VDB Loi, a leading Myanmar legal advisory firm has helped the Directorate of Investment and Company Administration (“DICA”) to fix one of the most problematic obstacles to investment in Myanmar.
DICA for the first time on implemented a transfer of shares in a company wholly owned by Myanmar citizens and registered as a Myanmar Company (“MC”) to a foreigner, without incorporating a new legal entity. To date, it was administratively impossible for foreigners to acquire shares in a company which was established and owned exclusively by Myanmar citizens, except through the creation of a new legal entity which was incorporated as a “Foreign Company” (“FC”).
VDB Loi initiated the solution to this issue with the regulator, suggested how to make the process suitable and worked with the authorities to implement this pioneering remedy.
Edwin Vanderbruggen, senior partner of VDB Loi, commented: “The importance of this development cannot be overstated. This is fantastic news for a wide range of Myanmar business owners and foreign investors alike. Attracting a foreign investor was really difficult in many situations because shares of Myanmar Companies could not be transferred to foreigners. Parties had to setup a new legal entity, with all that this entails. This was not always possible. This obstacle, which was one of the weird things about investment in Myanmar, has now finally been removed, thanks to DICA’s assertive approach and it did not take a new law to do it.”