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February 24, 2018 by admin

Company registration in Sri Lanka

You may like to know whole procedure of company registration in Sri Lanka as foreigner that is our focus discussion agenda.

About Sri Lanka Economy

<img src="srilanka-biz4.png" alt="Company registration in Sri Lanka"/>

Company registration in Sri Lanka

With an economy worth $80.591 billion in (2015) and ($278.415 billion in (2017) PPP estimate) and for every capita GDP of about $11,068.996 (PPP), Sri Lanka has generally had solid development rates as of late. The Sri Lankan economy has seen vigorous yearly development at 6.4 percent through the span of the 2003-2012 period, well over its local companions. In GDP per capita terms, it is in front of different nations in the South Asian area. Since the finish of the three-decade common war, Sri Lanka has started concentrating on long haul vital and auxiliary improvement challenges as it endeavors to change to an upper pay nation.

The fundamental financial divisions of the nation are tourism, tea export, attire, material, rice harvesting and other agrarian items. Notwithstanding these financial segments, abroad work contributes exceptionally in remote trade: 90% of exile Sri Lankans dwell in the Middle East. Sri Lanka has one of the most minimal expense to-GDP proportions on the planet, and making employments for the last 40% has turned into a test. Sri Lanka additionally faces a difficulty in social incorporation, administration and sustainability.

To keep up the unfaltering monetary development that Sri Lanka has appreciated as of late while keeping up macroeconomic security, the legislature should at the same time benefit its abnormal state of obligation out of lessened expense receipts while diminishing the enlarged open segment and bringing down verifiably high spending shortages. That will mean far and away superior administration of open funds and extra basic changes to enhance the business atmosphere. Be that as it may, a powerless legal keeps on undermining property rights, and elevated amounts of apparent debasement are weakening.

The Process

Starting a business may be a dream yet losing your own points of interest that assistance you and your family are a reality and that reality could change into a terrible dream if your business doesn’t work out, you’re sued, or another unexpected cash related hardship. By enrolling your business, your business assets and liabilities are disconnected from each other. There are various diverse inspirations to unite however for the affirmation of you and your family may be the most basic.

If you are starting in business, or paying little mind to the likelihood that are developed and combined and you have to name your business an alternative that is other than your given name, you’ll need to enlist for a “Cooperating as” name, generally called a DBA, trade name, or acknowledged name.

When you outline a business, its honest to goodness name constantly defaults to the name of the individual or component that claims the business, unless you rename it and enlist it as a DBA name. An affirmation of protection for your unique business name — which may be a key fuel of your promoting drive; and

  • Obtaining Licenses and Permits
  • Register with the Inland Revenue Department and Tax Authorities

Obtain a Tax Identification Number (TIN) from the Taxpayer Services Unit of the Inland Revenue Department. There’s no charge and it takes one day. This must be done eye to eye.

  • Opening a budgetary adjust or picking bank workplaces for business requirements

There are various legitimate components you can keep running with while enlisting your business, we will talk about private obliged associations here on a very basic level in light of the way that

Getting approval of business name

Chasing down an extraordinary association name ought to be conceivable online by methods for the webpage of the Department of the Registrar of Companies. We endorse getting a space name for your association indistinct to the one you enrolled your association name for.

Name reservation fees: The association name reservation is generous for 3 (2,000 Rs + VAT 15%).

Submission forms of business Registration Sri Lanka

<img src="srilanka-biz.png" alt="Business registration Sri Lanka"/>

Business registration Sri Lanka

Resulting to procuring the name underwriting, submit Form No. 1, 18, and 19 as beginning step of company registration in Sri Lanka. All structures should be printed or typewritten. (Portion 475). Physically composed structures won’t be recognized.

We’ve not hesitated to joined the structures to make it less requesting for you.

Shape 1 – Business Registration Sri Lanka (Rs. 4,000 + VAT 15%)

Shape 18 – Consent and Certificate of Director (Rs. 2,000 + VAT 15%)

Shape 19 – Consent and Certificate of Secretary/Secretaries (Rs. 2,000 + VAT 15%)

Submit Articles of Association

An association may either get the standard course of action of Articles of Association in Table an of the Companies Act of Sri Lanka or draft its own specific Articles of Association as steps of company registration in Sri Lanka. You ought to submit 2 copies.

