December 16, 2024
INCORPORATION OF LLC IN SRILANKA
In the midst of South Asian Nation, when it comes to setting up of an entity, Sri Lanka is rated favourably. The process of starting a business in the nation is well-established and recorded. Sri Lanka, a growing centre for entrepreneurship and investment, provides a business-friendly atmosphere for both domestic as well as international investors. In spite of formation, flexibility and limited liability protection, LLC is one of the most used company forms in Sri Lanka.
WHAT IS LLC IN SRI LANKA?
Private Limited Liability Companies or LLCs are distinct legal entities from their owners or shareholders. This gives shareholders limited liability protection, which means that corporate debts typically do not put at risk their personal assets. LLCs are a popular option for small and medium-sized businesses because they are comparatively simple to set up and regulate. A Limited Liability Company (“LLC”) is a Legal entity in which the liability of its investors is covered at the capital they have put in. LLC are of two types:
Private: The most typical type is private, in which shares are not used for public trading.
Public: permitting the trading of shares on the stock exchange.
PRINCIPLE ADVANTAGE OF LLC
- Limited Liability: Aside from their investment, shareholders are not held personally responsible for the debts of the firm.
- Separate Legal Entity: The entity is separate from its owners, which gives it the right to engage into contracts, own property, and can file or defend lawsuits.
- Ease of Operation: LLCs have a stronger governance structure than partnerships or sole proprietorships.
- Attracts Investment: An LLC is a reputable and well-organized corporate structure that appeals to investors.
- Growth Potential: Capable of raising funds and expanding with ease.
REQUIREMENT FOR LLC
- LLC requires at least one director and two shareholders who can be of any nationality.
- No minimum share capital is required.
PROCEDURE FOR CREATING LLC IN SRI LANKA
i) Select a Name for a company-
Choose a distinctive and accessible company name.
Ask the Registrar of Companies to see if a name is available.
ii) Prepare the following Documents-
Articles of Association and Memorandum-Describe the company’s goals, internal policies, and share capital.
iii) Proof of Registered Office-
Enter the registered address of the company.
iv) Form 1 (Registration Form)-
Details including the firm name, registration address, and type of business are included.
v) Appointment of Company Secretary and Directors-
A minimum of one director and a company secretary should be appointed.
vi) Form 18 (Consent of Director(s)-
Every director must agree to their appointment on Form 18.
vii) Form 19 (Consent of Secretary)-
To function in this capacity, the company secretary must give written consent.
viii) Director and Shareholder Register-
List each director’s and shareholder’s information.
ix) Apply to the company registrar-
Present to the Registrar of Companies the required document and payment.
x) Obtain Certificate of Incorporation-
A Certificate of Incorporation will be issued by the Registrar of Companies following a successful registration.
POST-INCORPORATION PROCESS
- Annual Returns- File your annual returns with the ROC.
- Tax Filings- Send the Department of Inland Revenue regular tax returns.
- Preserving of Statutory Records– Keep director, member, and resolution registers up to date.
- Financial Statement – Every year, financial statements are prepared and audited.
- Annual General Meetings- Conduct an annual general meeting of shareholders every year.
HOW WE CAN HELP?
- Our team specializes in offering complete assistance with LLC registration in Sri Lanka. To make sure the company stays in compliance with all relevant rules and regulations, we offer continuing help and direction.
- We help you with every step of the LLC incorporation procedure.
- Our team can investigate and identify any licenses, permits, or registrations needed for the client’s particular sector. we help with the application procedure and makes sure the company meets all legal requirements.
- We can assist you in understanding and adhering to all applicable laws and regulations. Our team of specialists offers competent legal and tax guidance.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
