Myanmar recently passed a new companies law in the hopes that it will attract increased investment from Thai businesses in the coming years.

The legislation comes after massive drops in investments from Thailand into the Burmese economy in recent years.

Burmese officials point out that the revamped companies law will replace the century-old replaced legislation that stifled foreign investment in the Southeast Asian country.

Now, foreign companies will be encouraged to invest in Myanmar’s economic future and will face significantly less hurdles to do so.

Myanmar hopes to attract Thai investors in a wide variety of industries, including solar, natural gas, and manufacturing.

Thailand makes up for 14.5% of foreign investments in Myanmar, trailing only China and Singapore.

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For an expert Thailand business lawyer, contact the professionals at Chaninat & Leeds.

A large amount of private limited companies in Thailand are managed by foreign directors, who often understandably due to language barriers often leave the legal rules and regulations of Thailand business law to other sources to deal with.

However, for any managing director to understand the duties and requirements stipulated by the Thailand Civil and Commercial Code in order to avoid unintentionally committing an offence. Such an action could make a managing director liable for criminal penalties under the Act Determining Offences Relating to the Registered Partnership, Limited Partnership, Limited Company, Association and and Foundation of 1956.

Even though this law has been in force since 1956, few directors are aware of its existence and that not only is their company criminally liable if breaches are committed, but as responsible individuals, they may face greater fines than the company.

Relevant Document:

Offences Relating to Partnerships, Companies, Associations and Foundations