December 13, 2024
INCORPORATION OF PUBLIC LIMITED COMPANY IN MYANMAR
INTRODUCTION
Myanmar, with its growing economy and key location, presents significant opportunities for companies seeking to establish a foothold in Southeast Asia. For extensive operations aiming to secure funds and establish trust, forming a public limited company in Myanmar is an exciting choice.
UNDERSTANDING A PUBLIC LIMITED COMPANY IN MYANMAR
A public limited company in Myanmar is a legal organization that can sell shares to the public. It is perfect for companies looking to secure substantial funding and grow their operations.
Key features:
- Minimum Shareholders and Directors: A minimum of 7 shareholders and 3 directors is necessary, with at least one director being a Myanmar national living in the country.
- Capital Access: Capacity to release shares and obtain public financing.
- Limited Liability: The liability of shareholders is confined to the unpaid portion of their shares.
LEGAL FRAMEWORK
Public limited companies in Myanmar are governed by the Myanmar Companies Law (2017) and regulated by the Directorate of Investment and Company Administration (“DICA”).
Benefits:
- Improved trustworthiness with stakeholders.
- Chances for expansion and adaptability via public listings.
- Protection from limited liability for shareholders.
KEY REQUIREMENTS FOR INCORPORATION
- Shareholders and Directors: A public limited company is required to have at least 7 shareholders and 3 directors. At least one director should be a citizen resident of Myanmar.
- Capital Structure: Detail the authorized and fully paid capital, ensuring adherence to industry-specific limits.
- Registered Office: The business is required to maintain a registered office address in Myanmar.
STEPS TO FOLLOW FOR THE INCORPORATION
- Use the Myanmar Companies Online, online platform to file name reservation requests.
- Adhere to naming standards to prevent denial (e.g., distinct names, not deceptive or banned).
- Memorandum of Association (MOA): Detail goals, ownership structure, and member responsibilities.
- Articles of Association (AOA): Specify governance and operational regulations.
- Additional Documents: Provide information on directors and shareholders, identity verification, and the Compliance Statement.
- Register for an account on the MyCO portal and submit all necessary documents.
- Submit the registration fee (amount varies based on share capital).
- Wait for the approval and release of the Certificate of Incorporation.
- Establish a bank account with a bank located in Myanmar.
- Submit the necessary paid-up capital prior to starting operations.
- Enroll with the Internal Revenue Department (IRD) to obtain a Taxpayer Identification Number (TIN).
- Make sure to adhere to corporate income tax, commercial tax, and any other relevant taxes.
- Acquire extra permits for companies in regulated fields such as telecommunications, banking, or energy.
CONCLUSION
Establishing a public limited company in Myanmar is a strategic decision for firms aiming to expand operations and obtain public capital. Although the procedure consists of several stages and regulatory requirements, the advantages—including credibility, capital access, and limited liability—significantly surpass the challenges.
HOW WE CAN HELP?
- Our experts can provide comprehensive guidance on Myanmar’s regulations, ensuring full compliance with the Myanmar’s legal framework for businesses.
- Our specialists can offer expert advice on Myanmar’s tax regulations and ensure the compliance with respect to the same.
- Our specialists can assist in drafting and preparing all required documents.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
