By Nyein Nyein
The number of new companies registered at the online registry system MyCO has risen in June, according to the Directorate of Investment and Company Administration (DICA). Earlier, MyCO received more than 1,000 applications from new companies every month. Following the coronavirus impacts, only 348 companies were registered in April. The number increased to 798 in May, and the figures surged to 1,314 in June. The number of companies registered on MyCO, exceeded 80,000 in two years since the establishment of the online platform, according to the Directorate of Investment and Company Administration (DICA). 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, 32,068 new companies and 46,377 existing companies have registered and re-registered on MyCO, bringing the total number of registered companies to 78,445 by June-end. Normally, over 1,000 new companies are registered every month. When the online registry system was launched in August 2018, 1,816 new companies registered on MyCO. The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November, 1,364 in December, 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December 2019 were recorded, according to the data from the DICA.
In this year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, and 1,314 in June, as per data of the DICA. At present, 100 per cent of the applicants are using the online registration platform, the DICA data stated. In addition, all registered companies need to file annual returns (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. A total of 13,002 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 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 status only after shelling out a fine of K50,000 for late filing of AR, K100,000 for the restoration of the company on the register, and K100,000 for late filing of documents. 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. In order to revive the strike-off company, the applicant need to attach Form I-5 (Court Order for the restoration of the company to the register) for rectification. For court order, they need to pay the prescribed filing fee. However, the strike-off action can wreak the company’s reputation. Thus, the DICA has notified the companies of filing AR as regulatory compliance. (Translated by Ei Myat Mon)
By Nyein Nyein