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Starting a new business in Dehiwala-Mount Lavinia, a key residential suburb of Colombo, Sri Lanka, follows the same general laws and regulations as the rest of the country. The main overriding regulatory body is the Department of Registrar of Companies. Regardless whether you aspire to form a small, medium, large, or foreign enterprise, every business must be registered under one out of five main types: Sole Proprietorship, Partnership, Private Limited Company, Public Limited Company, or Offshore Business.
Understanding and complying with the various legal requirements can be complex and daunting for new business owners. Errors in legal compliance could result in significant fines, penalties or even business closure. A lawyer specializing in new business formation can guide you through the registration process, ensuring that all documents are accurately completed and submitted on time. They can also provide valuable advice on business structure that best suits your plans, assist in drafting agreements, and ensure your business adheres to the required local and national laws.
In Dehiwala-Mount Lavinia, Sri Lanka, businesses are governed by several key laws. Businesses need to comply with the Companies Act No. 07 of 2007 regarding company formation and operation. They also need to consider the Commercial Mediation Centre of Sri Lanka Act, Inland Revenue Act, and Value Added Tax Act, among others. Depending on the nature of the business, regulations from local city councils, environmental laws, and industry-specific regulations may also apply.
The choice of business structure depends on your specific needs, such as the nature of your business, the extent of personal liability you are willing to accept, tax implications, and your future business goals. It is advisable to consult with a legal expert or business advisor to make an informed decision.
New businesses can be registered online via the Official website of the Department of Registrar of Companies. The process generally involves name reservation, submitting the relevant documents such as Articles of Association, and paying the applicable fees.
All businesses in Sri Lanka need to adhere to the Inland Revenue Act for taxation purposes. This could involve income tax, economic service charge (ESC), value added tax (VAT), and others. It is crucial to seek advice from a tax consultant to understand these obligations.
Depending on the nature of your business, a special permit or license may be required. These can include environmental permits, health and safety licensing, food and beverage permits, etc.
Businesses have to adhere to the labour laws of Sri Lanka, which include regulations on minimum wage, working hours, overtime, annual leave, and others. Non-compliance can result in legal action and penalties.
The Department of Registrar of Companies is the governing body for business registration in Sri Lanka. The Inland Revenue Department handles tax matters, whilst the Labour Department manages labour laws and rights. Websites of these government agencies provide ample resources and additional information for new businesses.
If you need legal assistance with new business formation in Dehiwala-Mount Lavinia, begin by finding a lawyer with expertise in Sri Lankan business law. Schedule a consultation to understand your legal obligations, the most suitable business structure, and how to navigate any potential legal challenges. Preparing a list of specific questions ahead of time can help you maximize the value of your consultation.