(Rs. 2,000 + VAT 15%)

Giving Public Notice

In the wake of everything else is done, the last strategy is to give open notice. This is by and large done by disseminating a little advertisement spot on the close-by papers. This should consolidate the association enrollment number and the name of the association. What’s more, the Registered office address of the association. This should be on no short of what one issue of the Gazette; and in no short of what one issue of a consistently day by day paper in the Sinhala, Tamil and English tongues, streaming in the zone of business.

Public notice fees: Rs. 8,500

Principles for Setting Up Foreign Company

Any association or body corporate solidified outside Sri Lanka, whose business has been permitted approval for the purposes behind the Exchange Control Act, repressions and conditions dispersed in the Government Gazette No. 1232/14 of nineteenth April 2002; and

(a)         has after the chose date developed a place of business inside Sri Lanka; or

(b)        has before the chose date, developed a place of business inside Sri Lanka and continues having a set up place of business inside Sri Lanka on the assigned date.

Fdi in Sri lanka

<img src="srilanka1.png" alt="FDI in Sri Lanka"/>

FDI in Sri Lanka

Outside Direct Investment in Sri Lanka expanded by 80 USD Million in the second from last quarter of 2017. Outside Direct Investment in Sri Lanka arrived at the midpoint of 136.12 USD Million from 2001 until 2017, achieving an untouched high of 636 USD Million in the final quarter of 2016 and a record low of 20 USD Million in the second quarter of 2001.

Tax Rate

The best individual pay assess rate is 24 percent, and the best corporate duty rate is 28 percent. Different duties incorporate an esteem included expense. The general taxation rate levels with 12.1 percent of aggregate residential pay. In the course of recent years, government spending has added up to 18.9 percent of aggregate yield (GDP), and spending shortages have arrived at the midpoint of 6.3 percent of GDP. Open obligation is proportionate to 77.3 percent of GDP 

Legitimate Issues

According to Sri Lankan work law, a delegate is fit the bill for 14 days of paid yearly leave in the wake of serving a year reliably at the association. Masters are met all requirements for one and a half days off each week, and likewise pay on all open and religious events. They are moreover met all requirements for a huge segment of a month’s remuneration for each completed year of organization following no less than five years if there should arise an occurrence of an end. Maternity leave is 12 weeks in Sri Lanka.

Portion of Wages

All specialists are met all requirements for be paid a month to month wage. Portion of wages in perspective of a step by step rate or on contract preface won’t be permitted. The laborers ought to be paid their wages inside ten days of the expiry of the wage time span.

Simply endorsed explanations, for instance, advances, credits procured by the specialists, Etcetera with the consent of the delegates, pay charge, agents sense of duty regarding EPF and whatever different conclusions asserted by the judge of work can be created utilizing remuneration. The aggregate of such deductions should not exceed 83;

  1. a) half of the wages due for the period by virtue of delegates secured by selections of wages sheets for all trades other than tea, versatile, cocoa and coconut creating trades, and
  1. b) 60% of the wages due for the period because of office delegates.

Remote Employment

The level of telecommuters for a particular outside business in Sri Lanka is dependent on the nature and estimation of wander. Once the association is embraced under the Board of Investment in Sri Lanka, the theorist can search for approval on this regards from the Investment Appraisal Department of the BOI. The Board of Investment in Sri Lanka is the key pioneer in such way

Office Rent

As of August 2016, rental cost for office premises in Colombo 1-3 is around 250Sri Lankan rupees for each square foot each month. In any case, these costs are subject to establishment and distinctive workplaces that are given in the working environment. In this way, the expenses may contrast

Tax Dividend 

<img src="srilanka-tax.png" alt="Sri Lanka tax dividend"/>

Sri Lanka tax dividend

A benefit charge, which is directly at 10%, will be payable at 14% as indicated by spending proposals on the gross benefits circled by a tenant association, other than such benefits scattered out of any benefit got from another inhabitant association (and couple of various uncommon cases).

FDI comes in three sorts.

Indeed, even − In level FDI, the association does similarly practices in abroad as at home.

