Registration of business
Adding to the Charter of the primary potential uses of your activities in Sri Lanka is not practiced. Our lawyers recommend a proposed description of the main activities of the company. Briefly and clearly, for example: Tourism, International Trade, Construction of Hotels, etc. If it is required, in the consequence of the Articles of Association of your company you can add new paragraphs describing the activities of your company. The founders and directors are required to sign the Charter and all the attached documents for registration. Lawyers of Lankarus submit documents to the registration and tax authorities. Certificate of Incorporation and Certificate of tax registration is usually issued after 3-5 business days.
Fully procedure for registration of enterprise / company / firm in Sri Lanka takes about 7-10 business days. The personal presence of the founders / directors is optional, and the signed documents can be sent with a courier to the address of lawyers’ office and personally deliver it to our specialists. The second option is preferred. The lawyer / notary will help you avoid mistakes in filling out and signing the documents.
After receiving your package of documents on hand at the end of the registration process, you need to open a bank account of your company and make this account an amount that is required for the production of primary shares. At the expense there must also do the minimum amount of funds, usually 15 000 rupees. Plain practiced the starting amount of the issue of shares - 100 shares at a price of Rs. 10 per share. Note that for each capitalized amount it is necessary to pay a fee of 0.5% of the issue. The bank account can be opened in one working day. In some cases, personal presence at the bank can be avoided if you trust account opening to lawyers of Lankarus, filling out the necessary forms and bank statement. However, in practice, some banks following the instructions on the prevention of money laundering in Sri Lanka require data verification. In this case, some banks still need your signature, certification and identification of individuals. In such cases you will be notified and disturbed by our lawyers.
The first transfer funds into opened account of your company from your country (for example, if you live in Germany) can make proving the legality of income. Citizens of the European Union can take a certificate from the tax office. For citizens of Russia there can be useful reference from of the employer - 2NDFL, or a certificate from the tax office. Seeing the transparency and legality of your money, the bank will be able to carry out their transaction into your account in Sri Lanka.
The banks have system of several types of debit accounts. The best option is considered to be the opening of your personal investment account SIA (Securities Investment Account). The main purpose of that SIA account is guaranteed and unimpeded withdrawal of funds in the future. With this account you can withdraw cash or transfer money to the account of the company, you can make an additional share issue by capitalizing on these funds. From account of the company you can make the necessary investment payments.
You can sign your loan agreement with the Sri Lankan company, which has a legally enforceable right to the possibility of a foreign loan of up to $ 10 million a year in terms of the standard bank interest. This is necessary if you wish to select an alternative way to enter the capital to Sri Lanka. Correct input of capital and easy means of its withdrawal from Sri Lanka. These methods allow us to deduce from Sri Lanka and accumulated earnings without complications. We emphasize here that all obtained by your company income is taxed at the standard rate in the country of receipt. No double taxation exists.
Of course, there is a clear procedure for registration of the company in Sri Lanka, however, each case is strictly individual and requires very close and trustful consultations with Sri Lankan experts. To avoid complications, we strongly recommend that you apply for support and maintenance of the procedure of opening your company to lawyers. Specialists of the registered and legal office of Lankarus are opened for you at any time. We are here for you to help and support virtually every issue related to the registration of enterprises / companies / firms in Sri Lanka
Lankarus Lanka Private Limited team