Starting a business in Sri Lanka is an exciting opportunity, but before you launch your venture, you need to register it legally. Business registration ensures that your company operates within legal frameworks, gains credibility, and enjoys the benefits of formal recognition. This guide walks you through the process of registering a business in Sri Lanka, from choosing a business structure to obtaining necessary licenses.
1. Choose Your Business Structure
The first step is deciding the legal structure of your business. Here are the most common options:
Sole Proprietorship – Best for individuals running small businesses on their own.
Partnership – Suitable for businesses with two or more owners, requiring a partnership agreement.
Private Limited Company (Pvt Ltd) – A separate legal entity that can have shareholders and directors, ideal for medium to large businesses.
Each structure has different legal requirements, tax implications, and liability levels, so it’s essential to choose wisely based on your business goals.
2. Register Your Business Name
Once you decide on your business structure, the next step is to register your business name.
Visit the Department of the Registrar of Companies (ROC) website: www.drc.gov.lk
Use the Name Search Tool to check if your desired business name is available.
Reserve your business name online and pay the reservation fee
Business name reservations are valid for three months, so ensure you complete the registration within this period.
3. Obtain a Business Registration Certificate
For Sole Proprietorship & Partnership:
Register at the Divisional Secretariat Office where your business is located.
Submit a duly filled application along with necessary documents such as owner’s NIC and address proof.
For Private Limited Company (Pvt Ltd):
Submit the following documents to the Registrar of Companies (ROC):
Form 1 – Company Registration Application
Form 18 – Consent and Certificate of Director
Form 19 – Consent and Certificate of Secretary
Articles of Association
Copies of National Identity Cards (NIC) or Passports of directors and shareholders
Payment of the registration fee (varies based on share capital)
Processing time varies, but companies typically receive their Business Registration Certificate within 2-4 weeks.
4. Get a Taxpayer Identification Number (TIN)
All businesses must obtain a Taxpayer Identification Number (TIN) from the Inland Revenue Department (IRD)
Apply online at www.ird.gov.lk or visit the nearest tax office.
Submit business registration details and personal identification documents.
Once approved, you will receive a TIN number, which is required for tax filing and compliance.
5. Open a Business Bank Account
After obtaining the Business Registration Certificate and TIN, open a corporate bank account in your business name. Most banks require the following documents:
Business Registration Certificate
TIN Number
Articles of Association (for Pvt Ltd companies)
NIC copies of business owners or directors
A separate business account enhances financial transparency and credibility.
6. Obtain Licenses & Permits (If Required)
Depending on your industry, you may need additional permits. Some common licenses include:
Import/Export License – For businesses involved in international trade.
Tourism License – Required for travel agencies and tourism-related services.
Food Safety License – Mandatory for restaurants, food processing, and catering businesses.
You can check with the relevant regulatory authorities to ensure compliance.
7. Register for VAT & EPF/ETF (If Applicable)
If your annual revenue exceeds Rs. 75 million, you must register for Value Added Tax (VAT) with the Inland Revenue Department (IRD).
If hiring employees, register for Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) with the Labour Department.
These registrations help businesses comply with tax and labor laws in Sri Lanka.
Timeframe & Cost Estimates
| Business Type | Processing Time | Estimated Cost (LKR) |
|---|---|---|
| Sole Proprietorship | 1-2 weeks | Rs. 3,000 – Rs. 10,000 |
| Partnership | 1-2 weeks | Rs. 5,000 – Rs. 15,000 |
| Private Limited Company | 2-4 weeks | Rs. 25,000 – Rs. 50,000+ |
Costs may vary based on professional services (lawyers, accountants) and additional licensing requirements.
Conclusion
Registering a business in Sri Lanka is a structured yet straightforward process. By following these steps, you can legally establish your business and ensure smooth operations. Whether you’re a solo entrepreneur, a group of partners, or launching a private company, taking the right legal steps at the beginning can save you from future hassles.
Would you like assistance with legal consultancy or business registration services? Contact us today for expert guidance!
Aniket Kumar May 7, 2025
Hi,
I am an Indian citizen interested in registering an import-export business in Sri Lanka, with a specific focus on importing foodstuffs. I would appreciate it if you could kindly provide detailed information on the following:
1. Company Registration:
What are the required documents and legal formalities for a foreign national (Indian citizen) to register a company in Sri Lanka?
Is it mandatory to rent or own office space in Sri Lanka for the registration process?
How long does the entire registration process usually take?
What are the costs involved for your agency’s services as well as the applicable government fees?
2. Import-Export License (EXIM Code):
What is the procedure for obtaining an import-export license in Sri Lanka?
Are there any specific requirements, restrictions, or limitations for foreign nationals?
Is there any minimum paid-up capital requirement for obtaining the EXIM license?
3. Bank Account Opening:
Is it possible for a foreign national to open a business bank account in Sri Lanka?
What documents are required for this process?
4. Additional Considerations:
Are there any specific restrictions, regulations, or compliance requirements for engaging in import-export activities in Sri Lanka?
I look forward to your response and hope to work with your team to establish my business successfully in Sri Lanka.
Lakshmi May 26, 2025
Need application for sole proprietorship