Company Registration in Sri Lanka - Access to Global Trade Routes.

Yes. Registration through eROC, appointment of a secretary, tax registrations, and the Inward Investment Account process can be handled under a power of attorney. Banks usually prefer to meet the director once to open an operating account, while personal presence may also be useful for BOI or Port City discussions. We arrange a visit only when it is genuinely required.

Turnkey registration starts from $2,900, including a resident secretary and registered address for the first year; with banking support and IIA setup - from $4,900. BOI and Port City applications are quoted separately based on the project. Renewal and accounting support starts from $1,500 per year.

Following the 2022 crisis, economic conditions have improved significantly: the IMF programme has continued under two governments, debt has been restructured, foreign exchange reserves have recovered, and the rupee has stabilised and appreciated at certain periods. Tourism has also recovered beyond pre-crisis levels. Currency risks remain, however, so financial planning should account for potential exchange-rate fluctuations.

The standard corporate tax rate is 30%, while qualifying export income is taxed at 15%, subject to the applicable requirements and banking procedures. VAT is 18%, dividends paid to non-residents are subject to a 15% withholding rate before treaty relief, and employer contributions to payroll funds are around 15%. BOI and Port City incentives can significantly change the overall tax burden for qualifying projects.

Colombo Port City is a special investment zone near central Colombo with its own commission and regulatory framework. Projects of strategic importance may qualify for tax holidays of up to 25 years, along with other investment incentives. Eligibility and specific terms depend on the nature of the project and whether it meets the relevant criteria.

Capital must be transferred through an Inward Investment Account opened before the funds are remitted. Subsequent dividends and other permitted payments follow the established banking procedure with the required tax documentation. Funds transferred outside the IIA do not acquire repatriation rights retroactively. This is why the IIA is opened before the operating account.

Foreign ownership of land is significantly restricted, so long-term leases are used for most projects, in some cases for up to 99 years. This structure is commonly used for hotels, manufacturing facilities, and offices. We review the terms of the specific property before the lease is signed.

Sri Lanka has a skilled English-speaking workforce and an established IT and BPO sector, including companies such as WSO2. Labour costs can be lower than in major Indian technology hubs, while the location allows teams to serve both European and Asian markets. For teams of 5 to 500 employees, the combination of talent costs, time zones, and export taxation can be particularly attractive.

BOI can offer tax incentives, duty-free imports of capital goods, and assistance with access to land in export zones. Terms depend on investment volume, export commitments, and other project criteria and may be secured through an agreement. For projects with commitments from $1 million, this structure can be particularly valuable.

Company registration through eROC takes 1-3 weeks, including secretary appointment and tax numbers. Opening the IIA and completing banking procedures requires another 1-2 weeks and can run in parallel. BOI or Port City approvals take 4-12 weeks. For a standard project, an operational company with banking facilities can be launched within 1 month.