I often encounter many of my investor friends who want to seek in opportunities to start up their own business in Sri Lanka. Yet, most of them looks confused about certain aspects like the registration method, which type of business entity to select, total costing and other related issues.
Usually with a small fortune to invest many of these investors and business owners looks in towards a small business registration Sri Lanka.
My article is all dedicated to all those investor friends and business owners who have recently chosen Sri Lanka for investing and set up their own business firm.
Sri Lanka is one of the best countries to be considered in today’s date for any sole investor to make investments and come up with lucrative profit and fortunes.
I will try my all best to explain the steps and procedures that is required for small business registration Sri Lanka and what type of business entity is most suitable for such company establishment.
Hence, let’s start off with the type of business entity to choose that will be most suitable for the small business registration. Well, undoubtedly, I will always recommend my investor friends and business owner friends to initiate their small business under a Private Limited Liability entity.
Although, preferring cost effectiveness many would also prefer to register their small business firm under sole proprietorship but incorporating your small business in Sri Lanka as a Private Limited Company will surly give you more lucrative benefits, ideal advantages and secured.
As we all know by date that a Private Limited Company incorporated in almost all countries around the globe come up with one common predicament that is you and your company will act as two individual parties and your business assets, fortunes and other liabilities are completely separated from you and your beloved family.
Now, the all-important portion of my article, how to take in Small Business Registration Sri Lanka under a Private Limited Company -- Step by Step Guidelines
Step 1 – The first and most crucial step is going to reserve a unique company name for your Small Business Firm, From the Registrar of Companies in Sri Lanka (ROC)
Well one can easily search for a desired unique company name for their small business registration through online via the official web portal, commonly known as, Department of the Registrar of Companies --- The Web Link is www.drc.gov.lk
Once the name is approved by the official then from the date of approval the company name is kept reserved for the next 3 months. The costing for this name reservation will be about Rs. 2,000 + VAT 15%.
Step 2 – The next step will be submitting company registration forms for your small business registration Sri Lanka
Right after you obtain the name approval from the Registrar of Companies in Sri Lanka (ROC), you will have to submit Form Number 1, Form Number 18, and Form Number 19 for your company incorporation. All forms submitted has to be printed or typewritten as handwritten forms will not be accepted.
Another important fact to consider will be, according to Companies Act No. 7 of 2007, every business company must have a company director and a assigned company secretary.
The Company Secretary has to be hired before incorporation procedure is completed. This is the important requirement for your Small Business Registration. That is a consent that the Company Secretary has to sign a document saying he/she is the designated company secretary appointed for the newly formed company.
Step 3 -- Submit Articles of Association
You need to submit at least two copies of Articles of Association for your small company registration Sri Lanka. This will cost you about Rs. 2,000 + VAT 15%
Step 4 – Promote your company by given public notice of incorporation.
All business companies incorporated in Sri Lanka is asked to make public notice within 30 working days of incorporation of your company according to Section 9 of Sri Lanka's Companies Act Number 7 of the year 2007 and section 3(a) of the Gazette Notice No. 1566/32 dated 12/09.2008.
The public notice published for your small business registration Sri Lanka must specify your company name, registration number, date of incorporation and office address.
All this information should be published in the Government Gazette and in all daily newspapers in three different languages: English, Sinhala and Tamil.
The proof of these public notice publication has to be filed to the Registrar of Companies. The publication in the Gazette usually appears within 2 weeks’ time from submission date made after payment.
The Registrar of Companies in Sri Lanka will accept a receipt copy of the Government Printer as proof of publication. The entire process will cost you about Rs. 7,500.
Step 5 – The last step for of your small business registration Sri Lanka will be obtaining Tax Identification Number (TIN).
This particular step requires self-assessment as the applicants, investors or the company directors has to be physically present at the Taxpayer Services Unit of Inland Revenue Department to pick up and complete the entire procedure required for application of your Taxpayer Identification Number (TIN) number.
The applicant is asked to be present with the following supporting documents -- copy of Form 1, Certificate of Incorporation and Articles of Association. This process will cost you about Rs. 1,500.
If you still have any sort of queries and information to know then please feel free to contact me and my company S & F CONSULTING FIRM LIMITED, we are there 24/7 to assist you with all sort of company registration facts and foes. Well, now to can know about how to start a leather business in Sri Lanka.