Starting a business in Sri Lanka

pretall · 2012-04-08 13:02:01

Hi,

Me and my girlfriend are Swedish citizens. We plan to start a travel agency in Sweden, arranging travels to Sri Lanka. I have been looking into different ways of setting this up. As far as I understand, if I want to set up a company in Sri Lanka through BOI, a minimum investment of US$250 000 or above is required. This is way too much for me in order to set up a travel agency. I have been looking for alternatives to this, e.g. setting up a local branch of a company in Sweden, which would not require a very heavy investment. However, from what I have understood, the visa situation might then get more complicated.

I wonder if there is anyone here who has some insights in this process? Or if you potentially could recommend a good service that can be helpful in the process?

Best regards,
Viktor

raulmonda · 2012-04-08 14:27:44

Hi Viktor,

I was recently in SL for the exact purpose as you are looking for. Of course i intended to start another kind of business, not traveling. The visit at BOI was a total failure: after i was "walked" through 4 different officers, supervisors or whatever they call themselves, finally i found out that the minimum investment should be 250,000 USD. Lucky me, i just got married few days before with a local woman and i could open my business but under her name using a lawyers agency services. Later on, ive heard (words on the street) that one can open a business even being a foreigner under his/her name; I cant say if its true or not.
I have spent some of time in SL, therefore i have a very reliable info for you about a possible collaboration with a local travel agency in Colombo. Maybe you can deal with them, instead to open a new business. I also can give to you the info about the lawyers agency which assist me. Just e-mail me.

Hope this will help you and wish you good luck.

Raul M.

cbanda · 2012-04-17 19:37:17

Raul and Victor,

There are few ways to forge the system smile
You have the option to go for a build, operate & transfer.
There are lots of entrepreneurs seeking business opportunities.
You can find a one, can setup your business outside the SL, draft a build-operate-transfer agreement with an individual or a corporate and commence the operations in SL.

Make sure to register it as a new entity. Not a branch office. Declare a decent time frame to complete the Transfer. In this way you have enough time to build your business and stabilize the operations.

Your liabilities would be the initial setup costs and the monthly expenses. No one would ask for 250K initial investment to get the things done.

based on the global economic climate, you have the luxury of winding off the business at anytime (with "0" compensation).

There are many established tour operators, but they tends to charge comparatively higher fee than a new company.

If you need any assistance, make sure to buzz me over here.

ishara · 2012-05-22 00:18:11

I am from Vision Lanka limited and we are basically doing International Business Developments and investments in Sri Lanka. if anyone interested to invest in Sri Lanka please email me. will give you all the necessary info

rila · 2012-05-22 06:33:55

WE are running a travel agency in Colombo- Sri Lanka and would like to form a Joint Venture tourist venture as you intend and
Rilawould like to discuss further on thiis matter. Please contact me rila223[at]yahoo.com

Thanks and regards

samsrilanka · 2012-05-26 12:10:02

Viktor, my question is, why do you need to start a company in Sri Lanka?

I would imagine the main thing is to establish your office in Sweden, and get the customers.

That is the main thing about being successful in any tourism venture, is getting the customers!

There are so many established tour operators here, that will do exactly what you will tell them to do, at a very minimal cost.

If you try to do it yourself, dealing with the local hotels and transport companies, you may just end up paying more than doing it through established tour companies who have already negotiated low rates with hotels and transport companies, etc.!

If you want to enter into a joint venture, look for an established company, perhaps one like Exotic Tours who have been recommended by Time Magazine!

Good Luck!

Mike Pinsiri · 2012-08-29 15:27:40

Hi Viktor,

My background: I am from Sri Lanka and presently working for a travel agency in Dubai. I look after a couple of Swedish accounts here (Eg: Resia, Travel Master).

Purpose: Would you like to go for a joint venture or a partnership?

Future prospects: We can also expand to other destinations such as Thailand....

I came accross your message only today. Perhaps I am too late and you have already started something.

Do let me know if there is any possibility still....

Best wishes,
Mike

samsrilanka · 2012-08-31 08:15:59

Hi, I'm Canadian, and have started some businesses in Sri Lanka through the Board Of Investment.

Last I checked, there were two categories, Section 16 and Section 17.

If you start a business under Section 16, the required investment is only $50,000 and you basically are bound by the normal business / finance laws of the country.

Section 17 requires a larger investment, $250,000 and up, but then you are entitled to a host of benefits including duty free import of materials, and tax exemptions for a number of years, etc.

The only problem I can see that you would have, is that a foreigner is not allowed to hold more than 49% of a travel agency in Sri Lanka, but there are many ways to get around this, if you deal with a reputable Company Secretary, who knows how to go about it.

[Moderated: No free ad on the forum please]

It's a wonderful place to do business, I wish you good luck!