Vertical − In vertical FDI different sorts of activities are done in abroad than locally. On the off chance that there ought to be an event of forward vertical FDI, the FDI passes on the association more like a completed outcome and in case of in switch Vertical FDI, the mix retreats towards rough materials.

Blend − In this kind of FDI, the goal is to get a disengaged business abroad. It requires crushing two checks – one, entering a remote country and the other one is working in another industry.

Outside Direct Interest in Sri Lanka extended by 76 USD Million in the key quarter of 2017. Outside Direct Interest in Sri Lanka found the center estimation of 134.03 USD Million from 2001 until 2017, accomplishing an untouched high of 636 USD Million in the last quarter of 2016 and a record low of 20 USD Million in the second quarter of 2001.

Secured Assurance for Outside Venture

Particular wander understandings maintained by set up confirmation offers protection to outside enthusiasm for Sri Lanka. Under article 157 of the country’s constitution, the understanding acknowledges the urge of law and no definitive, official, or administrative move can be made to repudiate the plans of a proportional theory assertion except for on grounds of national security.

As demonstrated by the World Bank, FDI inflows have touched base at the midpoint of 1.2% of Gross household item over the span of the latest five years, well underneath coordinate creating markets, including Vietnam (4.9%), Malaysia (3.1%), and Indonesia (3%). In South Asia, Sri Lanka in like manner remains underneath neighboring India and Bangladesh, with 1.7% and 1.4%, independently.

Help

The BOI bolsters stretches out under Areas 16 and 17 of the BOI Law, which was endorsed in 1978 and has been reexamined six times since. Fragment 16 identifies with outside endeavors with no money related concessions and a base hypothesis measure of $250,000. Region 17 draws in the BOI to give wanders avoidances from inland pay, exchange control and Traditions commitment.

The BOI’s fundamental logic in the past has been an assortment of inspirations to help attract wander. These fuse avoidances from corporate pay charge, Traditions commitments, regard included appraisal, and a ports and air terminal change require. Avoidances are point by point especially depending upon the scope of theory and division of the economy. Numerous consider these to have been effective in passing on new courses of action to the country, while others have referred to them as a factor in the country’s low cost base.

Considered Dividend Tax

A considered profit assessment of 15% is payable by any occupant organization in any expense year if the said organization has, in the first duty year

The assessment base for the 15% considered profit impose is the book benefits of the organization diminished by the total of the CIT payable by that organization for that duty year, the cost brought about by the organization in that expense year in the procurement of any land or any capital resource, and any notional benefit figured based on a revaluation of any capital resource incorporated into such book benefit and expanded by the total of the stipend for devaluation deducted in regard of any capital resource obtained in that expense year and any notional misfortune registered based on a revaluation of any capital resource incorporated into such book benefit.

Uncommon Tax On Public Corporations

On account of an open partnership, where at least 75% of the capital is given by the administration (other than by means of a credit), a duty of 25% of the adjust benefits, in the wake of deducting CIT payable, will be charged.

Settlement Tax

Where benefits of a non-occupant organization are transmitted in an expense year, a settlement assessment of 10% of the settlements is payable.

  • Neighborhood Income Taxes
  • There is no neighborhood or commonplace pay assess in Sri Lanka.

Conclusion

As a making country, Sri Lankan governments gushed unmistakable approach to construct FDI streams to resulting to achieving flexibility in 1948. FDI used as a gadget of budgetary headway and respond in due order regarding fiscal issues which going up against by governments. Regular ethnic issue was the essential limit to get interest from outside money related pros after 1980. While the complete of the basic war provoked wants of generously higher FDI streams to Sri Lanka.

There are numerous components that need to get attract FDI. It is fundamental to ensure a charming theory condition. Unsurprising macroeconomic game plans and government polices, awesome organization, financial strength, confirmation of property rights, control of law and nonappearance of corruption are among the conditions required to attract FDI. Consistency and consistency in political unfaltering quality and money related methodologies are preconditions to attract FDI.

Occupants

All citizens are required to pay their expenses on self-appraisal premise in quarterly portions on 15 August, 15 November, and 15 February amid the applicable year of evaluation and 15 May in the following year of evaluation. The due date for conclusive installment is 30 September following the finish of the time of appraisal (Commencing from Y/A 2006/07 a 10 percent markdown is accessible on the quarterly duties due if charge is settled 30 days preceding the statutory due date). A Pay-As-You-Earn (PAYE) charge plot applies to workers on their business salary. The business makes findings of duty at source.

