How current political situation in Myanmar effected to business and economy system?

The new regime
The Office of the President released Order Number (1/2021) on 1st February 2021 declaring the State of Emergency and the emergency declaration shall remain in force for one year, effective from 1st February 2021 according to Article 417 of the Constitution of the Republic of the Union of Myanmar.
There are various orders, announcements and notifications issued and appeared in the Global New Light of Myanmar (2nd and 3rd February 2021), leading to the establishing of the new regime in Myanmar.
Most of the judges of the Supreme Court and the High Courts of the Regions and States were reappointed and the ruling junta reappointed the new ministers at the relevant government office.
Therefore, some process will not be performed stably. The journalists described that the situation as thousands protest against the military.

Shortage of fuel in the next two months
Myanmar has only two months usage for gas. Imports of fuel (gas & oil) have been suspended and trade and banking have been suspended as the anti-military uprising, which has been raging since the Myanmar military overthrew the legitimate federal government and continues to this day.
Gasoline traders are estimate that oil, which accounts for 98 percent of domestic demand, is the main importer and that there will be a shortage of fuel in the next two months, according to traders.
No more oil tankers arrived. Puma Energy was shut down on 10th February 2021, the trade was suspended until the banks reopened because oil importers could no longer pay their bills due to the closure of all banks.

All banking services have been shut down
All banking services have been shut down, and customs and trade offices can no longer operate on import duties and permits.
Myanmar's economy as a whole has stagnated and departmental offices are running low. Coup administration; the strong impact of the Civil Disobedience Movement (CDM), which is being led by millions of Myanmar people, to shut down all economic mechanisms.

Economic outlook
Amata Corporation, a Thai industrial zone developer, has announced that it will slow down its investment in the industrial zone in Yangon. A senior associated of the company officer told the press online that the current investment of more than 4.5 million will be slowed down.
According to Myanmar’s politics situation, THE MYANMAR TIMES issue the announcement that journals, websites and pages were suspend for three months. Moreover, private banking and most of the government officer participated in Civil Disobedience Movement. As a result, there have been delayed in financial operations in Myanmar.

Risk and difficulties
Due to the changing of enacted laws, reappointment, and administration of ministers since 1st February 2021, there are many ongoing processes with the government authorities have been suspended and most of the government officers have been participating in Civil Disobedience Moment (CDM). Therefore, investors who liaise with the government sectors and the investors who wish to invest in Myanmar are facing many difficulties in communicating with relevant government authorities.
As a result, other processes related to the government would not be able to proceed, apart from online services for some cases. Although the internet system can be used and accessed in limited time, this drawback has still been affecting telecommunication business and some businesses which need to use and rely on internet.
Moreover, the export and import businesses can also be severely affected due to transportation. The cost of foods, fuel and consumer goods will be more pricing, expensive, and scarce.
Thus, under this circumstance, the lack of Rule of Law in country can cause interruption to foreign investment in aspect that the investors may reduce their investments and the remaining investors may also stop their investments in the country later. The employment opportunities will be decreased constantly. Consequently, if there is nothing better, these could be the major

Should you have any further inquiries or require any assistance, please let us know.

Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Htar Su May
Htar@ilawasia.com
Paralegal
ILAWASIA Co., Ltd.

Jessupa Na Pomphet
Associate
Jessupa.N@ilawasia.com
ILAWASIA Co., Ltd.

Vanisha Chaidee
Associate
Vanisha.C@ilawasia.com
ILAWASIA Co., Ltd.

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Updates on Amendments to Thai Copyright Act

A. Latest Process
On September 29, 2020, the Thai Cabinet approved a draft amendment of the Copyright Act to National which has been reviewed by Council of States and submitted Assembly. The House of Representatives of the National Assembly of Thailand has been accepted the principles of the draft amendment of the Copyright Act at the first reading on January 27, 2021. The proposed of an amendment shall be reviewed within 7 days by Select Committee.
Recently, the Select Committee has been appointed the head and other internal positions to consider the draft amendment on January 29, 2021; the second and third meeting was also held on February 3, 2021 and February 10, 2021 respectively.

Key Takeaways
A. Added the definition of “Service Providers” and “Service User” and revised the definition of Technology Protection Measure”
B. Expanded the definition of “service providers”.
The draft amendment defined “Service Providers” as to include an intermediary service provider; a temporary computer data storage service provider; a computer data storage service provider; and a computer data locating service provider.

