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Draft Companies Law to remove obstacles for Myanmar foreign investment [1]
The draft new Myanmar Companies Law is expected to remove unwieldy restrictions and ease foreign investment in Myanmar. Similar to those of other developing nations, the law will allow companies to be formed with only one director and one shareholder. Requirements to hold annual meetings, submit annual financial reports, articles of association, and memoranda of understanding will be removed. The new law also provides for the online registration of companies with the requirement that companies explain their overall structure and intended activities. It will also allow companies engaging in foreign direct investment activities to be listed on the Yangon Stock Exchange, which is prohibited under the present Companies Act. Currently, there are only four companies listed on the YSX – First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB) and First Private Bank (FPB) [2]
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Major Foreign investment of USD 127 million in Thilawa Special Economic Zone [3]
The Thilawa Special Economic Zone (SEZ) received an estimated USD 127.48 million in Foreign Direct Investment (FDI) in June this year. Most of the investment goes into industrial production, followed by import-export, real estate and transportation.
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Amendment to Special Goods Tax Act 2016 [4]
The Union Parliament in Myanmar has recently enacted an amendment to the Special Goods Tax Act of 2016, adding greater clarity to existing provisions and inserting certain new provisions under this law.
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Amendment to Myanmar Stamp Act [5]
This amendment to the Myanmar Stamp Act increases the stamp duty (excluding the Nay Pyi Taw Development Law) that can be levied under Articles 23, 33 and 40(a) by an additional 2% of the market value of the property.
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Enactment of the Petroleum and Petroleum Product Law [6]
The Union Parliament of Myanmar enacted the Petroleum and Petroleum Product Law of 2017 with the stated objective of standardizing norms and procedures regarding petroleum and petroleum products, with a view towards minimizing their impact on the environment.
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Ministry of Commerce drafting laws to protect domestic production [7]
New legislation is currently being drafted by the Ministry of Commerce to protect domestic production from foreign competition in Myanmar. It will be accompanied by other legislation with the aim of curbing non-competitive import practices such as “dumping”. The laws are intended to regulate import product quality and protect local producers from unfair predatory pricing practices.
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Bill to amend Telecommunications Law passed by the Union Parliament [8]
The Union Parliament recently passed the Bill amending the Telecommunications Law in Myanmar. The Bill makes certain changes to the list of offences; such as requiring approval from the Ministry of Transport and Communications for prosecutions; rendering certain offenses under section 66(a)(b) and (d) subject to bail, and limiting the scope of complaints filed under section 66(d) to only those directly affected or their representatives.
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Increased Investment and Trade for Myanmar [9]
The Myanmar Investment Commission (MIC) has approved 26 foreign and domestic companies to conduct investment in Myanmar. 19 of the total approved companies are foreign investors. The entire level of investment by these companies stands at around MMK 409.34 billion, and it is predicted that this investment will create over 940 new jobs for local people.
[1] 9 August 2017_Source: the Global New Light of Myanmar
[2] 21 July 2017_Source: the Global New Light of Myanmar
[3] 19 July 2017_Source: the Global New Light of Myanmar
[4] 26 July 2017 (Pyidaungsu Hluttaw No. 17/2017)
[5] 1 August 2017 (Pyidaungsu Hluttaw Law No 19/2017)
[6] 1 August 2017, (Pyidaungsu Hluttaw Law No. 20/2017)
[7] 3 August 2017_Source: the Global New Light of Myanmar
[8] 4 August 2017_Source: Myanmar Times
[9] 9 August 2017_ Source: the Global New Light of Myanmar
*The information contained in this legal update is provided 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.
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