Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 31 May 2017 00:00 - - {{hitsCtrl.values.hits}}
Turning over a new page in Sri Lanka’s business history, the entire company registration process is to be fully-automated, thereby slashing the waiting period for the creation of a new company.
The total number of companies registered in Sri Lanka (under the Companies Act) surged by 11% to 85,587 in 2016 from 77,116 in 2015.
“The groundwork has been going on for this e-Registration of Companies project (eROC) for some time and today I am pleased that we are launching work on this pioneering initiative in Sri Lanka’s business sector,” said the Minister of Industry and Commerce Rishad Bathiudeen yesterday.
Minister Bathiudeen was addressing the MoU signing event of the eROC project between the Department of Registrar of Companies (DRC) under his ministry and KPMG Sri Lanka, the supplier of the automated solution.
“This project is part of the business development vision of the Unity Government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe,” said Minister Bathiudeen.
“We are not starting this work using any taxpayers’ money but are using funds only from our own Company Registrar,” he added.
The eROC envisions the entire company registration process (such as Ltd, Pvt Ltd, Guarantee Ltd, etc.) conducted by DRC - currently around three days - is to be fully-automated and the waiting period for the creation of a new firm is to be drastically reduced to just one day. The cost of Rs. 57 million is funded by the Companies Fund of the department. The project is executed by KPMG Sri Lanka for DRC under the Ministry of Industry and Commerce. The online system is scheduled to go live in March 2018. All the required documentation can be submitted online while payments too can be made online.
“The main objective is to reduce unnecessary time-consuming paperwork and help more start-ups’ registration as well as to speed up the process,” said Registrar General Siriwardena.
“This does not result in any discontinuation of the current manual process for anyone still wishing to register their firms as usual. Even foreigners can register their companies in Sri Lanka from their countries by paying through the nominated credit cards. Once the online application is paid and successful, the Certificate of Incorporation will be posted to the registrants address if requested.”
Since this is an end-to-end automation of functions of the department, all the current transitions can be done online as well, even from abroad. The payment gateway is credit card empowered.
The DRC, in developing and fostering a trusted business environment, implements, administers and enforces the Companies Act No. 07 of 2007, the Societies Ordinance (Chapter 123), the Public Contract Act No. 03 of 1987 and the Cheetu Ordinance.