C. Limited liability of service providers.
Service providers shall be limited liability of copyright infringement as of their services. They must be service providers who announced the cancellation of services for a service consumer who clearly infringes copyright and follows the announced measure. Service providers must provide any of the following services.

• To be provided an intermediary service to transmit computer data through the automatic technic processing that not be an originator who transmit or select a computer data receiver and not alter the content of the said computer data.
• To be provided a temporary computer data storage service which does not alter the content of the said computer data, nor intervene by using technology to obtain information data of a service user, and have a system to keep computer data up-to-date.
• To be provided a computer data storage service that do not know, or have no reasonable cause to know that there is a computer data has infringed copyright on the system or computer network used and immediately remove such data out of the system or computer network or restrict the access to the said data when they know or receive a notification.
• To be provided a computer data locating service provider that do not know, or have no reasonable cause to know that there is a computer data has infringed copyright and immediately remove reference sources or access points to such data out of the system or computer network or restrict the access to the said data when they know or receive a notification.

D. Copyright infringement claims.
The draft amendment aims to protect manufacturers and vendors of devices used for hacking and to boost efficiency in restraining intellectual property violations on the internet and encourage the confidence for copyright owner.
Copyright owners can send a request to internet service providers (ISPs) to remove infringed online materials of copyright from websites without having time-consuming of court proceedings.
Moreover, copyright owners can send notices to such ISPs. After the notices are verified, ISPs have to remove pirated materials and inform the removal to those who posted.
In case of the infringed materials or contents is hosted in overseas, the copyright owner must file the petition to the court. The case will be taken to the court to order the suppression notice to such piracies.

E. Protection of photographic works.
The draft amendment aims to enlarge the protection on photographic work for the lifetime of the creator and for 50 years after his/her death.

F. Protection of audiovisual works, cinematographic works, and sound recordings or broadcastings.
The duration for copyright protection of a work in the form of audiovisual, cinematographic, and sound recordings or broadcastings will be 50 years from the date of creation. However, if such work has advertised during the said period, the protection shall be 50 years from the first advertised.

G. Compliances
This motivation of revision to the Copyright Act shall also make Thailand comply with the WIPO Copyright Treaty (WCT) and increase efficiency for protecting copyright modernizing of the changing of digital technology, including the improvement of the provision of the limited liability of service providers.

What’s next?
The Bill is currently being considered by the Select Committee and expected to be proposed to the House of Representatives for the Second Reading in approximately two months. We will continue to closely monitor and provide following updates on progress.

Should you have any further inquiries or require any assistance, please let us know.

Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

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New Transfer Pricing Regulation

Key Takeaways
On 16 November 2020, the Ministry of Finance announced the Ministerial Regulation on Transfer Pricing No.369 (B.E. 2563 (2020)), titled “Adjustment of Income and Expenses of Taxpayers that Engage in Related-Party Transactions”. According to this Ministerial Regulation, it identifies the rules for Revenue officer to adjust or assess income and expenses of related parties subject to Section 65, Section 70 and Section 70 bis of the Revenue Code.
The related companies or juristic partnerships which settle particular commercial or financial conditions differencing from independent entities are believed to induce a transfer of profits, in case that it meets the following conditions:
❶ Establishing particular commercial or financial conditions which are applied to the related companies or juristic partnerships;
❷ Under the same circumstances, the commercial or financial conditions set forth therein differ from the conditions that could be applied to independent companies or juristic partnerships;
❸ The related parties establish commercial or financial conditions, thereby causing a transfer of profits between them through following mechanisms:

• Providing different prices and terms, or payment methods, for the goods or services;
• Providing different interest rates, financial service fees, or any kind of financial fees;
• Providing a difference in other kind of income or expenses.

The above-mentioned mechanisms are considered by comparing to unrelated party transactions under the same circumstances.

Conclusion
Previously, transfer pricing principle has been exiting in Thailand for several years. Notwithstanding, there may still be some obstacles in practice for the Revenue officers in adjustment or assessment of income of the related parties which could be received, and also expenses incurring among them which could be paid.
Announcement of this Ministerial Regulation No. 369 could be a significant change for transfer pricing law in Thailand as it prescribes the rules and conditions for the Revenue officer on income and expenses which can be assessed. This Regulation refers that the officer could perform adjustment by using an internal comparable approach, or an external comparable approach.

