The Directorate of Investment and Company Administration (DICA) issued three (3) new notifications today covering the Requirements for Public Companies, Requirements for Business Associations and the Prescribed Fees that will apply when the Companies Law takes effect on 1 August 2018.
The key features of the notifications on public companies and business associations are as follows:
Requirements for Public Companies Notification No. 59/2018
- Requires a minimum subscription of 500,000,000 kyats (approx US $370,000) before any share can be offered for public subscription
- Provides for subsidiary liability to directors for failure to return share subscriptions made under 215[f] of the Companies Law
- Provides form of Statement in Lieu of Prospectus (in relation to 211[a] of the Companies Law)
- Requires that prospectus must first be lodged prior to registration
- Returns for changes to register of members should cover only the top 50 shareholders
Requirements for Business Associations Notification No. 58/2018
- Business associations may be registered as a company limited by guarantee without share capital, and the same reportorial requirements will apply
- Associations may be classified as:
- Union level association – directors are residents of more than seven states or regions, or if majority of directors are foreigners
- State or regional level association – majority of directors reside in a state or region
- District level association – majority of directors reside in a district
- Township level association – majority of directors reside in a township
For the prescribed fees and further details on the notification, please click on the link below to read the full details.