Myanmar’s new Companies Law has come into effect on August 1, aimed at boosting foreign direct investment in the country. Under the new law, all companies must re-register within six months through the Myanmar Companies Online (MyCO) system on https://myco.dica.gov.mm. However, it might be advisable to register only after some weeks as users experienced non-availability of the page due to high traffic volume on the side. Perhaps the biggest change in the Companies Law is that foreigners can own up to a 35 percent stake in local companies without the company changing its local status. Restrictions on foreign ownership in local companies might still be imposed by sector-specific regulators, such as the Central Bank of Myanmar for the banking sector. The new law also aims to ease the process for smaller firms, allowing them to establish companies with a single shareholder and a single director. As Myanmar attempts to attract increased investment, it has also overhauled the Myanmar Investment Commission (MIC), which will now have 13 members and be chaired by U Thaung Tun. An article in Xinhua said that Myanmar attracted USD 5.7 billion in foreign investment in the 2017-18 financial year, with the majority coming from Singapore, followed by China. The country is targeting USD 3 billion during the six-month transitional period when Myanmar changes its fiscal year period from April-March to October-September. The fiscal year for companies remains unchanged for the time being.

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