How to register a private limited company in Sri Lank?
Sri Lanka is optimistic destination for private limited company. The country has gone a long way after the civil war. It has now a strong hold among other south Asian countries in the field of trade and commerce. The nation have well documented themselve for promising opportunities of registering and initiating businesses.
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The country is facing economic upraise. The stable GDP growth in last few years give hints of steady government policies on commerce. Such idol environment is attracting investors and influencing them to do business here.
Starting a company is not that simple. There are few procedures that an entrepreneur needs to follow. These are generally the company registration procedures which every entrepreneur must follow. This article will guide an entrepreneur through various stages of registration process.
Unique company name approval
- Select a unique name that doesn't match with the name of other existing company in Sri Lanka. It is wise to submit up to four extra names to prevent name rejection possibilities.
- Fill-up the registration form-A16 which deals with company name.
- It is an e- form which is available in website of “Department of the Registrar of Companies.”
- Fill-up the form with appropriate data and submit online.
- Department of the Registrar of Companies authorities will verify the form
- If accepted, you will get an approval later for your company's name within three working days.
Process company registration forms
- Once registrar authority approves the company name, you are eligible for company registration.
- Here you need to fill-up three e-forms to complete the registration procedure. Form-1, form-18 and form-19
- Form-1 take company's details. The form also takes company's naming registration number which is already acquired.
- This form also takes owner's name and other relevant data.
- Form-18 is all about owner or director's detail. This includes director's name, address, contact no. passport or other identification no. etc.
- Form-19 needs you to provide company's secretary data. These fields are all about secretary name, address, contact no.,designation, identification no. etc.
Articles of association
- Articles of association can either be tailor made, according to company's needs.
- Or the company can follow default model articles that already set by government.
- A the company need to follow several rules and agreements stated in this article.
- All company members including owners, management employees and shareholders bound to follow this.
- Sri Lanka's Company Act no. 07 of 2007 made this article mandatory for all LLC.
Publish public notice
- Next step is to prepare a public notice
- The notice must mention all information of the company such as name, address, contact no. etc.
- Publish the notice in at least three national print medias.
- Publish this notice within 30 days right after company registration.
Creating bank account
- A corporate bank account is necessary at this stage
- Complete all required bank formalities.
- Bank generally takes 5 to 7 days to open a corporate account in Sri Lanka.
- Such bank account only provides bank checks and internet banking facilities.
BOI approval (If applicable)
- BOI approval is necessary for retail, manufacturing and brunch offices only.
- Private limited company doesn't need this approval
- BOI approval is compulsory if the company plans to higher foreign staffs.
Company Registration cost
A private limited company or LLC registration procedure needs total of SLR 120,000.
This includes services like name registration, 1-year secretary service, address registration etc.
Owner need to submit 50% of the amount beforehand. Remaining amount after company consolidation. Keep in touch with S & F consulting firm and get the cheapest price for ready corporate office space.
FAQ
Q. Why and when BOI approval is necessary?
A. BOI approval is necessary if you have retail, manufacturing or brunch office. If company plans to hire foreign staffs BOI approval is compulsory.
Q From where I can get registration forms for company name approval?
A. Registration form-A16 is for registering company name. It is an electronic form which you can get from Department of the Registrar of Companies. As an applicant you need to fill-up the form and submit it online.
Q. Can I publish the public notice in social media only?
A. No, you must publish company's public notice on at least three national newspapers.
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