What Startups and Banks Need to Know
When running a business in Sri Lanka, keeping your licenses and documentation up to date is critical. One important document in this process is Form 15, which relates to business license renewal.
However, there is often confusion about when Form 15 is required, especially for startup companies and newly registered businesses.
1. What is Form 15?
Form 15 is the official document used for renewing business licenses with the relevant authorities. It confirms that your business is compliant and eligible to continue operating legally.
- Typically, Form 15 is issued after the first year of registration and renewed annually thereafter.
- For newly registered companies, Form 15 is not immediately available, as it requires the business to have completed a certain period of operation (usually 1 to 1.5 years after registration).
2. Timing of Form 15 Issuance
The typical timeline for Form 15 is as follows:
- First Form 15: Issued about 1.5 years after initial registration.
- Subsequent Form 15: Issued annually after the first issuance, during license renewal.
This means that startup companies in their first year will not have Form 15 yet.
3. Banks and Form 15 Requirements
Many banks in Sri Lanka require Form 15 as part of their verification for opening business accounts or granting credit.
- Banks often ask clients for Form 15 without realizing that a newly registered company may not have one.
- This can lead to confusion for startups who are fully registered but do not yet have Form 15.
What banks should do:
- Check the registration date of the business carefully.
- Understand that Form 15 is only available after 1–1.5 years of registration.
- Ask for other supporting documents from startups, such as:
- Certificate of Incorporation or Business Registration
- Tax Identification Number (TIN)
- Proof of registered office
By following this approach, banks can avoid unnecessary delays for startup clients and remain compliant with regulations.
4. Tips for Startup Companies
- Keep all registration and license documents organized.
- Clearly explain to banks that Form 15 is not yet issued for new companies.
- Provide alternative proof of registration and legal compliance to facilitate banking processes.
5. Key Takeaways
- Form 15 is primarily for license renewal and is issued after 1–1.5 years of business registration.
- Newly registered companies will not have Form 15.
- Banks should check the registration date before requesting Form 15 and consider alternative documents for startups.
- Startups should maintain clear documentation to demonstrate legal compliance and credibility.
Proper understanding of Form 15 can prevent confusion for both banks and startup business owners. While it is an important document for compliance, new companies should not be penalized simply because they are too new to have one.
