Above 500 companies fail to submit Annual Returns in May: DICA

In May 2023, a total of 550 companies did not submit their annual returns (AR) on the online registry system, MyCO, as reported by the Directorate of Investment and Company Administration (DICA). DICA has issued a notification stating that any registered company failing to file its AR on MyCO will be struck off the register from the directive’s date, in accordance with Section 430 (F) of the Myanmar Companies Law. In January, 500 companies, followed by 400 in both February and March, and 200 in April, did not file their AR on MyCO. Thus, a total of 2,050 companies have failed to file their AR in the first five months of this year. Furthermore, the DICA has stated that 5,000 companies failed to submit AR in 2022. Registration and re-registration of companies on the MyCO website began on August 1, 2018, in compliance with the Myanmar Companies Law 2017. All registered companies are required 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 incorporation), as stated in Section 97 of the law. As per Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. Overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year-end, as per Section 53 (A-1) of the Myanmar Companies Law 2017. According to DICA’s report, numerous companies have been suspended for failing to submit AR forms before the due date. Newly established companies must submit ARs within two months of incorporation to avoid a fine of K100,000 for late filing. DICA has also notified that any company failing to submit its AR within 13 months will receive a suspension notice (I-9A). Failure to submit the AR within 28 days of receiving the notice will result in the company’s status being shown as suspended in the system. Companies can restore their status only after paying 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, totaling 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