Register a private limited company in Sri Lanka
There are many reasons why you should go for company incorporation from protecting your personal assets to paying lower taxes. Act today!
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Protect Your
Private Assets
Unlike a sole trader business, when you incorporate a private company, your losses will not exceed the capital invested. This means that even if your company goes bankrupt or you have to pay a huge fine, your personal assets are still safe! No creditor or a bank or anyone will be able to claim payments. Isn't that beautiful?
This happens due to a private limited company having what is called a "Separate Legal Personality" which makes it accountable as a person under the law.
Lower
Tax Expense
Limited liability companies will have to pay less taxes than a sole trader business having the same amount of profits. This is because you have to pay taxes for a sole trader as an individual and you may end up paying a heavy tax up to twenty-four percent. In contrast, small and medium limited liability companies' profits are taxed on a flat rate of just fourteen percent. A huge saving!
Access to
to Capital
Need more capital? No problem. You can issue shares to your friends, family, or third parties and privately raise capital. This is much easier to do than obtaining a bank loan. It also does not require you to pay interest payments. Expand your business in the best way possible.
A Company is
More Trusted
The banks and customers will have more confidence in your business since a private company is a more recognized legal structure having operations and assets under its own name. Therefore it is likely that you will attract more customers. The banks will also see you as a more reliable business than a sole trader so obtaining loans will be easier.
Protect Your
Business Name
When you incorporate a company, no one else will be able to use that name for incorporating a business; therefore, it will protect you from potential imitators of your business. However, you should keep in mind that if you are developing a brand name, it should be separately registered and it will not be covered under the business name.
Useful for
Everyone
Many people ask us whether they should register a private limited company for their business. The answer is very simple. It depends. It depends on the goal of your business and your personal risk appetite. Except for very small businesses not having an intention to expand and except for those who can comfortably bear the risk posed by the business to their personal property all others can enjoy the above benefits from a private limited company registration.
No Hefty Fees for
Registration Maintenance
A lot of people believe the myth that says it costs a fortune to maintain a private company registration. But that is completely false.
Compared to a sole trader/partnership business you have to incur additionally for a Limited Liability Company on Company Secretary fees (Around 10,000 LKR) and Annual Return registration fees (6,000 LKR) only.
Apart from this, there will be charges for tax return preparation and bookkeeping. These anyway you will have to incur irrespective of whether your company is registered as a sole trader/partnership or a company. If the transaction volume is small you don’t have to invest for day to day bookkeeping. But when conducting any business it is important to keep notes, records, and documents in a clean and tidy manner to avoid any errors which could be very costly.
How to Register a
Private Limited Company
Registering a private limited company is a bit of a complex process for a layman. First, you have to go to the Department of Registrar of Companies on www.eroc.drc.gov.lk and select a name and get it approved. Then you have to correctly prepare Form 1 (Application), Form 18 (Directors Consent), Form 19 (Secraterie’s Consent, You have to get the services of a qualified secretary), and Articles of Association. After approving those you will get your company registration number. Then you have to get certified copies of Form1, Form 18, and Articles of Association according to your future business requirements. You also have to get your rubber seals and Emboss seals done. Companies act also requires you to publish paper advertisements announcing the registration in all three languages. This whole process costs around 15,000 rupees to 20,000 rupees (depending on the number of directors) without the secretary charges.
Sounds like a lot of work! Thankfully we can go through the whole process for you and incorporate a private limited company for a small fee along with many other benefits for you.
Hurry Up!
Freebies Included
We normally charge 15,000 for our company registration service but to help new entrepreneurs who emerge to get our country booming, for a very limited period of time we have reduced our service fee to Rs. 9,500. So the total cost would be 24,900 with no hidden charges. Further, we have decided to provide free company secretary services for one year, free bookkeeping services for one month, and also a free business management consultancy session along with the company registration package for a limited time.
Basic
24,900 LKR
- Name Approval
- Articles Of Association
- Form 1
- Form 18
- Form 19
- Certified Form 1
- Certified Articles Of Association
- Free Company Secretary Services (1 year)
- Company Incorporation Advice
- Corporate Bank Account
- Paper Notice and Gazette
- Free 1st Month Bookkeeping
- Tax Registration
- Business Consultancy Session
- Embosser Seal
- Director Seal
- Company Seal
Premium
30,900 LKR
- Name Approval
- Articles Of Association
- Form 1
- Form 18
- Form 19
- Certified Form 1
- Certified Articles Of Association
- Free Company Secretary Services (1 year)
- Company Incorporation Advice
- Corporate Bank Account
- Paper Notice and Gazette
- Free 1st Month Bookkeeping
- Tax Registration
- Business Consultancy Session
- Embosser Seal
- Director Seal
- Company Seal
A Lot More Than
Just a Registration
Doing business is a lot more than getting registered. We are looking to build a good partnership and walk along the path with you. Let's begin your journey to prosperity with our industry-leading Chartered Accountants! Call us now or click the below button and go to the first step of the registration of your awesome business!
Start Registration Now