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Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

How to start a Business in Sri Lanka

Posted by lanka matha on Tuesday, December 14, 2010 , under , , , | comments (0)




Starting a business varies from place to place. Unlike other countries, Sri Lanka is more open. Easy going formalities allow anyone to invest easily in this island. At present Sri Lankan economy is blossoming quite easily due to lax taxes and red tape which have been driving businessmen quite crazy for a long time. This page provides a valuable infomation how to start a buinsess in sri Lanka.


Investment doesn't offer your very immediate returns, but it steadly grows as time pass through. Few of the most successful sectors in Sri Lanka which I recommand is: Garment Technology, Tea Industry, Rubber Industry, Software Development and Call Center Operations.

As many as more than thousands of investers from globe shown sufficient interest in this small Island. The reason behind this a few and to point out i.e. High literacy rate 97%, English Speaking public, considerably cheap telecommunication


 Steps

1. Talk to the Sri Lanka Board of Investment. 

                                                2. Prepare your business porposal.
                                                3. Register your business with Goverment firm.
                                                4. Find a business consultantant locally
                                                5. Promote your business ideas throguh local media.
                                                6. Create demand for your product and services worldwide.
                                                7. analyse your income progress
                                                8. have a continous improvement procedurs

Tips

Do not look for adhoc advice. Listen to professional advice instead. You shall talk to us if you need more assitant in finding way to invest. It's also a good idea to have business tycoons help set up your business.

Warnings

Always do a feasible study before doing any investment.
This table summarizes the procedures and costs associated with how to start a business in Sri Lanka .

Registration Requirements:

No: Procedure Time to complete: Cost to complete:
1 Apply for approval name 3 days LKR 350 + 15% VAT
2 Register at the Companies Registry 3 days LKR 9550 + 15% VAT for registration fee (form 1) + LKR 350 + 15% VAT for each of the forms: 18 & 19
3 Register with tax authorities to obtain a TIN 2 days no charge
4 Register with Department of Labor to obtain EPF and ETF registration 1 day to file and approximately one month for the ETF and EPF numbers to be issued no charge

Procedure 1 (Apply for approval name)

Time to complete – 3 days
Cost to complete – LKR 350 + 15% VAT
Comment – The reservation is valid for 3 months

Procedure 2.(Register at the Companies Registry)

Time to complete:3 days
Cost to complete:LKR 9550 + 15% VAT for registration fee (form 1) + LKR 350 + 15% VAT for each of the forms: 18 & 19
Comment:
A company may draft or adopt the standard set of articles of association in Table A of the Companies Act of Sri Lanka, No.3 of 2007. Professional charges are higher for drafting new articles of association than for adopting the standard articles.
According to the Companies Act No.3 of 2007 the articles of association must be submitted in duplicate to the Registrar of Companies with the balance of documents for incorporation. No prior approval from the Registrar General of Companies is required for the articles of association. According to the new Companies Act, notary publics are no longer required to witness the signing of the articles of association.
A flat fee of LKR 9550+ 15% VAT is charged as registration fee (Form 1), and LKR 350 + 15% VAT is charged of the other two forms 18 and 19 and the articles of association. The certificate of incorporation will be received in about 3 days.
Under the new Companies Act, it is no longer required to confirm the principal directors and the situation of the registered office of the company within 14 days of incorporation. Moreover, the common seal was rendered optional.

Procedure 3.(Register with tax authorities to obtain a TIN)

Time to complete:2 days
Cost to complete:no charge
Comment:
The applicant or an authorized representative of the applicant must be physically present at the Inland Revenue Department to pick up and complete the application for a TIN number. The taxpayer identification number (TIN) and the VAT registration number (temporary) can be obtained in a day. To obtain permanent VAT registration, the applicant must submit documents proving turnover of LKR 500,000 over 3 months. This is done along with income tax registration. The procedure takes 1–3 days.