Payee charge withholding are figured by tables gave by the Revenue Authorities. On the off chance that any person’s just wellspring of pay comprises of business wage, the Payee impose so deducted will be the last duty, successful from Y/A 2011/12. Arrangement for use of discounts isn’t accessible.

Right now there is no prerequisite to document a pay government form or open a duty record if the citizen’s wellsprings of salary are restricted to at least one of the accompanying.

Benefits from just a single work and subject to PAYEE. Profit or intrigue salary subject to withholding charge.

Life partners are saddled independently and are required to record isolate assessment forms. Wage got by one companion for administrations rendered in any exchange, business, calling, or occupation went ahead or practiced by the other mate or by an organization of which that life partner is an accomplice is considered to be wage of that other life partner.

The aggregate statutory pay of a tyke (under 18 years old and unmarried) of an inhabitant individual is accumulated with the aggregate statutory wage of the father if the marriage of his folks subsists in that time of evaluation. Something else,, such salary is amassed with the parent who keeps up him and with whom he lives in that time of appraisal.

Non-occupants

With impact from 1 April 2008, ostracize representative are saddled at the assessment rates appropriate to inhabitants in Sri Lanka at the same time, they will be exhausted just on their Sri Lankan-sourced pay.

Import Documentations

Installments for import of products can be made under Letters of Credit (LC), Documentary accumulations (Documents against Payment (DP) or Documents against Acceptance (DA) terms), or Advance Payment (AP) terms. Products can likewise be transported in to Sri Lanka on a dispatch account premise, where the merchandise imported are books and periodicals or elaborate fish imported for re-trade. Letters of Credit are substantial for up to 365 days. Imports on Advance Payment terms are permitted where the aggregate estimation of the merchandise does not surpass $10,000. Installments for imports made on Advance Payment premise can be made through bank draft, mail exchange, or transmitted exchange. Merchandise for which propel installment has been made ought to be gotten by the shipper inside 90 days of installment.

Fundamental reports required by business banks for imports incorporate a receipt, protection endorsement (if appropriate), and transport records. Contingent upon the item and the method of installment, reports, for example, endorsements of beginning, assessment declarations, and pressing records may likewise be required. Shipments via air payload may require an indistinguishable documentation from those touching base via ocean. All delivery archives in connection to imports made on DP or DA terms ought to be sent by the provider’s bank or by the provider to a business bank in Sri Lanka for discharge to the merchant of merchandise. In the occasion the first reports are not gotten on time, the merchant, at the circumspection of the bank, may submit duplicates of those archives for accreditation by the bank for freedom of the products. The merchant ought to orchestrate the first transporting reports to be gotten by the bank worried inside 30 days from the date of affirmation of the duplicates.

To clear products through traditions, the shipper ought to submit applicable delivery records ensured by a business bank and traditions statement structures to the Sri Lanka Department of Customs. On account of an import made on an AP premise, merchandise will be discharged on accommodation of agreeable verification of installment, for example, bank affirmations. On account of an import made on a committal account premise, products will be discharged by traditions on the accommodation of freedom reports. Sri Lanka Exports Commodities.

The significant fare items of Sri Lanka are:

  • Materials and clothing
  • Tea and flavors
  • Precious stones
  • Emeralds
  • Rubies
  • Coconut items
  • Elastic makes
  • Fish

Sri Lanka Exports Partners

The accompanying chart delineates the offer of different fare accomplices of Sri Lanka:

Sri Lanka Imports Commodities:

The significant import wares of Sri Lanka are as per the following:

  • Material textures
  • Mineral items
  • Oil
  • Foodstuffs
  • Apparatus and transportation gear

What are the legitimate commitments and obligations?

The Sri Lankan Department of Inland Revenue lays out the assessment structure required for people, associations and organizations. Contingent upon your circumstance, you might be qualified for tax-exempt stipend in Sri Lanka, gave that your pay is under a specific sum.

