Just Registered Your Company? Your Sri Lanka Compliance Checklist

Congratulations, your company is incorporated! Registration is only the beginning, though. To trade legally and avoid penalties, every new company in Sri Lanka has a set of ongoing obligations. Use this checklist to stay on track.

1. Register for a TIN

Register your company with the Inland Revenue Department to obtain a Taxpayer Identification Number. You will need it for tax filings, and often for banking, imports and government dealings. Our sister firm Amark Associates provides tax services.

2. Check whether you need VAT registration

VAT registration is required once your taxable turnover crosses the threshold set by the IRD, and voluntary registration can sometimes make sense if your customers are VAT-registered businesses. The thresholds and rates are revised periodically, so check your position before you start invoicing.

3. Register as an employer for EPF and ETF

If you employ staff, you must register for the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF). Employers contribute 12% to EPF and 3% to ETF, and employees contribute 8% to EPF, based on monthly earnings. You may also need to deduct APIT from salaries above the tax-free threshold.

4. Keep proper books of accounts

Companies must keep accounting records that correctly explain their transactions and allow financial statements to be prepared. Setting up a good bookkeeping system from day one saves a great deal of time and money at year-end. Learn about our accounting & bookkeeping service.

5. Maintain statutory registers and minutes

Your company secretary should keep the register of members, register of directors and secretaries, minutes of board and shareholder meetings, and other statutory records up to date.

6. File your annual return with the ROC

Each year, your company must file an annual return with the Registrar of Companies confirming its directors, shareholders and share capital. Changes such as new directors, share transfers or a change of address also need to be filed within set timeframes.

7. Prepare and audit your financial statements

At the end of each financial year, prepare financial statements in line with Sri Lanka Accounting Standards, have them audited where required and file your income tax return. Our sister firm Amark Associates provides audit services.

8. Other registrations

Depending on your business, you may also need trademark registration, customs registration, import/export licences or sector-specific licences.

Make compliance someone else’s job

Missing a deadline can mean penalties, interest and stress. SMARTLedger can run your full compliance calendar, covering tax, EPF/ETF, secretarial and accounts, for a predictable monthly fee. Talk to us about a package that fits your business.

This article is general information, not professional advice. Laws, rates and thresholds change, so please contact us for advice on your specific situation.