The nationalization of the insurance companies act 1951 p. Citation and commencement of this law and definitions a this law shall be called the myanmar companies law. It also stipulates that businesses with foreign stakes of more than 35pc will be classified as a foreign company. All the preparations to apply the law should be completed before next august. New myanmar companies law sent to parliament for final approval. Below is a summary of the changes to key compliance matters. In late november 2017, the myanmar parliament approved the new myanmar companies law. Power to set aside contract induced by undue influence. A must limit the number of its members to fifty not including persons who are in the employment of the company. Burmamyanmar laws, decrees and regulations state law and.
Myanmar companies law 2017, pyidaungsuhluttaw law no. What considerations and objects are lawful and what not. Companies registered under the fil are treated as resident companies. Myanmar companies law english and burmese version from dica pdf 1. The companies law brings about sweeping changes to the regulation of companies in myanmar. This new law is intended to be consistent with international best practice and replace the old myanmar companies act of. Local companies can have up to 35% foreign shareholding previously, the mca defined a foreign company as any company which has at least one or more shares owned and controlled by foreign persons. Myanmars upcoming new companies act and revised foreign investment law.
A myanmar company has to be 100% owned and controlled by myanmar citizens and the approval of the regulator, the directorate of investment. Myanmar authorities will introduce a new companies law, replacing the companies act of 1914, from aug. In the interim period till commencement date, the mca remains in effect. The latter act came into force on the 15 th january 1937. It will govern the registration, ownership, management and internal affairs of all companies in myanmar. Prohibition of partnerships exceeding certain number 5. The state law and order restoration council the law amending the myanmar companies act the state law and order restoration council law no. The new law has been signed and approved by myanmar president htin kyaw on december 6, 2017, replacing the countrys centuryold companies act, which had been in place since 1914. The legislation will replace a colonialera myanmar companies act from 1914 which is replete with antique stipulations companies have to seek presidential approval to change their names, and court approval to change business objectives. The new myanmar companies act will come into force on august 1, 2018. Agreement void where both parties are under mistake as to matter of fact. In 20 the department of investment and company administration dica of the ministry of national planning and economic development with the assistance of the asian development bank started to draft the myanmar company law mcl. A private company can be incorporated with a minimum of one shareholder and one. Being the longawaited settingscene of myanmar companies, it is the setting which the newlypromulgated myanmar companies act, 2017 will bring about.
Myanmar launches new companies law to adapt to current age. Under the companies act 1914, companies incorporated in myanmar are either classified as a myanmar company or a foreign company. Mlmb covers every law included in burma code, in addition to every myanmar law enacted since 1948 when myanmar became independent. Aug 01, 2018 the myanmar companies law 2017 companies law is in force as of 1 august 2018. Contract caused by mistake of one party as to matter of fact. Dica also serves as a secretary to the myanmar investment commission mic, which is the responsible body for investment applications. Myanmar companies law english and burmese version from dica download the file. The burma companies act india act vii, 19 1st april, 1914 part i. Myanmar companies act, 2017 of great virtues global new.
Moreover, it translated laws into english and published in three volumes as myanmar laws 19881989, myanmar laws 1997 and myanmar laws 19981999. Dec 11, 2017 myanmars new companies law on december 6, 2017, myanmars president u htin kyaw approved the new myanmar companies act, 2017, replacing the countrys centuryold companies act of 1914. Part i commencement and definitions division 1 name, commencement and definitions 1. The president of the union of myanmar signed the myanmar companies law the new law on 6 december 2017. In mldb, myanmar laws which are categorized according to year of issue and area of laws are available. Myanmar in which an overseas corporation or other foreign person or combination of them owns or controls, directly or indirectly, an ownership interest of more than 35% opens way for foreign minority participation in real estate companies, trading companies, banks, insurances, listed companies but administrative practice. The myanmar companies act 19 contents part i preliminary sections 1. Under the new myanmar companies act, foreigners will be permitted to take up to a 35 percent stake in local companies. Contains provisions from the companies act 1914 and the.
A guide to the myanmar companies law 2017 download pdf share via email share via linkedin join our mailing. In this newsletter, we have outlined certain key developments in this new law. Myanmar companies act an important key to transforming the. The introduction of the mcl is part of a broader legislative initiative to bring myanmars company law into. Jurisdiction of the courts part ii constitution and incorporation 4. Myanmar has instituted a new companies law after amendment of its outdated companies act 1914 to adapt to the current age, registering an important milestone with its measures of promoting foreign investment.
Overseas corporation overseas corporation means a company incorporated outside myanmar. Key compliance matters previous law new law notify registrar for issuance of share within 1 month within 21 days s. The directorate of investment and company administration dica is in charge of handling company registrations for local and foreign businesses under the myanmar companies law. Guide to the myanmar companies law berwin leighton. Myanmars new companies law myanmar business network. The new law aims to change the way companies are regulated in the country. Vdb loi five potential pitfalls in the myanmar companies law.
The myanmar directorate of investments and company administration dica has announced that a draft of the new myanmar companies act is to be published shortly. Draft of new myanmar companies act to be published. Myanmar companies law english and burmese version from dica. The details of implementation will be further announced under new notifications, and expected to be in force in mid2018. Myanmar companies act previous law as it provides more clarity and details about consequences of different types of noncompliance. Companies act of 1914 to be replaced mizzima myanmar news. The mcl which replaced the outdated myanmar companies act 1914 mca was drafted with a view to encouraging foreign direct investment in myanmar as well as foreign participation on the yangon stock exchange ysx.
Corporate bond market cambodia has issued a series of regula ons to. Companies law english and burmese version from dica pdf 1. Implementation of the companies law will be postponed until august 2018. On 6th december 2017, the myanmar companies law 2017 mcl was passed to replace the myanmar companies act 1914 mca in order to modernize the current legal structures of companies and enhance foreign investment in myanmar. This issue myanmar laws2000 is theconinuation of the publication mentioned above. Further, the template memorandum and articles of association of the directorate of in. Selected judgements of lower burma 18721892 printed judgements of lower burma 18931900. Another characteristic of the new act is that foreign investors have the right to possess 35 percent shares and simultaneously they will have rights to sell their shares at the yangon stock exchange. Amcc, australia, australia myanmar chamber of commerce, australian government, burma companies act, chief executive of australian, citizen investment law, company administration, directorate of investment, fdi, foreign investment law, investment in myanmar, jodi weedon, myanmar centre for responsible. More than 77 businessrelated laws and 149 regulations are translated in english. The burma companies act as then in force in the union of. The burma companies act india act vii, 19 1 april, 1914.