Myanmar’s Company Act 1914 will be redrawn with assistance from the Asia Development Bank (ADB), said the deputy minister for National Planning and Economic Development.
The law is outdated and does not reflect the current situations, Deputy Minister Sett Aung noted during a parliamentary meeting on July 23.
The topic was first raised at the parliament by MP Kyi Myint from Latha Constituency, Yangon.
“This law is inconsistent with the Foreign Investment Law 2012. It also hurts the [interests of] ethnic entrepreneurs,” said Kyi Myint.
According to the Burma Company Act 1914, a company in which foreigners invest one dollar and above shall be regarded as a foreign company and it shall not be able to own immovable assets and shall have to pay taxes at the rate set for foreigners. This hurt the local businesses, Kyi Myint said.
Deputy Minister Sett Aung said the ADB has pledged necessary assistance in reviewing the law. An expert sent from ADB already met twice with Myanmar officials.
The expert suggested redraft the law rather than changing some of its parts. He discussed the technical issues involved during the meeting with the officials from the Ministry of National Planning and Economic Development and the Directorate of Investment and Company Administration, Sett Aung said.