Directorate of Investment and Company Administration (DICA) is currently unable to approve registration and re-registration of companies through online system as most of the companies have incomplete data, said its director U Myo Min. Under the new online registration system, the DICA will approve the online registration only when companies can fill required facts correctly. Although the DICA is conducting educative program through its website and TV channel, the majority of applicants still fail to follow the guidelines. The system occurred technical error on 1 August this year, when the online registration system was launched, as many people used it simultaneously. Therefore, the DICA approved only three companies on the first day. The DICA’s website became active again on 6 August. Until 10 August, the number of local and foreign companies which have made online registration has reached 591. However, nearly 1,000 companies are under scrutiny. The DICA phoned some companies which did not get approval.
Source- Myanmar Times
The government will install a new vehicle licensing system under which a new domestic operator license will be issued to firms or individuals who own and operate vehicles for commercial purposes. The new system is expected to streamline and improve the existing transportation system in Yangon. Express bus operators and other vehicles used for tourism will be required to apply for the domestic operator license. Specific licenses for individuals, companies and associations will be issued. From January onwards, to qualify for a permit to drive across Myanmar’s borders, the owner must first have a domestic operator license, and that license will be available to qualified Myanmar citizens. Foreigners are not eligible for the license.
The Directorate of Investment and Company Administration (DICA) issued five notifications (56,57, 58, 59,60/2018), under the Myanmar Companies Law 2017, on 9 and 10 July 2018. Those notifications state requirements for public companies and business associations, prescribed fees and late lodgment fees, prescribed forms for an instrument of transfer for shares or other registrable interests in a company, prescribed form of model constitution for a private company limited by shares, which will come into effect from 1 August 2018.
The Myanmar Companies Online (MyCO) registry system will commence service on 1st August 2018 with the enforcement of the Myanmar Companies law 2017. All registered Companies and other entities under the Myanmar Companies Act 1914 and Special Company Act 1950 will be required to re-register on (MyCO) registry starting from 1st August 2018 to 31st January 2019 during the 6 months re-registration period. Re- MMRD | Bi – Weekly Bulletin 7 registration can be completed electronically online or in person at the offices of the Directorate of Investment and Company Administration, using the prescribed forms for reregistration without any fees.
The Ministry of Planning and Finance released its latest notification (47/2018) on withholding tax, which replaces notification (51/2017) released on May 22, 2017. Effective July 1, an existing 2% withholding tax will be abolished on residents for payments involving cooperative business with the government, partnerships, joint ventures, companies, registered associations or organisations, cooperative societies, foreign companies, foreign enterprises involved in the purchase of goods and for work performed or services rendered within the country under a contract. Local small and medium enterprises and companies will also be exempt from paying the 2% withholding tax. However, Payments by state organisations and enterprises for the purchase of goods and supply of services within the country under a contract will still be subject to a 2pc withholding tax. Non-residents will continue to pay withholding taxes at 2.5%. Residents will be exempt from paying withholding taxes on interest on loans, while nonresidents must pay 15%. Regarding royalties for the use of licenses, trademarks and patents, 10 pc of withholding tax will be levied on residents, while non-residents must pay 15%.
The National Committee on Minimum Wage announced on 4th May that the minimum wage will be Ks600 per hour and Ks 4,800 per eight-hour work day irrespective of the type or location of work. This minimum wage does not apply to small and familyowned businesses with less than 10 employees; it was noted in the committee’s Notification No. 2/2018.
The Ministry of Commerce issued the notification 25/2018 on May 9, which authorizes 100 percent foreign-owned companies as well as joint ventures between international and domestic investors to allow engaging in retail and wholesale businesses.
tment on August 13 issued an announcement that hotels, guest houses and restaurants will collect bottle charges, room service charges and service charges in addition to the commercial taxes levied on accommodation and foods.