Easing rules to help start businesses

Reforms that strengthen macroeconomic management are absolutely essential for economic stability which, in turn, is a strong magnet for increased investment.
An important reform which can be considered “revolutionary” is the modernization of the more than one hundred years old Companies Act to reflect the current business and regulatory environment.
The Myanmar Companies Law was enacted on 6 December 2017. It came into effect on 1 August 2018 with the implementation of the electronic registry.
During the August-December period of 2017, only 3,758 new companies were formed in Myanmar. During the same period in 2018, 32,917 companies were re-registered and 8,514 new companies were established and registered under the Myanmar Companies Online (MyCo) electronic registry system.
The number of new companies has more than doubled in 2018, and reflects the ease of starting a business in Myanmar.
In the 2016 Ease of Doing Business report, Myanmar showed the best performance in reforms. But its ranking dropped slightly to 155 in 2017. The report covers not just one country, but 190, and each country tries to better its score every year.
Previous assessments of Myanmar on Ease of Doing Business were made based on the old Company Act and old rules and regulations. The new law was enacted in 2017.
The new law makes it easier to run a business as it does away with many unnecessary regulations.
Under the incumbent government, the registration fee was reduced from 1 million kyats to 500,000 kyats. In 2017, the fee was brought down to just 250,000 kyats.
Now, registrations can be completed online and as a result, the process only involves three steps. The duration has also been shortened. Previously, registering a company took at least three days, but now it can be completed within hours. If you have a mobile phone, you can register within hours.
We can say that more reforms were made, and some procedures for establishing a company were also abolished. How much we score on Ease of Doing Business does not matter. A high score with poor conditions on the ground is useless. We aim to make doing business easy and convenient by easing restrictions as much as possible.
This will provide greater flexibility to companies in the conduct of business and management of internal affairs, and, at the same time, ensure certainty and stability in corporate regulations.

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