If you’re a new entrepreneur looking to establish your business in Sri Lanka, your best option would be to do so as a sole proprietorship. A sole proprietorship is essentially, when a business is owned completely by one person. While this may be highly lucrative in terms of profit, as the sole owner, you will also have to bear the burden of any and all debts or costs incurred.
Another advantage of having a sole proprietorship is the ability to make and close all decisions relating to the business. Moreover, both the start-up and any close down of the business are also relatively simple procedures. Furthermore, if you register as a sole proprietorship you will still have the option to expand to either a limited liability company or a private company in the future, if you wish.
If you’re still having any reservations about the process, do contact us at S & F Consulting, as a business consulting firm, we are committed to giving you the best experience possible when it comes to registering your business in Sri Lanka. Therefore, in the meantime, doe look at the guideline below in order for you to have an overview of what the registration process of a sole proprietorship in Sri Lanka entails.
Steps to registering a sole proprietorship in Sri Lanka
In order to register as a sole proprietorship, you will need to follow these legal guidelines and steps required.
Step 1: Name Registration
The first step to take is to register the business’s name. Unless your business name shares your exact name, it must be officially registered with the appropriate provincial council’s registrar. You will also be asked to pay a fee pertaining to the registration and reservation of the name.
In order to have a successful application, you will need to file the following:
- A filled application form for name registration of a sole proprietorship
- A filled in application form to request the Grama Niladharee’s report that confirms the name registration.
Afterwards, you will need to submit the documents above to the Divisional Secretary along with the proof of payment for the relevant fee.
If successful, you will acquire the certificate of Registration of Business Name. As stated by law, you will need to have this certificate on display at your business’s official premises.
Step 2: Business Location
As a sole proprietorship, your business location can either be a separate location or you can even opt to operate out of the comfort of your own home.
Step 3: Advertising
For this step, everything is optional but highly recommended. After registering your business, you may now begin advertising your products or services to your target demographic. You may opt to do this via physical advertising, but by far the most effective would be to market online via social media, through platforms such as Instagram or Facebook.
If you’re still in doubt or would like any further clarification, do not feel hesitant to contact a member of our friendly customer service team. Once again, at S&F Consulting, we pride ourselves in ensuring that your satisfaction comes first.
Frequently Asked Questions
How much will this procedure cost?
The cost of business registration for a sole proprietorship will be LKR 2300 for the name reservation and registration.
How long will this procedure take?
The name registration process can be done in as little as a day.