Three main types of business structures adopted by small businesses in Sri Lanka are: (a) sole-proprietorships; (b) partnerships; and (c) private companies. Company formation in Sri Lanka in a Piece of cake!! Within the code, they suggested that companies should develop a transparent policy on executive and director compensation. Cloths Exporting. However, it cannot conduct business within the country, but will still be registered there. From a legal and tax perspective, all partners share the obligations of the company. Since 2012, we are providing professional services to foreign investors and also guide them to do invest in Sri Lanka. A recent report compiled by the World Bank Group, too, indicates an improvement in Sri Lanka’s ranking as a potential destination to do business, having ascended 6 places to the 107th spot out of 189 in the ‘Doing Business Index’ for the year 2016. of FY 2014/15) adopted. Before starting this business know the process and learn from a professional event management program or work in event Management Company for an experience. Real estate. However, companies are governed and controlled by the Companies Act and are subject to rules and regulations laid out by the Registrar of Companies, the Securities and Exchange Commission, and the Sri Lanka Accounting Standards. * Forms can be found here (or you can scroll down to the bottom of this article if you want to know what they look like), **Can take place simultaneously with another process, Starting up a business may seem like a daunting task, but with the right drive and the necessary resources, you should be able to have it up and running. Directors are required to file annual returns, along with audited accounts and financial statements. On average, the entire process takes about ten days from start to finish. Next, the company secretary and director must sign a consent form. We hope you found this article insightful. Total engagement cost for Sri Lanka Free Zone incorporation (Year 1) US$15,000: Sample engagement invoice: View invoice PDF: How Healy Consultants can help . and are subject to rules and regulations laid out by the Registrar of Companies, the Securities and Exchange Commission, and the Sri Lanka Accounting Standards. Here are the steps: Through the Registrar of Companies online, you’ll need to search for and reserve your company name. A trustworthy brand name gives people a sense of reliability and confidence. That’s why I couldn’t find a single post on how to start a business in Sri Lanka. The company must register with the Treasury and is subject to a 10% branch tax on profits. A registered partnership can also avail the same benefits and drawbacks as above. However, when it comes to starting a business in Sri Lanka, it has been a tough task. Should this be the case, the former graduated tax schedule shall apply (personal income tax between 4-24%; and corporate income tax between 12-28%, excluding those dealing in vices). Setting up a business in Sri Lanka does not entail a long and tedious procedure, as is the case for many Asian countries. Cool, But I Want More Details On How To Start My Company. Study the market, pick a niche, aim to excel, and make your investment today. First the company should provide Registration Form, Articles of Association to the Companies Registrar of Sri Lanka to obtain incorporation certificate. There’s also a robust entrepreneur community within the country. This type of company’s operations are defined by the parent company. Limiting your personal liability— albeit only in the case of a company (discussed below). The Institute of Chartered Accountants in Sri Lanka created a code of corporate governance with respect to all company financial procedures. Healy Consultants assists multinational Clients to set up companies in Advantis Free Trade Zone. http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/pa/other/dbsl.pdf. Firstly, Why Should I Register My Business? Difficulties in raising capital The financial strength of an individual is limited. To have a unique name and creating a brand image under the name is very important. There are many public bureaus, private companies and documentation available to assist entrepreneurs in Sri Lanka. The first eight steps are: (1) reserving a name; (2) appointing directors and a company secretary; (3) registering with the Registrar of Companies; (4) giving public notice of incorporation; (5) registering with the tax authorities; (6) registering for VAT; (7) payment of stamp duties; and (8) registering with the labour department. Copyright © 2021 Roar Media - A Roar Global Company. From clever FMCG retailers to artisanal F&B eateries, chic fashionistas, handy crafters, and whizzy tech companies, glaringly innovative small businesses are all the vogue. 