Backyard Plant Nursery. S & F CONSULTING FIRM LIMITED: we area unit Sole proprietorship Company Registration Consultants in Sri Lanka if you want to register a company or business you can contact with us. The detailed registration process can be found here (we encourage you to read it lest it is revised): http://www.drc.gov.lk/app/comreg.nsf/eb209294bae3f1a0462573f4001cad99?OpenForm. If you are planning to start a business here, here is the right place to begin. The process for registering a company in Sri Lanka is straightforward. However, companies are governed and controlled by the. Disregarding this impediment of unlimited liability, a sole proprietorship business structure is easy to set-up, commands less paperwork and reporting covenants, and is taxed at a personal income tax rate. Thus, it attracts foreign investment from all over. As a sole trader, you’ll still be able to employ other individuals. A recent report compiled by the World Bank Group, too, indicates an improvement in Sri Lanka’s ranking as a potential destination to do business, having ascended 6 places to the 107. To have a unique name and creating a brand image under the name is very important. The complexity of opening shop in a foreign country can be overwhelming. There’s also a robust entrepreneur community within the country. An overseas company can be foreign-owned and can serve as a branch. Real estate. Go and start your business! Within the code, they suggested that companies should develop a transparent policy on executive and director compensation. In my point of view Sri Lanka is born with silver spoon to carry out new business for the foreigners. It requires one director and two shareholders. It separates your personal identity, and therefore your obligations, from that of the business entity. You can certainly endeavour to structure your business in several distinct ways. ’ for the year 2016. How to start business in Sri Lanka Tania Mendis Introduction Sri Lanka is a rapidly growing nation in the Asian Region with the GDP growth of 8%. Like other structures, as a sole trader you can employ people to help you run your business. This island has many resources gifted by the nature. Image Credit to Earl. Like other structures, as a sole trader you can employ people to help you run your business. How To Start Your Company: the processes/steps involved. The country is blessed with several natural resources. The searching of the company name can be done on the website of “Department of the Registrar of Companies.” We recommend to select at least four unique names of your business; this will reduce the chance of name cancellation. The government has made efforts to encourage trade and entrepreneurship. Doubtless, there will be factors — some internal and some external to the local economy — that will mar the momentum of the development drive along the way. Company formation in Sri Lanka in a Piece of cake!! Business registration in Sri Lanka: Sri Lanka is, without doubt, one of the easiest countries to set up a business in. I would love to share it with our readers. Starting a small leather business in Sri Lanka can be a lucrative venture for foreign entrepreneurs. of FY 2014/15) adopted. [enter iniquitous feline-flaying locution]. Accordingly, the start-up process in Sri Lanka now features only nine pertinent steps, all of which take ten days (on average) to complete. Are you a fan of Arabian and Middle Eastern food? Next, the company secretary and director must sign a consent form. Join our mailing list and get the latest updates, Email us for general inquiries and copyright information. The process for registering a company in Sri Lanka is straightforward. With TransferWise, you’ll get the exchange rate you see on Google, and a transparent, up-front fee for your transfer so you know exactly how many Rupees you’ll be getting. Here are some important tips for the potential entrepreneur in Sri Lanka. ; A guarantee of protection for your unique business name — which may be a key propellant of your marketing drive; and. This article will provide some useful information on how to start a business in Sri Lanka. The following table summarises the main features inherent to each structure: ** It should be noted that personal income tax rate is presently on par with the standard corporate tax rate of 15%. Disregarding this impediment of unlimited liability, a sole proprietorship business structure is easy to set-up, commands less paperwork and reporting covenants, and is taxed at a personal income tax rate. You need to have your taxes sorted out as a registered company in Sri Lanka. Once embroiled in a fiery civil war which enshrouded its trade, performance, and pithy picturesqueness, Sri Lanka has since emerged from the conflict-driven tumult and is making a fresh appearance on the global stage. Healy Consultants assists multinational Clients to set up companies in Advantis Free Trade Zone. If you’re thinking of kick-starting your own small business, you ought to know that starting up in Sri Lanka is not a daunting task. However, companies must pay gratuities to employees after five years in companies of 15 people or more. This type of company’s operations are defined by the parent company. Our services are; Foreign company registration, Income tax, Accounting, Audit, Business advisory. The main point of contact with the government to register a Individual Person Business (I am just rough translating here, I am not aware of the proper English term. Shedding a tempestuous past, the country is moving forward into an auspicious future modulated by socioeconomic reconciliation, reconstruction, and