Company registration in Sri Lanka

Name of service Bronze Silver Gold
Reservation of a company name Obtaining approval from the registrar by company name
Company incorporation Preparation of a full package of documents depending on the chosen form of ownership, communication with authorities on all matters during the registration
Set of constituent documents Preparation of a full package of constituent documents of the company of any form of ownership in accordance with the laws of the jurisdiction
Legal address for 1 year We provide a legal address for your company in this jurisdiction, eliminating the need to purchase or rent a property
Opening of an account Preparation of necessary package of documents and opening an account
Total cost
1700 USD 2850 USD 4850 USD
Provision of a legal address for 1 (one) year
1200 USD 1200 USD 1200 USD
Remote company registration with transfer of authority
400 USD 400 USD 400 USD
Accounting services
155 USD 155 USD 155 USD

Deal of the month

If you will register a company until April 30,
opening a bank account is for FREE

6 easy steps to get started
  • 1

    Select your
    preferred jurisdiction

  • 2

    Choose a bank
    that meets your
    company's needs

  • 3

    Pay for our services
    using a convenient
    payment method

  • 4

    Receive all necessary
    corporate documents

  • 5

    Receive details
    for your newly opened
    bank account

  • 6

    We'll deliver the original
    documents directly
    to you

Sri Lanka is the second richest country in South Asia after Malaysia. The jurisdiction has a rather developed economy with an emphasis on the tea industry, tourism, textiles and service. It also suggests favourable conditions for doing business and making investments.

Major Forms of Legal and Business Presence in Sri Lanka

If you think about establishing your commercial presence in Sri Lanka, you may actually accomplish this in one of the next forms:

  • Private Limited Company – a legal entity that can be established by two shareholders at least whose liability is limited to the amount of the contributions made. The shares of this commercial vehicle cannot be freely transferred or offered to the public. There are no requirements for the minimum chartered capital for this entity. One director is required to operate a company. The maximum number of shareholders is 50 in this case.
  • Public Limited Company – a corporate entity where the liability of shareholders is also restricted to the amount of the contributions made. Still, in this case, shares may be freely offered to the public and transferred. This vehicle is used for involving extra financing mostly. Two shareholders are required at least to establish this company with no upper limit of the number of shareholders. Two directors are required to operate a public company.
  • Unlimited company – a business vehicle where the liability of shareholders is not restricted in any way – even their personal property may be called to cover losses in the case of the company's liquidation.
  • Partnership – a commercial formation that is based on the oral or written agreement where partners jointly conduct business. Partners are also jointly liable and bear unlimited liability for the results of the partnership’s operation. This formation is set up for a limited period of time. The minimum number of partners, in this case, is 2 and the maximum – 20.
  • Offshore company – is a commercial vehicle that is registered in Sri Lanka for conducting business outside its territory only. Any restrictions for abroad investors are absent in this case.
  • Branch – an overseas company may establish its business presence in Sri Lanka and conduct the same types of business activities as it carrying out abroad. Passing the registration procedure and investing at least USD 200,000 are required in this case.
  • Company Limited by Guarantee – this commercial vehicle is more suitable for promotional and non-profitable activities. When establishing a company, the participants agree to contribute certain amounts in the case of liquidation.

Registration Requirements and Steps

Company registration in Sri Lanka, a private limited company, for instance, may require passing these preliminary steps:

  1. Identifying your commercial priorities
  2. Selecting and approving a business name for a future entity. This name in any case should comprise the words “Private Limited” or their abbreviations “(Pvt) Ltd”. Certain restrictions are applied to the business names. Each suggested name should be verified on a case-by-case basis.
  3. Arranging the registered office for a future commercial vehicle.
  4. Collecting the data about founders, beneficial owners and management of a company.
  5. Drafting statutory documents for a future entity. There are certain requirements for the company’s Articles of Association. This constituent document has to contain the list of objectives of a future entity, the description of rights and obligations of its shareholders as well as the description of the company’s management and administration.
  6. Forming and submitting the package of documents to the Department of the Registrar of Companies.
  7. Registration for tax and social security purposes.
  8. Obtaining licenses and permits (required for certain types of commercial activities only).

