Introduction: Embarking on the journey of establishing a company in Sri Lanka is an exciting venture. However, to smoothly navigate the process, it’s crucial to understand the costs involved and the timeframe required for company registration. In this article, we’ll break down the steps involved and shed light on the financial aspects, helping you make informed decisions.
Choosing the Right Company Type: Before diving into the registration process, you need to decide on the type of company you want to establish whether it’s a Private Limited, Public Limited, or an Association. Each type comes with its own set of regulations and implications, so choose wisely based on your business goals.
Selecting a Unique Company Name: Your company name is its identity. Ensure it is unique and not already in use by checking the availability on www.eroc.gov.lk. A distinctive name will set your business apart and make the registration process smoother.
Deciding on the Company Address: While choosing the company address, keep in mind that there are no restrictions; you can use any postal address in Sri Lanka. Opt for an address that aligns with your business needs and portrays a professional image.
Structuring Your Company: Define the company structure by determining the directors, management team, shareholders, and the percentage of shares to be issued. Drafting the Articles of Association is a crucial step in outlining the rules and regulations governing your company.
Understanding the Cost of Registration: The cost of registering a company in Sri Lanka varies depending on whether you opt to handle the process yourself or hire a Registered Company Secretary. Many company secretaries offer their pricing online, allowing you to compare and choose based on your budget and requirements.If you choose ASAC as your Incorporator and company secretary, their fees and charges can be found on their website (www.anandasirisena.lk). Keep in mind that the expertise and services of the company secretary will influence the overall cost.
Department of Registrar General Charges: Apart from the professional fees, you’ll also incur charges from the Department of Registrar General. The fees depend on the number of directors, with approximately Rs. 2700/- per consent form, totaling around Rs. 25,000/- for a 3-director company, including taxes and other charges.
Do You Need a Company Secretary? The requirement for a company secretary depends on your company’s turnover. If your business is expected to have a turnover of more than Rs. 1 million over 12 months, a Registered Company Secretary is necessary. Otherwise, any director can take on the role of the secretary.
Timeframe for Registration: The registration process typically involves name approval, which takes 2-3 days, and document submission, which may take 5-7 business days. The exact timeframe can vary based on the workload at the registrar office and the complexity of your business structure.