Recommended Actions
It can be seen that transfer pricing law plays a greater role in Thailand. From now on, there will be more laws, regulations, rules or government notifications on transfer pricing to regulate the related party, and establish the criteria for relevant authorities to adjust or handle with the related party transactions.
In the light of business operation, it is therefore recommended for the business which could be regarded as the related parties, or involved with the related party transactions, to prepare for developments of transfer pricing by establishing the business benchmarks to be in accordance with the laws, and prepare the measures to decrease the risks that probably occur.
We will keep on monitoring and share our valued opinions henceforward.

Reference
Ministerial Regulation on Transfer Pricing No.369 (B.E. 2563 (2020)), titled “Adjustment of Income and Expenses of Taxpayers that Engage in Related-Party Transactions” can be access at this link.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Jessupa Na Pomphet
Associate
jessupa.n@ilawasia.com
ILAWASIA Co., Ltd.

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Maintaining the reduced Value Added Tax (VAT) rate at 7 per cent until end of September 2021

In Brief
On 25 August 2020, the Cabinet approved to maintain the reduced VAT rate of 7 per cent for an additional 12 months period of time to 30 September 2021 as proposed by the Ministry of Finance.
The 7 per cent reduced VAT rate is inclusive of local tax and will be applicable to the VAT liabilities incurring from the sale of goods or the provision of services and import transactions.

Key Takeaways
  A. Taxable Person
Any person or entity who regularly supplies goods or provides services in Thailand and has an annual turnover exceeding 1.8 million baht is subject to VAT in Thailand. Service is deemed to be provided in Thailand if the service is performed in Thailand regardless where it is utilized or if it is performed elsewhere and utilized in Thailand.
An importer is also subject to VAT in Thailand no matter whether one is a registered person or not. VAT will be collected by the Customs Department at the time goods are imported. Under VAT, taxable goods mean all types of property, tangible or intangible, whether they are available for sales, for own use, or for any other purposes.

  B. Exemptions

 C. VAT Registration
Any person or entity who is liable to VAT in Thailand must register to be VAT registered person or entity (Application form Phorphor.01 and Phorphor.01.1) before the operation of business or within 30 days after its income reaches the threshold. The registration application must be submitted to Area Revenue Offices if the business is situated in Bangkok or to the Area Revenue Branch Offices if it is situated elsewhere.
Should taxpayer have several branches, registration application must be submitted to the Revenue Office where the headquarters is situated. After registered VAT, the Revenue Department will issue VAT registration certificate (Phorphor. 20). Taxpayers have to display VAT registration certificates at their premises.
 D. Tax Return and Payment
VAT taxable period is a calendar month. VAT return therefore must be filed on a monthly basis. VAT return (Application form Phorphor. 30) together with tax payment, if any, must be submitted to Area Revenue Branch Office within 15 days of the following month. Services utilized in Thailand supplied by service providers in other countries are also subject to VAT in Thailand. In such a case, service recipient in Thailand is obliged to file VAT return (Application form Phorphor. 36) and pay tax, if any, on behalf of the service providers.
In the case where supply of goods or services is also subject to Excise tax, VAT return and tax payment, if any, must be submitted to the Excise Department together with Excise tax return and tax payment within 15 days of the following month. In case of imported goods, VAT return and tax payment must be submitted to the Customs Department at the point of import.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

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Operating Trade Import and Export Company in Lao PDR for the Local Investor (Lao National); and Operating a Distribution Company in Lao PDR for an International Investor (Foreign Investor)

The Processual for Operating the Trading Import and Export Company in Laos
To establish and operate the business in Laos, the local investor will have to register the Business license there is no provisions for the chartered capital. After that local investor will have to get registration of the Taxpayer Identify Number at the Tax Department, they do not have to get the Permit License from the Internal Trade Department.

