Colombo, May 4 (NIA) – Sri Lanka’s hefty fees to register a new company has been slashed by the government by as much as 73 percent, Commerce and Industries Minister, Rishard Bathiudeen said here Thursday.
New companies which emerged in Sri Lanka last year surged by 7 percent while the key state institution in charge of such new company registrations itself reported an enormous revenue flow to it’s coffers in 2016.
“I am pleased to inform the House that as part of changes in fees, we have reduced the fee of registration of a Private Limited Company by as much as Rs 11,000,” Minister Bathiudeen informed Parliament.
“In that we reduced this fee from Rs 15000 to 4000 to develop entrepreneurship in Sri Lanka. All fee changes are effective from January 1, 2017” Minister Bathiudeen added.
In 2016, the income of the Department of Registrar of Companies increased by a 182 percent to Rs 1.78 Billion from 2015’s Rs 632 million.
Also 8289 new companies were registered in Sri Lanka in 2016. Registration of foreign companies in Sri Lanka also increased by 17 percent to 41 in 2016. Even new Registrations of Associations under Section 34 increased by 140% to 367 in 2016.
Among the upward fee revisions were the fee for the registration of a Public Limited Company under Form 1 which has been increased from Rs. 15,000 to Rs 20,000. Registration fee of an unlimited company has been increased from Rs. 12,500 to Rs 15,000.
Fee for registration of a company limited by Guarantee under Form 5 has been increased from Rs. 25,000.00 to Rs 30,000 and fee for registration of mortgages charges and debentures has been increased from Rs. 5000 to Rs 7500.