MIC warns companies to follow reporting requirements
THE Myanmar Investment Commission will begin field inspections of companies that fail to submit quarterly performance reports, in the hope of encouraging better corporate practice, secretary U Aung Naing Oo told The Myanmar Times.
Both the Foreign Investment Law and the Myanmar Citizens’ Investment Law require companies with MIC-approved projects to submit a report each quarter, he said, but a number of businesses have failed to do this for the first quarter of the 2016-17 financial year.
The deadline was yesterday. U Aung Naing Oo said the MIC will carry out on-site inspections of companies that failed to submit reports, and take legal action if necessary. “As part of these inspections we will take action in accord with the rules and regulations of investment laws,” he said.
The MIC has power to impose a fine, revoke an investment permit, or ban a company from investing in any new projects. MIC approval is required for many large-scale projects in Myanmar and allows investors access to tax breaks and other benefits.
Myanmar is in the process of combining its two investment laws into a more equitable law governing both local and foreign investment. A draft copy of the Myanmar Investment Law was posted to the Directorate of Investment and Company Adminsitration website earlier this week.
DICA is trying to clean up its company registry. In May it removed 2676 local firms and 15 foreign companies from the list after they failed to file performance reports and did not respond to contact attempts.