Start-ups up 40%; 5,993 new companies incorporated

Sri Lanka’s new start-ups have risen by 40.35% with 5,993 new companies incorporated, according to the Ministry of Industry and Commerce.

“Up to September this year, 5993 new companies were incorporated under the 2007 Companies Act by the Department of Registrar of Companies under my Ministry. By end of September this year, 24823 companies also have been re-registered,” Minister Rishad Bathiudeen told Parliament during the performance review of his Ministry of Industry and Commerce at the Committee Stage Debate on Saturday 17 December in Parliament.

“This 65th budget of our Government has granted incentives for investment at all levels, especially since SMEs consist of more than 75% of Sri Lanka’s industries and enterprises. I must mention here very categorically, Chairman and members of the House, that the 2012 Budget is the most SME-friendly budget this country has seen in recent times.

The President has rightly recognised the valuable contribution of the SME sector to Sri Lanka’s economy in bridging growth disparities across provinces,” Minister Bathiudeen said.

“I am glad to say that my Ministry has been successful in bringing the Private-Public Partnership model to the SME sector as well,” he added.  

According to the Department of Registrar of Companies, the newly-incorporated companies in Sri Lanka have risen by 40.35% in Jan-Sept 2011. The total number of companies registered under the new Companies Act No. 7 of 2007 as at 30 September 2011 is 5,993 and it is an increase of 40.35% over the same period in 2010, which stood at 4,270. The total number of existing companies as at 30 September 2010 stood at 48,961.

Two senior officers who report directly to the Registrar General of Companies have been assigned the task of approving the names of companies and incorporation of new companies. Usually a name is approved the day after the application is presented and in the case of incorporation the certificate is issued on the day after the documents are issued.

Meanwhile, the Re-registration Unit of the Registrar of Companies which was established in May 2007 with the introduction of the Companies Act No. 7 of 2007 to facilitate the re-registration of firms has also completed the bulk of its work. A total of 26,202 applications were received by the unit for re-registration while 24,823 were registered with 1,120 applications pending as of end September 2011.