Sri Lanka Company Registration Services
English is a widely spoken language in Sri Lanka which makes it easy for investors to conduct their business dealings. With over 21 million people and an established and growing middle class, Sri Lanka is steadily growing as a business hub that investors are starting to turn their eye on and view as a potential.
Already home to a vast number of international businesses, Sri Lanka is the highest rated country in South Asia by the World Bank for the ease of doing business. Sri Lanka’s economy is also one of the fastest growing economies in the region and with more investments coming into the country, the economy is projected to grow steadily.
The good thing about the Sri Lanka company registration process is that it only takes two weeks for a company to be registered as long as the company has a minimum of two shareholders and one director of any nationality in place and ready to run the company. The company registration can be done through the help of professional service agencies, meaning the process can still be carried out even if the investor is not physically present to conduct the entire process themselves.
How Sri Lanka Company Registration Can Help Your Business
Having a business registered in Sri Lanka can beneficial to businesses in the following ways:
- Businesses will reap the benefits of competing in a high performing economy
- Businesses will have access to a highly skilled and educated workforce
- Businesses will be located in the logistical hub of South Asia
- Businesses will be located in a country that is the gateway to the Indian market via the Free Trade Agreement.
Are There Disadvantages to Sri Lanka Company Registration?
When there’s advantage, there is also disadvantage, and Sri Lanka is not without its challenges for investors. Among some of the challenges that investors would face when running or registering a business in Sri Lanka include the following:
- The corporate tax on Sri Lanka’s Limited Liability Companies are high at a flat fate of 28% on their worldwide earnings.
- Bureaucracy and nepotism are also prominent in Sri Lanka’s business environment.
- A lack of transparency is also another factor that comes into play which could pose a problem for investors.
- Sri Lanka is also ranked as the 85th in the world by Transparency International’s Corruption Perceptions Index.
- Companies who open a branch company are required to pay an additional branch tax levied at 10% on all fund remitted abroad, and this is in addition to the corporate tax rate that also needs to be paid.
- Labour tax and social contributions are on average about 23% of an employee’s gross salary, which is a higher amount if compared to other South Asian countries in the region.
Incorporating and registering a company in Sri Lanka is a process that can take up to seven weeks approximately. For more information on establishing and registering a company in Sri Lanka, our panel of experts are here to help. Contact us today to find out about the services we offer.