① Get the Business License

A. Process
The process takes not more than 30 business days from the date of receiving the application. The procedure and time limit for considering the registration of an enterprise shall be as follows:
1) To file a notification to the Department of Industry and Commerce in accordance with the classification considered in Article 9 of the Decision No. 0023/MOIC.DERM
2) Upon receipt of the document, the registrar of the enterprise must check the accuracy of the document as specified in Article 12 of the Decision No. 0023/MOIC.DERM to be completed within one hour and immediately respond to the applicant in each case as follows:
2.1) Documents are complete and correct; the registrar of the enterprise must provide a receipt to the applicant. The receipt of the document must include the date, the date of receipt of the application and the date of the appointment to receive the enterprise registration no later than the official date from the date of receipt of the receipt.
2.2) Incomplete or inaccurate documents, the registrar of the enterprise shall notify the applicant immediately and recommend to correct by pointing out the points that need to be corrected and sign the instructions in the document. After the revision is complete and correct, the application will be in the process as specified above.

B. Mandatory documents
When attending the office to register a business, you should bring three copies of the following documents:
1) A completed business application form for the type of business you wish to register;
2) A photo copy of your Passport or ID card or Family Identity Book;
3) An Investor CV (for foreign investors);
4) A color photo of the Director or Manager of the business (3cm x 4cm size, taken within 3 months of application).

C. Fees
Enterprise registration for Lao people does not specify the amount of chartered capital and the cost of registering a business is dependent on the type of legal entity as follows:

In addition to the registration fee there is a Capital Registration Fee based on the amount of capital being invested, as per the table below:

② Seal
The Seal of the company must be issued by the Ministry of Lao Public Security
A. Procedure time: The officer will give the receipt to the applicant and the process takes 5 business days from the date of receiving the document.
B. Mandatory documents: a copy of Business License
C. Fees: 130,000 Kip (or 14 USD)

③ Get the Register of the Taxpayer Identification Number
When the Business license has issued, the taxpayer identification number will be there and the foreign investor must see the Tax Department.
A. Procedure time: 2 business days
B. Mandatory documents: a copy of all of the document from the Enterprise Registration and Management Department
C. Fees: 20,000 Kip (or 2.14 USD)

The Processual for Distribution Company in Laos for the Foreign Investor
The foreign investor has to get the Business license at the Enterprise Registration and Management Department. Once the business license has issued, the foreign investor must see the Department of Internal Trade to obtain the Permit License. The process for obtain the Permit License are as follows:
A. Procedure time: 7-10 business days
B. Mandatory documents:
1) Submit the Permit License application which provided by the Department of Industry and Handicraft, Department of Internal Trade, Department of Import and Export;
2) A set of the Original or the copy of Business License;
3) A set of the Original or the copy of the application of business license guideline
C. Fees: 100,000 Kip (or 11 USD)

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.

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Government Announced a New Legislation on Building for Energy Conservation

In Brief
A. Repeal of law
On November 12, 2020, Government Gazette announced “Ministerial Regulation Prescribing Type or Size of Building and Standard, Criteria and Procedure in Designing Building for Energy Conservation B.E. 2563 (2020).” The regulation repeals previous regulation published in 2009, and mandates an energy-efficient design for building with a total area in all stories of 2,000 square meters or more.
B. Effective date of current law
This Ministerial Regulation shall be enforced after the lapse of one hundred and twenty days from the date of their publication in the Government Gazette onwards, which is on March 12, 2021.

Key Takeaways
A. Categories of buildings
For the construction or modification of the following buildings, if the total area of all floors within the same building is from 2,000 square meters upwards, such buildings must be designed for energy conservation under these Ministerial Regulations:

B. Standards and Bases Respecting Designing of Building

Transitory Provisions
On a grace period, this ministerial regulation shall not be executed for such buildings:

The construction or building modification that already filed for permission or reported for the construction, modification or change of usage under the law governing building control, or as permitted by the specific law governing such, or filed for environment impact assessment by promotion and conservation of national environmental quality law, prior to the effective date of these Ministerial Regulations, shall be exempted from compliance under these Ministerial Regulations.

