Essential Annual Requirements for Sri Lankan Companies: A Simplified Guide

Running a company in Sri Lanka comes with several legal and regulatory responsibilities that are often overlooked. Non-compliance can lead to fines and disrupt operations. Here’s a guide to help you stay on top of your annual obligations and keep your business running smoothly.

Keeping Your Financial Records in Order

Good financial management is key to both legal compliance and smooth business operations. Here’s what you need to know:

Maintain Proper Records: Track all income, expenses, assets, and liabilities. Keep these records for at least five years, as failing to do so could lead to penalties.
Where to Store Records: Accounting records must be kept in Sri Lanka unless you get special permission from the Registrar to store them abroad. You’ll also need to share updates about your company’s financial position if records are stored outside the country.
Prepare Financial Statements on Time: Your board of directors must prepare and sign financial statements within six months of the financial year-end (usually March 31). These documents are essential for audits and compliance.

💡 Pro Tip: Avoid errors by using reliable accounting software or hiring professional accountants.

Managing Your Corporate Income Tax (CIT)

Paying taxes on time is a critical part of running a compliant business. Here’s how to handle it:

Get Your TIN: Make sure your company is registered for Corporate Income Tax (CIT) and has a Tax Identification Number (TIN) from the Inland Revenue Department.
Meet Key Deadlines:
- By August 15: Submit the Statement of Estimated Tax outlining your company’s estimated profits and pay quarterly taxes on time to avoid penalties.
- By November 30: File your Final Corporate Return of Income, including audited financial statements.

What to Include in Your Final Tax Return

Income sources
Taxable profit and liability
Exemptions and losses carried forward
Tax credits and payment details

💡 Example: For the financial year 2023/24, your final tax return must be submitted by November 30, 2024.

Need help? Check out the Bizadvisor Corporate Tax Guide for detailed insights.

Filing Your Annual Return (Form 15)

The annual return keeps your company’s information up-to-date with the Registrar of Companies. Here’s what you need to do:

Who Files It? Directors and the company secretary are responsible.
When to File? Within 30 working days after your Annual General Meeting (AGM).
What Does It Cost? Rs. 6,900 plus applicable taxes.

How to File:

Log in to the EROC (e-Registrar of Companies) portal.
Complete the filing process online.

What to Include:

Updates to company information (e.g., director changes, address updates).
Share transfer forms, if applicable.

💡 Pro Tip: Accurate filings save you from penalties and keep your company in good standing.

For a step-by-step guide, refer to the Bizadvisor Annual Return Filing Guide.

Why Compliance Matters

Staying compliant isn’t just about avoiding fines. It shows professionalism, ensures smooth operations, and positions your company for long-term success.

If you need support or guidance, Bizadvisor is here to help. Let’s make compliance hassle-free so you can focus on growing your business!