Support for Company Winding Up/Liquidation Process
Support for Company Winding Up!
For companies that have difficulty in continuing their business in Myanmar due to various reasons such as changes in business objectives or not running the business, we will carry out the winding up procedure of the company on your behalf.
You might think there will be no problem to continue as a dormant company as there is no business activity. Since it is not legally possible to register as a dormant company in Myanmar, the annual reporting process must be done annually unless the company is wind up and it will cost unnecessary expenses.
According to Myanmar Company Law 2017 and Insolvency Law 2020, a company can be closed down by three methods of liquidation.
- Voluntary Winding Up
- Winding up by the Court
- Subject to the supervision of the Court
Voluntary Winding Up
There are two circumstances of Voluntary Winding Up;
Member’s Voluntary Winding Up
when the company has stopped operating its business, the members must held a special resolution in a general meeting for the company to be wound up voluntarily. The company must be publishing a notice in national newspaper and a liquidator must be appointed to wind up the affairs of the company.
Creditor’s Voluntary Winding Up
Based on the capacity of payment of debts, Voluntary Winding Up can be made by the creditor. The creditors shall be called a meeting and must be publishing a notice in national newspaper and a liquidator must be appointed for the purpose of winding-up the company’s affairs. If the creditor fails to appoint a liquidator, one of directors shall be appointed as a president who nominated as a liquidator.
In order to complete the liquidation procedure, we will first complete the tax declaration procedure up to the current fiscal year. Then, set the actual date to liquidate the company by announcing it in the official gazette and newspaper for the first time. Once the date is confirmed, we will notify about your liquidation to the Directorate of Investment and Companies (DICA).
After that, the liquidator will prepare the final version of the financial statements and tax declaration certificate for the financial statements will be obtained. In addition, we will publish the second public notice in the official gazette and newspaper and wait until the permission date for liquidation is confirmed. Once the date is confirmed, we will make submission to DICA again for the winding up/liquidation procedure. And then the process will be done accordingly.
Our in-charge team will be in close contact with you to propose cost-effective solutions to your issues, so please feel free to contact us any time.