What are the types of companies in Sri Lanka?

There are various types of companies in Sri Lanka. The most common among these are:

1. Private Company: It is the most common type of company in Sri Lanka. It is based on the principle of limited liability and can be established by at least two partners. Private companies, whose shares are not publicly traded, are generally preferred by small and medium-sized businesses.

2. Public Company: Public companies are generally large-scale enterprises whose shares are open to the public. Public companies are registered with the Sri Lanka Stock Exchange (Colombo Stock Exchange) and are publicly accountable.

3. Branch or Representative Office: Foreign companies can open branches or representative offices in Sri Lanka. A branch is a separate unit of a foreign company operating in Sri Lanka while a representative office is an office of the foreign company that carries out limited operations in Sri Lanka.

4. Joint Venture: It is a cooperation model in which local and foreign companies establish a partnership and realize a project together. Joint ventures are established by a joint agreement between two or more companies and are often preferred in large-scale projects.

5. Cooperative: Cooperatives are businesses based on the principle of mutual aid and solidarity among their members. There are cooperatives in Sri Lanka in various sectors such as agriculture, consumption, construction and finance. Apart from these types of companies, other types of companies can also be found in Sri Lanka, but the ones mentioned above are the most common. To learn more about the company formation process and types of companies, it is recommended that you contact the Chamber of Commerce in Sri Lanka or a local lawyer or consultancy firm.