The Partnership Business in Sri Lanka is one of the most common of business policies initiated in Sri Lanka. The procedure, company structure, demonstrations and outcomes of a Partnership Business Registration in Sri Lanka is almost similar to that of the Sole Proprietorship Business Registration in Sri Lanka.
The only think that out stand these two business entities from each other is that in case of the Partnership Business in Sri Lanka the ownership of the company is shared.
All of the authentic figures in a Partnership Business (both big or small) has the right to own company share of his or her own.
Hence the company owners/partners, company directors, company shareholders, company secretary can share the company capital and gross profit of the business in perspective to legal issues and other obligations.
Each of these shareholders will be liable for any sort loss the company comes over in respect to the percentage of company share they .
One of the most outstanding features that in Sri Lanka brings in is that all these Partnership Businesses in Sri Lanka are never taxed as an individual or a separate legal corporate firm or business companies in Sri Lanka, thus for which each of the individual company partner is subjected to the personal income rates.
What are the main Advantages that comes in with these Partnership Business Registration in Sri Lanka:
- Ease of achieving investments funds and VC funds
- Credible
- Highly Preferred by investors
- Ideal Company Structure for IT Business startups and other growing businesses
Minimum requirements:
- 2 company directors
- Company Bank account
- Name Approval Certificate
- 100000 share capital (all the company shareholders are asked to deposit this certain amount in company bank account within 2 months of company incorporation)
Steps and documents required for Partnership Business Registration in Sri Lanka
Here are some of the list of the important documents that need to be submitted to the Registrar Office for registration purposes. One should keep in mind that they might have to submit the original documents along with photocopies for the registration procedure.
All sort of Company details or Personal details along with recent updated photos of all company partners or individuals has to be uploaded to Sri Lanka Customs ASYCUDA system by a Custom House Agent before submission of these documents are made for processing.
- Duly filled Application form collected from the Registrar Office or other internet source. All these forms have to be filled up with valid and appropriate information and one has to be keen not to come up with any sort of mistake.
- National Identity Card NID / Passport of each company partners & photocopies of the NICs/Passports of all partners.
- VAT certificate – Which can be collected from Inland Revenue Department of Sri Lanka
- TIN certificate – Which can be collected from Inland Revenue Department of Sri Lanka
- Commercial invoice and Bill of Lading (B/L) and Airway Bill (is only required for the Import Export Business Registration)
- Authentic copy of the Business Registration Certificate.
- Copy of the Deed or Lease agreement of the company address relevant to the address provided in the TIN certificate.
- One might also be asked to submit Billing Proof relevant to the address provided in the TIN Certificate (Water Bill/Electricity Bill/Sri Lanka Telecom Bill)
- SMS application
One of the most common problem all these Partnership Business in Sri Lanka comes along is how the business partner can quit or be changed.
Hence here you go with all sort of Documents and related stuff that will be required for change of Directors/Partners of Partnership Business in Sri Lanka which has been already registered as an importer or an exporter with customs.
Following original documents along with photocopies will be asked to be submitted:
- Duly filled Application
- NIC/Passports (originals & with photocopies) of new directors/partners
- Form 20 (Applicable only for Pvt Ltd & PLC)
- BRC (Applicable for Sole proprietorship & Partnership)
There are surely some restrictions made by the Sri Lankan Government over certain business types in Sri Lanka. The Partnership Business Registration in Sri Lanka also has to follow in certain obligation and restrictions applied.
So here are Barriers and Limitations for all Business in Sri Lanka based upon FDIs. These boundaries and limitations are set by the Government over different business policies that mainly run by investors.
If your partnership business involves foreign investor as one of the sole partners then these limitations and barriers must be obeyed and maintained at their highest peak.
- Money Lending
- Pawn Brokerage
- Retail Trade with an initial capital less than USD $1 Million
- Coastal fishing
- Security services and security management, assessment and consulting individuals or private organizations
Partnership Business Registration in Sri Lanka that requires essential approvals from relevant government authorities for investments are shown below:
- Air transportation
- Coastal Shipping
- Industries involved in ammunition, explosives, military vehicles and hardware, poisonous chemical, narcotics and other addictive drugs, or security documents.
- Mining of gems, jewelries and related expensive stones.
- Lotteries
Please feel free to contact our company S & F Consulting Firm Limited for all sort of information and queries related to incorporation guidelines, licensing, limitations, regulatory affairs, costings and many other issues you might need to know about Partnership Business Registration in Sri Lanka. We are there 24/7 to help you and provide you the best solution you need and also check the Sri Lankan economy to set up business.
