Registration of Business
Organization
Operating in Myanmar can by carried out through one of the
following business organization.
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Partnerships
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Companies limited by shares. i.e. joint venture companies; local
companies, foreign companies.
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Branch or Representative Offices of a foreign company.
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Associations not for profit
Partnerships
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 provisions are made for the
period of time, the partnership will be dissolved when all partners
willing to do so.
Companies Limited by Shares
A company limited by shares is
required to register. 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 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. There are two main types of
company: a private 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 exists for banking and insurance companies and
foreign companies and branches of all businesses. For foreign
companies and branches, the minimum capital to be brought in are
as follows;
Industry company - foreign currency
equivalent to kyat 1,000,000
Services company - foreign currency equivalent to kyat 300,000
For Export / Import
Enterprise whose operations
involve foreign trade has to apply for registration as an exporter
or importer with the Export Import Registration Office under the
Ministry of Commerce.
