How to Register 100% Foreign Ownership Company in Sri Lanka

If you’re considering expanding your business into Sri Lanka, you’re on the path to an exciting venture. To make this journey smoother, we’ve put together a straightforward guide on registering your company in Sri Lanka with 100% Foreign ownership

Key Information Before Registration:

1. Rules and Restrictions: Different industries in Sri Lanka have different rules on foreign ownership. Some sectors allow up to 100% foreign ownership, while others have restrictions. Certain areas like pawn brokering, money lending, primary and secondary education, coastal fishing, and security services are exclusively for Sri Lankans. Relevant laws include the Companies Act No 07 of 2007 and Section 29, along with Section 7 of the Foreign Exchange Act, No. 12 of 2017.
2. Relaxed Ownership in Certain Industries: The Exchange Controller has relaxed restrictions in industries allowing 40% or less foreign ownership. These include shipping, travel, freight forwarding, mass communications, education, deep-sea fishing, timber-based industries, and processing industries for tea, rubber, cocoa, spices, rice, and sugar. Additionally, mining and primary processing of non-renewable natural resources and the production of goods subject to international quota restrictions fall into this category.
3. 100% Foreign Ownership: Industries like Information Technology, Business Process Outsourcing, construction, and food and lodging allow 100% foreign ownership. Retail trade is possible, but with a minimum paid-up capital of $5 million USD.
4. Local Company Secretary: All foreign-owned businesses must have a local company secretary with a valid practicing company secretarial license from the Registrar General of Companies. ASAC, as a registered and practicing company secretary since 1991, is here to assist you. Fill out the form below, and we’ll guide you through the registration process.

Navigating the registration process is crucial, and having the right support can make it easier. ASAC is here to help you with your requirements and provide guidance throughout the registration process. Feel free to reach out, and let’s make your expansion into Sri Lanka a success!

Isura Sirisena

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