When considering business registration in Sri Lanka, it’s crucial for business owners to understand the How to register Company in Sri Lanka. This guide will highlight the advantages and steps to register a business in Sri Lanka from a business owner’s perspective. Additionally, we’ll provide essential information about the required registration documents.
How to register Company online in Sri Lanka (As business owner point of view)
While numerous articles explain the business registration process, most of them aren’t vital to business owners. Many secretarial firms can handle the registration process for you. Here are the steps you need to follow:
Step 01 – Select a Reputable Secretarial Firm
Choosing the right secretarial firm is essential for a smooth registration process. They will handle all registration procedures, including compliance with licensing requirements if your company earns more than 1 million in revenue annually.
As a business owner, you shouldn’t have to stress about these details. We offer a hassle-free secretarial service with no annual fees. For more information, please click here or call us at +94 112 700 960.
Step 02 – Choose an Appropriate Business Name
Select a unique and memorable business name that aligns with your business objectives.
Step 03 – Provide Information to the Company Secretary
Furnish your identity details and general business information to your chosen company secretary.
Step 04 – Receive the Business Registration Certificate
Your company secretary will email you all necessary business registration documents, which now come with a QR code for authentication.
Step 05 – Open a Bank Account and Commence Operations
Use the provided documents to open a company bank account, and you can start conducting business. Some banks, like Seylan Bank, offer convenient services where they come to your office or home for account opening.
Benefits of Registering a Private Limited Company in Sri Lanka Compared to Sole Proprietorship/Individual Business:
Private Limited Company |
Sole Proprietor /Individual Business |
|
| 01 | Limited Liability: Registering as a Private Limited Company protects your personal assets, preventing you from using them to cover business liabilities. | Sole proprietors have unlimited liability. |
| 02 | Global Validity: A Private Limited Company’s registration is recognized worldwide, fostering trust from banks, customers, and employees. | Sole proprietors are only valid within their respective pradeshiya saba. |
| 03 | Business Name Protection: Your company name is safeguarded, preventing others from using it after registration. | A sole proprietor is free to register a business under any name, even one that closely resembles your company name |
| 04 | Transferability: Shares in a Private Limited Company can be easily transferred, ensuring continuity for future generations. | Your hard-earned business cannot be transferred to another party |
| 05 | Cost-Effectiveness: While the initial registration cost for a Private Limited Company is higher (around LKR 25,000 to 30,000), the benefits outweigh the investment. | Sole proprietorships have lower initial costs but lack efficiency. |
| 06 | Multipurpose Business Operations: Private Limited Companies can engage in any legal business activities in Sri Lanka. | Sole proprietors are limited to the business mentioned in their certificate. |
| 07 | Tax Advantages: Private Limited Companies offer better tax planning options, allowing for reduced tax payments | Sole proprietors who are taxed personally and often pay higher taxes. |
Business Registration Documents & Seals – A Guide for Owners
As a business owner, you should be aware of essential registration documents, even though your company secretary will handle their preparation. Here’s a brief overview:
Type |
Purpose |
| Form 01 | This is your business registration application, containing information about owners, directors, and the company secretary |
| Form 18 | An application for directorship consent. |
| Form 19 | An application for company secretary consent. |
| Article of Association (AOA) | An agreement outlining your company’s objectives and operational instructions. |
| Form 2 a | Your business registration certificate, indicating the business name and incorporation date. |
| Company seal & Director seal | These may be necessary when opening a bank account, typically provided by secretarial firms. |
| Company embossed seal | Occasionally required, it can be useful, for example, when transferring a vehicle to your company. |
| TIN Certificate | Obtain this Tax Identification Number (TIN) certificate shortly after business registration to comply with tax regulations. |
We hope this guide has provided valuable insights into business registration in Sri Lanka. If you require more information or a free consultation on business registration, please visit our business registration service page or call us at +94 112 700 960. We’re here to assist you every step of the way. To set up a free consultation, click here.
