Motorcycle touring business Sri Lanka

Chris, please do post the exact information you are looking for, I think you will find many knowledgeable people willing to help you with current answers to your detailed questions!

Cheers!

Hey Sam
well i need info on business registration. If private company do i need sri lankan partner?
What insurance do i need? Public liability etc.
Do i need residency in sri lanka to work 6 months of the year?
Any assistance greatly appreciated
cheers

Hi Chris, no, you do not need a local partner to incorporate a company in Sri Lanka, any type including limited, partnership etc.. 

You will find insurance is fairly reasonably priced here, and all types are available.  Of-course, for your business of hiring bikes, you will probably get more business if you have "full" insurance on your rental bikes, rather than only 3rd party or something.

Your last question is the most difficult.  You see, officially of-course, you should have a Business Visa or Employment Visa to do business or work in Sri Lanka.  But I know of a lot of people that don't have that, and still do what they do.

I would suggest, that you visit the nearest Sri Lankan High Commission and ask them about the possibility of getting the appropriate visa.  I think you will find it a LOT easier to go for a Business Visa that allows for general trading of goods, rather than setting up and running a business here.  But with that Business Visa, you are a LOT safer than trying to conduct business on a Tourist Visa, which is obviously against the law!

Therefore, please don't take the chance of running a business here on a Tourist Visa, if you have to, then try for an Entry Visa, available at all Sri Lankan Embassies abroad with a minimum of hassle. 

The Entry Visa is a type of "convertible" visa, which is meant to enter Sri Lanka, and then have it converted to various different types of visas like Business, or Residential, or Student, or whatever. 

Legally you are on a much better wicket working on that type of visa, because you can always say you are delayed having it converted.

Finally, whichever visa you have, it can easily be extended for 90 days without questions.  I know of people who have their visas extended for much longer periods, but they invariably "know somebody", which is not difficult to arrange here.

IF you are thinking of investing a substantial amount of money, say over $50,000 or $100,000 or something, you will probably find it helpful to visit the BOI or Board Of Investment, whose primary job is to encourage foreign investment in Sri Lanka, and they are authorized to help you with ALL aspects of investing, including permissions, visas, etc.

FINALLY, many beach resort areas in Sri Lanka offer motorcycle rentals, but mainly small bikes or scooters.  If you are thinking along the lines of Harleys or Choppers or something, I personally believe that type of business can do very well, because it is not available yet in Sri Lanka, to my knowledge.

Why don't you come down and go around and get a feel for what you really want to do and where!

Good Luck!

Hi Sam
thanks for your informative posr
I spent 4 months in SriLanka in 2013 so I have a good idea what I want to do and where
I will definately seek out a business visa as I want everything above board from the start
thanks
chris

Hi Sam,
I have another question after rereading your post.
(a Visa that allows for general trading of goods, rather than setting up and running a business here.)
I don't quite understand your meaning here.
I am intending to set up and run the business mostly myself in Sri Lanka,  at first anyway. 
The intention was to be in Sri Lanka for the main season, approx April to September.
I am after the visa that allows you to convert to potentially a residence visa after a certain time.
I believe if you enter the country on a tourist visa you are ineligible to do this?
I will definitely take your advice and speak to the consulate here in Australia.
Once again thanks.
Chris
p.s I will definitely be getting full insurance for all bikes. I believe third party is incorporated with the license, as in most countries.

Contradicting information from Sam!

Chris, your focused area is travel, leisure and tourism involved and its having restrictions.

In order to get the 100% ownership, you have to go through BOI which needs significant amount of cash in hand status.

Currently the regulations are followed very closer and you have to meet the minimum investment thresholds to seek 100% ownership.

50,000 USD or 100,000 USd won't do any help in reaching the BOI.

Other option would be registering a cost centre as an offshore operation.

This can be done through the registrar of companies with a very lesser investment.

Make sure to ring the sales from offshore location and just share the operational expenses.

Sri Lanka is safe from double tax treaties.

If you in need of any information, PM me.

Cheers and good luck!

Clikbill, you are right of-course, about the B.O.I. present investment requirement, but you must be aware that the foreign investment amount to qualify was only USD 50,000 for a very long time, up until the previous Government upped it to something ridiculous like USD 500,000 or something?

