Sri Lankan government launches new programme to register companies online
Opening a new chapter in Sri Lanka’s private sector development, the incorporation of a new company is now possible from the comfort of one’s own home.
“Name reservation of companies could be obtained online. Company registrations and incorporations could be done online and there is no need for physical attendance at the Department of Registrar of Companies,” Sri Lanka’s Industries and Commerce Minister Rishad Bathiudeen has been quoted as saying in the local media.
Bathiudeen has made this observation while addressing the Sri Lankan parliament on regulations made by him to establish Regulations under the Public Contract Act.
The regulations were made with the concurrence of the President under Section 36 of the Public Contracts Act No. 3 of 1987.
Accordingly, fees payable (VAT excluded) on four types of contracts have been amended.
Rs 2,000 – for application for registration as an agent, sub-agent, representative or nominee for or on behalf of a tenderer
Rs 10,000 – for application for registration of a public contract
Rs 2,000 – for application for renewal of a registration
Rs 10,000 – for application for re-registration of a public contract
“It can be easily done at home if one has a computer with internet facilities. Societies registrations can be done online since January 2019. Registration of auditors too can be done online. Card payments are accepted. Overseas companies and offshore companies can be registered online,” Bathiudeen has noted.
“In 2017 the Department of Registrar of Companies earned a revenue of about Rs 600 million and in 2018 it is Rs 664 million.”
In the World Bank’s 2019 Doing Business index, Sri Lanka has been ranked 100 among 190 countries.
The “Starting a Business Indicator” of Ease of Doing Business rankings for Sri Lanka (at 87.87 out of 100) showed the country ranked second in South Asia just after the Maldives (at 89.17).
South Asian regional average for Starting a Business Indicator is 85.44 and the 2018 revenues of Sri Lanka’s Department of Registrar of Companies increased by 11 percent (from 2017) to Rs. 664 million.
OSL take:
The government of Sri Lanka has taken many steps to improve the ease of doing business environment in the country and offered many incentives to promote foreign businesses/investment in the country. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. Foreign businesses/investors could make use off all these opportunities and facilities to set up base in Sri Lanka to engage with other countries in the region.
| Article Code : | VBS/AT/15102019/Z_6 |