Rush at Company Registrar to comply ahead of 2016 Budget moves

By Waruni Paranagamage

 

The Department of Registrar of Companies was swamped by people yesterday attempting to comply ahead of 2016 Budget proposals coming in to force.

In presenting the 2016 Budget, Finance Minister Ravi Karunanayake had said “It has been noted that most of the registered companies are not functioning.” 

In order to make such companies activated, Finance Minister proposed every company registered with the Registrar of Companies will be subject to an Annual License fee payable to the Registrar of Companies on the basis of Private companies : Rs. 60,000; Public Quoted Companies : Rs. 500,000; and Other : Rs. 100,000.

Non functioning companies are also to be liable to the annual registration fee.

All business entities should be registered with the respective local councils at a nominal fee of Rs.100 per year. For new business entities, the registration would be a pre requisite to obtain the electricity and water connection, and loan facilities from banks.   

The department currently charges Rs. 15,000 for registration of a limited company and Rs. 12,000 for an unlimited company. It also charges Rs. 1000 for company name approval and Rs. 100,000 for the registration of an off-shore company. The current charges on re-registering of any other existing company and re-registration of individuals as Company Secretaries are Rs 1, 000 and Rs.2, 500 respectively.