to pass a new company act by the end of 2014 that aims to “improve transparency and update rules governing the operations of companies in Myanmar,” it emerged at the Myanmar Global Investment Forum held in Naypyidaw on September 10 and 11.

Myanmar official also said they want to ensure that the needs of its local firms are not neglected. The government is therefore working with the Asian Development Bank to draw up a revised company act. The current act has been in existence since 1914 and has not been revised for the last 99 years.

One key change – to draw up precise criteria to determine whether to label a company local or foreign, based on its management board makeup.

Aung Niang Oo, director-general of the Directorate of Investment and Company Administration at the Ministry of National Planning and Economic Development, said: “We are trying as early as possible to revise this law so that there will be a better business environment in Myanmar.”

Myanmar corporations applauded the coming of a new law, and said it was long overdue, adding that the revised legislation will have a huge impact on doing business in the country.

Serge Pun, chairman of Serge Pun & Associates, said: “This is one area which is sorely needed because a lot of attention over the last two years have been about FDI, foreign investors, foreign companies coming into Myanmar. I think it’s time for the authorities to revisit and see how we can actually help the Myanmar companies at the same time, probably even more than ever to raise up their capacities, augment their capabilities.”

Currently, local firms shy away from partnering with foreigners for fear they will be subject to laws governing foreign investments. However, the new law might now encourage more Myanmar companies to form strategic partnerships with international investors.

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Reading Time: 2 minutes

Myanmar plans to pass a new company act by the end of 2014 that aims to “improve transparency and update rules governing the operations of companies in Myanmar,” it emerged at the Myanmar Global Investment Forum held in Naypyidaw on September 10 and 11.

Reading Time: 2 minutes

Yangon fogMyanmar plans to pass a new company act by the end of 2014 that aims to “improve transparency and update rules governing the operations of companies in Myanmar,” it emerged at the Myanmar Global Investment Forum held in Naypyidaw on September 10 and 11.

Myanmar official also said they want to ensure that the needs of its local firms are not neglected. The government is therefore working with the Asian Development Bank to draw up a revised company act. The current act has been in existence since 1914 and has not been revised for the last 99 years.

One key change – to draw up precise criteria to determine whether to label a company local or foreign, based on its management board makeup.

Aung Niang Oo, director-general of the Directorate of Investment and Company Administration at the Ministry of National Planning and Economic Development, said: “We are trying as early as possible to revise this law so that there will be a better business environment in Myanmar.”

Myanmar corporations applauded the coming of a new law, and said it was long overdue, adding that the revised legislation will have a huge impact on doing business in the country.

Serge Pun, chairman of Serge Pun & Associates, said: “This is one area which is sorely needed because a lot of attention over the last two years have been about FDI, foreign investors, foreign companies coming into Myanmar. I think it’s time for the authorities to revisit and see how we can actually help the Myanmar companies at the same time, probably even more than ever to raise up their capacities, augment their capabilities.”

Currently, local firms shy away from partnering with foreigners for fear they will be subject to laws governing foreign investments. However, the new law might now encourage more Myanmar companies to form strategic partnerships with international investors.

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