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.”
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
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.