How to Setup a Company in Sri Lanka

Sri Lanka is a favourite country for business incorporation due to its location in the Indian Ocean, and growing economy. With a liberal trade market, Sri Lanka allows up to 100% foreign ownership in most sectors, providing excellent opportunities for both domestic and international entrepreneurs.
Benefits of company incorporation in Sri Lanka

• Liberal Foreign Policies: Sri Lanka allowed 100% foreign ownership, with some restrictions in a few industries.
• Business-Friendly Environment: Sri Lanka has a business-friendly atmosphere, provides social stability, and a good market with a high employee rate.
• Stable Economy: Sri Lanka has a growing economy and a well-regulated business environment, Sri Lanka is a prime location for expanding business operations.
  
  Companies type in Sri Lanka
  Public Limited Company: PLC required two or more than two directors and a minimum two shareholders. The liability of shareholders is limited to the shares, and PLCs can raise capital through the Colombo Stock Exchange.
  Limited Liability Company: LLC is a popular business choice, requiring only one director and shareholder. 100% foreign ownership is allowed, they need the local Sri Lankan citizen secretary.
  Partnership: Required two or more individuals or entities. Partnerships can have limited or unlimited liability depending on the mutual agreement between the partners.
  Sole Proprietorship: This is the simplest business structure with no minimum capital requirement, owned by an individual with unlimited liability.
  Overseas Company: A foreign company operating as a branch or liaison office in Sri Lanka. It should follow the regulations of its parent company but must full fill the local complainces.
  Documents Required for Company Incorporation
• Passport copies of all officeholders
• Proof of identity (e.g., driving license)
• Utility bills as proof of address
• Specimen signatures of officeholders
• Proposed trade name

Benefits of Incorporating a Company in Sri Lanka

• Digital and cost-efficient registration process
• Liberal trade market with low barriers to entry
• Access to skilled labor
• Competitive corporate tax rates
• Transparent commercial laws
• Strong infrastructure for business operations

Process of Incorporation

• Choose and approve a business name.
• Select your business entity type.
• Provide shareholder and director details.
• File the required forms and documents.
• Submit your online application.
• Receive your incorporation certificate

Additional Requirements

• Secretary: A resident secretary is required to represent the company and manage legal and regulatory compliance.
• Articles of Association: These define the company’s internal governance and employee regulations.
• Memorandum of Association: This document outlines the company's purpose and objectives.
• Registered Address: A physical or virtual address for official communications is mandatory.
• Sri Lankan Bank Account: Opening a local bank account is essential for managing domestic and international transactions.

How YKG Global will assist you in Business Setup in Sri Lanka

End-to-end assistance: With YKG Global, you will get assistance from expert Chartered Accountants (CA) and Certified Practicing Accountants (CPA) who understand Canadian corporate laws and regulations. We handle the complete registration process and post-registration compliance with bank account support.

Online Process: You can register your company in Sri Lanka remotely and there is no need to visit Sri Lanka.  At YKG Global, our team in Sri Lanka will handle the entire process, from due diligence and name reservation to obtaining incorporation certificates, and tax registrations. For the corporate bank accounts, you may need to visit there, it depends on the bank's requirement.

Fast & Transparent Timelines: Once all documents are received, our team will conduct due diligence and reserve your preferred company name. after the company incorporation, our team will provide you with registered documents, and certificate of incorporation, and other key documents.

We will assist you in opening your bank account within 30 days of incorporation, providing you with all required forms and support for KYC (Know Your Customer) processes.

Customized Solutions according to Business Activities: YKG Global advises you to choose the best company structure that suits your business needs, whether it is a Private Limited company, public company, sole trader, branch office, or representative office. Our expert will advise you through the legal and operational implications of each type.

Over Four Decades of Expertise: With over 40 years of experience and a global presence in more than 40 countries, YKG Global has a very good understanding of  Sri Lanka's business registration and compliance.

Global Connectivity and Strong Relationships: Our team has very strong relationships with banks and regulatory authorities enabling us to smoothen your entry into the Canadian market.

YKG Global will make your company registration in Sri Lanka a simple and hassle-free process.