I personally believe that the previous Government was a little too ambitious, and primarily aiming for the extremely big players in the foreign investment market, and it was not a successful strategy.

The new Government has been known to be much more "business friendly" in the past, and I have every hope that the foreign investment amount will be reduced to qualify for B.O.I. status.

In any case, you are probably aware that there are so many ways of doing business in Sri Lanka, legally, including your suggestion of an offshore operation, and I believe there are also provisions for opening of local representative offices for foreign companies, and many other ways and means of acheiving what Chris desires, including even perhaps the purchase of a Section 16 B.O.I. company which had qualified for their license when the investment was only USD 50,000 as I have seen some ads of this nature in the newspapers from time to time.

It is heartening to see so many expats coming to the assistance of Chris and others like him, with very valid advice such as yours.  I hope we are successful in encouraging and facilitating foreigners like Chris to come and enjoy everything that this wonderful island has to offer, and at the same time, helping to introduce some new concepts and activities which can only make this paradise that much more wonderful to live in!

Now, how about a MARINA, guys, where we can dock our small boats and bigger yachts???

Hi Sam,

50,000$ was during the first half of the CBK era. Then it rose to 150K and now anything lesser than 250K is not coming as an interesting topic for the  BOI.

By the way that price tag might come down to 150K but anything lesser than that might need special program.

Some of these industries doesn't require big investments. As an example anyone in to IT, ITES, BPO or KPO with good sales funnel can start their operations for a initial investment less than 25,000 USD. But rules are contradicting. I first arrived the country in 2006 after a 10 year stint outside Sri Lanka [for study and work].

Businesses like Chris doesn't need big investment [unless he is going to bring down Harley's or BMW's]

You can bring down a lot of used bikes from Japan, refurbish them and can use them else can purchase any indian makes at a 2000 USD or less based on the engine capacity.

By the way are you in Colombo Sam?

Best thing to do is form a small community and look in to queries coming from ppl like Chris.

In this way we can help them in finding the opportunities and to directly reach the authorities than spending months with some crooks.

Now the time is right and anyone willing to invest in this country and create opportunities are highly welcome.

Cheers

Thanks for responses Sam and Bill,

I appreciate the information and the effort but unfortunately I am now in the same boat as before.
I have conflicting information as I had encountered when researching online

I have a friend in Negombo already in the industry , that I am more than happy to go into a partnership with. There is also the opportunity to add a motorcycle touring arm to a local travel company out of Colombo.

My initial investment with be around 40K.
It is not that easy to import m/cycles to Sri Lanka even  from India as that was my initial intention. They now impose a 100% excise on all import vehicles, there is a port tax  etc etc.
So I have decided to buy in-house so to speak.

I contacted BOI months ago but received no reply, I thought it a long shot at best .

I am setting up a micro business after all that will hopefully evolve into something larger.

Once again thankyou for your opinions and information.
Please keep them coming

Chris

Chris, please don't lose hope or faith!

Just come down here and get started!

Issues like BOI not replying are only due the backward nature of bureaucracy and changes in Government, which are all "teething pains" for a VERY fast growing country, and probably one with the brightest prospects for the future, and ALL who happen to get here, before it's too late!!!

Hope to see you here in Sri Lanka very soon!

By the way, Chris & Clikbill etc., I am very much here at Negombo Beach, please PM anytime you want to meet up and chat!  Cheers!

Cheers Sam!

Just debating at the moment whether it might be cheaper to buy bikes in India...Getting prices at the moment.

We shall have a beer definitely.

Chris

Hi Chris,
My name is Manoj, What i you is an good business idea. Do a little background study on the area you want to start your business. Also consider options like leasing the bikes from here which will considerably reduce your investment cost. First try starting it with few bikes, and when you get real feeling of how things are moving go at it full force. You will need to keep some money for advertising and promotion if your going to build a professional business model.
Try to offer full product and differentiate your business, Network with accommodation providers. other wise you will become just another bike rental service.

Cheers and Wish u success with your business.
Regards
Manoj

Hi Manoj,
Thanks for the wise words.
Do you know any good lawyers in Sri Lanka?
Chris

Hi Chris,
Yes, there are few good lawyers that i know who specialize in different areas. What specific area are you looking at.

Regards
Manoj