Gem Dealer Licence Sri Lanka: Complete Guide to Starting a Gem Business
Start Your Gem Business in Sri Lanka
Planning to start a gem trading business in Sri Lanka? MAPA Corporate Services can assist you with the company setup, incorporation documentation, Gem Dealer Licence documentation and application submission process.
Whether you are starting a new gem trading company, buying and selling gemstones locally, or planning to develop a larger gem business, we can help you prepare the required company and licensing documentation.
You don’t need to manage the entire process yourself.
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Planning to start a gem trading business in Sri Lanka?
Sri Lanka is internationally known for its gemstones, including the famous Ceylon sapphire. If you are planning to buy and sell gemstones, establish a gem trading company, supply gems to local customers, deal with international buyers or build a gemstone export business, it is important to establish the business correctly and obtain the relevant licence before commencing activities.
For a company-based gem business, the process generally involves two important stages:
Company setup → Gem Dealer Licence application
Registering a company alone does not give you permission to carry on the regulated gem industry. The National Gem and Jewellery Authority (NGJA) is responsible for licensing the gem industry, and its current guidance states that no person may carry on the gem industry without an Authority licence.
This guide explains how to set up a gem business in Sri Lanka, what company documentation may be required, how the NGJA Gem Dealer Licence application works and what documents should be prepared before submission.
Quick Guide: Starting a Gem Business in Sri Lanka
If you want to establish a gem trading company, the process can be broadly understood as follows:
1. Decide your business structure
2. Choose and check your company name
3. Incorporate the company if you are operating through a limited company
4. Define the company’s gem-related business activities
5. Prepare the required corporate documents
6. Obtain the company’s Taxpayer Identification Number (TIN)
7. Prepare the NGJA Gem Dealer Licence application
8. Prepare the supporting documents for the company, directors and business
9. Submit the application and supporting documents to NGJA
10. Complete any additional compliance requirements applicable to the licence
If you want professional assistance with the company setup and documentation, MAPA Corporate Services can assist with the business registration and related documentation process.
💬 Register Your Gem Business on WhatsApp
📋 View Company Registration Packages & Pricing
What Is a Gem Dealer Licence in Sri Lanka?
A Gem Dealer Licence is the licence required to carry on gem trading activities under the regulatory framework administered by the National Gem and Jewellery Authority (NGJA).
The NGJA states that it is the authority responsible for issuing licences to carry on the gem industry and that a person cannot carry on the gem industry without an Authority licence.
Therefore, if you are planning to establish a business that commercially trades gemstones, obtaining the appropriate licence is an important part of the business setup.
The licence process is separate from ordinary company incorporation.
Company registration and gem licensing are different
A company can be incorporated with the Registrar of Companies, but incorporation itself does not automatically authorize the company to carry on regulated gem trading activities.
The typical structure is:
Company incorporation → Tax registration → NGJA Gem Dealer Licence → Business operations
The exact requirements can depend on the nature and structure of the proposed business.
Who Needs a Gem Dealer Licence?
A person or business involved in the regulated gem industry may need authorization from NGJA.
This can include businesses involved in:
- Buying gemstones
- Selling gemstones
- Gem trading
- Gem dealing
- Commercial gemstone transactions
- Other activities falling within the regulated gem industry
The NGJA provides a specific Gem Dealer Licence application and asks applicants to identify the nature of their business registration, including options such as sole proprietorship, private limited company, partnership and public company.
If you are planning a professional or scalable gem trading operation, it is important to determine the appropriate business structure before beginning the licensing process.
Should You Register a Company for a Gem Business?
A gem business can potentially be operated through different business structures.
However, entrepreneurs planning to build a long-term trading operation may consider establishing a Private Limited Company.
A company structure can be useful where the business intends to:
- Operate under a separate business entity
- Have multiple shareholders
- Have multiple directors
- Build a long-term brand
- Deal with corporate customers
- Employ staff
- Work with international buyers
- Expand operations
- Establish formal banking and accounting systems
The appropriate structure depends on your business model and circumstances.
For a company-based gem trading operation, the company should be properly incorporated before preparing the NGJA licence application.
Step 1: Choose Your Gem Business Structure
Before registering the business, determine whether you will operate as:
- Individual business
- Partnership
- Private limited company
- Public company
- Another permitted structure
The NGJA application specifically asks for the nature of business registration and business registration details.
