MMD

Company Registration & Licensing

Private limited company, branch or representative office — 100% foreign ownership in most sectors. Registration is step one: sector licences, BOI eligibility where it applies, banking, premises and employment each carry their own requirements and lead times.

Common questions

Can a foreigner own 100% of a company in Sri Lanka? +

In most sectors, yes — but some activities carry ownership limits or need additional approval. What decides it is the activity you actually carry out, not the industry label on the company name.

Read more: Full registration process for tech and BPO companies
Once the company is registered, can we start trading? +

No — and this is the single most common cause of rework. Registration gives you the legal entity. Whether you can carry out a given activity still depends on sector licensing, registered scope and premises conditions.

Read more: Why registration is not operational approval
How do I check which licences apply to us? +

Work backwards from the activities, not from the industry name. List what you will actually do — take payment, invoice, import, employ, deliver a regulated service — and map each to its requirement. That map also tells you which approvals need a head start.

Read more: Building a licence map for your project
What does BOI registration mean for a tech or gaming team? +

BOI is a separate project route, not a badge added to a company. It brings commitments around investment scale, employment and how you operate, and a longer approval cycle. Whether it fits depends on your project shape and expansion plan.

Read more: What BOI registration means for tech and gaming teams
Why do they keep asking for more documents? +

Usually it is not a missing page. Repeat requests normally mean the described activity, the entity form and the supporting documents do not line up, so each review surfaces another inconsistency. Realigning the three beats submitting again.

Read more: Why repeat document requests happen
Is buying an existing company faster? +

It can be, provided you know what you are taking on: whether licences remain valid, whether there are tax or employment legacies, and whether any contractual obligations are outstanding. Any one of those repays the saved time with interest.

Read more: What to verify before acquiring a local company
Do we need a company secretary? +

It is a statutory role, not an optional admin service. It maintains and files statutory records, and the consequence of leaving it vacant or dormant is penalties rather than untidy paperwork.

Read more: Company secretary: a statutory requirement
Who can sign on behalf of the company? +

The local signatory’s authority needs to be explicit in the authorisation documents, particularly for payments, leases and employment. Assuming the country manager can sign anything is a risk: a counterparty will rely on apparent authority, not your internal understanding.

Read more: Confirming signatory authority and its limits
We moved office — what has to be updated? +

A change of registered address pulls a chain of filings: statutory records, tax, some sector licences and bank records, several of which are tied to premises conditions. List what is affected before the move, not after.

Read more: What to update after relocating
We only serve overseas clients — do we still need a local entity? +

It turns on whether you employ locally, receive payment locally, or occupy premises. Once you hire or take payment in-country, an entity is normally required; a purely short-term project may not need one on day one.

Read more: When an entity becomes necessary

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