If you want to buy things for your business in Bangladesh or how to source products for your business, you may be wondering how to get started and do it right. Don’t worry at all. This article will walk you through everything you need to know to get your product made and sourced in Bangladesh.
Sources to find products for your business in Bangladesh
First, let’s look at how to find producers or sellers of your goods. How to Find the Right Suppliers to Get Your Product Made and Sourced in Bangladesh It can be done in more than one way. Here are some ways you can use their help.
How to find products in Retail stores and a market
For sellers looking for suppliers who can get their goods made and sourced in Bangladesh, there are a few websites like Daraz and Bikroy that can help. But in the end It’s just a marketplace where you can find many suppliers of the same product, sort them by your needs, and then get in touch with them, but you can not necessary get them in bulk supply.
If you need any kind of parts to be sourced and made in Bangladesh at the best price, “উদ্দোক্তাদের প্রথম ঠিকানা” has great sources that will make your job easier than ever. Find out why Uddoktader Prothom Thikana is the best place to source, what kinds of products they can offer, information about their suppliers, and, most importantly, their low prices. And we will talk about in this article today কেন “উদ্দোক্তাদের প্রথম ঠিকানা” বইটি আপনার কাছে থাকা উচিত !
Any trade shows
The trade show is a great place to meet a lot of different suppliers who are showing off their goods right in front of you. You may talk to them in person. You can also talk to each supplier about the specifics of their minimum or maximum order quantities.
At trade shows, you can also touch and feel the goods yourself and find products just like you would in retail stores.
The Export Promotion Bureau (EPB) of the Government of Bangladesh and the Ministry of Commerce set up the FBCCI and BIDA to make it easier to find products to buy and have them made in Bangladesh. There are also export promotion councils for other types of goods. You can talk to them about your questions. Their database is very big and has most of the suppliers for all kinds of products.
It’s better to know ahead of time that the council might take a while to respond. Before you go there, be ready to wait for a long time.
Outsourcing of Purchasing
উদ্দোক্তা হওয়ার শুরুতেই মানুষ ভুল জায়গা থেকে পণ্য সোর্সিং করে,এতে অন্যদের থেকে পিছিয়ে পড়তে হয় এবং প্রচুর অর্থ-সময় নস্ট হয়ে যায়।এই সমস্যার দারুণ সমাধান হতে পারে “উদ্যোক্তাদের প্রথম ঠিকানা” বইটি।
Some people say it’s a pain to get your products made and sourced in Bangladesh. It includes things like looking for the right suppliers, visiting factories to see how skilled the suppliers are, getting quotes from suppliers and then negotiating with them, signing a contract with the chosen supplier, and checking the quality of all the items that were ordered, among other things. Think about how long and boring the whole process of sourcing can be. You might have a hard time getting through all of these steps if this is new to you.
Now the question is, “Would you rather spend your time marketing and selling products to your customers than going through the trouble of finding the products yourself?” Let us give you another idea: “What else can you do to skip this painful sourcing process?”
Inspection of the Supplier Audit
The quality of the goods that come from the supplier should be very good.
When looking for a supplier, you need to check out the supplier’s factory and see what kinds of risks are there. It’s also important to check the quality assurance.
Also, you need to check the quality of your goods before shipping them when they are delivered.
All of these quality audit checks, though, take a lot of time and a lot of people.
sources and makes things in Bangladesh effectively
Through networking with other people
Because your product will be made and sourced in Bangladesh, try to get along well with your supplier. Order from the same supplier over and over.
This will help you and your supplier trust each other, which will pay off in the long run by getting you better prices, better payment terms, longer credit terms, and other benefits. Hierarchy is very important.
In Bangladesh, there is a clear order of things. A lot of the important business decisions are made by people at the top of the company. So, if you want to talk about the deal before you make it, talk to the most senior person who can make all the important decisions. Ask questions to learn more about the worst things that could happen. If you want your product to be sourced and made in Bangladesh, you can’t say for sure that everything will go as planned. In this case, you need to get direct information from your supplier(s) about what will happen in case of an emergency.
Once you find the correct suppliers then the next stage starts!
Before the deal, you should ask your supplier these questions:
The following are some of the most important questions you should ask your supplier to get a better understanding of how the deal works.
What are the payment terms and how do I make the payment?
You can talk to your supplier about the terms of payment and the INCOTERMS. Bangladeshi suppliers usually want to be paid in advance and deliver goods “Ex-factory.” This means that you need to have someone in Bangladesh take care of everything for you.
What will happen if the goods don’t get there on time?
Your supplier can’t promise that your product will be ready exactly when you need it. So, your supplier should tell you ahead of time about the worst-case scenarios.
Are there any chances that the product’s price might change in the future?
You should know what events can cause the price of the item to change. How are we going to let you know? How does your supplier handle quality problems that are found when the goods get to your country?
Your supplier should make this very clear. And it would be best if you kept this in mind when choosing the supplier. Find out how to start a Private Limited company in Bangladesh by reading this. There is a chance that something bad could happen if you have never bought something from Bangladesh before.
Process of Cooperative society Registration in Bangladesh
Establishing a Cooperative Society in Bangladesh:
Process of registering a cooperative society is a frequently asked question among those who wants to establish a society. Legal issues, the procedure, and the cost associated with establishing a cooperative society are all crucial components to understand when establishing one. This article describes in detail the procedures and guidelines for establishing a cooperative society.
