By Nyein Nyein
A total of 1,000 companies has been struck off the register as they fail to submit an annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA).
The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended. The DICA found that 1,000 companies were unable to restore its status within six months of suspension under 430 (F) of Myanmar Companies Law and the companies were struck off the register starting from 7 December, according to the DICA’s notification. All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of the law.
According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, as per Section 53 (A-1) of the Myanmar Companies Law 2017.
As per DICA’s report, more than 16,000 companies were suspended for failing to submit AR forms within the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns.
The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their position only after shelling out a fine of K50,000 for AR fee, K100,000 for the restoration of the company on the register, and K100,000 for late filing of documents, totalling K250,000.
If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.
The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. Since then, 38,340 new companies and 46,377 existing companies have registered and re-registered on MyCO, bringing the total number of registered companies to 84,717 by October-end 2020. Typically, MyCO is receiving more than 1,000 applications from new companies every month. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA. (Translated by Ei Myat Mon)