The following are required for company registration Sri Lanka: (1) registered office, physical office (2) appoint right consultant (3) capital Rs. 90,000 to Rs. 120,000 (4) US$ 1 million for retail business.
As it continues to progress forward economically, Sri Lanka is fast becoming of keen interest to investors both local and foreign.
Among the reasons why Sri Lanka is a potential option for foreign company registration is because English is a widely spoken language in the country, used for business dealings which make it very easy for international entrepreneurs to conduct their business dealings without the worry of miscommunication and misunderstandings occurring.
Sri Lanka’s growing economy has already gathered quite a base of international business which have established themselves in this region.
Another contributing factor as to why the country is a hot spot for foreign company registration is because the World Bank has given Sri Lanka a high rating when it comes to the ease of doing business, which as a potential investor, is something that you definitely want to hear when you’re looking for a reason to establish a business.
Sri Lanka also has one of the fastest growing economies in the ASEAN region. With more and more investments projected to come in over the next few years, Sri Lanka is well poised to continue to grow steadily economically.
Our guide line on company registration in Sri Lanka for foreigners are discussed step by step. When it comes how to registering a private limited company in Sri Lanka, there is good news for foreign investors – it only takes approximately two weeks for a company to be registered and ready to run as a full-fledged business! All that is requires is that the company has a minimum of two shareholders and one director.
The shareholder and director can be of any nationality which bodes well for investors as they do not have to deal with the hassle of finding a local candidate to fit the roles, especially of they do not have any reliable contacts or connections.
The roles of a shareholder and director are to be taken seriously in a company and as an investor, you would want to look for someone who is dependable, trustworthy and is reliable enough to entrust a business to.
The private limited foreign company registration Sri Lanka can be done with the assistance of professional service agencies that specialize in company set ups and incorporation.
This would be beneficial to the investor because it would mean that their company can be set up even if they may not be physically present in the country at the time the registration process is taking place.
What the process of company registration in Sri Lanka Involves
To register a private limited company in Sri Lanka, an investor would have to go through the following formalities:
Ensure that the company name reserved for use is a unique one –
A name that an investor is going to choose for their company should be a unique a original one that the mass market will easily be able to relate to.
The search for a unique company name is relatively easy and can be done online. Investors can access the website of the Department of the Registrar of Companies to ascertain if their company name has already been taken or is available for use. The selected and approved company name will be reserved for three months.
Ensure that the Company Secretary and Director sign a consent document –
It is imperative that a Company Secretary is hired before the company incorporation is finalized. Once a suitable candidate has been identified, they will be required to sign a consent form which states that they are in fact the Company Secretary for the newly formed company.
The Company Director will also be required to sign a consent form. The fees for this procedure would vary depending on the firm in question, but the fees are generally as a rule based on a quarterly retainer system. The charges could range anywhere from USD$100 – 150 for private companies, but some companies may charge more.
Get the company registered –
All companies will be required to be registered at the Registrar of Companies. The documents which are require for submission under this process include Form 1 (Registration of a Company), Form 18 (Consent and certificate of a director), two copies of the Articles of Association and Form 19 (Consent and certificate of the company secretary). For this procedure, the Registrar of Companies impose a flat rate of LKR15,000 for Form 1, and LKR 1,000 for Forms 18, 19, and the Articles of Association.
Notify the public of the incorporation –
Once the company has been incorporation, the investors would need to give the public notice within 60 days of the company’s incorporation.
Get the company registered with the tax authorities –
This procedure is to obtain the Tax Identification Number for the business. This can be acquired from the Taxpayer Services Unit of the Inland Revenue Department.
Get the company registered for VAT –
This procedure is done at the Inland Revenue Department. To complete this process, the investors would need to submit documentation which shows proof that the business has a turnover rate of LKR 3,750,000 per quarter or LKR 15,000, 000 per year.
How long takes to get full approval of company formation?
It takes 10-15 days in total to complete the company formation in Sri Lanka.
Which one need at first to register a company?
Registered office of your business because of news paper advertisement all detail of company.
How much capital id required to register pvt. Ltd. Company?
Rs. 90,000 to Rs. 120,000, depend of business category and to start retail business US$ 1 million is required to show as capital.