Procedure 4.(Register with Department of Labor to obtain EPF and ETF registration)

Time to complete:1 day to file and approximately one month for the ETF and EPF numbers to be issued
Cost to complete: no charge
Comment:
Companies must register with two funds, the Employees Provident Fund (EPF) and the Employees Trust Fund (ETF). Both funds are government-owned and maintained by the Central Bank. To register with these funds, the employer must visit the Ministry of Labor and complete relevant forms. Companies must also pay gratuities to employees that have been employed for more than 5 years. The gratuity provisions do not apply to companies that have fewer than 15 employees. There is no pension scheme for private sector employees. Businesses that engage in activities of a dangerous nature should obtain special Factories Ordinance checkups.
The issuance of ETF and EPF numbers may sometimes take 4–6 months. However, a number is assigned to the company upon application. Accordingly, the company has fulfilled its obligation and may remit monies to the department for ETF and EPF registration under the assigned number.
                                                           

The East is rising and Sri Lanka is its star

Posted by lanka matha on Thursday, December 9, 2010 , under , , , , , , , | comments (0)




 
This is probably the best investment opportunity of its kind in the world - a bold claim you may say, so just take a moment and consider the following...
Consider these points:
No Capital Gains Tax!
No Tax on Rental Income for 15 years!
Net Rental Returns commencing at least 17 per cent!
Total return on capital of 295 per cent after 60 months!
No Exchange Control Restrictions on Capital and Income!
With property markets in the USA, Europe and the Middle East suffering an unprecedented crash and financial markets in a state of flux, it is understandable that investors consider secure investments enabling recovery of losses and ongoing high yields a distant memory. Nothing could be further from the truth.
Whilst the West and Middle East may be firmly stuck in the ‘Doldrums' for years to come, the East is continuing to flourish beyond all expectations.
There can be no denying Asia is the place to secure escalating capital and income returns with Sri Lanka proving to be the brightest star.
Whilst it would be difficult to find a more beautiful location than Sri Lanka, from an investment viewpoint, this is only part of the equation. Let us be honest, the deciding factor must always be just how attractive is the investment?
This is where Sri Lanka and in particular the Eastern Province can really have no equal.
Sri Lanka's stable demographically elected Government lead by its far sighted president Mahinda Rajapaksa has taken the inspired decision to create the most progressive and attractive economic environment and incentives specifically designed to encourage both corporate and individual foreign investment.
Coupled with a regulated legal and land transfer system with minimal property acquisition costs investors can be assured that their investment is secure.
If this was not enough, the land owner/ developer Thona Bay (Private) Limited together with its exclusive worldwide Master Agent Karooda Properties Limited have been working closely with central, provincial and regional authorities to ensure its developments are sympathetically designed to protect and enhance the environmental, social and cultural heritage.
This has proved to be important factor in firmly placing Karooda / Thona Bay in a leading position to become the major developer in the Eastern Province for years to come.
Karooda / Thona Bays' foundation planning has secured from the Government quite unique tax and planning concessions together with authority to pass on the benefits to its investors.
This has and is continuing to enable Karooda / Thona Bay to maximize investor returns as has never before been possible.
Karooda / Thona Bay have now launched the first phase of their beautifully designed developments at Thona Bay on the Eastern Coast and comprising 84 one and two bedroom luxurious and spacious apartments lying only meters from the beach (pictured above).
Five additional projects including more apartments, luxury villas, five star quality hotels together with retail and recreational facilities are undergoing master planning and will be released over the coming months. It is no surprise that even at this early stage Karooda are experiencing such a high volume of enquiries and reservations.
As a location, few places can compare with this tropical tear shaped island basking in the warm waters of the Indian ocean just 20 miles south of the Indian main land. Possessing an outstanding wealth of nature reserves, historic cultural sites and wild life from the pristine untouched white sands and teeming coral reefs of the coast to the breath taking beauty of the lush forested mountains of the centre.
It is little wonder that, Sri Lanka was rated the number one destination to visit by the New York Times in January of this year. Enjoying year round sun and an average temperature of 26.7c Sri Lanka can justifiably claim to have a true twelve-month season.
Of the Island's nine provinces the Eastern Province is perhaps the largest jewel in the crown. Representing approximately 15 per cent of total land area and benefitting from about 85 miles of largely untouched coastline punctuated with lagoons and inshore reefs.
The Eastern Province alone has been the recipient of more than US$1 Billion of foreign investment over the last three years to support the Governments comprehensive infrastructure, social and economic long term plans. With more eye watering amounts of foreign investment continuing to pour in, the region is already striding towards the brightest of futures.
The United States Economic Intelligence Unit places Sri Lanka in the top ten of the World's fastest growing economies.
With GDP set to top five per cent this year and projected by leading economists to continue to rise year on year over the next three years there could not be a better time for investors to climb on board.
Although only a brief snapshot of this amazing country and outstanding investment opportunity we appreciate that seasoned and novice investors alike will be eager for more information.