Story
Dubai based small business owner sought our assistance with setting up a tea business in Sri Lanka and they were working on a tea brand. The client’s interest was to open a business for importing and exporting tea to UAE. That business would be the owner of the brand name for the tea. We explained them that to obtain export license from the Sri Lanka Tea Board, they will need a valid business registration and private limited company structure is the best way forward.
“If you’re a foreign domiciled applicant, Counselit Company Secretary will help you file incorporation forms and get your company started in less than 2 weeks and our trademark agents will help you file and register a trademark to protect your business name or product name”
The Challenges
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Does 40% foreign ownership rule apply to me?
In Sri Lanka, 100% foreign owned companies are only allowed in IT sector. Any foreign owned company entering into tea manufacturing business in Sri Lanka can only hold 40% of the ownership of company shared. This means a foreign owned company is legally required to work with a Sri Lankan national or a company as their local partner. However, the client's business activities did not invovle any value addition to the tea before exporting. They did not manufacture tea therefore they could simply open a normal private limited company.
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Should I get BOI approval for my tea business?
Foreign investment up to 40 % of equity in a company proposing to carry on a business activity listed Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices. need to obtain approval from BOI. -
How do I obtain export license?
To obtain a license from the Sri Lanka Tea Board, it requires a valid business registration certfiicates issued by the RoC or Provincial Registrar of Business Names, registered warehouse, qualified tea taster with facilities, and a minimum capital of Rs. 1.0 million.
Results
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Prepared incorporation forms
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Drafted articles of association
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Public notice of incorporation
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Ownership of business premises confirmed with deed of lease agreement
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TIN Registration
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Obtained export licenses from Tea Board
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Trademark search
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Filed trademark registration application
