The State Law
and Order Restoration Council
The Private
Industrial Enterprise Law
(The State Law and Order Restoration
Council Law No. 22/90)
The 10th Waxing Day of Nadaw,
1352 M.E.
(26th November, 1990)
The State Law
and Order Restoration Council
hereby enacts the following
Law:
Chapter I
Title and Definition
This Law shall
be called the Private Industrial
Enterprise Law.
2. The following
expressions contained in this
Law shall have the meanings given
hereunder:
(a) Industrial Enterprise means
an enterprise which produces finished
goods from raw materials, using
any form of power in any building.
This expression does not include
cottage industries;
(b) Power means electrical power
or any other kind of power generated
or transmitted by mechanical devices;
(c) Private Industrial Enterprise
means the conducting of an industrial
enterprise either individually
or in partnership or by forming
a company. This expression does
not include industrial enterprise
conducted in joint venture with
the Government;
(d) Ministry means the Ministry
of Industry No. (1);
(e) Minister means the Minister
of the Ministry of Industry No.
(1);
(f) Directorate means the Directorate
of Regional Industrial Co-ordination
and Industrial Inspection;
(g) Director General means the
Director General of the Directorate;
(h) State or Divisional Officer-in-charge
means the State or Divisional
Officer-in-charge of the Directorate;
(i) Supervisory Body means the
Body formed under this Law and
which conducts supervision and
inspection of private industrial
enterprises;
(j) Entrepreneur means a person
who has been granted registration
to conduct a private industrial
enterprise under this Law. This
expression also includes the heir,
legal representative and succeeding
lawful organization of the entrepreneur.
Chapter II
Basic Principles
3. Private Industrial
Enterprises shall be conducted
in accordance with the following
basic principles:-
(a) to enhance the higher proportion
of the manufacturing value added
in the gross national product
and value of services, and to
increase the production of the
respective economic enterprises
which are related to the industrial
enterprise;
(b) to acquire modem technical
know-how for raising the efficiency
of industrial enterprises and
to establish the sale of finished
goods produced by the industrial
enterprise not only in the local
market, but also in the foreign
market;
(c) to cause utilization by relying
mainly as local natural resources;
(d) to cause narrowing down of
the gap between rural development
and urban development by causing
the development and improvement
of industrial enterprises;
(e) to cause opening up of more
employment opportunities;
(f) to cause avoidance of or reduction
of the use of technical know-how
which cause environmental pollution;
(g) to cause the use of energy
in the most economical manner.
Chapter III
Registration of Private Industrial
Enterprises
4. (a) Any person
desirous of conducting any private
industrial enterprise;
(b) Any person conducting any
private industrial enterprise
on the day this Law is enacted;
by using any type of power which
is three horsepower and above
or manpower of ten wage-earning
workers and above shall register
under this Law.
5. In applying
for registration under Section
4, application shall be submitted
to the respective State or Divisional
Officer-in-charge in the prescribed
manner.
6. On application
for registration being made under
Section 5, the respective State
or Divisional Officer-in-charge
may, after making necessary scrutiny
and inspection grant or refuse
to grant registration in accordance
with the prescribed manner.
7. The Directorate
shall categorize the size of private
industrial enterprises in accordance
with the prescribed manner as
follows:-
(a) small scale private industrial
enterprise;
(b) medium scale private industrial
enterprise;
(c) large scale private industrial
enterprise.
8. The Directorate
shall prescribe the registration
fee and the tenure of registration
according to the scale of the
private industrial enterprise.
Chapter IV
Formation of the Private Industrial
Enterprise
Co-ordination Body
9. In order to
make co-ordinations necessary
for the development and improvement
of private industrial enterprises,
the Ministry shall form, with
the approval of the Government
the Private Industrial Enterprise
Co-ordination Body
comprising persons including the
Director Generals of the Directorate
and other relevant departments
and Managing Directors of the
State - owned Economic Enterprises-In
addition, the duties and powers
of the said Body shall also be
prescribed.
Chapter
V
Supervisory Body and Its Duties
and Powers
10. The Ministry
shall form Supervisory Bodies
with suitable persons in the
State and Divisions.
