The Directorate of Investment and Company Administration (DICA), the junta-controlled business registry in Myanmar, has canceled over 25,000 company registrations since the military took power three years ago. As of August 8, DICA's records show that approximately 12,000 companies were deregistered this year, following 6,400 last year, 5,100 in 2022, and 2,200 in 2021, totaling nearly 26,000.
Companies are removed from the registry when they fail to submit an annual return (AR), which includes essential information about the business, such as its name, address, directors, and share capital. Among the companies deregistered is Yetagon Myanmar Energy, linked to Maung Maung Naing, known for his ties to Aung Pyae Sone, the son of junta leader Min Aung Hlaing. Maung Maung Naing is also part of a committee overseeing fuel oil purchases from Russia.
Critics allege that he acted as a front for Min Aung Hlaing’s business dealings, but the reasons for deregistration may not be directly related to this context. Instead, business owners have indicated to Myanmar Now that the rising number of deregistrations reflects deteriorating economic conditions and a lack of opportunities under military rule.
A Yangon-based businesswoman remarked that starting a business is now seen as a financial burden, saying, “There are no business opportunities. When commerce is suffering, most people give up their businesses.” She emphasized that the costs of maintaining a company and filing annual returns are becoming untenable given the current climate.
Myanmar's corporate law mandates that all companies submit an AR through the Myanmar Companies online filing system (MyCo) within two months of establishment and annually thereafter. A DICA official argued that the increase in deregistrations results from inaction or neglect by business owners, claiming the AR filing process is straightforward and not indicative of economic conditions.
Before the military coup in 2020, over 50,000 domestic and more than 7,000 foreign companies were registered with MyCo, with a third now removed from the registry. Many companies face challenges due to the sharp depreciation of the Myanmar kyat, rising import prices, strict licensing regulations, and requirements forcing exporters to exchange foreign revenues for kyat at an unfavorable rate set by the Central Bank.
An exporter who closed his business noted, “They buy our dollars at a lower rate, but we must purchase raw materials at higher prices, leading to significant losses.” He added that many entrepreneurs would rather close than continue incurring losses, especially with crackdowns on business owners for alleged price manipulation.
Widespread conflict has further hindered economic development. The World Bank’s June report projected Myanmar’s GDP growth at only 1% for the financial year ending in 2025. Under these dire conditions, 17.5 million people—nearly a third of the population—have fallen below the poverty line, with the report highlighting declining trade with neighboring countries and reduced garment production for international brands.
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