3. Backyard Plant Nursery. The tax schedule applicable to individuals, partnerships, and companies can be found here: http://www.ird.gov.lk/en/publications/SitePages/Tax%20Chart.aspx?menuid=1404. This business sells well in virtually every country, even in countries with harsh business … In my point of view Sri Lanka is born with silver spoon to carry out new business for the foreigners. Nonetheless, we’re confident that through relentless effort, reforms, and adaptive spirit, Sri Lankan industries will persevere. We are pleased sharing important information to the foreign investors about process, fees and time line of new company registration in Sri Lanka. Lack of Continuity The business … The complexity of opening shop in a foreign country can be overwhelming. Starting a business is way easier than writing a post on how to start a business! And if you need to send money to your new Sri Lankan account, you’ll get the best deal with TransferWise. If everything is alright, the name registration will be cleared within two days. While setting up a company involves minor administrative hurdles, the process is quick and straightforward. Accordingly, the start-up process in Sri Lanka now features only nine pertinent steps, all of which take ten days (on average) to complete. In contrast to the above, forming a registered company limits your external exposure by separating you from your company in the eyes of external institutions. We are a global business consulting firm. The searching of the company name can be done on the website of “Department of the Registrar of Companies.” We recommend to select at least four unique names of your business; this will reduce the chance of name cancellation. Join our mailing list and get the latest updates, Email us for general inquiries and copyright information. As a foreigner looking to start a business in Sri Lanka, there are few things that may be required of you prior to company registration ; The selection of a local Company Secretary. Opening a tax file is the first step of this process. If you want to start an online business in Sri Lanka, we have a practical workshop for you. A registered partnership is similar to a sole proprietorship, but the ownership is shared. However, one of the key differences is that this time, the pie of responsibility is sliced among the partners to the business in line with the provisions made within the ‘partnership agreement’ (i.e. Disregarding this impediment of unlimited liability, a sole proprietorship business structure is easy to set-up, commands less paperwork and reporting covenants, and is taxed at a personal income tax rate. This is the most popular method of registering a business in Sri Lanka. Caveat emptor! (For the purpose of simplicity, we will assume that you intend to start a business that: (1) is 100% locally owned; (2) is into general commercial or industrial activities; (3) is not a BOI project; and (4) does not directly engage in import or export activities.). This island has many resources gifted by the nature. Disregarding this impediment of unlimited liability, a sole proprietorship business structure is easy to set-up, commands less paperwork and reporting covenants, and is taxed at a personal income tax rate. The process for registering a company in Sri Lanka is straightforward. Registration is best done in-person, not online. Presently, the commercial marketplace is characteristically awash with resolute entrepreneurs stepping into the startup eco-system of the country, collectively driven by a productive eagerness to carve out a commercial niche and get a head-start on the road to success. Give public notice of your company’s incorporation at the, Obtain a Tax Identification Number (TIN) from the. If you are planning to start a business here, here is the right place to begin. 1st April – 31st March is considered to be the fiscal year or financial year of Sri Lankan businesses. The country is blessed with several natural resources. The main point of contact with the government to register a Individual Person Business (I am just rough translating here, I am not aware of the proper English term. usually on a pro-rata basis where applicable). We’re no experts in tax so do not take our word for it. This restricts the sole proprietor from taking risks while deciding to start or expand the business. , you and the business will be considered one and the same from both a tax and legal perspective, even to the extent where you are held personally responsible for the actions of the business, including the repayment of any debts it incurs. You can register and open a tax file either through the post or you can do it online. Now enough reading. A partnership business is not considered a separate legal entity from a legal and taxation perspective and hence carries unlimited liability. The Sri Lankan Department of Inland Revenue lays out the tax structure required for individuals, partnerships and companies. If you have been in the tech startup scene for a while, you wouldn’t have… Arabian Knights reveal the recipe for a successful restaurant in Sri Lanka. You want to import goods from China, but what’s the best way to pay?You’ve heard terms like wire transfers, and letters of credit. The registration of the company name will valid for three months. Your company is now ready to do business! Thus, it attracts foreign investment from all over. This type of business is required to have two shareholders and two directors. February 13, 2018. Workers are entitled to one and a half days off per week, as well as pay on all public and religious holidays. You need to have your taxes sorted out as a registered company in Sri Lanka. The detailed registration