While many are busy practising the new carrom ball, others organising protests etc, I’m stuck with mere gossips about How to start a business in Sri lanka…
I get random ideas in my head at weird times, but this is one that stuck through.. but the complete lack of information about this darn thing really got me to give up.. almost..
The weird thing is not many, know how to “start a business in sri lanka”.. and those who do just can’t be bothered to explain it to you… [i'm referring to my so called friends]
So my plea to the SL blogosphere.. Can someone pls guide me through the the topic “stating a new buisness in lanka”
Oh and the net has no helpful info either.
While on the prowl, I did manage to pick up some bits and pieces, like the website “Registrar of Companies” etc ..
And I do have some questions :
- If I want to do business, do I have to register as a company?
- What about Sole proprietorship?
- How to obtain a Business Registration? and WHERE?
- Can I obtain a Business Registration and do business without forming a Company?
- How and when to deal with Tax?
I would be very obliged as you can see I severely lack understanding in this sector.. and if the questions seem stupid, well just have a harty laugh..
First draw up a business plan, always helps…hit up an accounting firm..they’ll help you incorporate and sort out your tax issues. In terms of licenses, it really depends on your industry. Talk to someone in the field. Btw for general entrepreneurship skills…googles your god.
also check this site:
http://personalmba.com/
Nothing on the web that I know of but try the book published by the Ceylon Chamber of Commerce – it’s LKR 600-ish but seems to have the details:
http://www.chamber.lk/inpages/publications/publicationsforsale3.shtml
You can probably start out without registration. Depends on what type of thing you are doing really, But if you are any serious, you’ll probably want to register. In the end it becomes a pain not to.
Best bet is to pay some lawyer, or secretarial company to deal with registration stuff. For trivial stuff, ask a lawyer friend. You can get some basic info on the Registrar of Companies site . Like whether the name you want to register, exists, etc and you can go through the info, companies act, forms etc. as well there.
Thanks Guys for your info. N – Thanks for the site.. Just the one for me.
Foodie – will definitely get the book. Deane – I was also told by my colleagues the same thing you said, that I could start out without a registration… but I just thought they were joking..
However, I haven’t received any direct [at least yes or no] answers to my first 4 questions… Anybody?
Hehe….1 & 2 depend on your type of business. Review the website Dean provided for 3. I’m not sure I understand what you mean by question 4…if you mean do you need to rent an office nad staff it with a hot secretary….then no….not necessarily (again depends on your type of business). Best thing to do would be to take your idea, write it up, maybe a PPT and take it to a lawyer/accountant and ask them….
Thanks N.. Much obliged.
Answering you on a SriLankan perspective.
1. Yes it is better to get a business registration. When your business is growing and when you are trying to deal with banks , longer your business has been in the scene more the benefits you can gain.So start with a business registration.
2. Start as a sole trader since there is some capital and lot of work needed to start as a pvt company. Partnership is also a good idea, If you can find reliable partners who can bring something to the table. For me I also started as a partner.
3.If you are from Colombo go to the registration office at union place. Near nawaloka hospital and UPS.Easy to find. If you want the registration in 1 day the fee is Rs1000 and otherwise the fee is Rs500.They will mail it to you within 2 weeks.
4.Yes,You can.
5. After a one year if you are in profitable status register with inland revenue department and open a file there. If you are able to pay around Rs5000 – Rs10000 (depending on the work load) for a tax consultant they will do all the file work for you.If you need one I can give my tax consultant’s details.You have my contact details.
Hope this helps,
I will post a full guideline covering all aspects later in my blog
As I did with your paypal question.
Eranda.
antharjalaya.com
Eranda, – Thanks! [that comes with a lot of appreciation, and loads of gratitude for answering with such detail]
Update:
The office in Colombo that Eranda has mentioned is “the department of Registration of Business”. Something which many searches failed to show up.
Web page available at http://www.wpc.gov.lk/Chief%20Secretary-regi_business-01.htm
This office is for the whole Western Province.
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