About Business Law in Colombo, Sri Lanka
In Colombo, Sri Lanka, business law is significantly influenced by the British legal system owing to its colonial history. The legal framework related to business covers various areas such as company formation, operational law, tax law, labor law, intellectual property rights, and more. Importantly, the country is a signatory to many international conventions, making it a favorable terrain for international business operations too.
Why You May Need a Lawyer
Involving a lawyer in your business processes can be instrumental in ensuring compliance with local and international laws. From establishing a business, preparing contracts, resolving disputes to dealing with complicated regulatory issues, professional legal advice can mitigate risks. Furthermore, lawyers can also help you navigate through challenging situations such as mergers, acquisitions, or even bankruptcy.
Local Laws Overview
The Companies Act No. 7 of 2007 is the primary legislation governing businesses in Sri Lanka. It makes provisions for the incorporation, management, regulation and dissolution of companies. The Board of Investment Law manages foreign investments, Intellectual Property Act takes care of copyrights, patents, and trademarks, while Import and Export regulations address the international trade policies. Moreover, there are regulations for taxation, labor law, and environmental law that businesses must adhere to.
Frequently Asked Questions
How can I form a company in Colombo?
The company formation process in Sri Lanka involves business registration with the Registrar of Companies through an online portal, and it includes several steps such as submitting the Articles of Association, the Form 1, Form 18 and Form 19.
Are there any special regulations for foreign businesses?
Foreign businesses may have to meet additional requirements such as obtaining BOI approval. Also, for some sectors, there are limitations on the level of foreign ownership.
How is the intellectual property protected in Colombo?
Intellectual property in Sri Lanka is protected under the Intellectual Property Act of 2003. This includes copyrights, patents, trademarks, industrial designs, and trade secrets.
What are the labor laws principles in Colombo?
The Shop and Office Employees Act, the Factories Ordinance and the Wages Board Ordinance are main laws protecting workers' rights in Colombo, Sri Lanka. They cover aspects like working hours, wages, leave, and health and safety.
What are the regulations about tax in Colombo?
Businesses in Sri Lanka are subject to various taxes such as income tax, economic service charge, VAT, NBT, customs duties, and others. The specific rates and applicability may vary depending on the nature of the business.
Additional Resources
The Department of Registrar of Companies, Board of Investment, the Sri Lanka Export Development Board, and the Department of Labor are crucial institutions for dealings in business law. They provide valuable resources and tools for business owners.
Next Steps
If you seek legal assistance in Business, consider finding a reputable legal firm in Colombo. Ensure the firm specializes in business law and has experience regarding your specific area of concern. It is advisable to prepare noted details about your legal needs, gather necessary documents, and be ready to articulate your expectations clearly for effective assistance.
Disclaimer:
The information provided on this page is intended for informational purposes only and should not be
construed as legal advice. While we strive to present accurate and up-to-date information, we cannot
guarantee the accuracy, completeness, or currentness of the content. Laws and regulations can change
frequently, and interpretations of the law can vary. Therefore, you should consult with qualified legal
professionals for specific advice tailored to your situation.
We disclaim all liability for actions you take or fail to take based on any content on this page. If you
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