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21,481,334 (as of 2019)
Sri Lankan Rupee
Frequently Asked Questions (FAQ) for Company Formation in Sri Lanka:
1. What are the types of companies that can be registered in Sri Lanka?
A: The Companies Act of Sri Lanka allows for the registration of several types of companies, including private limited companies, public limited companies, and one-person companies.
2. What are the requirements for registering a company in Sri Lanka?
A: The requirements for registering a company in Sri Lanka include a minimum of two shareholders, a registered office in Sri Lanka, and a registered company name. The company must also appoint at least one director and a company secretary.
3. What is the minimum capital required for registering a company in Sri Lanka?
A: There is no minimum capital requirement for registering a company in Sri Lanka. However, the authorized share capital must be stated in the Articles of Association.
4. What is the process for registering a company in Sri Lanka?
A: The process for registering a company in Sri Lanka involves submitting the necessary documents to the Registrar of Companies. This includes the Articles of Association, Memorandum of Association, and Form 1 (application for registration). The company must also pay the necessary fees.
5. How long does it take to register a company in Sri Lanka?
A: The registration process for a company in Sri Lanka can take up to 7-14 days.
6. What are the tax requirements for companies in Sri Lanka?
A: Companies in Sri Lanka are subject to corporate income tax, which is currently set at 28%. The company must also register for VAT if its turnover exceeds a certain threshold.
7. What are the accounting and reporting requirements for companies in Sri Lanka?
A: Companies in Sri Lanka are required to maintain proper accounting records and file annual financial statements with the Registrar of Companies. Companies must also hold an annual general meeting and file an annual return with the Registrar of Companies.
8. Can foreigners register a company in Sri Lanka?
A: Yes, foreigners can register a company in Sri Lanka. However, there are restrictions on the percentage of foreign ownership in certain industries, such as banking and insurance.
9. What are the benefits of registering a company in Sri Lanka?
A: Sri Lanka offers a strategic location, a highly skilled workforce, a stable political environment, and a favorable business climate. In addition, the country has several tax incentives and trade agreements with other countries.
"Sri Lanka has seen a steady growth in its economy over the past few years. According to the World Bank, the country's GDP grew by 3.2% in 2019, and is projected to grow by 3.5% in 2020. The country's inflation rate has also been relatively low, averaging around 4.2% in 2019.
The country has also seen a steady increase in foreign direct investment (FDI). In 2019, FDI inflows to Sri Lanka totaled $1.3 billion, a 5.3% increase from the previous year. This was largely driven by investments in the manufacturing and services sectors.
The country's labor market has also been strong, with unemployment rates falling from 4.7% in 2018 to 4.3% in 2019. This is due to the government's efforts to create more jobs and reduce poverty.
Overall, Sri Lanka's economy has been performing well, and the country is well-positioned to continue its growth in the coming years."
Sri Lanka is a country located in South Asia. Here is a brief overview of the taxation system in Sri Lanka:
Corporate Taxation in Sri Lanka:
- Corporate tax rate is 28%
- Capital gains are taxed as normal income at the corporate tax rate
- Dividends paid by Sri Lankan companies are exempt from tax, but foreign dividends are taxed as normal income
Personal Taxation in Sri Lanka:
- Personal income tax rates range from 4% to 24%, depending on income level
- Capital gains tax rate is 10%, but this rate can be increased to 28% for high-income taxpayers
Tax Payment and Calendar:
- The tax year in Sri Lanka runs from April 1 to March 31 of the following year.
- Tax returns must be filed by November 30 for individuals and by October 31 for companies.
- Corporate income tax payments are due in four installments: the first two installments are due on the 15th day of the third and sixth months of the tax year, and the last two installments are due on the 15th day of the ninth and twelfth months of the tax year.
- Individual income tax payments are made on a monthly basis through employer withholdings, but self-employed individuals may need to make additional payments on an estimated basis.
Taxpayers in Sri Lanka are required to keep detailed records of their income and expenses, and may be subject to audits by the tax authorities. Failure to comply with tax laws can result in penalties and fines.
Sri Lanka also has signed several tax treaties with other countries, which can impact the taxation of individuals and corporations with ties to those countries. It is always recommended to consult with a tax professional for personalized advice on tax matters in Sri Lanka.
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