Register Company in Sri Lanka
Located in South Asia, Sri Lanka is already home to a lot of foreign owned companies because of the business potential the country holds. With its high performing economy, and its skilled and education workforce available for hire, Sri Lanka has become a logistical hub for the South Asian region.
Sri Lanka is one of the fastest growing economies in the South Asian region. English is a widely spoken language in Sri Lanka, making it easy for international businesses to be conducted in this part of the world. Because of the Free Trade Agreement that the country is part of, it is a gateway to the Indian market, another big market which holds lots of business potential.
Types of business entities in Sri Lanka
When registering a company in Sri Lanka, there are several ways investor can opt to go about this. One of the most common approaches used is registering the company as a limited liability company in Sri Lanka.
Business entity options in Sri Lanka include:
- A Limited Liability Company – Also known as an LLC. This options requires that the company has one shareholder and one director at the minimum, who can be of any nationality.
- A Public Listed Company (PLC) – This option does not require a minimum share capital for the company to be incorporated.
- A Representative Office – In this option, direct sales or productive operations performed within Sri Lanka are not allowed. While ownership can be 100% foreign, a resident Company Secretary still must be appointed.
- Sri Lanka Branch Office – This option allows for 100% foreign ownership, but the scope of the business operations will be defined by the parent company.
How to register a company in Sri Lanka
Here’s how you get started on registering a company in Sri Lanka:
- Reserve a company name – Ensure that the company name you have chosen is unique and not already in use or similar to any other company in Sri Lanka.
- Hire a Company Secretary – A Company Secretary needs to be hired before a business can be incorporated because the Company Secretary will need to sign a consent form stating that they are the new appointed Secretary for the said company.
- Register your business at the Department of the Registrar of Companies
- Public notice of company incorporation must be given – public notice must be given within 60 days of the incorporation of the company.
- Get the company registered with the tax authorities and acquire a Tax Identification Number from the Taxpayer Services Unit of the Inland Revenue Department
- Register for VAT with the Inland Revenue Department VAT Registration Branch
- Register with the Department of Labour and obtain the Employees Provident Fund (EPF) number
The tax and customs practices in Sri Lanka can be complex if you’re not familiar with how the system works, which is why it is advisable to enlist the services of professional consultancies to assist you with the process.
3E Accounting has the knowledge and the expertise that you need to guide you through setting up a business in Sri Lanka. For more information, visit our website today.
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