This post presents a detailed overview of the average costs involved in establishing and maintaining a standard Private Limited Company in Sri Lanka as of 2025. All figures are drawn from official Sri Lankan sources to ensure accuracy and reliability.
Standard Company Formation Costs in Sri Lanka (2025)
When registering a Private Limited Company in Sri Lanka, founders encounter several fixed and variable expenses. The table below offers a transparent breakdown of these costs, presented in Sri Lankan Rupees (LKR). For international comparison, the rate used is 1 LKR ≈ 0.0032 USD (June 2025). All amounts include the typical fees required during the incorporation process.
| Item | Cost (LKR) | Cost (USD) |
|---|---|---|
| Registrar of Companies registration fee | 15,000 LKR | $48 |
| Stamp duty on Articles of Association | 1,000 LKR | $3 |
| Name approval fee | 2,000 LKR | $6 |
| Publication of incorporation notice (newspaper) | 7,000 LKR | $22 |
| Professional/lawyer fees (average) | 10,000 LKR | $32 |
| Minimum capital requirement | 0 LKR | $0 |
| Average Total Creation Cost | 35,000 LKR | $112 |
Based on current regulations, the average cost to establish a standard Private Limited Company is approximately 35,000 LKR ($112). Notably, Sri Lanka does not impose a minimum capital requirement for this business structure, streamlining entry for most founders.
Annual Maintenance Costs for Sri Lankan Companies
Ongoing company maintenance in Sri Lanka includes various mandatory filings and professional services. The following table summarizes average annual costs for a Private Limited Company, making it easier to budget for recurring compliance expenses:
| Item | Annual Cost (LKR) | Annual Cost (USD) |
|---|---|---|
| Annual return filing fee (Registrar of Companies) | 3,500 LKR | $11 |
| Auditor/accountant fees (average) | 10,000 LKR | $32 |
| Publication of annual accounts (if required) | 1,500 LKR | $5 |
| Company secretary annual fee (average) | 10,000 LKR | $32 |
| Other compliance costs (miscellaneous) | 4,000 LKR | $13 |
| Total Annual Maintenance Cost (Range) | 15,000–40,000 LKR | $48–$128 |
The typical ongoing expense to keep a Sri Lankan Private Limited Company fully compliant ranges from 15,000 to 40,000 LKR per year ($48–$128). This spectrum depends on the scale of operations and the necessary professional services chosen by the company.
Most Relevant Official Sources
The data summarized above is based on figures provided by the following official institutions:
Pro Tips for Setting Up and Maintaining a Company in Sri Lanka
- Engage a qualified company secretary from day one; it’s mandatory for Private Limited Companies and helps avoid administrative delays.
- Budget for professional services such as accountants and legal counsel to ensure your filings and compliance requirements are met efficiently.
- Check the official Registrar of Companies site annually for updates on statutory fees or policy adjustments impacting your company’s cost structure.
- When publishing official notices, verify whether newspaper publication is strictly required for your company to potentially reduce unnecessary expenses.
Key Points to Remember
Setting up a Private Limited Company in Sri Lanka is a relatively cost-effective procedure, with creation costs consistently under $120 and annual maintenance rarely exceeding $130 (using mid-2025 exchange rates). Careful attention to compliance and the use of local professionals can minimize risks of non-compliance. As always, referencing direct sources such as the Registrar of Companies ensures you’re working with the most current official information for the Sri Lankan context.