New Companies Act increases registrations

Lumbini EDIRISINGHE

The introduction of the new Companies Act to the Department, Registrar of Companies last year has simplified the procedure of company registrations and has also led to an increase in the number of registrations.

Last year, with the new Companies Act (Companies Act of Seven 2007)being implemented at the Department, Registrar of Companies, there were 7,802 registered and active companies.

Registrar General of Companies, Ranjith Hettiarachchi said that under the Act, the Department provides companies one year to complete the criteria needed to ratify the registration. This includes completing the prescribed form with all the requirements which should also include the consent of the Director and the Secretary of the newly formed company.

“After the simplification of documentation we have got an excellent response from private and public sector companies.

The new trend of documentation has made the companies register at the Department, Registrar of Companies. At present Companies can complete the requirements without the assistance of other institutions”, he said.

Subsequently, the Registrar would publish the name of the company seeking registration in the national newspapers in all three languages.

“The next step of the registration is that after one year the Department would give another six months to a company to carry out the procedure,” he said.

There were 316 companies registered in January and a further 281 sought registration last month.

“Under the new Act, we have simplified many, formalities by introducing a condensed new application form. “Our department’s services are not only to register companies, but also to ratify societies and public contacts are also registered by the Department”, he said.

The Department has also introduced the automation of all documents and an easy access computer system to the public.”

He said that their mission was to establish business and other institutions under the relevant Acts in accordance with the economic and trade policy of the Government and to assist in other commercial activities.

“In addition the Department, Registrar of Companies hopes to ensure the security of visitors to the complex and would soon introduce a close circuit TV monitoring system to safeguard the public,” he said.