- Recognised by Business Connect · 1080+ Clients · 47+ Countries
Start a Business in Sri Lanka — Ltd, 30% CIT, Colombo Port City 0%, India's Closest Neighbour
Sri Lankan company formation involves incorporating a Private Limited Company through the Registrar of Companies (ROC) via the EROC online system, with optional Board of Investment (BOI) registration for incentive access. Sri Lanka is India’s closest neighbour (30km across the Palk Strait, 1-hour flight Chennai-Colombo). The standard CIT rate is 30% (raised post-crisis), but BOI tax holidays reduce rates significantly. The Colombo Port City, a special economic jurisdiction, offers 0% CIT for up to 40 years. The India-Sri Lanka Free Trade Agreement (ISFTA) provides preferential tariffs. SBI operates in Sri Lanka. The India-Sri Lanka DTAA caps dividend withholding at 7.5%, and interest and royalties at 10% (source: PwC treaty rate table). Post-2022 economic stabilisation under the IMF programme is restoring investor confidence. Comply Globally has helped 1,080+ entrepreneurs across 47+ countries.
- By Dr. Anil Kumar Gupta, Chairman, Connect Ventures Group
- Updated April 2026
- 15 min read
500+
Companies launched
47+
Countries served
4.7
Trustpilot rating
+12 today
Founders onboarded
Incorporated in 7 days
Average turnaround time
30%
CIT (BOI Lower)
0%
Port City 40yr!
FTA
India-SL Free Trade
SBI
Bank in Sri Lanka
30km
From India
OUR SERVICES IN SRI LANKA
What We Help You With in Sri Lanka
Leverage our expertise for company formation, EXIM, IOR/EOR, visas,
banking, and ongoing compliance all from a single point of contact.
Most Popular
Company Formation
Register a Sri Lankan Private Limited Company through the Department of the Registrar of Companies (DRC) with complete remote assistance from India. We handle name reservation, incorporation documents, director/shareholder structuring, registered office support, tax registrations, and post-incorporation compliance. Sri Lanka permits 100% foreign ownership in most sectors subject to sector-specific approvals. Incorporation usually takes 5–10 business days once documents are complete. Starting from ₹55,000* (government fees extra).
Tax & Compliance Advisory
Navigate Sri Lanka’s corporate income tax system, VAT compliance, transfer pricing regulations, annual returns, bookkeeping, payroll, and Inland Revenue filings. We help optimise your structure under the India–Sri Lanka DTAA to minimise double taxation and improve cross-border efficiency. Sri Lanka offers sector-specific incentives for exports, IT, tourism, manufacturing, and strategic investments through the Board of Investment (BOI).
Most Popular
FEMA & RBI Compliance
We handle BOTH sides simultaneously: Sri Lanka incorporation AND Indian FEMA compliance. This includes ODI filings with your AD bank, Annual Performance Reports (APR), RBI FLA returns, foreign investment reporting, and Foreign Tax Credit (FTC) documentation under Indian tax laws. This dual-country execution capability remains one of our strongest differentiators for Indian founders expanding internationally.
Visas & Immigration
Business visas, investor visas, residence approvals, work permits, and dependent visa assistance for Indian entrepreneurs and professionals entering Sri Lanka. We assist with Department of Immigration & Emigration procedures, documentation, renewals, and local compliance requirements for foreign directors and employees.
EXIM & Logistics
Import/export registrations, customs advisory, freight coordination, IOR/AOR/EOR support, sourcing assistance, and Sri Lanka–India trade facilitation. Sri Lanka’s strategic Indian Ocean location and Colombo Port connectivity make it an important gateway for South Asia, Middle East, and ASEAN trade routes.
Cross-Border Banking
Corporate account opening assistance with Sri Lankan and international banks including Commercial Bank, HNB, Sampath Bank, HSBC, and Standard Chartered. We help prepare KYC documents, business plans, projected financials, and compliance paperwork for smoother onboarding. Depending on the bank, video KYC or a single in-person visit may be required.
- 1080+ Clients Served
- 47+ Countries
- 4.7★ Trustpilot
- Avg 4hr Response
- 100% Compliance Record
Why Partner With Comply Globally?
Our 4 Brand Promises — Backed by Results
These are not marketing claims. They are measurable operational standards tracked
and verified across 1,080+ client engagements worldwide.
Speed of Action
We reply within 4 hours. A Sri Lanka company usually takes 5–10 business days to incorporate, depending on approvals and sector requirements.
Fast-track incorporation support available
Accuracy & Competence
Zero compliance failures across 1,080+ engagements. Every filing is reviewed by a dedicated country specialist before submission.
Filing dates tracked for you · 4.7★ on Trustpilot
Ease of Doing Business
One contact for everything Sri Lanka incorporation AND Indian FEMA compliance handled simultaneously, without multiple vendors or fragmented coordination.
Single Point of Management · 47+ countries
Cost Competitiveness
Published price: Sri Lanka company from ₹55,000*. Government fees are charged at cost and quoted in writing before you pay.
High-value international expansion support
“Initially I thought the process of expanding internationally would be extremely complicated, but Comply Globally handled everything efficiently from incorporation to banking and compliance. Their responsiveness and execution quality exceeded expectations.”
Sri Lanka
TAX FRAMEWORk
What Is the Corporate Tax Rate in Sri Lanka?
Sri Lanka’s standard corporate income tax rate is generally 30%
According to the Inland Revenue Department (IRD) of Sri Lanka, resident and non-resident companies are taxed on Sri Lanka-sourced income, with standard corporate tax rates generally around 30%, while certain industries and export-oriented businesses may qualify for concessionary rates or investment incentives.
Sri Lanka also imposes VAT on taxable supplies and services, with additional sector-specific taxes applicable in selected industries. Through the India Sri Lanka DTAA, Indian businesses can reduce double taxation exposure and optimise withholding taxes on cross-border payments such as dividends, royalties, and technical service fees.
Investors look at Sri Lanka for its place on South Asian shipping routes, lower running costs, tourism and export manufacturing.
Sri lanka vs India vs Singapore vs Malaysia— Tax Comparison
| Factor | 🇱🇰Sri Lanka | 🇮🇳India | 🇸🇬Singapore | 🇲🇾Malaysia |
|---|---|---|---|---|
CIT Rate | 30% (standard) | 25.17% | 17% | 24% |
Capital Gains Tax | 0% (abolished 2002) | 10–20% | 0% | 0% |
Dividend WHT | 15% (non-resident) | 10% | 0% | 0% |
VAT / GST | 18% | 18% (avg GST) | 9% | 8% |
DTAA Network | ~45 treaties | ~95 treaties | ~90 treaties | ~75 treaties |
Ease of Doing Business | #99 (World Bank) | #63 | #1 | #12 |
Tourism / Export Services Tax | 0% (export services exempt) | 18% GST (tourism) | 9% GST (tourism) | 8% SST (tourism) |
Investment Incentives | BOI: 0–15% CIT up to 12 yrs | Startup India (limited) | Startup: 0–4.25% for 3 yrs | Pioneer: 70–100% exemption |
Free Resource
Get Your Personalised Sri Lanka Compliance Calendar
Tell us about your company and we’ll prepare a customised compliance calendar
with every key date — delivered via WhatsApp and email within 24 hours.
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Starting a Business in Sri Lanka
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