Yangon, March 26, 2018
—IFC, a member of the World Bank Group, is supporting the Ministry of Commerce to coordinate Myanmar’s drive to make it easier to do business in the country. In the latest significant reform, starting April 1, the cost of registering a company will be halved from Kyats 500,000 to Kyats 250,000, the Directorate of Investment and Company Administration (DICA) announced recently.
Though the company registration fee for private companies was reduced in 2016 — from Kyats 1,000,000 to Kyats 500,000 — it was still relatively high compared to the rest of the region. This latest change is likely to move up Myanmar’s position in the World Bank Group’s Doing Business ranking. Currently, Myanmar ranks 171 among 190 nations across 10 indicators. The latest fee reduction will likely contribute to improving the nation’s current ranking (155) in the area of ‘Starting a Business’ in the next Doing Business annual report.
“This is one of a raft of reforms we are coordinating with the assistance of IFC in order to improve Myanmar’s ease of doing business environment. We are committed to reducing the regulatory burden on businesses, freeing them to do what they do best,” said U Aung Htoo, Deputy Minister of Commerce and the Chair of Improving Myanmar’s Ease of Doing Business Ranking Working Group. “Ultimately, this helps to create jobs and lift people out of poverty.”
Other recent reforms in Myanmar include a reduction in stamp duty, the passing of the new Companies Law, which upon implementation will further streamline company registration and protect minority investors, and issuance of a license for a credit bureau. Earlier in February the number of products requiring an export license was also reduced. Previously 80 per cent of all products required a license to export. The Ministry of Commerce has reduced this to 29 per cent.
Upcoming regulatory reforms include e-filing and e-payment of taxes, and issuance of a draft Insolvency Law and draft Tax Administration Procedures Law for consultation.
Vikram Kumar, IFC Country Manager for Myanmar, said, “Small and medium enterprises in Myanmar are critical for the country’s growth trajectory. This latest reform will make it easier for SMEs to do business and encourage incorporation of new companies.” He added, “IFC supports the government’s continued economic reforms to stimulate private sector growth, generate jobs, and subsequently drive Myanmar’s economy
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IFC, in partnership with Australia, the United Kingdom and Japan, has been supporting the government’s Trade and Business Promotion Task Force, which is chaired by the Minister of Commerce to make it easier to do business in Myanmar and promote development of the private sector as a driver of economic growth.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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