The proposed implementation of licence fees on registered companies has resulted in a massive confusion which led to hundreds of persons  queuing outside the Department of Registrar of Companies on December 31.

The Government in its budget proposals stated that every private and public quoted company would be subjected to an Annual Licence Fee.

Accountant, Department of Registrar of Companies, R. Bandara when contacted by   Nation stated that the new proposal of a licence fee had created confusion among company owners who had assumed that there had been an increase in the annual company registration fee. “There has been no change in the annual company registration fee,” he said.

Accordingly, a private company is subjected to pay Rs. 60,000 while a public quoted company would have to pay Rs. 500,000. Other companies would have to pay Rs. 100,000 as licence fee annually.

Bandara said that even though the Department was entitled to implement the proposal on imposing the annual licence fee, it was yet to receive a directive from the Finance Ministry on the issue.
In addition, Bandara stated that the Department had received requests to close down at least 500 companies by the respective proprietors on December 31, which is an all time increase. “We are yet to assess the actual number of requests to close down the companies. However, we have never received such a huge number of requests before,” Bandara added.