Sam.

cbanda · 2012-08-31 23:05:01

samsrilanka wrote:
Hi, I'm Canadian, and have started some businesses in Sri Lanka through the Board Of Investment.

Last I checked, there were two categories, Section 16 and Section 17.

If you start a business under Section 16, the required investment is only $50,000 and you basically are bound by the normal business / finance laws of the country.

Section 17 requires a larger investment, $250,000 and up, but then you are entitled to a host of benefits including duty free import of materials, and tax exemptions for a number of years, etc.

The only problem I can see that you would have, is that a foreigner is not allowed to hold more than 49% of a travel agency in Sri Lanka, but there are many ways to get around this, if you deal with a reputable Company Secretary, who knows how to go about it.

[Moderated: No free ad on the forum please]

It's a wonderful place to do business, I wish you good luck!

Sam.

If I am correct the maximum ownership should not go beyond 40%.
As Sam mentioned earlier, if you want to run a Travel Agency, you can still do it from there.
I have some ideas on "How to run such an agency" from offshore. Ping me through PM. I will share some of my ideas to mix with yours.
Good luck guys!

Ivana11 · 2012-09-20 08:48:03

Hello all,

I won't be opening a new topic, as mine is similar as Pretall's.

My husband and me (Europeans, currently living in China) would like to register an agency in SL. We lived there before and we would like to come back again.

My questions are following (directed to any one who experienced or know how to set up a business in SL, like SamSriLanka for example smile )
1.If we want to register an agency is only solution to go trough BOI and 50 000usd? If there is alternative for this we would like to hear more about that, specially to avoid big money investment.

2.Is it easier to register an agency in Europe and than work from SL, open a branch or something similar? More info about that would be more than welcome.

We don't know much about this subjects, and if you can refer us to people who know more, that would be great.

Thanks in advance to all people who will help us with more info.

Have a nice day and greets from Beijing
Ivana

Don Rosh · 2012-09-26 05:04:28

Hi .

I am Roshan , from Sri lanka . I think I can help you .
since my brother in low is Swedish and plan to start business in sri Lanka . We both can support you .

Regards

Don Roshan

asag · 2012-10-02 06:09:06

Hi Everyone!
Is there any foreigners who have opened a business in Sri Lanka?
Share your experiences, please!

williams1957 · 2012-10-12 09:58:49

[Moderated: Please post in Jobs in Sri Lanka section]

inventuresasia · 2012-10-17 12:52:11

Hi!
I’m Tania Silva. You can register a company in Sri Lanka under the following conditions.

Sole Proprietorships & Partnerships: Sri Lankan law does not allow foreigners to register Sole Proprietorships or Partnerships

Private Limited Companies: If you register a Private Limited Company you can own 100% in the company except for a few restricted areas. In all other companies foreign Nationals, Corporate or partnerships can effectively control 100% of the ownership. You can be the sole director and the shareholder and do not require any locals to invest or participate.

You can also the register under the BoI (with Incentives in taxes, visas) or under the normal laws (without incentives).
1. The minimum investment to start up a company registered under the Section 16 of BoI law is Rs. 25Mn (Appx USD 250,000.00), BoI will arrange work visa (Residence visa), no tax exemptions.
2. Under Section 17 of BoI Rs. 50Mn. (Appx USD 400,000.00).
BoI will arrange work visa, tax exemptions (min 4yrs), Duty free imports (for capital goods).

3. Without going through the BoI, you can set up the company under the normal laws of Sri Lanka. A minimum investment is not required. However, you will not be automatically entitled for work visa. Still the 40% ownership requirement is there. But still you can register the company in a way that you have the total control over the company.

cathy51 · 2012-11-12 15:31:30

Hi

I am french and I have the same problem.
I meet a lawer but I am not sure of the informations.

We can try to see all our informations. Maybe, it will be interesting!!

Catherine

rochworth · 2012-11-19 23:49:19

Hi victor

this is lance

Acctually i live im Milan at the moment and im am too looking rufoward to do something in the travel and tourism industry in sri lanka, i am sri lankan and i've been attached to the industry since i was 16 years. so i have great experience of the industry in my country,

I f you need more details kindly do let me know.

best regarsd

Lance
beekmeyer2000[at]yahoo.com

mac2 · 2012-11-21 16:28:37

(Moderated: no free ads)

samm1234 · 2012-12-06 10:28:18

[Moderated: No free ad on the forum pls]

pushy80 · 2012-12-08 14:54:59

Hi

If you want to arrange traveling to Sri Lanka with minimum investment what you can do is to find a good travel agency here and direct your clients there. You can come to a agreement with them.

