Can a Company Lease a Vehicle in Sri Lanka? Documents You Need

Can a company lease a vehicle in Sri Lanka?

Yes. Private limited companies, partnerships and sole proprietorships can all lease a vehicle through a licensed finance company or bank in Sri Lanka, the same way an individual does. The difference is the paperwork: instead of just your NIC and payslip, the lessor needs proof that your business exists, proof of who can sign on its behalf, and in most cases a director's personal guarantee, especially if the company is new.

Key facts

• A limited liability company leases through its Certificate of Incorporation and a board resolution naming the authorised signatory.
• Sole proprietorships and partnerships lease through their Business Name Certificate, issued by the relevant Divisional Secretariat or Provincial Registrar, not the Registrar of Companies.
• Finance companies commonly ask for the company's Memorandum and Articles of Association, a recent Form 20 (showing current directors and secretary), and 6 months of business bank statements.
• Directors or partners are usually asked to sign as personal guarantors, on top of the company's own liability, particularly for newer or smaller companies.
• The leased vehicle's CR book is registered in the business's name and registration number once the lease is settled, not in a director's personal name.
• A sole proprietorship is not a separate legal entity in law, so the proprietor is personally liable for the lease whether the CR book shows the business name or their own name.
• Licensed finance companies in Sri Lanka operate under the Finance Leasing Act and the Finance Business Act, and are regulated by the Central Bank of Sri Lanka.
• Exact document lists and down payment terms vary by lender, so confirm the current checklist with your bank or finance company before you apply, as of November 2026.

What extra documents does a company need for a vehicle lease?

A company needs its registration documents, proof of who can sign for it, and its financial track record, in addition to the usual lease paperwork for the vehicle itself. For a private limited company, that typically means:

• Certificate of Incorporation and Memorandum and Articles of Association
• A current Form 20 filed with the Department of the Registrar of Companies, showing the company's directors and secretary (Department of the Registrar of Companies)
• A board resolution authorising a named director (or directors) to apply for and sign the lease
• NIC copies of the directors, and sometimes shareholders
• Company bank statements, usually for the last 6 months
• Audited financial statements or income tax returns, for established companies
• The company's TIN

For a sole proprietorship or partnership, the lessor substitutes the Certificate of Incorporation for a Business Name Certificate issued by the provincial Business Names Registrar, plus NIC copies of the proprietor or all partners, and for partnerships, a certified copy of the partnership deed (Lankasolve business registration guide). Vehicle-side documents, the supplier's invoice, valuation report, revenue licence and duplicate key, are the same regardless of who the applicant is.

Why do finance companies want a director's personal guarantee?

Because a limited liability company can, in theory, close down owing money, and the finance company wants a real person standing behind the repayment. This matters most for a new company, which has no repayment history of its own. In that case, the finance company leans heavily on the director's personal CRIB record and income, much like it would for an individual applicant. If you're a director applying for your first company lease, expect your own credit record to be checked just as closely as the company's.

An established company with several years of audited accounts and a clean banking relationship may get more flexibility, sometimes without a personal guarantee, but this is entirely at the finance company's discretion and varies by lender.

Does the CR book show the company or the director as owner?

The CR book shows the company, by its registered name and business or company registration number, once ownership transfers after the lease is fully settled. Before that, the finance company is listed as the absolute owner on the CR book, the same as with a personal lease. Day-to-day, the vehicle's revenue licence is also renewed under the business's name and registration number rather than a director's NIC.

If your company later sells the vehicle, the buyer will need the company's registration documents and the signature of an authorised director to complete the transfer at the RMV/DMT, not just any employee who happens to drive the vehicle.

Can a sole proprietor just lease in their personal name instead?

Yes, and many do, because it's simpler. A sole proprietorship has no separate legal identity from its owner, so leasing in your own name instead of the business name changes very little about your personal liability. The main reason to lease under the business name is paperwork and accounting convenience, for example if you want the vehicle and its running costs to sit clearly inside the business's books. If tax treatment or claiming the vehicle as a business asset matters to you, ask your company's accountant how it affects your specific situation, since this depends on your business structure and the finance company's terms.

What mistakes do business owners make with a company lease?

The most common mistake is assuming a company lease works exactly like a personal one and turning up without the registration documents or a board resolution, which delays approval. Others include:

• Letting the Form 20 or company registration lapse out of date before applying, which can hold up KYC checks
• Not checking who is listed as an authorised signatory, so the person who negotiates the deal isn't actually allowed to sign it
• Treating the director's personal guarantee as a formality, then being surprised when a company default shows up on their own CRIB record
• Not comparing down payment and rate terms across lenders, since company lease terms aren't standardised the way some personal lease terms are
• Forgetting that the vehicle, once registered to the company, needs its revenue licence and insurance renewed under the business details, not a personal NIC

How should you prepare before applying?

1. Confirm your company's registration (Certificate of Incorporation, or Business Name Certificate) is current and not lapsed.
2. Pull together your last 6 months of business bank statements and your latest financial statements or tax returns.
3. Get a board resolution passed naming the authorised signatory, if you're a limited liability company.
4. Check which director(s) will need to stand as personal guarantor, and be ready with their NICs and income proof.
5. Pick the vehicle and get a firm quotation, then use the leasing calculator to estimate your monthly payment before you commit to a down payment.
6. Shop the deal to more than one bank or finance company, since document requirements and guarantee terms differ between lenders.
7. Browse listings on /vehicles or run a price check on the model you want, so you're negotiating the vehicle price separately from the lease terms.

If you're still unsure which structure suits your business, or want to hear from other business owners who've leased a vehicle in Sri Lanka, ask in the Wahanaya forum. When you're ready to sell a company vehicle later, you can list it on /post-ad, and it's worth reading our safety tips before you meet any buyer.

Sources

• Business & Company Registration in Sri Lanka - Lankasolve
• FORM 20 - Department of the Registrar of Companies
• Form 20 in Company Registration - 360 Accountants
• People's Leasing & Finance PLC - Key Facts Document (Leasing)
• Finance Leasing Act - Laws of Sri Lanka
• Sole Proprietorship and Partnership application - People's Leasing & Finance PLC