August 20, 2016

Reduction in company registration fees sees two-fold increase in applications

The reduction in service fees for company registrations has seen the number of companies registering in Mandalay increase two-fold, according to the Mandalay Office of the Directorate of Investment and Company Administration (DICA).
In the past, the official registration of a company incurred a Ks1m (US$843) service fee. But, the slashing of the registration fee to K500,000 (US$421) as of 1 June saw the numbers of companies registering soared from just 15 during two weeks in May to 56 during this month of June alone.
“It used to take three days for a company registration to be processed in the past, but it can now be issued in a single day. Increased transparency in tender processes has increased the numbers of companies applying [for official registration]. A registration is valid for five years,” said Daw Nwe Ni Oo, director of the aforementioned government department.
It is reported the Mandalay Office of the DICA has also reduced company registration extension fees from K500,000 (US$421) to K300,000 (US$252).
“I didn’t register my company because I thought it would be a troublesome process. One needed to be cautious when going to extend their registration. Successful tender bids would be selected after scrutinsing a companies longevity. There is a benefit if companies can effectively carry out their enterprises,” said the director of a construction company from Mandalay.
Daw Nwe Ni Oo also candidly expressed the Mandalay Office of the DICA struck 2,700 companies off the registration list after they failed to extend their registration, putting them on a black-list of companies that disobey rules and regulations.
Approximately 50,000 companies are reportedly registered in Myanmar, with 4,400 from within Mandalay Region.
The aforementioned Mandalay DICA Office was established in May 2014 in a bid to ease the lives of business entrepreneurs who had to travel from the countryside to the DICA based in Naypyidaw in order to submit an application for company registration or extend an existing registration.


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