| 1. |
Registration of Business Organizations
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| |
Operation in Myanmar can be carried out through
one of the following business organizations. |
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1. |
Partnerships |
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2. |
Companies limited by
shares. i.e. joint venture companies; local companies; foreign
companies. |
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3. |
Branch or Representative
offices of a foreign company |
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4. |
Associations not for
profit
|
| 2. |
Partnerships |
| |
A group of individuals
may enter into partnerships in order to carry on a business.
The partnership’s rights and obligations are based on the
agreements between the partners and the Partnership Act of 1932.
In accordance with the Act, the number of partners is limited
to twenty. A partnership firm may be registered, but registration
is not compulsory. All partnerships formed in Myanmar are of
unlimited type. When no provision is made for the period of
time, the partnership will be dissolved when all partners are
willing to do so.
|
| 3. |
Companies Limited
by Shares |
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- |
A company limited by
shares is required to register. |
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For foreign enterprises,
the most normal method of doing business in Myanmar is through
a limited company. Such a company could be a foreign company
registered in Myanmar or by means of a branch office or representative
office of a company formed outside Myanmar. If one share is
owned by a foreign partner, the company shall come under the
definition of a foreign company, and shall apply and obtain
a Permit before registration. |
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- |
There are two main types
of companies: a private limited liability company and a public
limited liability company. |
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In a private limited
company, the transfer of shares is restricted, the public cannot
be called upon to subscribe for shares, and the number of members
is limited to fifty. |
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In a public limited liability
company, the number of shareholders must be at least seven.
The company, after registration, must apply for a Certificate
of Commencement of Business to enable start the business operation. |
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The governing law for
the limited companies is the Myanmar Companies Act 1914. A company
with share contribution of the State shall be registered under
the Special Company Act 1950 and the Myanmar Companies Act 1914. |
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There are generally no minimum share
capital requirements. However, minimum requirements do exist
for banking and insurance companies and foreign companies and
branches of all business. For foreign companies and branches,
the minimum capital to be brought in are as follows: |
| |
|
- Industrial company - foreign
currency equivalent to K. 1,000,000.
- Services company - foreign currency equivalent to K. 300,000.
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| 4. |
Documents required for registration |
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Under section
27A of the Myanmar Companies Act, a foreign company whether
a hundred percent owned or a joint-venture and a branch/representative
office is required to obtain a PERMIT before registration. However,
a joint-venture with the State equity joined under Special Company
Act 1950 is exempted from obtaining a PERMIT. |
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