How to set up a company in Sri Lanka as a foreigner

How to Incorporate a Company in Sri Lanka as a Foreigner
As a foreigner, you might be struggling so hard with the need of setting up your new business in Sri Lanka. However, it’s not something to struggle with that much. There are only a few things you need to know to fulfill your requirement. Firstly, you have to comply with the Companies Act and as well with the Foreign Exchange Act and its guidelines. Before commencement of the business, the registrar of the organizations currently expects foreign companies to take approval from the line ministry/authority. In addition, your company should take
the approval of the exchange controller also.

Below is the list that mentions the limited business nature for foreign shareholders.
As a foreign shareholder you will be eligible to hold up to 40%of the stated capital of following businesses. If you are willing to hold more than 40% of the shares special approval should be granted by the Board of Investment of Sri Lanka.
● Production of goods for export under internationally determined quota restrictions.
● Plantation and primary processing of Tea, Rubber, Coconut,Cocoa, Rice, Sugar, and spices.
● Mining and primary processing of national resources which are non-renewable.
● Industries based on timber using local wood.
● Deep-sea fishing (under the guidelines of the ministry of fisheries).
● Education.
● Mass communication.
● Travel agencies.
● Freight forwarding.
● Shipping agencies.

Further, note that you are not able to engage in the businesses mentioned below as a foreign
● Coastal fishing.
● Pawn broking.
● Retail trade where an individual resides outside Sri Lanka contributes to the capital should be less than USD 5 million.