If you intend to operate through a private limited company, the first stage is to establish that company and prepare the relevant corporate documentation.
Step 2: Choose and Check Your Company Name
If you are establishing a limited company, choose an appropriate company name before incorporation.
For example:
- Ceylon Gems (Pvt) Ltd
- Lanka Sapphire Trading (Pvt) Ltd
- Ceylon Precious Stones (Pvt) Ltd
- Blue Sapphire Trading (Pvt) Ltd
The proposed name should be checked for availability and compliance with company-name requirements.
Before starting the incorporation process, you can check your company name availability in Sri Lanka.
Choosing a suitable name from the beginning can help avoid unnecessary changes later.
Step 3: Register the Company
If you are establishing the gem business as a private limited company, the company should be incorporated through the applicable Registrar of Companies process.
The incorporation process involves preparing the relevant company information and documentation, including information relating to:
- Shareholders
- Directors
- Company secretary
- Registered office
- Shareholding
- Business activities
- Articles of Association
- Incorporation forms
The company’s business activities should be prepared carefully so that they appropriately reflect the proposed gem-related business.
For assistance with incorporation, see our company incorporation and corporate services.
Step 4: Include Appropriate Gem-Related Business Activities
One important part of setting up a gem company is deciding how the company’s business activities should be described.
Depending on the actual business model, activities may relate to:
- Gemstone trading
- Buying and selling gemstones
- Precious and semi-precious stones
- Gemstone sourcing
- Gemstone wholesale
- Gemstone retail
- Gemstone-related commercial activities
- Export-related activities where applicable
The activities should reflect what the company genuinely intends to do.
Avoid using unnecessarily narrow wording if you expect the business to expand, but the company’s stated activities should also be accurate and appropriate for the proposed operations.
Step 5: Obtain the Company’s Business Registration Documents
For a limited company applying for a Gem Dealer Licence, NGJA’s published requirements include the Business Registration Certificate and corporate information relating to the company.
The NGJA specifically identifies documentation for a limited company including:
- Business Registration Certificate
- Address of the business and Board of Directors information
- Identification documents
- Relevant documents relating to changes in directors
- Company secretary’s assurance in specified circumstances
- Final Annual Return where applicable
- Taxpayer Identification Number
The exact documents required can depend on the age and circumstances of the company.
Step 6: Obtain the Taxpayer Identification Number
A Taxpayer Identification Number (TIN) is included among the NGJA’s listed documentation requirements for a new Gem Dealer Licence.
Therefore, TIN registration should be considered as part of preparing the company for the gem licensing process.
If you are setting up a new company, it is useful to plan the company incorporation and tax registration stages together rather than treating them as completely separate processes.
Documents Required for a Company Gem Dealer Licence
The NGJA’s current Gem Dealer Licence guidance provides specific documentation requirements for limited companies.
For a company applicant, the documentation can include:
1. Business Registration Certificate
Evidence of the company’s registration.
2. Company and Director Information
NGJA requests the relevant information concerning the business address and directors.
3. Identification Documents
Copies of applicable NIC, passport or other accepted identification documents may be required.
4. Company Stamp
The NGJA guidance states that the institution’s rubber stamp should be placed on the application with the signature of a director.
5. Documents Relating to Changes in Directors
If the company has experienced changes to its Board of Directors after incorporation, relevant supporting documentation may need to be provided.
6. Company Secretary’s Assurance
The NGJA identifies a company secretary’s assurance in specified circumstances concerning changes to directors and/or shareholders.
7. Annual Return
Where the company has been registered for more than the specified period, the final Annual Return may be required.
8. Taxpayer Identification Number
The company’s TIN is included in the NGJA requirements.
Additional Due Diligence and AML Requirements
Gem trading is a regulated area with important anti-money laundering and counter-terrorist financing obligations.
The NGJA’s supervisory manual states that AML/CFT compliance is a mandatory condition for granting, maintaining and renewing authorization.
The NGJA also identifies requirements and compliance measures involving:
- Compliance officer
- Customer due diligence
- Self-declarations
- Criminal profile and fitness declarations
- Relevant business records
- Financial information in applicable cases
For companies and partnerships, directors or partners may be required to submit self-declarations as part of the licensing process.
This is one reason why gem business licensing should be treated as more than simply completing an application form.
