How to start a business in Sri Lanka

How to start a business in Sri Lanka

How to start a business in Sri Lanka as foreign investors and business ideas of Sri Lanka are discussed. Starting a business in Sri Lanka should consider many issues of business environment.

How to start a business in Sri Lanka

Starting a business in Sri Lanka as foreign investors

Foreign entrepreneurs can register a business as law of state depositing amount of US$ ten million. Government encourages foreign businessmen to invest and start business. Starting a business in Sri Lanka as overseas entrepreneurs may contact the lawyer, consulting firm to guide in proper way.

Branch Office

Branch office of foreign companies can be registered and purchase property too as local investors if require shake of business.

Liaison /Representative Office

· Monitor business activities & research 

· Finance ministry of state is authority to approve representative office

Subsidiary business setup in Sri Lanka

Subsidiary or share holding business entity can be incorporated where a business entity shall be holding part of shares of new company or can be registered a full hundred % ownership.

Business can be permitted for industrial or general as ideas of foreign businessmen.

Tax incentives facilities of Sri Lanka

Income tax incentive opportunity is available for the foreign businessmen on certain goods of manufacturing, industry and others as law and policy of government. Nonresident shall pay the tax to government after calculation of expenses and income of business. Royalty can be received as 

Bilateral agreement countries can start business between themselves grabbing opportunity of taxation or low paid taxation as terms of agreement. Moreover treaty countries can have opportunity to starting business gaining revenue more than general investment countries.

Procedure of starting a business in Sri Lanka

· Unmatched business name confirmation

· C. Secretary and board of directors consent letter

· Register business from registrar of state

· A notice shown as public announcement 

· Tax confirmation from revenue office of government

· Value Added Tax (VAT) collection

· Government fees of stump and other fees confirmation

· Share issuance clearance 

· Apply for clearance of labor department

As BOI instruction foreign businessmen can start a business as hundred %.

Starting a business in Sri Lanka

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Bangladesh investment

Bangladesh investment

Bangladesh Investment

3rd Bangladesh investment summit, Asia arrange summit each year where many local companies and foreign investors attend and share environment of FDI. Government of Bangladesh welcome foreign investors to invest different sectors, IT, power, garments, technology, software and many more.

Barrier of investment in Bangladesh

Each government shows cordial coordination but in practical there are barrier in government offices, banks & lack of proper knowledge of consultants to guide in right way as FDI policy. Most of banks are not aware of foreign investment policy and can not guide foreign investors what are requirement to open bank account as foreigners, whether private investor visa is required or do NOT, can a foreign investor start business without investor visa (PI) or does NOT, why need permission from BOI (Board of Investment) and should take permission etc.

For example: To obtain membership from Chamber of Commerce , export and import license are required papers and to obtain export and import license membership from Chamber of Commerce is required. Which comes first is unknown!! This is one example such many problems are alive obtaining permission to start business as foreign investors in Bangladesh.

To expatriate profit of business in parent country is another major problem. Its a complex situation, Bangladesh bank is authority to permit transfer through bank after deduction of taxes (37.5% +10%). Its easier to remit in Bangladesh but difficult to transfer money from Bangladesh in legal way.

Why still foreign investors are coming in Bangladesh

Between many barriers foreign investors are coming in Bangladesh to invest different sectors. Why ? Generate revenue is main goal of business which attract investors. Example, fixed cost, mean manpower cost is lower, raw materials are available, lands are available to set up factory.

100% foreign equity is allowed in Bangladesh

Yes. Foreign entrepreneurs can hold 100% share. Local investors are NOT required to start business as FDI policy. 

Miscellaneous 

New company registration in Bangladesh according to law and policy is main concern of foreign investors. If foundation is NOT done in right way have cause of sufferer for long time. 
How to obtain investors visa and work permit in Bangladesh 

Major investment countries in Bangladesh are India, Japan, Korea, China, Germany, US, Denmark

Contact us how to open temporary bank account before start investment in Bangladesh?