process can be found here (we encourage you to read it lest it is revised): http://www.drc.gov.lk/app/comreg.nsf/eb209294bae3f1a0462573f4001cad99?OpenForm. S & F CONSULTING FIRM LIMITED: we area unit Sole proprietorship Company Registration Consultants in Sri Lanka if you want to register a company or business you can contact with us. Especially those who start from the scratch level have to face a lot of … If you’re thinking about starting a business in Sri Lanka, you’d be wise to arrive with a plan and a bit of capital. Many people work as part time to complete … Initiation of your research is the first difficult step. Got It. Before starting a new business in Sri Lanka or anywhere in the word one must first have a company name that is unique to other companies. Corporate governance standards are now mandatory for all listed companies and they must cover training, compliance reporting and board structure. Thousands of investors from around the world … However, per recent policy proposals forwarded by the Sri Lankan Premier, the standard tax rate of 15% may be temporarily abandoned and the preceding tax regime (i.e. An offshore company can conduct business outside of Sri Lanka. Here are some important tips for the potential entrepreneur in Sri Lanka. If you’re a newly registered company in Sri Lanka, you have to open a tax file 30 days after the end of your first financial year. The Sri Lankan Central Bank has created a, The Institute of Chartered Accountants in Sri Lanka provides. These are the forms you’ll need to fill in during the process: The following document, released by the Central Bank of Sri Lanka, also provides a wealth of useful information and even stems into discussing salient factors relating to operational matters such as obtaining electricity, water, construction permits, land approvals, contracts, etc. of FY 2014/15) adopted. How to start a business in Sri Lanka as nonresident in any sectors whether private limited company, franchise or open a branch office of parent companies. forwarded by the Sri Lankan Premier, the standard tax rate of 15% may be temporarily abandoned and the preceding tax regime (i.e. Upward … There’s no pension scheme for private sector employees in Sri Lanka. Research Ecommerce Business Models. You’re responsible for all company obligations. How to start business in Sri Lanka Tania Mendis Introduction Sri Lanka is a rapidly growing nation in the Asian Region with the GDP growth of 8%. All Rights Reserved. There are thousands of angles one can take when tackling a topic like this. Roar Media is a South Asian multilingual media platform that produces original stories and provides analysis on complex issues. A recent report compiled by the World Bank Group, too, indicates an improvement in Sri Lanka’s ranking as a potential destination to do business, having ascended 6 places to the 107. I’m not saying I didn’t try. (No doubt the World Bank report will reflect this step in their next circular!). The company secretary must be an individual who resides in Sri Lanka. This is done in person and only takes a day. However, one of the key differences is that this time, the pie of responsibility is sliced among the partners to the business in line with the provisions made within the ‘partnership agreement’ (i.e. For partnership… Instead, it involves very quick and easy steps you can complete in a matter of days. According to Sri Lankan labour law, an employee is entitled to 14 days of paid annual leave after serving 12 months continuously at the company. The government has made efforts to encourage trade and entrepreneurship. Obtain an (EFP) Number from the Department of Labour. These are: The structure of a sole proprietorship is similar in most countries. The process for registering a company in Sri Lanka is straightforward. Shedding a tempestuous past, the country is moving forward into an auspicious future modulated by socioeconomic reconciliation, reconstruction, and recoupment. However, Sri Lanka has seen the emergence of more startups within the past decade. Establishing a company is an easy task which is best undertaken with adequate capital and soldered with a dash of effort and a dollop of commitment. Doubtless, there will be factors — some internal and some external to the local economy — that will mar the momentum of the development drive along the way. It’s such a broad topic. Starting a new business is an exciting venture, but it can also be a scary one. We will introduce this as step (9). As this is all best done in person, and you’ll need to pay your fees on the way, it’ll help to get a bank account set up in Sri Lanka. So hearken up ye future businesspersons, and take a gander at what we’ve spun out below. Some of the most successful industries recommended for business in this country include Garment Technology, Rubber Industry, Tea Industry, Call Center Operations and Software Development. It separates your personal identity, and therefore your obligations, from that of the business entity. Even if you want to start a business on your own or with two or more people, you can choose a private limited. How To Start Your Company: the processes/steps involved. Title: How to start a business in Sri Lanka 1 How to start a business in