Registration of Agreements in Sri Lanka: A Comprehensive Guide
Sri Lanka is rapidly emerging as a hub for foreign investment. As the country attracts more and more foreign companies, the need for registering agreements becomes more important than ever before. In this article, we’ll discuss the process of registration of agreements in Sri Lanka.
What is an agreement?
An agreement is essentially a document that outlines the terms and conditions of a transaction or arrangement between two parties. It can be a contract, lease agreement, sale deed, or any other kind of legal document.
Why is registration of agreements important?
Registration of agreements is important for several reasons. Firstly, it provides legal protection to the parties involved. Secondly, it serves as evidence of the transaction and prevents any disputes that may arise in the future. Thirdly, it ensures that the government collects the appropriate taxes and fees associated with the transaction.
What type of agreements require registration?
There are many types of agreements that require registration, including:
1. Sale deeds
2. Lease agreements
3. Mortgage agreements
4. Loan agreements
5. Partnership deeds
6. Power of attorney
7. Gift deeds
8. Will deeds
9. Conveyance deeds
10. Service agreements
How to register an agreement in Sri Lanka?
The process of registering an agreement in Sri Lanka can be broken down into several steps:
Step 1: Stamp Duty Payment
The first step in registering an agreement is to pay the applicable stamp duty. The amount of stamp duty paid depends on the type of agreement and its value. The stamp duty payment should be made to the Inland Revenue Department.
Step 2: Notarization
The agreement must be notarized by a notary public. This involves the notary verifying the identity of the parties and witnessing the signing of the agreement.
Step 3: Registration
Once the agreement is stamped and notarized, it must be registered with the relevant land registry office. The registration fee is usually 1% of the value of the agreement. The parties must provide proof of identity and a copy of the agreement when registering.
Step 4: Obtaining certified copies
After registration, the parties must obtain certified copies of the agreement. This can be done by visiting the relevant land registry office and paying a fee.
Conclusion
Registration of agreements in Sri Lanka is a crucial process that provides legal protection and prevents disputes. It is important to ensure that all agreements are registered correctly and in a timely manner. By following the steps outlined above, you can ensure that your agreements are registered smoothly and efficiently.