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INVESTMENT INFORMATION

Sierra Leone Export Development and Investment Cooperation (SLEDIC)
18/20 Walpole Street
Private Mail Bag 6
Freetown-Sierra Leone
Tel: 232-22-229760/ 227604/224868
Fax: 229097
Email: sledic@sierratel.sl

The Sierra Leone Export Development and Investment Cooperation (SLEDIC) was set up by Act No. 23 of 1993 currently provides one-stop shop services in the following areas:

• 
  Business establishment facilities
• Work permit, state land, visa, etc, for business/ enterprises operation
• Business investment Analysis/ Research
• Post Incorporation services
• Financial Planning
• Management and Administration services
• Hospitality services
• Immigration registration

Setting up a Buisness In Sierra Leone
Any person may invest in any enterprise in Sierra Leone except in the following area:
1. a) Production of arms ammunition
b) Military, Police and Prison officers’ apparel
c) Narcotic drugs the above are subject to review by the government of Sierra Leone.
2. Bank and non bank financial institutions for which provision has been made in the other financial institutions licensed under the Banking Act 2000.
3. Such other enterprises as may be prescribed by the Government of Sierra Leone from time to time.

Priority Investment Areas:

Agriculture and Agro- processing industries, Fishing, Tourism mining, Petroleum Exploitation, Privatization of state – owned enterprises, Export processing zones (EPZ), Building Materials and Construction Industry, Communication and Infrastructure, cotton, Textiles and garments, Dairy Production and processing Education, Financial, Energy, Forestry, Health and Livestock sectors, Iron and Steel and Metal and Metal products.

Procedure for setting up of a business Enterprise
Guidelines for Clearing Procedures (to link to Guidelines page)

A completed application should be submitted in triplicate to SLEDIC in the investment facilitating unit (IFU) for processing with the following information:

• The name of the enterprise
• The nationality of the applicant
• The product to be manufactured or
• The services to be provided
• The location of operation
• The ownership structure

In the case of non- citizens, the manner of the investment shall be stated;
Capital contribution an the category of investment
Percentage of share contribution by non- Sierra Leonean.

Details of assets purchased representing capital contribution.
A total of three (3) working days should be allowed for processing and registration. A file in the proposed investment containing the following is opened:
The application and acknowledgement there of
A description of the type of investment
A detailed analysis of the proposed investment.
There after the applicant will be notified by way of letter of the prescribed incentives accessible to the type of business registered as provided under the income Tax Law.

The business establishment and facilitation services include:

• 
  Obtaining the business name registration certificate
• The certificate of incorporation
• The business registration certificate
• The business license registration certificate(following Income Tax Assessment)
• Assistance with preparation of the memorandum and articles of Association in the case of acompany(where a solicitor’s intervention in necessary, a moderate fee any be levied but not exceeding 10% of capital, their is subject to negotiation)
• Assistance where necessary for the opening of a business account with a commercial Bank.
• The following fees are currently payable: (Exchange rate are movable Le 2,600.00 = $1.00 approximately) Business name registration form – Le1,000 = 50cents
• Search fee for Business name- Le 5,000.00 = $2(dollars)
• Business name registration certificate- Le30,000.00- $11 dollars
• Business registration form – Le 2,000.00 $1 dollar
• Foreign Exchange control Application – No fee payable
• Income Tax Standard Assessment Tax – Le 945,000.00 - $363(dollars)
• Fee for Income Tax Clearance – Le 2,000.00 - $1 (dollar)
• Fee for the Incorporation of the Company’s Certificate – Le 540,000.00 - $ 207(dollars)
• Fee for the Business Registration and License Certificate – Le 240,000.00 – $192(dollars)
• Minimum Deposit for Business Account in Leone’s – Le 500,000.00 - $ 1,000.00

The above charges may vary from time to time as prescribed by law.

INCENTIVES:

a) Currently the corporate income tax is 35%
b) Industries are exempted from payment of sales tax for importation of plants, machinery and spares.
c) Packaging materials, plants, machinery and spare parts for industries, agricultural machinery shall be exempted from customs duty.
d) Capital allowance on development and production expenditure shall be an initial allowance of 40% in the year of expenditure and an annual allowance of 20% for the three years succeeding.
e) Expatriate personnel automatic quotations to investment capital of varying amounts.
f) Exemption from payment of payroll tax for exporting $ 1m worth of goods, employing 30 indigenous Sierra Leonean and 40% of investment capital held by a single contributor
g) Tax relief for research and development ( applicable to industries)
h) Training and technology transfers
i) No obligation to acquire export license for goods produces in Sierra Leone except gold, diamond and any item that any be prescribed by the Government of Sierra Leone from time- to- time.
j) Pioneer status – three years tax holiday and sales exemption for first three years
k) Repatriation of profit – 100% subject to a 5% withholding tax.
l) Guarantee and security of enterprises – national treatment except in reserved areas and MIGA membership.
m) Settlement of disputes – according to international rules and bi- lateral agreements.

Ownership:
Joint ventures with Sierra Leonean partners are encouraged and 100% foreign partnership is allowed.

SCOPE OF SECTORS

Agriculture and Forestry

Rice, coffee, cocoa, palm oil, citrus fruits. Timber, cut flowers, etc.
Inland Valley Swamp. Boliland, mangrove, river rain grassland, upland, ecologies available for cultivation.

850,000 hectares of land for cultivation.

Marine Resources

10 miles of Atlantic Coastline – very rich marine Resources
Biomass Estimate – 850,000 metric tons
500,000 mt for exploitation
Including demersal fish / crustaceans/ cephalopods (squids, octopus) etc.

Tourism

Freetown peninsula – one of the world’s most natural and beautiful, is a 174 Km stretch of coastline with ideal resort locations avenues for surfing, Aqua, diving, boat racing, deep sea fishing, scuba diving etc.

Bunce Island in the South and Sulima in the East are historic landmarks with slave fortresses depicting the past including the AMISTAD CONNECTION.

Sierra Leone is a country rich in fauna and flora.

Commercial and Industrial Activities

Manufacturing and production of basic import substitution goods including production of palm oil and other agro- based industries, textiles and furniture, mining, fishing, transportation, communication, agriculture, export, investment, construction, etc. are amongst the general commercial and industrial activities in the country.

Oil Exploitation

The stage is set to commence exploitation activities following a 3D seismic survey, analysis of result and bidding for blocs.

Agreement already signed with three companies. Prospects of discovery high.

Private Sector Investment required for both downstream and upstream activities.
Further details can be found in Petroleum Exploitation and Production Act 2001.

Minerals

The best Gem Diamonds both artisanal and Kimberlite deposits.
Vast deposits of Gold, Bauxite, Rutile, Iron Ore etc.

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