The Institute of Chartered Accountants in Sri Lanka made a code of corporate administration concerning all organization money related methods. Inside the code, they proposed that organizations ought to build up a straightforward arrangement on official and chief remuneration. Corporate administration guidelines are currently compulsory for every single recorded organization and they should cover preparing, consistence detailing and board structure.

As indicated by Sri Lankan work law, a worker is qualified for 14 days of paid yearly leave in the wake of serving a year constantly at the organization. Laborers are qualified for one and a half days off every week, and pay on all open and religious occasions. They are additionally qualified for a large portion of a month’s pay for each finished year of administration following at least five years in case of an end. Maternity leave is 12 weeks in Sri Lanka.

There’s no benefits conspire for private division workers in Sri Lanka. Be that as it may, organizations must pay tips to workers following five years in organizations of 15 individuals or more.

The reason of company registration in Sri Lanka are: 1. As business expansion 2. Generate revenue 3. Tax exemption 4. Open market 5. Political stable 6. Skill manpower 7. Revenue export 8. Available raw materials

Filed Under: Company Registration Tagged With: Business registration Sri Lanka, Business Sri Lanka, Company formation in Sri Lanka, Company registration in Sri Lanka, FDI in Sri Lanka, Income tax in Sri Lanka, Sri Lanka tax

January 4, 2018 by admin

  Steps of company registration India

Steps of company registration India

<img src="india-business.png" alt="Steps of company registration India"/>

Steps of company registration India

Let discuss in detail about foreign investment and steps of company registration India. We can look scenario of India, the second largest country in the whole world in terms of population has a total population of 1.324 Billion people (according to 2016) and each and every day the number is getting increased. So new private company limited are getting established every now and often. To legalize those companies, to enlist these companies in the record book of the government, registration of the companies is a must.

India offers companies a large built in and dynamic potential market to explore. Establishing business in India is very profitable and demand able no shred of doubt about that. But before that you have to establish your companies’ legal presence by ensuring the registration of your company and enlisting yourself with the proper company.

Before register a company in India, at first you must acquaint yourself with India and its culture. The population of India is considered as asset but most of the time it seems burden for the country. It depends on you. It depends on how do you use them. You have to understand the mentality of these vast population. You must meet their expectation by the goals or visions of your company. Your company must meet their expectations and demands. There are some differences between doing business in India and doing business in some other countries. Companies in the United States, United Kingdom, and Australia mainly conducts their business focused on transactions whereas Indian business still largely depends on the relationship. They prefer trusting people more than just the outcomes. They happen to be friendlier and welcome the new business companies more warmly. So, knowing the choices of people and doing businesses on their likes will increase your business further. But before that you have to legalize your company so that people can have their faith on your company. If it’s an enlisted company, then people will have more trust on your company that they won’t be deceived. That they can expect some quality service or product from you. That will increase the market demand of your company.

In India’s culture, cow is a holy animal. Understanding the public sentiment is very important those who are interested to start new business in India. So, if your business is related to cow or for instant, let’s assume if your business is related to selling beef meat or something like that then you must understand the public sentiment and do your business accordingly. You can’t expect to do business by hurting them believes, by hurting their sacred feelings. You must show proper respect to those feelings mostly from the religious perspective. You must have your own way of conducting this business but not by hurting them. That is what will matter.

India has also their own traditions. Their own rich cultures, their own literature. You will also have to show proper respect to them. You will have to know the history of theirs, the rich culture of theirs if you’re planning on doing long term businesses there.  Your product or service must not contain anything that will disrespect them or their feelings about their culture.

Now when you are well acquainted with all these aspects, you can apply to register your company. But there are a few things you should know first.

How to register a company in India as foreigner?

<img src="India-register.png" alt="How to register a company in India as foreigner"/>

How to register a company in India as foreigner

There is a requirement in the number of board members while registering your company. Minimum number of board members required for a private company is two and the number increases to seven when you enlist it as a public company.

Ministry of Corporate Affairs (MCA) used to do these registrations in black and white a few years back but in recent years, Due to the effect of digitization, you don’t need to do such things meeting person to person. When registering your company you will just have to follow certain processes and if their demand meets and you submit all the required documents and information’s then you will get a legal license to do business in India, the land of opportunities.

