• From sole proprietorship to partnership

Starting your own business is an empowering journey – one that offers the freedom to make independent decisions and the satisfaction of turning your passion into a reality. Yet, this freedom comes with its own set of challenges as you shoulder the risks associated with entrepreneurship. 

Whether you are driven by the desire to introduce a new service or share a unique product with the world, the first step in realising your vision is registering your small business. To help you embark on this path, The Sunday Morning Brunch has compiled a detailed, step-by-step guide covering both sole proprietorship and the partnership registration processes.

Registering as a sole proprietorship

According to Attorney-at-Law Naomi Jacob, registering a business as a sole proprietorship is a straightforward process that begins at your local Divisional Secretariat office. 

“When you visit the office, you will be provided with a business name registration application form and a secondary form to obtain the required report from the Grama Niladhari regarding your business name registration,” she explained. 

These documents are critical for establishing your business identity, so it is essential to collect them in person to ensure you have the most current versions.

Once you have obtained the forms, the next step is to carefully complete them and gather all the necessary supporting documents. Accuracy is key – errors can delay the process significantly. 

In addition to the completed application forms, you must submit a certified report from the Grama Niladhari. You will also need to provide proof of land ownership. If your business operates on property you own, a copy of the deed is required; if you are renting, a valid lease agreement must be submitted; and if the property is owned by a family member, a consent letter along with a copy of their National Identity Card (NIC) is necessary. 

Finally, you are required to pay the applicable registration fee, as determined by your respective Provincial Council.

After your submission, the Divisional Secretary reviews the documents to ensure all requirements are met. Upon approval, a certificate of registration of business name is issued. This certificate is an essential legal document that confirms your business’s official status and must be displayed at your business premises. 

Jacob emphasised: “Once you have your certificate in hand, you can move forward with confidence, knowing you have taken the critical first steps in launching your entrepreneurial venture.”

Quick step guide: sole proprietorship registration

• Step 1: Visit the Divisional Secretariat office and collect: 
• Business name registration application form
• Grama Niladhari report application form
• Step 2: Complete the forms accurately and gather: 
• Certified report from Grama Niladhari
• Proof of land ownership (deed, lease agreement, or consent letter with NIC copy)
• Applicable registration fee
• Step 3: Submit your documents for review
• Step 4: Obtain and display the certificate of registration

Registering as a partnership

For those considering a collaborative approach to entrepreneurship, registering your business as a partnership offers a flexible way to share both the responsibilities and rewards of your venture. 

Attorney-at-Law Gayathri Wijesinghe shared that this method was ideal for entrepreneurs who wanted to pool their resources and expertise. The process starts similarly, by obtaining the necessary application form from your local Divisional Secretariat. Make sure you fill out the form with valid and accurate information, as this is the first official step in establishing your partnership.

After completing the form, you must submit it along with a variety of required documents. These include a photocopy of the NIC for each partner and proof of land ownership. Depending on your circumstances, this could be a deed if the property is owned, a lease agreement if rented, or a consent letter along with the property owner’s NIC if the land belongs to a family member. 

Additionally, you must provide a trade permit from your local Municipal or Divisional Council and a copy of the partnership agreement. Wijesinghe noted that additional documentation may be required based on the type of business; for instance, a list of goods for import/export businesses, a Police division report for spas or guest houses, or various approvals and certificates for other specific industries.

Before your application can be finalised, you need to visit the local Grama Niladhari office to submit your proof of land ownership for certification. This certification acts as an official stamp confirming that your business premises meet local regulatory standards. 

Once all documents are gathered and certified, submit your complete package to the Divisional Secretariat for processing. Upon review and approval, you will be issued a business registration certificate. 

Wijesinghe emphasised: “This certificate not only marks the start of your partnership but is also a symbol of your commitment to a shared business venture.” In the event that the partnership needs to be dissolved, the process is outlined in your partnership agreement – either through notice by one partner or via mutual consent.

Quick step guide: Partnership registration

• Step 1: Obtain the partnership registration application form from the Divisional Secretariat
• Step 2: Complete the form with accurate details and gather required documents 
• Photocopy of NIC for each partner
• Proof of land ownership (deed, lease, or consent letter with NIC copy)
• Trade permit from the local council
• Copy of the partnership agreement
• Additional documents as required (industry-specific)
• Step 3: Visit the Grama Niladhari office for land ownership certification
• Step 4: Submit all certified documents to the Divisional Secretariat
• Step 5: Receive and display your business registration certificate

The journey of entrepreneurship  

Embarking on the journey of entrepreneurship begins with the foundational step of registering your business – be it as a sole proprietorship or a partnership. This initial process not only legitimises your venture but also establishes your business identity and personal branding in the competitive marketplace. 

Brunch reached out to several entrepreneurs about the early stages of their business journey and their experiences shed light on the importance of proper registration.

Speaking to Brunch, Sumithra Murage, a retired professional now in the midst of registering her Airbnb, shared her candid experience with the process. 

“At first, I really didn’t think I had to, but I got the advice that it is always better to have your business name registered, especially now that it is all about identity and personal branding. If you are a business that wishes to stand apart from the rest, you should have your registrations sorted out,” she explained. 

Murage emphasised the value of a formal registration, noting that it played a critical role in building a reputable and distinct business image.

She further revealed the challenges she faced along the way, saying: “I had to employ the help of a lawyer because I dearly didn’t even know where to get started. I wish this type of guidance was readily available, but somehow, I struggled to find the help I needed.” 

Her experience showcases the reality that while the registration process is essential, it can also be daunting without the proper support and resources. Murage’s journey serves as a reminder that seeking professional advice and utilising available resources can make a significant difference in navigating the complexities of business registration.

Similarly, Ardhil Faizer, who co-owns a hardware store registered as a partnership with his brother, emphasised that taking this step was crucial to their growth and stability. 

Reflecting on his journey, Faizer remarked: “I have always wanted to start my own business. During Covid, I lost my job, and since then it has been a challenge. Finally, I managed to get some money together to open up a small store in Nugegoda, and because I didn’t want to do this by myself, I decided to register it with my brother.”

He highlighted an unexpected lesson in the process: “I actually didn’t even know I had to register it – I just thought we could start a business in any manner we liked, but we needed to register the name for banking purposes. Otherwise, we couldn’t open a separate bank account for the business.” 

Faizer’s experience illustrates not only the personal determination required to launch a venture during challenging times but also the practical necessities of formal registration, such as securing proper banking arrangements and establishing a legal business identity.

These firsthand accounts reinforce the importance of following proper registration procedures, whether you are establishing a sole proprietorship or forming a partnership. As these entrepreneurs have shown, the registration process is not just a bureaucratic formality – it is a fundamental step towards building credibility, ensuring operational stability, and setting your business on a solid path for future success.