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Sri Lanka’s economic landscape is vibrant, attracting attention from investors worldwide for their next business ventures. This surge is evident in the increasing number of inquiries and company setups we facilitate, including 100% Foreign-owned companies, branch offices, and liaison offices.

However, amidst this growth, one challenge persists – the ambiguity surrounding the choice of the optimal business structure. Through extensive conversations, a common realization emerges: understanding the purpose of your business in Sri Lanka is paramount.

To streamline this decision-making process, consider the following questions:

  1. Are you aiming to generate revenue in Sri Lanka?
  2. Is your business model not focused on revenue generation within Sri Lanka?

If your goal is revenue generation within Sri Lanka, establishing a limited liability company with shareholders and directors is the most suitable option. For significant investments that could reshape Sri Lanka’s economic landscape, obtaining BOI Approval is necessary, offering access to a range of BOI facilities.

However, even for companies with smaller investments, Sri Lanka provides avenues for company formation with limited business objectives. One such option is the establishment of a Branch Office, enabling Sri Lanka business registration for your overseas company. This entity functions as an extension of the registered overseas mother company, subject to specific funding criteria, with the same company name.

Alternatively, if your objective is to establish a company without generating income but to serve as a cost center for activities like staffing or marketing, a Liaison Office is the optimal choice.

For personalized guidance on selecting the most suitable option for your business in Sri Lanka, reach out to us at ASAC. We are committed to navigating you through the intricacies of Sri Lanka company registration.

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Isura Sirisena

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