Invest in Sri Lanka

Setting up and running a business in Sri Lanka as an overseas investor.

Sri Lanka welcomes foreign investment, and a local team of chartered accountants can make the process far easier. Here is a general overview of the main steps. Requirements depend on your sector and structure and can change, so please treat this as a starting point and confirm the current position with the official sources linked below.

1. Choose a structure

Foreign investors commonly operate through a locally incorporated private limited company or a branch office of an overseas company. Some projects also apply for approval from the Board of Investment of Sri Lanka (BOI) and operate as a BOI-approved company under the terms of that approval. We can help you compare the options.

2. Foreign shareholding

Foreign investors can generally hold shares in Sri Lankan companies, but some sectors are restricted or need special approval. We check whether your planned business is affected and help you plan how to deal with it.

3. Company registration through eROC

Companies are registered with the Department of the Registrar of Companies through its online system, eROC. This covers name reservation, incorporation documents, director and shareholder details and beneficial ownership information. We prepare and file the documents for you.

4. Tax registration

Most businesses register with the Inland Revenue Department for a Taxpayer Identification Number (TIN) and, where required, for VAT. If you will have employees, you will also need to deal with PAYE (APIT), EPF and ETF registrations.

5. Bank accounts and bringing in capital

Overseas capital is generally brought in through a licensed commercial bank, for example into an inward investment account, in line with the Central Bank’s exchange control rules. We help you prepare for the account opening process and the related documentation.

6. Work visas and residence

Foreign directors and staff usually need an appropriate visa to work or live in Sri Lanka. The rules and procedures are set by the Department of Immigration and Emigration and, for some investments, the BOI. We can introduce you to the process and point you to the official sources.

7. Ongoing compliance

After setup, a company has recurring obligations, including bookkeeping and annual financial statements, tax returns, VAT and payroll filings, the annual return and beneficial ownership filings with the Registrar of Companies, and statutory records. We can take care of these for you.

How Samit Consultants helps

• Advice on the right structure for your investment.
• Company registration, including BOI company applications.
• Company secretarial services and a local registered office.
• Tax registration, tax planning and returns.
• Accounting, bookkeeping and payroll.
• Support with bank account opening and exchange control paperwork.
• Introductions for visa and legal matters.

Official sources

• Board of Investment of Sri Lanka (investsrilanka.com) and boi.lk
• Department of the Registrar of Companies (drc.gov.lk) and eROC
• Inland Revenue Department (ird.gov.lk)
• Central Bank of Sri Lanka (cbsl.gov.lk)
• Department of Immigration and Emigration (immigration.gov.lk)

Thinking of investing in Sri Lanka? Speak to us about your plans.