I am currently in discussions with a Sri Lankan about investing in his hostel business. The business has been running successfully for three years and he is now looking for investment to help with future development in return for a 48% share of the business.
Before I start to get too far down the road with this investment, I'm trying to get a decent understanding of the legal permeations of such a deal in Sri Lanka. Is anybody able to offer any advice on what the main issues might be that I will face as a foreigner investing in such a business in the country?
If I invest, I'd be looking to live in the country to help with operating the business. My potential partner seems confident that if I invest, he'll be able to organise a visa that will allow me to work in the country. Is it that simple?
Any advice on this investment and what to watch out for in terms of the legals in Sri Lanka, would be hugely appreciated.
Andy, I note you have no replies so I am going to write you. I have lived here in Sri Lanka for 3 years now and have learned a trick or two about the place. 1) I would advise you not to do any joint investing with a local. Simple because you have little to no legal rights here as a foreigner. Your dream is one of many that starts with the same idea and you end up broke and cheated. Do not do it. Read that again, Andy. This is a wonderful place, with good people but not a place to invest. Run from your "friend". Visit, enjoy yourself but refrain from doing business here.
Hi I would be extremely careful with what you are thinking to do,as a foreigner ( I’m assuming) You may well be putting funds into his business ,but this busIness is his and regardless of your funds would not have much if any say in how it will be run,my friend did this and her business partner was trying to sell it without her knowledge I at the end of the day there has to be trust can you trust this person? I would re think this plan very carefully as trusting someone can take a lifetime and how would you get a visa as you will be limited as to how much time you can spend there and locals know this please be careful I have been going to India for over 25 years and know the pitfalls if I was you I would be starting my own business rather than put into someone else’s where you would have no control as fond the percentage they offer do you really believe this ?