Compliance Officer Requirements
The NGJA supervisory manual states that a condition of the Gem Dealer Licence includes appointment of a compliance officer under the Financial Transactions Reporting Act, within the specified period after the licence is issued.
Businesses should therefore consider their AML/CFT compliance arrangements before beginning operations.
The compliance function is particularly important for businesses dealing with valuable gemstones and significant customer transactions.
Bank Statements and Stock Value
The NGJA’s supervisory guidance indicates that bank statements for the recent three months may be required for dealer licences above the specified stock-value threshold.
The application also asks the applicant to state the approximate maximum value of gemstones expected to be held during the year.
This information is therefore important when preparing the licence application.
Applicants should ensure that the information provided in the application is accurate and consistent with the supporting documentation.
What Is the Gem Dealer Licence Application Process?
The NGJA provides an application for a Gem Dealer Licence and requires the applicant to complete the relevant information in English.
The application includes information such as:
- Applicant’s full name
- Address
- Contact details
- Identity information
- Nature of business registration
- Business registration number
- Business registration date
- Branch details where applicable
- Foreign currency registration information where applicable
- Previous licence details where applicable
- Information concerning previous offences connected with gem trading
- Maximum expected gem stock value
- Colour card information
- Business district
- Method of licence collection
The application also provides for uploading supporting documentation.
Colour Cards for Gem Dealers
The NGJA provides colour cards for gem trading licence holders.
The Authority’s published information identifies colour card categories including:
- Bronze
- Silver
- Gold
- Platinum
The number of colour cards and eligibility can depend on the business structure and applicable requirements. The NGJA states that colour cards are issued to the licensee, owners and, in the case of a company, directors where applicable.
If colour cards are required for your business, the relevant individuals and identification information should be prepared as part of the application.
Can a Private Limited Company Obtain a Gem Dealer Licence?
Yes, the NGJA’s Gem Dealer Licence application specifically provides Company (Pvt) Ltd as a business-registration option.
The company should first be properly established and should then prepare the required corporate and licensing documentation.
For a company applicant, NGJA’s published requirements are different from those for an individual applicant or partnership.
This is why it is important to prepare the application based on the actual legal structure of the business.
Starting a Gem Export Business in Sri Lanka
If your business intends to export gemstones, the licensing and documentation requirements can extend beyond ordinary company incorporation and gem dealing.
The NGJA provides a separate Online Export Submission Request process for approval relating to export of gem and jewellery consignments.
Therefore, a business planning to export should consider:
- Company structure
- Gem Dealer Licence
- Tax and banking arrangements
- Export procedures
- Gem and jewellery documentation
- NGJA export requirements
- AML/CFT obligations
The requirements should be checked according to the specific export transaction and current NGJA procedures.
Gem Business Registration vs Gem Dealer Licence
These two concepts should not be confused.
Company Registration
Creates the legal business entity.
Gem Dealer Licence
Provides the regulatory authorization required to carry on the applicable gem industry activities.
Tax Registration
Establishes the company’s tax profile and related obligations.
Export Procedures
May apply separately where the business exports gemstones or jewellery.
A properly structured gem business therefore needs to consider all applicable registrations and approvals, not just company incorporation.
Common Mistakes When Applying for a Gem Dealer Licence
1. Starting gem trading before obtaining the required licence
The NGJA states that the gem industry must be carried on under an Authority licence.
2. Registering the company with unsuitable business activities
The company’s business activities should properly reflect the intended gem business.
3. Providing inconsistent company information
Names, addresses, directors and shareholder information should be consistent across the company and licence documentation.
4. Not preparing director documentation
Company applicants may need documentation relating to directors and changes to the Board.
5. Ignoring AML/CFT requirements
Gem dealers have important AML/CFT obligations, including compliance-related requirements.
6. Not preparing financial evidence where applicable
Bank statements may be required depending on the proposed stock-value level.
7. Treating the licence application as a simple form submission
The application involves corporate, identification, financial and compliance information.
Proper preparation can reduce the likelihood of delays or requests for additional information.