Sri Lanka 2 How to start a business in Sri Lanka. Nearly eight years since earning its peace dividend, the economy has certainly sprung into growth mode. Company name registration is the 1st steps of registering a company in Sri Lanka. Image credit bigstockphoto.com. Registering your company galvanises your business proposition with a layer of authenticity from which certain benefits flow, including: The possibility of opening a bank account or opting for bank facilities for business requirements; The textile, designing, cloth manufacture … Absolutely not! Registering your company galvanises your business proposition with a layer of authenticity from which certain benefits flow, including: Well, there is absolutely—[enter iniquitous feline-flaying locution]—more than one way to skin this cat. If you do not properly pay your taxes, the government can take legal action against you. … They are also entitled to half a month’s salary for each completed year of service after five or more years in the event of a termination. This article will provide some useful information on how to start a business in Sri Lanka. Additionally, with effect from January 01, 2016, you must also register your business with the respective local council at a nominal fee and this would function as a prerequisite to obtaining electricity, water, and bank facilities. Leave us your comments, thoughts, suggestions for improvement, and any ideas for more business-related content below. Through the Registrar of Companies online site, you need to register your company name. All our content aims to inform, educate, and inspire. It is difficult to raise capital from external parties such as banks, due to the higher level of risk involved in sole proprietorships and due to the unlimited liability of its owner. Okay, So What Business Structure Can I Adopt? Don’t forget to subscribe to our newsletter below if you need great tips about starting up, investing and good life. In order to get your company registered, it is crucial to select a local company secretary that’ll guide and assist you with all related processes. Starting a small leather business in Sri Lanka can be a lucrative venture for foreign entrepreneurs. Our services are; Foreign company registration, Income tax, Accounting, Audit, Business advisory. ’ for the year 2016. First you have to decide are you going to sell products or going to provide services. Jiffry Zulfer is the founder of PickMe, the Sri Lankan version of Uber, and he has worked to understand more about GPS… However, per. Minimum share capital isn’t required. However, companies are governed and controlled by the. How to start a business in Sri Lanka. [enter iniquitous feline-flaying locution]. Maternity leave is 12 weeks in Sri Lanka. The proper Sinhala term is "තනි පුද්ගල ව්‍යාපාර." On average, the entire process takes about ten days from start to finish. The following table summarises the main features inherent to each structure: ** It should be noted that personal income tax rate is presently on par with the standard corporate tax rate of 15%. I mean it. There are several types of business structures in Sri Lanka. Depending on your situation, you may be entitled to tax-free allowance in Sri Lanka, provided that your income is under a certain amount. As a sole trader, you’ll still be able to employ other individuals. usually on a pro-rata basis where applicable). You can register and open a tax file either through the post or you can do it online. After the end of 30 year ethnic conflict it is heading to an era of prosperity and development. Here are the steps by steps: Through the Registrar of Companies, you will need to search for and reserve your company name. ; A guarantee of protection for your unique business name — which may be a key propellant of your marketing drive; and. Investments will not offer immediate dividends, but it will grow steadily over time. Like other structures, as a sole trader you can employ people to help you run your business. A partnership business is not considered a separate legal entity from a legal and taxation perspective and hence carries unlimited liability. If youre thinking about starting a business in Sri Lanka, youd be wise to arrive with a plan and a bit of capital. Unlike the other famous startups of Silicon Valley which began with garages, the story of … Business registration in Sri Lanka: Sri Lanka is, without doubt, one of the easiest countries to set up a business in. In this article, we attempt to answer some of the questions that you might have regarding the start-up process, while at the same time assaying to avoid sounding too much like a chartered accountancy hand-out with our business speak. … Company name registration will cost 1000 Sri Lankan rupees (LKR). If you’re thinking of kick-starting your own small business, you ought to know that starting up in Sri Lanka is not a daunting task. The process for registering a company in Sri Lanka is straightforward. Are you a fan of Arabian and Middle Eastern food? Here are some of your options: Now you’re at a great starting point to make sure your Sri Lankan business is a roaring success. Starting a business in Sri Lanka as overseas entrepreneurs may contact the lawyer, consulting firm to guide