On 21 July 2023, the Ministry of Commerce (“MOC“) was granted full authority by the Union Government of Myanmar to issue various necessary orders related to online businesses since it is recognized as essential services per Section 4 (c) of the Essential Supplies and Services Law of 2012 (“ESSL“). Following this development, the MOC has exercised its authority by issuing the “Online Sales Business Registration Order” (“Order”). This Order mandates that local individuals, companies, or business organizations engaged in online sales business that provides goods or services through the online system must apply for a registration certificate from the Department of Trade (“DOT“) under the MOC. The additional information about the Order can be obtained below.
Application and Requirements for Registration Certificate
Those interested in engaging in online sales must apply for the registration certificate to the DOT. This involves completing the application form provided by the DOT through the online system. The MOC is developing an online sales registration system, which will soon be launched to the public. The following table outlines the requirements for companies, business organizations, and individuals wishing to engage in the online sales business for the application process.
| Category | Requirements |
| Companies/Business Organizations | – Legally registered under the Myanmar Companies Law of 2017, Special Company Act of 1950, Co-operative Society Law of 1992, or any other applicable existing law. |
| – Possess a unique and official name along with an official website. | |
| – Capable of providing the physical location of their online sales business operations. | |
| Individuals | – Reside and settle in the Republic of the Union of Myanmar. |
| – Attain the age of 18 years. | |
| – Comply with all the provisions specified in this Order. | |
| – Not be mentally incapacitated. | |
| – Not be listed on the blacklist by any relevant government department or government organization. | |
| – Be capable of providing the location of the online sales business. |
Process for Online Sales Business Registration
This Order details the process for obtaining the registration certificate for an online sales business. Applicants must provide the necessary documents when applying for the registration certificate, and the DOT will conduct a thorough examination, including on-site inspections, in coordination with the Department of Consumer Affairs. The DOT will refuse to issue the registration certificate if goods or services are prohibited by any laws, unsafe, lack of information and warranty, or violate laws, and this refusal will be informed to the applicant. The DOT will also inform the applicant of the refusal in case of incomplete or inaccurate information in the application form. Once accepted, the applicant must pay the registration fees and online service charges using digital payments within two weeks. The DOT will then issue the registration certificate to the applicant through the online platform. The registration certificate is valid for two years. The registration fees are yet to be officially released. Still, the MOC is currently determining the registration fees, and it is expected that the registration fee will be lower for individuals. In comparison, companies or business organizations may have a slightly higher fee.
Amendments and Term Renewal of Registration Certificate
Those who have successfully obtained the registration certificate from the DOT are now registration certificate holders. Registration certificate holders wishing to modify information related to goods or services must complete the specified application form provided by the DOT. The form must be submitted online, along with the payment of the applicable service charges. The DOT will review the application, and if the proposed amendments meet the requirements, they will be approved, and the necessary changes will be made online. To renew the registration certificate, the holder must initiate the term renewal application at least 60 days before its expiration date. Failure to do so on time will automatically nullify the registration certificate.
Rights and Responsibilities of Registration Certificate Holder
| Rights | Responsibilities |
| – Restore reputation, except for claims related to goods or services. | – Resolve issues with goods or services sold. |
| – Defend legally against consumer complaints. | – Provide receipts for transactions. |
| – File legal claims related to business. | – Furnish accurate information and warranties. |
| – Receive payments as per agreed terms and values. | – Ensure quality meets designated value. |
| – Conduct online sales using the specified name in the registration certificate. | – Specify return timeframe for inconsistent goods and adhere to guidelines. |
| – Sell only approved goods/services. | |
| – Treat consumers with respect. | |
| – Provide clear payment information. | |
| – Inform consumers about transportation arrangements. | |
| – Safeguard personal information and disclose as required by law. | |
| – Avoid disruptive or politically motivated activities. | |
| – Avoid transferring the certificate to others. | |
| – Conduct sales transparently. | |
| – Comply with regulations for goods (food, medicines, etc.). | |
| – Follow periodically issued terms and regulations by the MOC and DOT. |
Suspension or Cancellation of Registration Certificate
Suppose a registration certificate holder fails to fulfil their responsibilities. In that case, the DOT may temporarily suspend or entirely revoke the registration certificate, prohibiting any online sales business during the suspension or cancellation period. In case of dissatisfaction with the DOT’s order, individuals have the right to appeal within 30 days from the date of issuance to the MOC. The MOC holds the authority to approve, modify, or cancel the DOT’s order as per the appeals received.
Important Factors to Note under the Order
Anyone conducting online sales business without the required registration certificate will face legal action under Section 5 of the ESSL commencing six months from 21 July 2023. If the DOT receives evidence from the relevant government authorities regarding a certificate holder violating the law in their online sales business activities, the DOT will cancel their registration certificate. Moreover, suppose the DOT suspects any certificate holder of engaging in unlawful actions through online sales business. In that case, it will promptly inform the appropriate government department or government organization for necessary inspections and actions.
Key Points to Note: An Overview
In online activities, registration is mandatory for any paid activity, regardless of scale, from micro-home businesses to large enterprises. However, there are exemptions from registration requirements. Free public interest activities, like educational initiatives offered online at no cost, do not need to go through the registration process. Furthermore, registration is unnecessary if an online platform is solely utilized to advertise products or services without conducting actual online sales.
Our current assumption is based on the public information available until issuing this alert, and it may change slightly over time. Further, the information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