Reference
Ministerial Regulation Prescribing Type or Size of Building and Standard, Criteria and Procedure in Designing Building for Energy Conservation B.E. 2563 (2020) can be accessed at this link.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Vanisha Chaidee
Associate
Vanisha.C@ilawasia.com
ILAWASIA Co., Ltd.

by wris

Ministerial Regulation prescribing rates of fees for registration, inspection of documents, certified copies of documents and other fees in relation to partnerships and limited companies B.E. 2563

In Brief
A. Repeal of law
The Ministerial Regulations prescribing rates of fees for registration, inspection of documents, certified copies of documents and other fees in relation to partnerships and limited companies, B.E. 2561 (2018) shall be repealed.
B. Effective date of current law
Government Gazette announced new law on 29th December 2020 named “Ministerial Regulation prescribing rates of fees for registration, inspection of documents, certified copies of documents and other fees in relation to partnerships and limited companies B.E. 2563 (2020).” It shall be effective on 1st January B.E. 2564 (2021).

Key Takeaways
A. Fees shall be prescribed as follows:

B. Reduction and Exemption of Fees
Fees according to (1) (2) (3) (4) (5) and (6) shall be reduced by fifty per cent for application filed for partnerships or limited companies via the e-Registration portal. This reduction will be applicable from the date of the entry into force of this Ministerial Regulation until the 31st December B.E. 2566 (2023).
Fees according to (8) (9) (10) (11) and (12) shall be exempt for government agencies.

Remarks
Applications filed during the approval process at the time this Ministerial Regulation entries into force shall be applied according to this Ministerial Regulation.
The provisions of any laws pertaining to the rates of fees shall be superseded by the rates of fees as prescribed under this Ministerial Regulation.

Reference
Ministerial Regulation prescribing rates of fees for registration, inspection of documents, certified copies of documents and other fees in relation to partnerships and limited companies B.E. 2563 can be accessed at this link.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
somphob.r@ilawasia.com
ILAWASIA Co., Ltd.

by wris

Government relief measures on holding Annual General Meeting (AGM) of Juristic Person under COVID-19 situation

Somphob Rodboon

Managing Partner
somphob.r@ilawasia.com
ILawAsia Co., Ltd.

Nattaya Mahakunakorn

Associate
nattaya.m@ilawasia.com
ILawAsia Co., Ltd.

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Myanmar Government Implements Economic Relief Measures

Myanmar Government Implements Economic Relief Measures

11 May 2020

The Myanmar Government on 27 April 2020 released its COVID-19 Economic Relief Plan (CERP), which aims to mitigate the inevitable economic impact posed by COVID-19. The CERP’s seven Goals for responding to the crisis, each with detailed Action Plans, will impact all aspects of economy – from international trade and investment to private households and employment.

The seven Goals set out in CERP are as follows:

1. Improving the macroeconomic environment
2. Easing the impact on the private sector through improvements to the banking, investment and trade sectors
3. Easing the impact on laborers and workers
4. Easing the impact on households
5. Promoting innovative products and platforms
6. Strengthening the health-care system and
7. Increasing access to the COVID-19 response financing including contingency funds

Key Action Plans of each Goal are briefly as follows:

1.Improving the macroeconomic environment

• Lower interest rates (by at least 3.0%) and lower minimum reserve requirement on banks have recently implemented by Central Bank of Myanmar (“CBM”).
• The CERP also prescribes that the CBM shall conduct credit auctions as necessary to inject more liquidity into the banking and financial sector.

2.Easing the impact on the private sector through improvements to the banking, investment and trade sectors

• Providing MMK 100 billion 1-year working capital loans to improve working capital of affected Myanmar Small and Medium Enterprise (“MSMEs”) in the CMP and hotel/tourism sectors at 1% interest rate per annum.
• Defer corporate income tax and commercial tax payments, due in March and June 2020, to September 2020
• Waiver of the 2% Withholding Tax on exports
• Exemption of customs duties, commercial tax, and specific goods tax imposed on the importation and distribution of medical supplies and products related to the prevention, control, and treatment of COVID-19
• Three- to six-month exemption from lease fees for impacted firms that have leased state-owned factories for manufacturing, and that have made regular payments in the past three months
• Permission for commercial banks to restructure and reschedule existing loans extended to SME businesses for longer repayment periods (up to a maximum of three years)
• Waiver of import licensing and FDA requirements, as long as the products are FDA approved in another country

3.Easing the impact on laborer and workers

• Extending healthcare benefits for unemployed social security members from six months to 1 year from the date of unemployment and medicine and travel benefits from six months to 1 year from the date of unemployment.
• Implementing labor-intensive community infrastructure projects for those laid off, or returning migrants.