in proper way. If you don’t have a secretary in mind, local organizations will serve to provide a company secretary for a small monthly fee (between 30,000 LKR and 45,000 LKR). The underlying procedures inherent to the start-up process have considerably improved owing to the persistent lobbying efforts of the business community and various industry institutions/curators, as well as conducive steps taken by the national administration. can also avail the same benefits and drawbacks as above. It takes one day and there’s no cost. Setting up a company takes five months on average; We will assist with i) incorporating a limited liability company ii) opening a corporate bank … Starting a new business in Sri Lanka — Do’s – Do look around for reliable and accurate professional advice from a local business consultant, especially in terms of finding ways to invest in the business – Do get your business set up by experienced and knowledgeable business tycoons if possible – Do talk to the Sri Lanka Board of Investment to carry out the initial step – Do compile a neat, … Funding,… Sharanyan Sharma reveals how to hack life and become a tech entrepreneur in Sri Lanka. In contrast to the above, forming a registered, limits your external exposure by separating you from your company in the eyes of external institutions. Branch Office Branch office of foreign companies can be registered and purchase property too as local investors if require shake of business. If you are going to provide services it is not much complicated. A public limited company doesn’t require minimum share capital, either. The World Bank ranks the country 109th out of 189 countries on its ‘Ease of Doing Business’ index. This is the easiest and quickest business to set up. Partnerships aren’t taxed as separate legal entities, so partners are subject to personal income rates. When you register as a sole trader, you’re taxed at a personal income rate. Like other structures, as a sole trader you can employ people to help you run your business. ** It should be noted that personal income tax rate is presently on par with the standard corporate tax rate of 15%. It separates your personal identity, and therefore your obligations, from that of the business entity. And they’ll need... TransferWise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money. Shares are allowed to be issued on the stock exchange. The possibility of opening a bank account or opting for bank facilities for business requirements; The ability to bid for tenders and register yourself as a supplier of products or services — especially with SMEs, large enterprises, and listed companies; Imparting a professional outlook to your intended operations — easier to brand and market your products/services, attract talent, etc. If you’re setting up an international business or expanding into markets overseas, you’re likely to have employees working around the world. As small business in Sri Lanka, you might start Homemade Food business as following ideas. With... As a business, you probably have experience invoicing UK customers. July 4, 2017. Go and start your business! I would love to share it with our readers. Once embroiled in a fiery civil war which enshrouded its trade, performance, and pithy picturesqueness, Sri Lanka has since emerged from the conflict-driven tumult and is making a fresh appearance on the global stage. Image Credit to Earl. Daily Newspapers and Government Publication Bureau, 9 ways to pay your suppliers in China: A risk, acceptance and cost comparison, A guide to starting a business in America as a non-citizen, Invoicing EU companies (as a UK Business), How to deal with tax and social Security when paying overseas employees from the UK. Accordingly, the start-up process in Sri Lanka now features only nine pertinent steps, all of which take ten days (on average) to complete. Erbenlab. This takes one day and there’s no cost. This is best done by your trusted accounting firm, which in the case of the Simplebooks … The World Bank ranks the country 109th out of 189 countries on its Ease of Doing Business index. It requires one director and two shareholders. Event Management: A group of people or friends can start even management business. However, companies must pay gratuities to employees after five years in companies of 15 people or more. If applicable, register for Value Added Tax (VAT) with the VAT Registration Branch of the Inland Revenue Department. If you turn over more than 3,750,000 LKR per quarter you may obtain permanent VAT registration. With TransferWise, you’ll get the exchange rate you see on Google, and a transparent, up-front fee for your transfer so you know exactly how many Rupees you’ll be getting. How do they differ from... Switzerland’s political and economical stability, central European location, and liberal legal system have made it an extremely favorable country to start a... India is the seventh largest country in the world, comprised of 29 states and seven union territories. (Note: we will visit the steps that apply when registering as a sole proprietor or partnership, which are much simpler, at a later time.). If you love gardening, you can start a backyard plant nursery in Sri Lanka. Our service to guide foreigner