Company Registration in Sri Lanka – A step by step guide (private limited entity)

Starting a business may be a dream but losing your personal assets that support you and your family are a reality and that reality could turn into a nightmare if your business doesn’t work out, you’re sued, or another unforeseen financial loss. By registering your business, your business assets and liabilities are separated from each other. There are many other reasons to incorporate but for the protection of you & your family may be the most important.

If you are starting out in business, or even if are established and incorporated and you want to name your business something other than your given name, you’ll need to register for a “Doing Business As” name, also known as a DBA, trade name, or assumed name.

When you form a business, its legal name always defaults to the name of the person or entity that owns the business, unless you choose to rename it and register it as a DBA name. A guarantee of protection for your unique business name — which may be a key propellant of your marketing drive; and,

– Obtaining Licenses and Permits
– Register with the Inland Revenue Department and Tax Authorities
– Opening a bank account or opting for bank facilities for business requirements

There are many legal entities you can go with when registering your business, we’re going to be talking about private limited companies here mainly because

Obtaining approval for your name

Searching for a unique company name can be done online via the website of the Department of the Registrar of Companies. We recommend grabbing a domain name for your company identical to the one you registered your company name for. We personally use Lankahost to buy all our .lk domains and Godaddy for our international domains & hosting.

The company name reservation is valid for 3 (2,000 Rs + VAT 15%).

Submitting company registration forms

After obtaining the name approval, submit Form No. 1, 18, and 19.All forms should be printed or typewritten. (Section 475). Handwritten forms will not be accepted.
We’ve gone ahead and attached the forms to make it easier for you.

Form 1 – Company Registration (Rs. 4,000 + VAT 15%)
Form 18 – Consent and Certificate of Director (Rs. 2,000 + VAT 15%)
Form 19 – Consent and Certificate of Secretary/Secretaries (Rs. 2,000 + VAT 15%)

 

Submit Articles of Association

A company may either adopt the standard set of Articles of Association in Table A of the Companies Act of Sri Lanka or draft its own Articles of Association. You must submit 2 copies.
(Rs. 2,000 + VAT 15%)

 

Give public notice of incorporation

After everything else is done, the final procedure is to give public notice. This is usually done by publishing a small blurb on the local papers. This should include the company registration number & the name of the company. As well as the Registered office address of the company. This should be on at least one issue of the Gazette; and in at least one issue of a daily newspaper in the Sinhala, Tamil & English languages, circulating in the area of business.

(Rs. 8,500)

 

Total Fee Structure

 

Getting started

As a Registered corporate secretary, Simplebooks is capable of registering your company for you. As a public service offering for all startups & small businesses in Sri Lanka.

 


 

We’re currently offering
company registration services below cost.

Rs. 35,000.

And you can get another 10% off with Karma.

 


 

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A young chartered accountant and a senior member of the association of accounting technicians. He has been involved in auditing, taxation, and corporate consultancy, for over 4 years