Gem Dealer Licence Application Checklist
Before submitting your application, prepare the relevant documents and information, including:
☐ Company or business registration documents
☐ Company details
☐ Registered business address
☐ Director details
☐ Identification documents
☐ Shareholder information where applicable
☐ Company secretary information where applicable
☐ TIN
☐ Company stamp
☐ Information concerning changes to directors, if applicable
☐ Annual Return, where applicable
☐ Maximum expected gemstone stock value
☐ Bank statements where applicable
☐ Required self-declarations
☐ Compliance-related information
☐ Colour card information, if required
☐ Completed NGJA application
The exact documents required should always be confirmed against the latest NGJA application and licensing instructions before submission.
How MAPA Corporate Services Can Help With Your Gem Business
Starting a gem business can involve several separate administrative stages.
MAPA Corporate Services can assist entrepreneurs with the company setup and documentation side of establishing a gem business, including:
- Company name checking
- Company incorporation
- Articles of Association
- Corporate documentation
- Business activity drafting
- Director and shareholder documentation
- Tax registration support
- Gem Dealer Licence documentation
- Application preparation
- Submission support
- Company secretarial services
- Ongoing corporate compliance
Our objective is to help you establish the business structure correctly and prepare the documentation required for the relevant licensing process.
For company incorporation services, visit our company registration services.
For current packages and service options, see our company registration pricing page.
Start Your Gem Business in Sri Lanka
If you are planning to establish a gem trading company in Sri Lanka, getting the company structure and regulatory documentation right from the beginning is important.
The process can involve:
Company Registration → Tax Registration → NGJA Gem Dealer Licence → AML/CFT Compliance → Ongoing Business Compliance
You do not have to manage every step yourself.
MAPA Corporate Services can assist with the company setup, documentation and related submission process.
Ready to Start Your Gem Business?
Contact us to discuss your proposed gem business and the documentation required for your company and licence application.
💬 Start Your Gem Business on WhatsApp
📋 View Company Registration Packages & Pricing
🔎 Check Company Name Availability
Frequently Asked Questions About Gem Dealer Licence in Sri Lanka
How do I get a Gem Dealer Licence in Sri Lanka?
You need to submit the relevant application and supporting documents to the National Gem and Jewellery Authority. The requirements depend on whether the applicant is an individual, individual business, partnership or company. For a company applicant, corporate registration and director-related documents are among the requirements identified by NGJA.
Can a Private Limited Company apply for a Gem Dealer Licence?
Yes. The NGJA application specifically includes Company (Pvt) Ltd as a business registration type.
Do I need to register a company before applying for a Gem Dealer Licence?
If you intend to apply as a limited company, the company should first be properly incorporated and the required corporate documentation prepared. NGJA’s company-applicant requirements include the Business Registration Certificate and other company-related information.
What documents are required for a company Gem Dealer Licence?
Depending on the circumstances, NGJA’s published requirements include the Business Registration Certificate, company and director information, identification documents, relevant director-change documents, company secretary assurance in specified cases, Annual Return where applicable and TIN.
Do gem dealers need to comply with AML/CFT requirements?
Yes. The NGJA’s supervisory manual states that AML/CFT compliance is a mandatory condition for granting, maintaining and renewing authorization. Additional compliance requirements can include appointment of a compliance officer and self-declarations.
Are bank statements required for a Gem Dealer Licence?
Bank statements may be required in cases where the proposed stock value exceeds the applicable threshold. The NGJA supervisory manual identifies recent three-month bank statements for dealer licences above the specified stock-value threshold.
What is the maximum stock value for a Gem Dealer Licence?
The NGJA application asks applicants to state the approximate maximum value of gems expected to be possessed during the year. The applicable licence category and requirements depend on the declared stock value and current NGJA rules.
Do gem businesses need a Taxpayer Identification Number?
The NGJA’s published Gem Dealer Licence requirements for a limited company include the Taxpayer Identification Number.
Can I export gemstones from Sri Lanka?
Gemstone exports involve additional procedures. The NGJA provides an online export submission process for approval relating to gem and jewellery consignments. Businesses intending to export should confirm the current export requirements applicable to their transaction.
How much does a Gem Dealer Licence cost?
Licence charges and applicable taxes can change, and the amount can depend on factors including the business and expected stock value. We therefore recommend checking the current applicable charges before submitting an application rather than relying on an old fee published elsewhere.
Contact MAPA Corporate Services for current service information
Can MAPA Corporate Services help with Gem Dealer Licence documentation?
Yes. MAPA Corporate Services can assist with company setup and the preparation and coordination of documentation required for the gem business and relevant licence application.
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