Understand the Jurisdictions Setup Requirement Before Proceed Your Sri Lanka Company Formation
3E Accounting will assist you with Sri Lanka company formation. There are various business entities you can register to do business in Sri Lanka, with the most common one being the formation of a limited liability company. If you are a foreigner and you want to tap into the new markets in Sri Lanka, you should not find the process challenging in any way. Though it is something you can do on your own, sometimes expert assistance from professionals like us may be necessary to help get things done as soon as possible. And here at 3E Accounting, we are ready to avail to you all the help you need to have your preferred investment vehicle set up and ready to operate in Sri Lanka.
Legal Entities in Sri Lanka
Sri Lanka allows for the registration of various business entities, including but not limited to the followings:
Sri Lanka Limited Liability Company
Sri Lanka limited liability company is the most common business entity in Sri Lanka. This one is preferred by both foreign and local investors looking for Sri Lanka company formation. This is because it comes with certain subtle conveniences that make it possible to run a flourishing business in Sri Lanka. Its formation requires at least one director and two shareholders. Both can be of any nationality, and not necessarily Sri Lank nationals.
However, the Companies Act of 2007 demands that the company owners must appoint at least one person who ordinarily resides in Sri Lanka to act as the company secretary. There is no minimum share capital requirement to start a limited liability company in Sri Lanka. Of course, this is one of the numerous benefits that this business formation comes within the country.
At 3E Accounting, we can help you with the entire process of forming a limited liability company. This includes providing you with a company secretary as well as a registered address for your business in Sri Lanka.
Sri Lanka Public Limited Company
Just like limited liability Company, the incorporation of a PLC in Sri Lanka does not require minimum share capital. Anyway, the company has to have at least two shareholders and two directors, who don’t necessarily have to be Sri Lanka nationals. With this kind of business entity, the directors are required by law to file annual returns and submit financial statements and audited accounts at the end of every financial year. Feel free to get in touch with us if you need this form of Sri Lanka company formation.
Sri Lanka Branch Office
For foreign businesses wishing to set up bases in Sri Lanka but does not want to incorporate new companies, the best alternative is to always go for branch offices in Sri Lanka. A branch office can be 100% foreign-owned, and the nature of its operations will be determined by those of the parent company.
It will have an independent management team, as well as its own corporate bank accounts in Sri Lanka. However, the branch office must be registered with the Ministry of Finance and Planning, and it will be subjected to the standard taxes, as well as an additional 10% branch tax on all the profits it remits to its parent company.
The Sri Lanka Representative Office
Foreign entities looking forward to doing business in Sri Lanka may also opt for representative offices. Anyway, they can’t make direct sales or engage in any kind of productive operations in Sri Lanka. A branch office is ideal for research and development purposes as well as for running ads as the parent company prepares to set up shop in Sri Lanka.
Why Choose 3E Accounting Business Incorporation Services
We know about the challenges you may run into when going for Sri Lanka company formation, and we are here to help you find a smooth sailing throughout the process. We are knowledgeable about the required processes and procedures for establishing any type of business in Sri Lanka. With us, you will have your business set up and ready to transact as soon as possible.
Our team of lawyers, accountants, and tax experts will be at your disposal to help you not just choose the right kind of vehicle to invest in, but also to help you tax optimization. We make sure you don’t find yourself on the wrong side of the law as far as the business taxes are concerned. Get in touch with us now for immediate assistance.