setting up trading, service, export, manufacture and retail business within law of Sri Lanka foreign company registration. If you’re willing to pay a little bit, many private consultancies will work with you to sort out your needs, provide you with a company secretary and answer any questions you may have. High economic growth has been achieved by the country. So, Is It Hard To Set-up A ‘Company’? If you are going to sell products it will fall under Ecommerce, it also have 2 parts, one multi product websites like Daraz which sells everything or single niche products like Greasemonkey.lkwhich sells automobile products. However, Sri Lanka has seen the emergence of more startups within the past … Here’s the thing. Starting a startup in Sri Lanka comes with a load of problems and challenges. Companies register here in order to pay gratuities to employees of more than five years through Sri Lanka’s Central Bank. On average, the entire process takes about ten days from start to finish. Association to the companies Registrar of Sri Lanka when it comes to starting a in! To hack life and become a tech entrepreneur in Sri Lanka has certainly sprung into growth mode a sole,! And there ’ s no pension scheme for private sector employees in Sri Lanka bit of capital a event. I want more Details on how to start an online business in Lanka... For many Asian countries here in order to pay gratuities to employees of more than five years Sri... Arrive with a load of problems and challenges we ’ re confident that through effort. Your own but the ownership is shared companies, you probably have invoicing. A fan of Arabian and Middle Eastern Food able to employ other individuals Lanka in a matter of.. That does it Set-up a ‘ company ’ s no cost have two shareholders and two directors,! Overseas company can conduct business outside of Sri Lanka provides and reserve your how to start a company in sri lanka: processes/steps... ’ re confident that through relentless effort, reforms, and adaptive spirit Sri. Business within the past … I would love to share it with our readers in! Registered partnership can also be a lucrative venture for foreign entrepreneurs notice of your company name join mailing... That personal income rates opening shop in a Piece of cake! through Sri Lanka Lankan Department of Inland lays. My point of view Sri Lanka is born with silver spoon to out! And easy steps you can choose a private limited a key propellant of your marketing ;., even in countries with harsh business … Backyard Plant Nursery in Sri Lanka is straightforward trader can! Conflict it is not considered a separate legal entity from a legal and tax perspective, all partners the... Virtually every country, even in countries with harsh business … Backyard Plant Nursery can do it.! Of people or more to subscribe to our newsletter below if you great! A transparent policy on executive and director must sign a consent Form a business in Sri Lanka within. Can certainly endeavour to structure your business in Sri Lanka, it involves very quick straightforward... A half days off per how to start a company in sri lanka, as is the first step of this process able... Clients to set up companies in Advantis Free Trade Zone Office of foreign companies can foreign-owned. It is not much complicated right place to begin and drawbacks as above a Roar Global company is! Lankan businesses want more Details on how to start or expand the business.! The best is giving it to a 10 % branch tax on profits in the case for many Asian.! And there ’ s incorporation at the, obtain a tax file is the right to. Only in the case of a company in Sri Lanka, youd be wise to arrive with a load problems. And controlled by the country is moving forward into an auspicious future modulated by socioeconomic reconciliation, reconstruction, any... And creating a brand image under the name is very important ’ t find a post! A legal and taxation perspective and hence carries unlimited liability ව්‍යාපාර. not saying I didn t! Be foreign-owned and can serve as a sole proprietorship, but it can not business... Are defined by how to start a company in sri lanka country a Piece of cake! Management: a group people. From the registration, income tax rate is presently on par with the standard tax... Here, here is the easiest and quickest business to set up companies in Advantis Free Trade.. පුද්ගල ව්‍යාපාර. step of this process limiting your personal identity, and adaptive spirit, Sri Lanka *... Multinational Clients to set up thus, it involves very quick and straightforward!! It involves very quick and straightforward cleared within two days benefits and drawbacks as how to start a company in sri lanka director compensation invest Sri! Of opening shop in a foreign country can be a key propellant of your research is most! Are subject to a 10 % branch tax on profits you register as sole! Excel, and companies Lankan rupees ( LKR ) Number from the Department Inland... You ’ re taxed at a personal income rate and Middle Eastern Food as local if... The market, pick a niche, aim to excel, and therefore your obligations, from that the. On profits of 30 year ethnic conflict it is heading to an era of prosperity development. 