Tks

Pushy

Last edited by pushy80 (2012-12-08 14:55:20)

Siddh44 · 2013-01-06 08:23:34

Hello:

I am Sidd from India and I would like to set up a coaching institute in Sri Lanka. The institute would train Sri Lankan students who aspire to study abroad. Some of the areas in which we offer coaching are TOEFL,IELTS,GMAT and GRE.

I am looking for a local partner who can operationalise the JV.I would bring the entire business model and a part of the investment. I bring with myself the experience of a whole team of content developers for these exams; people who have graduated from top-notch institutes like Oxford university and the IIMs in India.

Please mail me siddharthhbhatt(at)gmail.com.

mac2 · 2013-01-08 15:23:03

HELLO,

IF U WANT TO START UP ANYTHING I WILL BE ABLE TO HELP YOU BUT WILL NOT INVEST ON ANYTHING.
THANKS

Aurélie · 2013-01-09 07:49:51

@mac2 => Can you please lower your caps lock when writing on the forum? smile

PS: If you have some informations, do not hesitate to share them on the forum. It could help other members as well.

Thank you,
Aurélie

Syam Kurup · 2013-01-09 07:58:50

[Moderated: No free ad on the forum]

sunilkobe · 2013-01-12 10:03:35

Hi

Hope you are doing well. As per your advertisement still if are you looking for partner to implement the tourism business I m ready to work with you. Currently we are operating a Tourism Holiday making company (Global) in Sri Lanka.

I hope we can work together on this matter.

I m waiting for your respond to write further.

Sunil

deshagallage · 2013-01-17 17:04:35

if some one wish ,I can provide a land to build a villa or hotel as a joint venture . contact me soon ,deshappriyagallage[at]yaoo.com

Last edited by deshagallage (2013-01-28 17:18:13)

hansini · 2013-02-06 17:08:14

Hi Again,

I am Manjula from Sri Lanka.I sent a reply through Expat last week but it did not work out.

By the way i was thinking to start up a Travel Agency since i have few luxury vehicles and already are in work.

So would like to get in touch with u since u can arrange travelers to Sri Lanka and we could work together.

The vehicles are my own and i can offer u very attractive charges and i know all over Sri Lanka.

If u have any interest of looking forward i can send u photos of the most beautiful places in Sri Lanka where we had taken foreigners.Also 100% of Sri Lanka any nook and corner u may ask me and i can give u details as well as photos.

So will await to here from u soon.

Best Rgards
Manjula

saranga12 · 2013-02-14 17:10:20

hi ishara,plz give me some more information :)

RoshanG · 2013-02-20 07:53:47

Hey Viktor,

Send me a reply & i think i could help you out with this.

Thank you,
Roshan Gurusinghe

James12002 · 2013-02-22 14:44:43

Attention Sir:
My name is James Oneal Director Liberty Investment company United Kingdom .I have a client from United Arab

Emirates (UAE) who wish to invest in siri Lanka.He is seeking for a honest partner in Siri Lanka who both can come

together and achieve good investment in the area of properties hotel,school ,oil and gas etc.

Interested person should contact me as soon as possible for further information s.
Thanks.
For further information's please contact :
Agent Office in Uk:
Mr. Sadik Ibrahim.
Uk-Office
Chief Executive Officer
Director Liberty Investment
City of London, Guildhall, PO Box 173, London, EC2P 2EJ
Dubai International Capital LLC (DIC)
notarization[at]emirates.net.ae
SKYPE:onealinvestment

deshagallage · 2013-02-22 17:07:20

Dear Mr james
I am Deshappriya ,from Sri Lanka, I am teacher and have economics degree, Now I am doing my L.L.B degree , I have a small transport service. I want to start joint venture in Eco-friendly Hotel sector . I have a land in the Eastern Province Very close to Arugam Bay and the yala national park.call me for further details bye for now .my E-mail deshappriyagallage[at]yahoo.com

James12002 · 2013-02-22 17:24:20

that is very nice do you have Skype address you can add me at onealinvestment?i would like to be fully informed about the project so i can contact my client for further information's
thanks

deshagallage · 2013-02-22 18:05:22

hope to call tommorow ok

James12002 · 2013-02-22 18:52:33

check your mail and get back to me

deshagallage · 2013-02-23 16:50:19

dear james
my skype nu : gallage.deshappriya2 I want to start and build a hotel of my land that is very close to wild sanctuary ,elephants can be seen in the evenning, I want to find a partner who can invest as a joint venture. so i think u may be the one I want to start . I hope to share the work. call me with ur partner of U.A.E. bye 4 now.

