Business license in Sri Lanka

Starting a business in Sri Lanka is an excellent opportunity for foreigners. Since last decade Sri Lanka establishes themselves as a fast-growing nation with GDP growth of 8 per cent. Once it was challenging to establish a business in Sri Lanka but now it’s much more comfortable.

The government made the documented procedure much easier for company registration. However, if you are a foreign investor, it’s better to come through BOI. BOI is the government authority for foreign direct investments. BIO can help you in many ways such as technical support, marketing help, giving land etc.

For incorporating a business in Sri Lanka, the company must be registered with government bodies. You need to obtain various license to establish your company as a legal entity. However, this article will describe different types of business license that are required to your business.

Act of Business License in Sri Lanka

To incorporate a business in Sri Lank all the business entity needs to follow the rules and policy of company Act. The Act of business License in Sri Lanka are following–

• Company Act. Number 7 of 2007
• Society Ordinance Number 16 of 1891
• Public Contracts Act Number 3 of 1987

Company Name Approval

Before you obtain a business license, you must register your business name with the department of the register of companies. You need to choose a unique name of your company. The name search can be done on the website of “Register of Companies”.

If your company is available, you can propose it for registration. The steps of company name registration are described below —

• Collect FORM-A-16 from counter of registrar office and fill up the information.
• Clear payment for your proposed name registration. Payment can be done by cash or card of (RS 1200 +-).
• Database admin officer will search name and approve it if the name is vacant.
• The department of register of companies will approve your company name upon verification.
• It will take maximum 2 to 3 days to complete all the process.
• Approved name is valid for 90 days only (renew is available).

Steps of Business License in Sri Lanka

Once your name is approved, you are now eligible to complete the business registration procedures. Prepare memorandum and Article of association draft with other supporting papers. The supporting document for company registration includes FORM 1, 18 and 19.

• Form 1: Company registration information.
• Form 18: Directors’ certification of the company.
• Form 19: Certificate of the Company Secretary.

Prepare Article of Association

All the business in Sri Lanka must be governed maintaining the rules and regulation, that is within Article of Association. You need to prepare the draft article and submit the paper to the registrar office. While submitting the paper, pay the fees of SLR 19,900 only.

• As company act 2007 of 7, company shall be formed as limited liability company.
• Shareholder’s number shall not be over fifty.

Click Here to find more information on “Article of Association”

Advertisement (Public Notice)

Once the company registration is done, now it’s time to publish a public notice.  Advertisement or Public notice need to be published with 30 days of company registration.

Some information that needed to be written in public notice are point out below–

• Company name, registration number and type of company
• Address of the company and contact detail
• The position of the business entity, information of parent company
• You must publish the notice in a local daily English newspaper.

Fees of Company Registration in Sri Lanka

15% Vat Is Applicable to the Above Fees 

No Vat Is Applicable to the Above Fees

Time frame of business license

As a standard procedure of business license in Sri Lanka may require 30 days including BOI permission and registrar office.

Note: An expert in this field for an extended period, we can guide foreign investors to obtain business licensing and company registration in Sri Lanka under FDI rules.

Conclusion

The growing GDP of Sri Lanka is one of the reasons why most of the foreign entrepreneurs want to start a business in Sri Lanka. Most of the foreign investors come from India, United Kingdom, United States and Italy. Recently the government of Sri Lanka adjusted their policy on foreign direct investment, to attach more foreign investors.

Now obtain a business license/registering foreign-owned company is much easier than before. If you face any difficulties registering your business in Sri Lanka, make sure to contact us. We have expert professional, who can help you out to register any business in Sri Lanka. We highly maintain customer satisfaction and our service fees is much cheaper than others.

See Related Information:

• You may know more information of income tax return in Sri Lanka and tax e-filing.
• Information of Limited Liability Company (LLC) registration in Sri Lanka can help you to before obtaining business license in Sri Lanka.
• We have discussed some small business ideas in Sri Lanka that may help you to setup business.
• Guide line of work permit in Sri Lanka for the foreigner can helps to invest.