A total of 6,400 companies were struck off the register in 2023 as they failed to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA).
Last year, 500 companies in January, 400 each in February and March, 200 in April, 550 in May, 750 in June, 600 in July, 750 in August,450 in September, 750 in October, 600 in November and 450 in December did not file the AR on the MyCO, according to the DICA.
The DICA notified any registered company which fails to file its AR on the MyCO are to be struck off the register from the date of directive, under section 430 (F) of Myanmar Company Law, according to the DICA’s notification.
The DICA’s statistics showed that 5,000 companies did not file the AR in 2022.
The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017.
All registered companies need to submit 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.
Under 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 under Section 53 (A-1) of the Myanmar Companies Law 2017.
As per DICA’s report, thousands of companies were suspended for failing to submit AR forms before 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 that 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 AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totaling K250,000. 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.