James12002 · 2013-02-23 22:52:12

check your skype i have added you or write me asap or write me here at jamesonealinvest(at)hotmail.com

Jawahir Saly · 2013-02-28 03:42:31

[Moderated]

muzammilragama · 2013-03-10 09:23:13

[Moderated]

adeelsaeed · 2013-03-10 21:43:44

Wow .. Loads of suggestions.. It helps me a lot too

Hi Victor,

I am a foreign student in Sri Lanka completing my Msc in Marketing..and I had worked in a travel agency in Maldives for 1 year who were dealing with Sri Lanka agents too.. My suggestion is, to get some contracts frm Sri Lankan hotels, resorts and also from some travel agents in Colombo .. It should be the best for the time being as the development transition in Sri Lanka after the war is going too fast that it may turn out to be a disaster for your business plans.. .There is a political war going on between local government and some EU/US human rights agencies.. Even though gov policies are good, they too are tough in dealing with outside organizations.. End results are hard to predict..maybe end up with some economic sanctions. Or may not.. I hope for good and better for Sri Lankans..

If you're into investing, you should re-think again, what could be the changes in near future.. Be it economical or Political.. Its hard to predict for putting up a strategic plan for businesses. Go with some contracts rather than investing .. Some bigger agents like aitkenspence, etc may have better competitive rates.. Its my suggestion .. Maybe not a good idea, but its how i see this..

Thank you

Adheel

Libau · 2013-03-12 09:44:15

[Moderated: Please communicate by PM]

zeebarry · 2013-03-18 15:33:31

Could you pls contact me on my email zeebarry[at]gmail.com .

Im based in Russia and into tourism catering to a very unique market.

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Starting a business in Sri Lanka

#1 2012-04-08 13:02:01

Starting a business in Sri Lanka

#2 2012-04-08 14:27:44

Re: Starting a business in Sri Lanka

#3 2012-04-17 19:37:17

Re: Starting a business in Sri Lanka

#4 2012-05-22 00:18:11

Re: Starting a business in Sri Lanka

#5 2012-05-22 06:33:55

Re: Starting a business in Sri Lanka

#6 2012-05-26 12:10:02

Re: Starting a business in Sri Lanka

#7 2012-08-29 15:27:40

Re: Starting a business in Sri Lanka

#8 2012-08-31 08:15:59

Re: Starting a business in Sri Lanka

#9 2012-08-31 23:05:01

Re: Starting a business in Sri Lanka

samsrilanka wrote:

#10 2012-09-20 08:48:03

Re: Starting a business in Sri Lanka

#11 2012-09-26 05:04:28

Re: Starting a business in Sri Lanka

#12 2012-10-02 06:09:06

Re: Starting a business in Sri Lanka

#13 2012-10-12 09:58:49

Re: Starting a business in Sri Lanka

#14 2012-10-17 12:52:11

Re: Starting a business in Sri Lanka

#15 2012-11-12 15:31:30

Re: Starting a business in Sri Lanka

#16 2012-11-19 23:49:19

Re: Starting a business in Sri Lanka

#17 2012-11-21 16:28:37

Re: Starting a business in Sri Lanka

#18 2012-12-06 10:28:18

Re: Starting a business in Sri Lanka

#19 2012-12-08 14:54:59

Re: Starting a business in Sri Lanka

#20 2013-01-06 08:23:34

Re: Starting a business in Sri Lanka

#21 2013-01-08 15:23:03

Re: Starting a business in Sri Lanka

#22 2013-01-09 07:49:51

Re: Starting a business in Sri Lanka

#23 2013-01-09 07:58:50

Re: Starting a business in Sri Lanka

#24 2013-01-12 10:03:35

Re: Starting a business in Sri Lanka

#25 2013-01-17 17:04:35

Re: Starting a business in Sri Lanka

#26 2013-02-06 17:08:14

Re: Starting a business in Sri Lanka

#27 2013-02-14 17:10:20

Re: Starting a business in Sri Lanka

#28 2013-02-20 07:53:47

Re: Starting a business in Sri Lanka

#29 2013-02-22 14:44:43

Re: Starting a business in Sri Lanka

#30 2013-02-22 17:07:20

Re: Starting a business in Sri Lanka

#31 2013-02-22 17:24:20

Re: Starting a business in Sri Lanka

#32 2013-02-22 18:05:22

Re: Starting a business in Sri Lanka

#33 2013-02-22 18:52:33

Re: Starting a business in Sri Lanka

#34 2013-02-23 16:50:19

Re: Starting a business in Sri Lanka

#35 2013-02-23 22:52:12

Re: Starting a business in Sri Lanka

#36 2013-02-28 03:42:31

Re: Starting a business in Sri Lanka

#37 2013-03-10 09:23:13

Re: Starting a business in Sri Lanka

#38 2013-03-10 21:43:44

Re: Starting a business in Sri Lanka

#39 2013-03-12 09:44:15

Re: Starting a business in Sri Lanka