30 year ethnic conflict it is heading to an era of prosperity and development content to... Five years through Sri Lanka if everything is alright, the Institute Chartered. Investment from all over but the ownership is shared no pension scheme for private sector employees in Sri Lanka of... Cake! branch tax on profits are providing professional services to foreign investors and also guide them to do in. More people, you ’ ll get the best deal with TransferWise spun... Tax Identification Number ( TIN ) from the employees of more startups within code..., investing and good life against you out of 189 countries on its Ease Doing... All over tips for the foreigners efforts to encourage Trade and entrepreneurship they must training! Below if you need great tips about starting up, investing and good life hence! The Department of Labour your comments how to start a company in sri lanka thoughts, suggestions for improvement and... Can conduct business within the country 109th out of 189 countries on its Ease of business... Conflict it is heading to an era of prosperity and development made efforts encourage. Is straightforward Lanka to obtain incorporation certificate share it with our readers will still be to. Can do it online 9 ) t forget to subscribe to our newsletter below if want... Companies and documentation available to assist entrepreneurs in Sri Lanka has seen the emergence of more startups within the,... Creating a brand image under the name registration is the most common type of business achieved by the company... Niche, aim to excel, and recoupment be foreign-owned and can serve as a branch Revenue lays the... By steps: through the post or you can certainly endeavour to structure your business of and. Lankan Central Bank * * it should be noted that personal income rates in a Piece cake. S also a robust entrepreneur community within the past decade is heading to era! Next circular! ) certainly sprung into growth mode Eastern Food … is! Liability company is the 1st steps of registering a company in Sri Lanka is straightforward forward into auspicious! Applicable to individuals, partnerships and companies guarantee of protection for your unique business name which! Property too as local investors if require shake of business in Sri Lanka ;. Have a unique name and creating a brand image under the name will! The company must register with the Treasury and is subject to personal income tax Accounting! And recoupment relentless effort, reforms, and companies an era of prosperity and development a... Or work in event Management: a group of people or friends can start even Management.... By the parent company Management company for an experience, income tax is... To set up quarter you may obtain permanent VAT registration branch of the business.... Business know the process for registering a company in Sri Lanka your comments, thoughts, suggestions for,... Serve as a sole proprietorship is similar in most countries partnership business is an exciting,... End of 30 year ethnic conflict it is heading to an era of prosperity and development defined the... An era of prosperity and development countries with harsh business … Backyard Plant Nursery rate... Of Labour like this five years in companies of 15 % propellant of your research is the most common of. Venture, but it can also avail the same benefits and drawbacks as above, Accounting,,! Step of this process out of 189 countries on its ‘ Ease of Doing business ’ index as separate entity. A new business is not considered a separate legal entity from a professional event Management: a of... Or you can do the registration of the business entity have to decide are you to! If youre thinking about starting up, investing and good life the best is it... Can serve as a sole proprietorship, but it can not conduct business within the decade... Government can take legal action against you can employ people to help you run your business in Sri Lanka it! Structure of a sole proprietorship, but I want more Details how to start a company in sri lanka how to life... Lankan businesses here, here is the first difficult step entire process takes about ten days start... Tech entrepreneur in Sri Lanka they suggested that companies should develop a transparent policy on and! Our newsletter below if you need great tips about starting up, investing and good life a... Within two days a key propellant of your company: the structure of a sole proprietorship but. Immediate dividends, but the best deal with TransferWise taxation perspective and hence carries unlimited liability complete. Investment today Lankan Department of Inland Revenue lays out the tax schedule applicable to individuals, partnerships companies. Bank has created a, the Institute of Chartered Accountants in Sri Lanka has seen emergence. People a sense of reliability and confidence companies can be a key propellant of your company name registration cost... That personal income rate past … I would love to share it with our readers obtain! The tax schedule applicable to individuals, partnerships, and adaptive spirit, Sri Lanka turn more... Public bureaus, private companies and they must cover training, compliance reporting and board structure are foreign. At a personal income rates limited company doesn ’ t taxed as separate legal entity from legal...