Setting Up

Under Sec.17 of the BOI Law, BOI is empowered to approve projects and enter into agreements with enterprises granting exemptions from laws such as Customs, subject to fulfilment of the investment threshold or any other specified requirement.

Sec 17 projects that meet the minimum investment threshold of US$ 3 Mn upwards, can enjoy special incentives in the form of enhanced capital allowances under the Inland Revenue Act No 24 of 2017.

Where projects are approved under section 16 of BOI Law, the entry of foreign investment is permitted without any fiscal concessions. These projects are governed under the normal laws of the country and are subjected to Custom Laws and Exchange Control Regulations. The approvals granted are only to;

  • Facilitate the entry of foreign investment
  • Set up a new company with foreign shareholding or
  • Transfer or issue new shares in an existing non BOI company to the foreign investors

At present, the minimum investment requirement to qualify as a section 16 project is US$ 250,000. This can either be a 100% foreign investment or a joint venture investment with a local collaboration. In the event an investor undertakes a trading activity, a minimum of US$ 5 Mn has to be remitted.

The proposed foreign investment should be effected from funds remitted through an Inward Investment Account (IIA).

Step 1

In accordance with Section 6 and 7 of the Companies Act No. 7 of 2007 the first step is to check the availability of the proposed name of the Company.

Step 2

Application for registration of the proposed Company by submitting Articles of Association together with the forms described below.

  • Form 1 – Gives details of type and name of the company, registered address of the company, Details of initial Directors, Secretary/ies and Shareholders.
  • Form 18 – Consent of Directors
  • Form 19 – Consent of Secretary/ies

If the company is coming under the BOI regime, the draft Articles of Association should be submitted for approval of the Executive Director (Legal), BOI prior to incorporation of the company.

Department of the Registrar of Companies
400,D.R.Wijewardena Mawatha, Colombo 10, Sri Lanka

Tel: 0094-11-2689208 , 0094-11-2689209

Fax: 0094-11-2689211

e-mail:info@drc.gov.lk

website: www.drc.gov.lk

#
Application/Agreement Processing Charges
US $
Section 17
01.
Investment application processing

275.00

02.

Agreement Processing Fees

Strategic Development Project

3,850.00

For Other Projects

2,200.00

03.
Supplementary Agreements

550.00

 Section 16
04.
Investment application processing fees (Sec. 16)

330.00

05.
Processing Fee for perusal of Articles of Association of Company

170.00

 Non BOI Enterprises
06.
Lease Agreement Processing Fee for non BOI companies

11,000 LKR

#
Application/Agreement Processing Charges
US $
Section 17
01.
Investment application processing

275.00

02.

Agreement Processing Fees

Strategic Development Project

3,850.00

For Other Projects

2,200.00

03.
Supplementary Agreements

550.00

 Section 16
04.
Investment application processing fees (Sec. 16)

330.00

05.
Processing Fee for perusal of Articles of Association of Company

170.00

 Non BOI Enterprises
06.
Lease Agreement Processing Fee for non BOI companies

11,000 LKR

All charges are liable to VAT. (All charges can be paid on the rupee equivalent as per the prevailing exchange rate)

# Application/Agreement Processing Charges US $
Section 17
01.

Annual Fees

  1. Normal Projects
  2. Hotel, Hospital, Utilities, Tourism sector Project and Any Other Infrastructure Project
    • – During Project Implementation Period
      1. Project less than USD 3 Mn
      2. Project between not less than USD 3 Mn and not more than USD 10 Mn
      3. Project more than USD 10 Mn
      4. Strategic Development Projects
    • – After Implementation, during Tax Holiday & Concessionary Tax Period
      1. Project less than USD 3 Mn
      2. Project between not less than USD 3 Mn and not more than USD 10 Mn
      3. Project more than USD 10 Mn
      4. Strategic Development Projects
    • – After Implementation and after Tax Holiday & Concessionary Tax Period
  3. Agriculture Projects
  4. Coir based Industries and Handicraft Projects
     

2,750.00

3,850.00

7,260.00

9,680.00

18,150.00

2,530.00

6,050.00

8,470.00

12,100.00

1,100.00

940.00

1,210.00

 Section 16
02.
Annual License Fee

400.00

All charges are liable to VAT. (All charges can be paid on the rupee equivalent as per the prevailing exchange rate)

License Fee LKR
Activities in List A
7,500.00
Activities in List B
6,000.00
Activities in List C
4,000.00
 
Inspection Fee LKR
Activities in List A
6,600.00
Activities in List B
5,800.00
Activities in List C
5,000.00

All charges are liable to VAT. (All charges can be paid on the rupee equivalent as per the prevailing exchange rate)

Ceylon Electricity Board

Ceylon Electricity Board

National Water Supply & Drainage Board

National Water Supply & Drainage Board

Fixed Line Rates

Sri Lanka Telecom

Sri Lanka Telecom

Lanka Bell

Lanka Bell

Dialog

Mobile Rates

Mobitel

Mobitel

Dialog

Hutch

Airtel