Online Business Law Threatens Again

As businesses selling goods and services online increase in Myanmar, the laws and regulations governing these operations are becoming increasingly relevant. Since the implementation of the online business registration system in 2023, questions have arisen among business owners. A business owner stated, "Questions have emerged regarding potential tax increases, the security of personal data, and the legal consequences of not registering." Although the system has been in effect since 2023, a significant development that has heightened interest occurred around June 10th, when a document circulated on social media. According to the document, a relevant department summoned an online shop for an investigation based on a consumer complaint and notified them to resolve the issue with the consumer and comply with online sales regulations. While it cannot be concluded from a single document that all online shops have begun to face enforcement actions, it can be viewed as an indication of increased oversight by relevant departments on online sales, based on consumer complaints, according to analyses. Consequently, some business owners have begun registering their online shops recently, a business owner told Mizzima. "News has only recently emerged, and hearing about potential imprisonment, people are now registering through intermediaries," he said. Currently, Myanmar does not have a specific law for online shops. The primary regulation governing online sales is Notification No. 51/2023 on the Registration of Online Sales Businesses, issued by the Ministry of Commerce in July 2023. According to the notification, sellers of goods or services through online platforms, including Facebook, TikTok, Instagram, and websites, are required to register as online sales businesses. Following the issuance of the notification, the online registration system, known as eComReg, was launched. This system allows business owners to apply for registration online and enables the public to verify registered businesses. In 2025, the Ministry of Commerce announced that it had approved the registration of over 21,000 online businesses under the eComReg system. The registration fees are K30,000 for individuals, K50,000 for small and medium-sized enterprises (SMEs), and K70,000 for companies. The registration certificate is valid for two years. Despite the requirement for online shops to register, it has been observed in business circles and e-commerce studies that most businesses have not yet registered. Although official registration is not yet widespread, business owners and research indicate that the primary reasons for non-registration include concerns about increased tax obligations after registration, apprehension about submitting personal information, reluctance to enter the military junta's system under the current political and economic conditions, the belief that registration is unnecessary for small businesses, and a lack of clear understanding of the registration process. There are significant differences between Myanmar and other countries regarding the registration system. In Thailand, Singapore, and the United States, online shops are also required to register their businesses and pay taxes. However, registered businesses enjoy benefits such as access to bank loans, the ability to use payment systems, the opportunity to sell legally on online marketplaces like Shopee, Lazada, and Amazon, increased consumer trust, and greater legal protection. The tax system and legal enforcement are also clearer and more predictable, leading business owners to accept registration as a normal part of doing business. In Myanmar, there are also some benefits for registered businesses. These include potential recognition as a legal entity, increased consumer trust, and the ability to resolve disputes with consumers through official channels. On the other hand, some business owners continue to express concerns about clearer tax obligations, the submission of personal information, and data security. Analysts suggest that these concerns are also linked to the current political and economic situation in Myanmar. There is also a legal basis for taking action against online shops. In 2024, the Ministry of Commerce reiterated that businesses operating online without an online sales business registration certificate could face action under the Essential Goods and Services Law. Under the law, convictions can result in imprisonment and fines. However, no official record of how many unregistered online shops have been prosecuted or which businesses have been convicted has been released to date. Therefore, it cannot be confirmed that numerous online shops are being arrested and prosecuted, nor can it be confirmed that the law is not being enforced. It is observed that cases of online shops being summoned for investigation and required to reach settlements based on consumer complaints, similar to the recently surfaced document, are occurring. While such incidents indicate a gradual increase in oversight by relevant departments on online sales, there is insufficient evidence to conclude that uniform enforcement actions have begun against all businesses based on a single incident. In the current situation, Myanmar's online shop system is seen as gradually moving from the registration system initiated in 2023 towards an emphasis on consumer complaints, inspections, and legal enforcement in 2025 and 2026.