DICA report: 2,000 companies fail to file AR in April 2024
Two thousand companies were struck off the register in April 2024 as they failed to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA).
The DICA notified any registered company that fails to file its AR on the MyCO that it is to be struck off the register from the date of the directive under 430 (F) of the Myanmar Companies Law, according to the DICA’s notification.
The DICA’s statistics showed that 750 companies in January 2024, 600 in February and 1,650 in March did not file the AR. A total of 6,400 companies also failed to submit the AR in 2023.
The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with 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 the AR fee, K100,000 for restoration of the company on the register, and K100,000 for late filing of documents, totalling 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. — NN/EM