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Agreement between two parties

(Sample copy of Agreement between parties)

Agreement BETWEEN 

…………………. Limited 

AND

……………………… LIMITED

This Agreement is made and entered into at (place) on this the (date) day of January Two Fifteen, Christian era.

BETWEEN

……. LIMITED(represented by its Managing Director), a Limited company incorporated in ………………….of the FIRST PART.

 AND

………. Limited (represented by its Managing Director), a limited liability company incorporated in …………of the SECOND PART.

………..Limited and ……….Limited being called in this Agreement individually as Party and collectively as Parties.

WHEREAS ………….Limited is …………………,

WHEREAS ………………………..

WHEREAS the Parties agreed to enter into an Agreement (hereinafter referred to as “The Agreement”) to work together for execution of ……………………..

Now, therefore, in consideration of covenants contained herein, the Parties hereby mutually agree to enter into this Agreement on the day, month and year, as mentioned above:

• INTERPRETATIONS 
• PROVISION & OBJECTIVE OF THE AGREEMENT/ CONTRACTS
• QUALITY OF SERVICE 
• PAYMENT & BILL SETTLEMENT
• Revenue Sharing 
• COMPENSATION FOR DELAY IN PAYMENT
• Interruption of Interconnection
• FORCE MAJEURE
• NOTICES
• Contact Persons
• CONFIDENTIALITY
• ASSIGNMENT
• GOVERNING LAW
• FINANCIAL INFORMATION
• VALIDITY
• TERMINATION
• AmendmenT
• Dispute Resolution
• SPECIAL PROVISION
• Language
• INTELLECTUAL PROPERTY RIGHTS

In Witness whereof, THE PARTIES hereto set their respective hands and sEals on this day of the month and the year written above

Witnesses:                                                                                            Witnesses:

--------------------------------------                                     --------------------------------------

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Authorization of Signatory of bank account

10 January, 20…

Ref: ………….

General Manager

………….. Limited

Address……….Malaysia.

Subject: Authorization of Signatory of  account……………..

Dear Sir,

Please locate together with this the attached Board consent for changing of signatory of the subject mentioned account with your bank.

So, you are earnestly requested to modify the party and honor all documents including L/C, drafts, orders issued by the Company as per attached resolution.

Your positive action shall be highly appreciated

Faithfully yours,

For ABC..LLC

………………….

Managing Director

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POWER OF ATTORNEY

Sample of Power of Attorney

The Board of Directors of S & F CONSULTING FIRM LIMITED having its principle address at …………………………… (Herein after referred to as ...........) has decided to establish branch office of the company in (Country) according to law of …………... The Board of Directors of ……………... Has given the authority to Mr. Md. Forhad Hossain; Passport no …………………… with the address of ……………………… from the resolution dated 18^th March ……… to establish the branch office of the company and relating thereto in ………………….  Mr. Md. Forhad Hossain (Managing Director) of S & F Consulting Firm Limited, (herein after referred to as “Attorney”) as our authorized representative and true and lawful Attorney whose specimen signature is appended at the end of this document, with the power to proceed the following proposes:

• To do all required work for registrationof branch office & formation of company in Pakistan…………. according to company law of …………………..
• To submit an application to the Government and Non-government offices for the registration of foreign company   in ……………………..;
•  The deal with Central Government and Non-government authority relating to open the said branch , Customer Service Center and/or company other offices;
• Business establishment in......

All the lawful acts done by him or any person authorized by him if necessary in respect of opening branch office of ………………… and relating thereto and management of branch office shall be deemed to have been done by ………………... This power of Attorney will remain valid till completion of ……….or for 2 months.

In WITNESS WHEREOF, we have caused this power of attorney to be signed on this 26^th March ………...

1. ................... Executive Director ...........................

 

                                               

………………………………………………………                                                         

....................                

Managing Director

S & F CONSULTING FIRM LIMITED

Witness;

1…………………………………2......................

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