4.Easing the impact on households

• Electricity tariff exemption
• Unconditional cash and in-kind transfers for vulnerable households
• Emergency rations through community-based food banks and association
• Negotiation with private financial institutions to give more flexibility related to interest and mortgage payments for households which are most negatively affected by the COVID-19 pandemic

5.Promoting innovative products and platforms

• Promoting the use of available mobile payment services and usage of e-Commerce and Social-Commerce Systems

6.Strengthening the healthcare system

• Immediately extending and improving quarantine centers/facilities
• Immediate importation of key medical products
• Improving preventive measures and health sector human resource capacity
• Upgrading existing health facilities

7.Increasing access to the COVID-19 response financing including contingency funds.

• Reallocation of Myanmar’s 2019-20 budget as much as practically possible up to 10% from all government entities to the COVID-19 Fund
• Improve budget flexibility and responsiveness through modernization of budget reallocation rules
• Increase access to COVID-19 -related development financing through acquiring significant increases in external development finance

The CERP also establishes clear and specific assessment indicator for each Action Plan. The form and content of the CERP suggest that Myanmar is well on its way to becoming a regular player on the stage of world economy. For businesses, Myanmar is certainly one to watch.

THE AUTHORS

by wris

Company new Registration under Myanmar Law

Since Union of Myanmar has decided to promulgate the new Myanmar Company Law (“MCL”) on 1st August 2018, there are some issues that have to be concerned by an investor whose company is incorporated under the previous law (Myanmar Company Act. 1914)

• The companies that were incorporated under the previous law have to be re-registered under the MCL.

The New Myanmar Company Law requires all existing companies to be re-registered with the Directorate of Investment and Business Administration ("DICA") under the provision of the MCL from 1 August 2018 and no later than 31 January 2019; otherwise the company may be revoked from the record.

However, DICA has prepared an online system called Myanmar Company Online System (“MyCO”) to support all entrepreneurs who owned a company or willing to incorporate their company in Myanmar. MyCO will start to be operated on the same day of the promulgation of the MCL.

• Amending some of the significant rules.
  • MCL let the foreign investors to invest in local company up to 35 percent.

  Under the previous law (Myanmar Company Act. 1914), all Local Company are defined as (a company) 100% owned by Myanmar Citizen. Therefore, the foreigner is not allowed to participate in the ownership of the local register company.
  Therefore, any citizen of another nationality wishes to incorporate a company to manage his business in Myanmar, must establish his own company as a foreign company as his right may be limited by any applicable law.
  Nevertheless, the MCL will come up with alternation of definition for the foreign company as a company that is directly or indirectly owned by foreigners for more than 35 percent which mean the foreigners can hold up to 35 percent of local company’s shares and still be defined as a local company.

  • Qualification of the shareholders and directors

  MCL states that every company must have at least one shareholder and director and at least one of the directors must be “ordinarily resident” which mean a person who is a permanent resident of the Union under an applicable law or is resident in the Union for at least 183 days in each 12 month period commencing from the date of commencement of the MCL for the company registered under the previous law, and from the date of registration of the company for the company registered under the MCL.

  • Revocation of company’s object

  According to the previous law, every company must declare its object in the Memorandum of Association. This object determines the company's authority to make or take an action on other people or companies.
  The company must not undertake or perform actions that exceed their object of being registered with the registrar. However, the new MCL will revoke this objective requirement by defining that the company registered in MCL will no longer have to declare its object.
  Therefore, the company will have the power to performance any kind of commercial activity provided that it complies with this law and any other applicable law.

  • The replacement of Memorandum and Article of Association

  Previously, the Memorandum and the Article of Association are significant documents that must be filed with the conservator of the company during the registration process. The MCL does not require applicants to file these documents, but only have to file the company's Constitution during the registration process.
  The Company's Constitution is a document that establishes the administrative rules of the company. Furthermore, the Constitution determines a relationship between shareholders, directors and other members of the company.
  In conclusion there are two important steps that must be made by entrepreneurs who have owned or own a company in Myanmar
  First, they must try to understand to comply with the law, so that they can properly manage their business for their best interest of the company.
  Secondly, they have to re-register their company to the DICA before 31 January 2019. Otherwise, their company ( and business ) could be revoked.

by wris