This outline of the registration procedure may slightly vary taking into account the peculiarities of a certain business case.

Legal and Regulatory Framework

The local legal system is combined. Both common law and civil law aspects are attributed to it. The commercial legal framework is favourable for establishing business by foreigners. The local government applies certain steps to simplify the registration process and encourage involving capital from abroad. Still, restrictions for making foreign direct investments in certain industries (security management, retail trade, coastal fishing, etc.) exist.

The Companies Act, the Exchange Control Act, the Societies Ordinance are major legal acts regulating the procedure of establishing and operating companies in Sri Lanka. The Registrar of Companies, the Board of Investment, the Central Bank of Sri Lanka are major regulatory bodies for the purposes of launching and operating local businesses.

Advantages of the Jurisdiction

Company incorporation in Sri Lanka may be promising in view of the following benefits the jurisdiction is associated with:

  • Opportunity to register your business online
  • Comparatively low costs for establishing and running a business
  • Good opportunities for asset protection
  • Favourable conditions for making investments, especially large ones.

Tax System of Sri Lanka

If you evaluate an option of setting up a company in Sri Lanka, you may need to know about the following advantages the jurisdiction offers:

  • Corporate income tax rate – 24 %
  • Personal income tax rate – 18 %
  • Value-added tax rate – 8 %
  • Withholding tax rates – (i) dividends – 14 % (ii) interests – 14 % (iii) royalties – 14 %
  • Capital gains tax rates – (i) corporate – 10% (ii) individual – 10 %.

How Prifinance Specialists May Assist You

If you assess an option of registering a company in Sri Lanka, Prifinance specialists may consult you more precisely whether this can be beneficial in your concrete case as well as suggest alternative options. Our specialists are ready to prepare for you the set of registration documents, complete the registration procedure and open a bank account for a future entity. If you need our legal support during the further operation of a company in Sri Lanka, Prifinance is also ready to provide you with any required consultations and clarifications. Reach us for more precise discussions and suggestions.

Cooperation

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I NI N
10:31 20 Mar 24
Collaborated with the company for 3 years. I can’t say that everything was smooth from the point of view of organizing the work; there was confusion in the structure of the work, etc. But I’ll specifically highlight employee Lyubov Malinowski, she very diligently corrected all errors and was in touch at the right time, her help was significant in all processes and she approached all issues precisely. I would like to separately highlight the moment when she solved the problem at her own expense, which speaks of the person’s professionalism and increased responsibility.
K NK N
11:40 01 Mar 24
As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly and securely.But that's not all. We had a slightly time-sensitive situation when it came to changing the beneficiary details on our account. Prifinance stepped up to the plate and handled everything quickly and professionally.It's not just about getting the job done. It's about how Prifinance does it. They're all about making complex financial matters simple and accessible for companies like ours. Plus, their team, especially Liubov Malinowski, has been nothing short of fantastic to work with - professional, timely and always on the ball.In short, FewMoreTaps OÜ wholeheartedly endorses Prifinance OÜ. Whether it's opening bank accounts remotely or navigating the financial legalities of running an international business, these guys have got your back. A big thank you to the entire Prifinance team for their first class support and expertise.Here's to more collaborations in the future!Best,Kiryl Nest
Mina KedisMina Kedis
18:10 23 Feb 24
I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia
Róbert KnapecRóbert Knapec
15:08 22 Feb 24
We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.
Anna AnnaAnna Anna
13:33 07 Feb 24
I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license stress-free!
Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and instructions clearly and neatly. No misunderstandings!Honestly, I expected opening a Swiss bank account to be complex and time-consuming, but thanks to Prifinance, I felt like a professional financial expert. Thank you for making this process so easy and enjoyable!
Maria Jose SantomeMaria Jose Santome
20:39 13 Dec 23
I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!
Valon StatovciValon Statovci
12:43 27 Nov 23
I used Prifinance to help me with a new corporate structure. The team were helpful and communicated well from the initial onboarding with Daniel to case handling by Karmen. They also responded to additional requests post incorporation very quickly, Thank you and would work with them again
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