Quick Guide to Registering a Business in Sri Lanka

Step 1: Name Approval

The initial step involves securing approval for your chosen business name. To ensure availability, visit the Department of Registrar of Companies’ website and conduct a thorough search. If your chosen name closely resembles another registered company’s name, it may not be approved. It’s advisable to shortlist a few alternative names that are relevant to your business to increase your chances of approval.

Step 2: Filling Out the Registration Forms

After obtaining approval for your business name, the next phase involves completing specific registration forms, which must be neatly printed:

• Form 1: This form captures essential company details such as type, address, and the number of directors.
• Form 18: This form details the particulars of the company’s directors, including their names and appointment dates.
• Form 19: This form provides information on the company secretary.

Step 3: Acquiring Articles of Association

The Articles of Association serve as the governing document outlining a company’s regulations and operations. Any changes related to the company’s name, directors, shareholders, or share capital must be promptly communicated to the Registrar of Companies, in accordance with the Company Act No. 7 of 2007. You can adopt the model Articles of Association provided by the Registrar or draft your own. If you find these legal aspects confusing or require assistance with compliance and administrative matters, consider seeking professional guidance.

Step 4: Public Notice & Bank Account

Once your registration is successfully completed, you have two important tasks:

• Public Notice: As per legal requirements, you must publish a public notice in at least three local newspapers to establish your business as a legitimate business entity within the local sphere. The notice should prominently feature your company name, business type, location, and registration number.
• Bank Account: Open a corporate bank account in your business’s name. This account will grant you access to essential financial tools, including a cheque book and internet banking, which will be valuable as you begin your business operations.

These additional steps ensure that your business is legally recognized and well-prepared to operate within Sri Lanka’s regulatory framework.