Resident Director Services in Sri Lanka
Foreign businesses entering Sri Lanka often ask whether they need a resident director in Sri Lanka to establish and operate a local company. The answer is more nuanced than a simple yes or no. Sri Lanka's Companies Act No. 7 of 2007 requires a private company to have at least one director and a public company to have at least two directors. The legislation does not establish a general rule that every director must be resident in Sri Lanka. However, separate local-person requirements can apply to overseas companies and beneficial ownership administration. This distinction is important for international investors because a resident director, a local representative, and an authorised person are not necessarily the same role. For foreign-owned businesses, selecting the correct structure before incorporation can prevent unnecessary appointments and help establish a more effective corporate compliance framework. Key Highlights 1. Sri Lanka does not impose a blanket resident-dire...