11. The duties
and powers of the Supervisory
Body are as follow s:
(a) giving opinion in respect
of the inspection, recommending
or refusing to recommend for grant
of registration, causing to be
removed or to be terminated or
to be closed down private industrial
enterprises which are conducting
on the day this Law is enacted;
(b) inspecting, recommending or
refusing to recommend for grant
of registration in respect of
cases where applications are submitted
for registration of new private
industrial enterprises;
(c) in recommending for grant
of registration of private industrial
enterprises, the following factors
shall be taken into consideration:
(i) no cause of being injurious
to the health of the public residing
in the vicinity of the private
industrial enterprise;
(ii) being safe from the danger
of fire;
(iii) no cause of being a <nuisance
to the environment and no cause
of there being any pollution;
(iv) no cause of being injurious
to the health of the workers of
the
private industrial enterprise
and no Like hood also of there
being
any danger;
(v) being also in compliance with
the existing laws;
(d) supervising to ensure the
compliance by the entrepreneurs
in the conducting of the industrial
enterprises in accordance with
the basic
principles;
(e) informing the relevant Government
department to take action against
the entrepreneur if it is discovered
that any private industrial enterprise
is not in conformity with any
existing Law;
(f) giving opinion for the determination
of industrial areas and for the
granting of lease of land for
the private industrial enterprises;
(g) in granting lease of land
in an industrial area to entrepreneurs,
causing to be done so in accordance
with the stipulations;
(h) carrying out the duties and
powers assigned by the Ministry
or by the Private Industrial Enterprise
Co-ordination Body.
12. The Supervisory
Body shall submit to the Director
General through the
State or Divisional Officer-in-charge
the opinion given in respect of
recommending or refusing to recommend
for grant of registration under
section 11 sub-sections (a) and
(b).
Chapter VI
Duties and Rights of the Entrepreneur
13. The duties
of the entrepreneur are as follows:-
(a) shall pay the registration
fees, fees for the renewal of
registration and other payable
duties and taxes prescribed by
the Directorate;
(b) shall abide by the terms and
conditions of the registration
certificate;
(c) shall conduct the enterprise
by opening an account with the
relevant bank in the name of its
registered enterprise;
(d) shall maintain systematically
and fully as prescribed by the
Directorate, the statement of
accounts relating to the registered
private industrial enterprise
and shall submit the same to the
relevant Government department,
organization or Supervisory Body
when required to do so;
(e) shall submit to the inspection
of the person or inspection body
assigned by the Directorate or
Supervisory Body;
(I) shall shift the place of enterprise,
change the nature of enterprise,
amalgamate enterprises and split
up enterprises only with the approval
of the Directorate;
(g) shall abide by the orders
and directives issued from time
to time by the Ministry and the
Directorate;
(h) shall also abide by the existing
laws.
14. The entrepreneur
has the right to apply for the
following requirments from the
relevant Government departments
and Government organizations:-
(a) land, water, power, communication
and transport et cetera required
for use in his enterprise;
(b) exemptions and reliefs from
taxes;
(c) loans for’ fixed capital
and working capital;
(d) raw materials, machinery and
spare parts required locally and
from abroad for his enterprise;
(e) local and foreign technical
know - how for enhanced production
goods and for improvement in the
quality of finished goods.
216
15. The entrepreneur has the right
to carry out the followings:-
(a) appointing foreign exports
and technicians with the approval
of the Ministry;
(b) carrying out change of the
name of enterprise, transfer of
ownership, temporary suspension
or permanent closing down of the
enterprise in the manner prescribed
and with the approval of the Directorate.
Chapter VII
Powers of the Director General
16. The Director
General shall, in order that entrepreneurs
may, have the right to enjoy,
submit to the Private Industrial
Enterprise Co-ordination Body
and carry out in respect of the
following matters:-
(a) land, water, power, communication
and transport et cetera required
for use in his enterprise;
(b) exemptions and reliefs from
taxes;
(c) loans for fixed capital and
working capital;
(d) raw materials, machinery and
spare parts required locally and
from abroad for his enterprise;
(e) local and foreign technical
know-how for enhanced production
of goods and for improvement in
the quality of finished goods;
(f) to acquire local and foreign
markets;
(g) to acquire industrial areas
and leased land for industrial
enterprises.
17. The Director
General shall reply as to whether
or not the applications for registration
submitted by the respective State
or Divisional Officer-in-charge
are granted.
18. The Director
General may, under the direction
of the Minister or on the submission
of the Supervisory Body or the
State, Divisional Officer-in-charge
suspend or cancel the registrations
granted.
