The Directorate of Investment and Company Administration has announced wide-ranging changes to Myanmar company registration fees that will make life easier for start-ups while raising the bar for public companies.
Director general U Aung Naing Oo told The Myanmar Times yesterday that the goal is to encourage more small and medium enterprises “run by those who really want to do business”. The new charges come into effect on June 1.
“We made these changes so that SMEs could develop, and to increase their numbers,” he said.
The registration fee for a new private company has been halved from K1 million to K500,000.
Forming a public company will become more expensive with registration fees rising to K2.5 million from K1 million, to help ensure they are serious about operating a business, DICA said in a note on its website.
Public companies were often set up specifically to bid for projects under the former government, as former president U Thein Sein said he would favour public firms when awarding tenders.
To extend a licence, the fee has been cut from K500,000 to K300,000, while the cost of registering a company’s change of address or transferring shares will rise from K2500 to K25,000.
DICA will charge K50,000 for copying company registration documents instead of K5000 and the fee for amending a memorandum of association or articles of association will jump from K50,000 to K300,000.
The cost of changing the business objectives of a company, its name or its authorised capital will rise tenfold, from K7500 to K75,000.
U Aye Thaung, joint chair of the executive committee for Yangon’s industrial zones, said, “Cutting initial registration fees is a long-overdue welcome step. The fees that have been raised were very small.”
DICA also announced that 15 foreign companies and 2676 local companies found to be inoperative had been struck from the registration list.
“The new rates are for people who really want to run a company,” said U Aung Naing Oo.
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