BOI Companies in Sri Lanka. Over 2500 foreign investors representing around 50 counties at the moment have invested in Sri Lanka as BOI Companies.. Actually ... why BOI.. ?? why not just a private limited Company..? yes .. as we all know, it is concessions... ; - first thing, foreign partners can avoid the maximum shareholding restrictions if the project comes under BOI law.. actually they can go up to 100% shareholding for most of the projects.. - can take recommendations by BOI to foreigners for work / residence VISA. - Many corporate Tax exceptions (may be for specified periods) - some of the Import Duty Exceptions for recognized imports. - some of the exceptions for profit distributions. - Exchange control exceptions for taking back and investing money. There should be a benefit to the country for granting such benefits. Should be the foreign currency earnings and the generation of employment opportunities in the country. One can invest mainly under four categories in Sri Lanka; ie. Agriculture, Manufacturing, Services and Strategic development projects. Other than for Agriculture and for some services, the minimum investment requirement to apply for BOI is Rs. 50 mn. and should invest within first 6 months.. even the process of registering is bit hard as you need to take several recommendations from line authorities as well as from central environmental authorities.. (line authority is the department that monitor the related industry. eg. for tea - Sri Lanka Tea Board, for natural minerals - GSMB - Geological Survey & Mines Bureau etc...) Even the cost for completing the BOI process is bit high. from the beginning of this year, it has to keep a deposit also with the BOI, amount equal to the annual fee.. so may be after around 3 months, you will have to spend around 1 mn LKR to get register the BOI company properly.. Somehow it is recommended to have a BOI agreement even it cost around 1 mn for new investments with higher than 50 mn rupees, with may be over 35% value additions, and which requires many high value machines or materials to be imported and where foreign investors need a well recognized Residence VISA,...................
Posted on: Fri, 18 Jul 2014 18:52:55 +0000
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