Move to identify active companies:
Re-registration of companies vital
The re-registration of companies under the new Act No. 7 of 2007 has
become vital to identify the active companies in Sri Lanka. The company
registration started in 1861 under the Joint Stock Companies Ordinance
and until the implementation of the new Act in 2007, there were 66,496
registered companies with the Department of Registrar General of
Despite the large number of companies registered only 24,948
companies applied for re-registration, Registrar General of Companies,
Department of Registrar General of Companies, D.K. Hettiarachchi told
Daily News Business. He said that the Department published 21
advertisements in the newspapers and the latest advertisement was
published on September 29, 2009.
Hence, the companies that have not re-registered yet were given a
grace period of six months for the purpose and the Department expects to
gather information on inactive companies and their names will be deleted
from the list of registered companies if they unable to re-register
during the grace period. Many companies fail to submit their annual and
financial reports and remain passive.
The number of companies incorporated under Act No 7 of 2007 were
10,528 - from May 3, 2007 till September 30 this year. The number of
companies registered during the period was 2,963 in 2007, 4,532 in 2008
and 33,033 in 2009.
The assets of the inactive company will be vested in the Government
after the grace period is over. The grace period will end for the first
published companies published on October 15 whereas the grace period for
the companies in the latest advertisement will end on March 29 next
year. The Department of Registrar General of Companies, publishes the
names of these companies in newspapers - around 2, 000 companies in each
advertisement, he said.
He said that the Department recorded a total income of Rs. 90,283,584
this year while its expenditure was Rs. 72,372,098. The Department of
Registrar General Companies received many applications for registration
from the Northern and the Eastern regions, especially from Jaffna.