How to start a business in Sri Lanka

How to start a business in Sri Lanka

How to start a business in Sri Lanka as foreign investors and business ideas of Sri Lanka are discussed. Starting a business in Sri Lanka should consider many issues of business environment.

How to start a business in Sri Lanka

Starting a business in Sri Lanka as foreign investors

Foreign entrepreneurs can register a business as law of state depositing amount of US$ ten million. Government encourages foreign businessmen to invest and start business. Starting a business in Sri Lanka as overseas entrepreneurs may contact the lawyer, consulting firm to guide in proper way.

Branch Office

Branch office of foreign companies can be registered and purchase property too as local investors if require shake of business.

Liaison /Representative Office

· Monitor business activities & research 

· Finance ministry of state is authority to approve representative office

Subsidiary business setup in Sri Lanka

Subsidiary or share holding business entity can be incorporated where a business entity shall be holding part of shares of new company or can be registered a full hundred % ownership.

Business can be permitted for industrial or general as ideas of foreign businessmen.

Tax incentives facilities of Sri Lanka

Income tax incentive opportunity is available for the foreign businessmen on certain goods of manufacturing, industry and others as law and policy of government. Nonresident shall pay the tax to government after calculation of expenses and income of business. Royalty can be received as 

Bilateral agreement countries can start business between themselves grabbing opportunity of taxation or low paid taxation as terms of agreement. Moreover treaty countries can have opportunity to starting business gaining revenue more than general investment countries.

Procedure of starting a business in Sri Lanka

· Unmatched business name confirmation

· C. Secretary and board of directors consent letter

· Register business from registrar of state

· A notice shown as public announcement 

· Tax confirmation from revenue office of government

· Value Added Tax (VAT) collection

· Government fees of stump and other fees confirmation

· Share issuance clearance 

· Apply for clearance of labor department

As BOI instruction foreign businessmen can start a business as hundred %.

Starting a business in Sri Lanka