Like many other countries such as Bangladesh, Srilanka, Thailand, Singapore you don’t need to show any minimum requirement of investment capital. It simply depends on you, your type of business, your requirements, and your wishes. There is no hard and fast rules in India regarding the minimum amount of capital needed for investment .

“MINISTRY OF CORPORATE AFFAIRS” or MCA are the authorized body in India to legalize the company registration. They keep a record of all the registered companies, their information’s and do legalize them. Other than MCA, no organization can give you the certification of register a company in India. And without this certification, without your name being enlisted, your company and doing business in India is illegal by law.

Economic zone

“Special Economic Zones Act, 2005 was passed on 23rd June, 2005.After the passage of this act India allowed the special economic zones. Under this act, India gives permission for the establishment, development and management of SEZs for the promotion of exports and related activities.

The main advantage of a tax free zone is the duty free importation of required machineries, production lines and related equipment’s. It inspires more company to do business in India because of its tax free zones.

Income Tax

The tax rate for corporate affairs differ on the total asset turnover amount. It also differs between the Indian companies or for foreign companies. If the asset turnover amount is less than 50 crores then the tax rate is 25% for Indian companies and 40% for foreign companies. And if the asset turnover amount is more than 50 crores then for Indian company the tax rate is 30% and for foreign company the tax rate remains same at 40%.

Now if we compare the essentials steps of company registration India and other developing and developed countries then we can see that, In Singapore, a minimum of one resident director is a must and there is no number of additional local or foreign director is fixed. There is no maximum number. Whereas in India the minimum number is 2 and the maximum is 50.

The requirements regarding number of shareholders in Singapore is just as same as India which means minimum 1 shareholder and maximum of 50 shareholders.

In Singapore the taxation rate is 9% for the initials and settles at a rate of 17% flat afterwards whereas in India the rate is 25-30%.

Malaysia, Thailand, Singapore, Bangladesh etc. Countries don’t need any minimum amount of investment capital, just as like as India. For your easy understanding we can add a question answer sessions based on the frequently asked questions. These are –

  • What is the minimum number of directors required to register a company in India?

        Ans: 2

  • What is the taxation rate in India?

        Ans: 20-24%

  • What is the minimum investment capital for company registration India?

        Ans: No definite minimum or maximum capital.

Before start a business its need to follow the steps of company registration India as below –

1) Decide your business structure: At first you have to decide the structure of your business. It may vary from company to company.

2) Selection of names: choosing a good, smart and eye-catching name helps. It’s a good idea to have at least four potential names for your company in case some other entity registered under the name with the Roc. These four name options will help you if the name you chose is already in use by any other company. You can customize the name according to the choice and need to attract more clients of Indian market.

3) Deciding of company office address: Your Company must have a working address or an official address. It may be your home address that does not create any difference. But that email address must be in regular use.

4) Apply for DIN (Director Identification Number): DIN is a special unique number assigned by the ministry of corporate affairs, different for each company identifies the current or intended director of your company. You can apply for DIN via online. You will just have to give them some information’s regarding the proof of address, educational qualifications, passport and current occupation and this is how to register a company in India as foreigner.

5) Register online for a DSC (Digital Signature Certificate): Digital signature Certificate can be used to prove the legality of your company. It can also be used to prove your identity or to access information about your company or to know about your company digitally. For this you have to apply for Digital Signature Certificate ministry of corporate affairs via online.

So, your company is ready to go. Now you just must keep yourself on track. All the necessary steps have been taken. All the documentation has been done. You will just have to check the website now from time to time to know that when your company is enlisted as a legal business entity in India. You don’t have to take any hassles for that. By the grace of digitization, all the necessary works will be done by MCA via online.

Steps of company registration India are very much easy but be followed FDI guide line. You just have to collect all the necessary documents and fill up the online forms properly. Ministry Of Corporate Affairs will do the rest of the tasks. So, just jump into the land of opportunities. Jump in the ocean of hopes and make your dreams real just by taking the first step and after starting up your own company follow these necessary certain steps and enlist your company as legal and follow the company registration steps to register your company.

Filed Under: Company Registration Tagged With: business in tax free zone in India, Business registration India, Company formation India, company registration in India, fdi policy in India, how to register a company in India, India company registration, steps of company registration India

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