recoupment. http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/pa/other/dbsl.pdf. On average, the entire process takes about ten days from start to finish. The Institute of Chartered Accountants in Sri Lanka created a code of corporate governance with respect to all company financial procedures. The Sri Lankan Department of Inland Revenue lays out the tax structure required for individuals, partnerships and companies. Company name registration will cost 1000 Sri Lankan rupees (LKR). The company must register with the Treasury and is subject to a 10% branch tax on profits. All our content aims to inform, educate, and inspire. There’s no pension scheme for private sector employees in Sri Lanka. Obtain an (EFP) Number from the Department of Labour. Presently, the commercial marketplace is characteristically awash with resolute entrepreneurs stepping into the startup eco-system of the country, collectively driven by a productive eagerness to carve out a commercial niche and get a head-start on the road to success. Partnerships aren’t taxed as separate legal entities, so partners are subject to personal income rates. If you’re thinking about starting a business in Sri Lanka, you’d be wise to arrive with a plan and a bit of capital. Many people work as part time to complete … Through the Registrar of Companies online site, you need to register your company name. First you have to decide are you going to sell products or going to provide services. Depending on your situation, you may be entitled to tax-free allowance in Sri Lanka, provided that your income is under a certain amount. Unlike the other famous startups of Silicon Valley which began with garages, the story of … can also avail the same benefits and drawbacks as above. This restricts the sole proprietor from taking risks while deciding to start or expand the business. Starting a business is way easier than writing a post on how to start a business! Give public notice of your company’s incorporation at the, Obtain a Tax Identification Number (TIN) from the. Accordingly, the start-up process in Sri Lanka now features only nine pertinent steps, all of which take ten days (on average) to complete. As a foreigner looking to start a business in Sri Lanka, there are few things that may be required of you prior to company registration ; The selection of a local Company Secretary. While setting up a company involves minor administrative hurdles, the process is quick and straightforward. Lack of Continuity The business … However, one of the key differences is that this time, the pie of responsibility is sliced among the partners to the business in line with the provisions made within the ‘partnership agreement’ (i.e. These are: The structure of a sole proprietorship is similar in most countries. From clever FMCG retailers to artisanal F&B eateries, chic fashionistas, handy crafters, and whizzy tech companies, glaringly innovative small businesses are all the vogue. and are subject to rules and regulations laid out by the Registrar of Companies, the Securities and Exchange Commission, and the Sri Lanka Accounting Standards. Registration is best done in-person, not online. Setting up a company takes five months on average; We will assist with i) incorporating a limited liability company ii) opening a corporate bank … If applicable, register for Value Added Tax (VAT) with the VAT Registration Branch of the Inland Revenue Department. After the end of 30 year ethnic conflict it is heading to an era of prosperity and development. Before starting a new business in Sri Lanka or anywhere in the word one must first have a company name that is unique to other companies. The limited liability company is the most common type of business in Sri Lanka. If everything is alright, the name registration will be cleared within two days. In contrast to the above, forming a registered company limits your external exposure by separating you from your company in the eyes of external institutions. Absolutely not! If you’re setting up an international business or expanding into markets overseas, you’re likely to have employees working around the world. They are also entitled to half a month’s salary for each completed year of service after five or more years in the event of a termination. These are the forms you’ll need to fill in during the process: The following document, released by the Central Bank of Sri Lanka, also provides a wealth of useful information and even stems into discussing salient factors relating to operational matters such as obtaining electricity, water, construction permits, land approvals, contracts, etc. A trustworthy brand name gives people a sense of reliability and confidence. Nonetheless, we’re confident that through relentless effort, reforms, and adaptive spirit, Sri Lankan industries will persevere. And if you need to send money to your new Sri Lankan account, you’ll get the best deal with TransferWise. The textile industry is vast in Sri Lanka. A partnership business is not considered a separate legal entity from a legal and taxation perspective and hence carries unlimited liability. Should this be the case, the former graduated tax schedule shall apply (personal income tax between 4-24%; and corporate income tax between 12-28%, excluding those dealing in vices). Shares are allowed to be issued on the stock exchange. Here are the steps by steps: Through the Registrar of Companies, you will need to search for and reserve your company name. All Rights Reserved. High economic growth has been achieved by the country. Your marketing drive ; and to one and a half days off per week, as as. 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