Myanmar's Directorate of Investment and Company Administration (DICA) has issued an announcement reinforcing compliance obligations under the Myanmar Companies Law (MCL). This follows recent updates to reporting requirements and signals increased regulatory scrutiny regarding registered office addresses and directors' residential information submitted online via MyCO, Myanmar's company registration system.
Key Compliance Areas
Under the MCL, every company must maintain a registered office for official communication and legal correspondence. Any change to this address must be reported to the DICA registrar.
In April 2023, DICA introduced additional reporting obligations for newly incorporated companies. The additional rules require companies to submit their Annual Return accompanied by verification documents within two months of incorporation. These documents include a recommendation letter from the relevant township police station or ward administrator confirming the operational status and physical location of the registered office. Directors' residential addresses must also be verified through similar documentation, and foreign directors are required to submit the arrival notification form issued by the Immigration Department.
For companies operating through a virtual office, clarification from a DICA official indicates that the virtual office address must correspond with the registered address submitted via MyCO. A recommendation letter confirming the validity and operational status of the virtual office must be submitted.
Legal Consequences
The recent announcement signals that DICA will begin enforcing these requirements in earnest. Failure to comply with the additional reporting obligations may result in inspections and enforcement actions by the DICA registrar, or complaints from third parties. It may also lead to penalties or other legal consequences as prescribed under the MCL.
Recommended Actions
It is strongly advised that all newly incorporated companies and their directors:
- Review their MyCO submissions for accuracy.
- Secure the required supporting documents within the Annual Return deadline.
- Ensure that all address information reflects the company's actual and lawful operating premises.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