Chapter VIII
Duties and Powers of the State
or Divisional Officer-in-charge
19. The duties
and powers of the State or Divisional
Officer-in-charge are as followins:—
(a) scrutinizing the applications
submitted for registration of
private
industrial enterprise
and forwarding the same to the
Director General together with
the opinion of the Supervisory
Body;
(h) registering
or refusing to register in accordance
with the direction of the Director
General;
(c) inspecting at site of private
industrial enterprises at the
requirement of the Directorate
or on the opinion of the Supervisory
Body;
(d) collecting registration fees
and fees for renewal of registration
and depositing the same at the
bank;
(e) co-ordinating with the relevant
departments in accordance with
the opinion of the Director General
or the Supervisory Body, in order
to acquire industrial areas, if
it is an agricultural land, applying
for sanction under section 39
of the Land Nationalization Act;
(f) carrying out the duties and
powers assigned by the Minister
and the Director General.
Chapter IX
Invalidation of Registration
20. When any
of the following events occur,
registration is invalidated;-
(a) expiration of the tenure;
(b) cancellation:
(c) surrender of the registration
certificate by the entrepreneur;
(d) the enterprise being terminated
under any existing law.
Chapter X
Appeal
21. Any person
conducting a private industrial
enterprise or any entrepreneur:
(a) who is dissatisfied with an
order or decision of the Director
General may file an appeal to
the Minister within 30 days of
the receipt of such order or decision;
(b) the decision of the Minister
shall he final.
Chapter Xl
Powers of the Minister
22. The Minister
may, in respect of a private industrial
enterprise pass the following
orders at his discretion:-
(a) granting registration;
(b) if it is necessary in the
interest of the State suspending
or cancelling the registration
granted by the Directorate, if
re-application is made, granting
registration after scrutiny.
23. The Minister:-
(a) may determine any industrial
enterprise as a private industrial
enterprise;
(b) shall give a decision if a
dispute arises as to whether it
is a private industrial enterprise
or not.
24. The decision
of the Minister under section
23 sub-section (b) shall be final.
25. The Minister
may, in respect of the following
matters direct the respective
State or Divisional Officer-in-charge
to cause the removal of buildings,
moveable and immoveable property:—
(a) continuing to conduct a private
industrial enterprise without
being granted registration by
a person after conviction under
this Law;
(b) failure to comply with any
condition prescribed by the Directorate
by an entrepreneur who has been
granted a lease of land in any
industrial area.
Chapter
XII
Prohibitions
26. No one shall
conduct a private industrial enterprise
contained in section ~. without
obtaining registration under this
Law.
27. An entrepreneur:
(a) in distributing and selling
the goods he has produced shall
not sell without a trade mark;
(h) shall not violate any provision
of section 13;
(c) shall not fail to comply with
any order or decision passed by
the Minister and the Director
General
Chapter XIII
Offence and Penalty
28. Whoever violates
the provision of section 26 shall,
on conviction:-
(a) in the case of conducting
a small scale private industrial
enterprise, he punished with fine
which may extend from a minimum
of kyats 5,000 to a maximum of
kyats 10,000;
(h) in the case of conducting
a medium scale private industrial
enterprise, he punished with fine
which may extend from a minimum
of kyats 10,000 to a maximum of
kyats 20,000:
(c) in the case of conducting
a large scale private industrial
enterprise be punished with fine
which may extend from a minimum
of kyats 20,00() to a maximum
of kyats 50,000.
29. If a person
who is convicted of an offence
under Section 28 continues in
the commission of such offence,
he shall be punished with fine
at the following rate for each
day of the extent of the period
of continuance thereof: -
(a) in the case of a small scale
private industrial enterprise,
at the rate of kyats 100:
(h) in the case of a medium scale
private industrial enterprise,
at the rate of kyats 150:
(c) in the case of a large scale
private industrial enterprise,
at the rate
-. of kyats 200.
30. If the Director
General discovers that the entrepreneur
has violated any provision of
section 27. the Director General
may pass any of the following
administrative penalties:
(a) warning;
(b) causing damages to he paid:
(c) suspension of registration
subject to a periodical limit
or cancellation of registration.
Chapter XIV
Miscellaneous
31. In the implementation
of this Law, the respective State
or Divisional
Officer- in - change may, if necessary
request the assistance of the
Myanmar
Police Force.
32. If the respective
entrepreneur fails to pay the
damages imposed under section
30, the respective State or Divisional
Officer-in-charge shall recover
such damages as if it were an
arrear of land revenue.
33. No suit or
prosecution shall lie against
any member of the Supervisory
Body or any public servant for
anything which is in good faith
done under this
34. For the purpose of carrying
out the provisions of this Law,
the Ministry:-
(a) may, with the approval of
the Government, issue such procedures
as may he necessary;
(h) may issue such orders and
directives as may be necessary.
Sd./ Saw
Maung
Senior General
Chairman
The State Law and Order Restoration
Council