In order to establish a society under this Act, seven or more individuals who are affiliated for literary, scientific, or charitable purposes, or for any other purpose specified in section 20, may do so by subscribing their names to a memorandum of association and submitting it to the Registrar of Joint Stock Companies.
Types of Legal Entity in Bangladesh
PLC
Branch
A Liaison office
Public
Proprietorship
Joint Venture Company
Private Limited Company
In Bangladesh, a sizable portion of businesses are registered as private limited companies. Only the shared capital of the shareholders is subject to liability. In Bangladesh, private limited companies may be entirely owned by foreign entities. In Bangladesh, anyone over the age of eighteen may register a company.
An extension of a parent company is referred to as a branch. The branch isn't a distinct organization. All of the branch's debts must be paid for by the parent company. A branch is permitted to conduct business in accordance with BIDA.
The liaison office's limited operations serve as a means of coordination and communication for Bangladesh's business resources. In Bangladesh, the representative office is unable to generate any local revenue.
A public limited company allows anyone to become a member. A Public Limited Company can have as few as seven members, and there is no upper limit to the number of members.
The owner and the business entity are the same in a sole proprietorship. The owner’s liability is unlimited, and the owner is personally liable for all the liabilities. A sole proprietor is not required to register with RJSC.
A minimum of ten members is required to constitute a registered cooperative society in Bangladesh whose purpose is to advance the economic interests of its members in accordance with cooperative principles. A detailed description of the society registration procedure is provided below:
Members
Objectives
Annual List of Managing Body
Fees to Registrar
A minimum of ten members (10 Members) is required to constitute a registered society whose purpose is to advance the economic interests of its members in accordance with cooperative principles.
The identities, postal addresses, and professional roles of the governors, council, directors, committee members, or any other governing body entrusted with the management of the society's affairs in accordance with its bylaws.
In addition to the memorandum of association, a copy of the society's rules and regulations, at least three of which are members of the governing body, shall certify as to its accuracy.
Annually, no later than the fourteenth day following the day the annual general meeting of the society is convened as per the regulations of the organization is held, or January if the regulations do not stipulate an annual general meeting, a list including the names, addresses, and professions of the governors, council, directors, committee, or other governing body entrusted with the management of the company shall be submitted to the Registrar of Joint-stock Companies.
Section 2 requires the registrar to affix a memorandum and certified copy of the society's rules and regulations. In response, the registrar shall attest with his hand that the society has been duly registered in accordance with this Act.
For the registration of a society and for matters mentioned in the Schedule to this Act, remit payment to the registrar of the fees specified in that Schedule or such reduced fees as the Government may direct.
Step by step process of Registering your cooperative society in Bangladesh with the help of TRW
The step-by-step process of cooperative society registration has been explained below:
Step 1
Name Clerance
Step 2
MoA and AoA
Step 3
Opening Bank Account
Step 4
Registration
Step 1- Name Clearence
Selecting a distinctive name for the cooperative society is the initial phase in its formation. Once the name has been selected, an application for name clearance must be submitted to the Registrar of Joint Stock Companies and Firms (RJSC) in order to obtain the name approval certificate. One to two days is the typical delivery time for the certificate. The current name clearance fee imposed by the government is $3 USD.
Use Internet Explorer and Mozilla Firefox to access the RJSC website. Other browsers might not function properly.
To increase your chances of getting your name approved quickly, make sure that:
The name must not be identical or too similar to any existing society names,
not infringe on any trademarks,
not obscene or vulgar,
and not already reserved.
An approved name will be reserved for six months from the date of clearance. You can extend the name by submitting an extension request shortly before its expiration date.
Subsequently, the Memorandum of Association (MOA) would be formulated, encompassing the Society's fundamental objectives. Furthermore, the cooperative society's MOA may encompass the subsequent provisions:
Address and nam of the society
Membership category: information regarding the membership classifications that the society will administer. Under this heading of the MOA, the territory or jurisdiction of the society is specified.
Obligations and privileges of the members
Subscription membership: this consists of the membership application procedure, fees, subscription duration, and more.The organization of the society encompasses particulars pertaining to its executive committee.
Election of the executive committee: this comprises the election procedure and regulations.
Additionally, the responsibilities of the advisers and executive committee members are delineated.
Information is provided regarding general and executive meetings, including the duration of each meeting and the specific details that are discussed.
Financial power: under this heading, information regarding the society-maintained bank, including its operations, funding source, and more, will be provided.
Arbitration: specifics regarding the resolution of disputes.
AOA: Articles of Association
The Articles of Association (AOA) serve as the organization's constitution. An AOA outlines the procedures for operating a Cooperative Society, including the election of officers such as the President, Secretary, Treasurer, and others. Furthermore, an AOA specifies the operational procedures for the cooperative society's bank account, the decision-making process to be followed by executive committee members, and the minimum quorum requirement for decision-making.
To register a cooperative society, an application must be submitted to the registrar. The application must be accompanied by three copies of the proposed rules of the society and the MOA, and the persons making the application must provide any information about the society that the Registrar may require. The application must be accompanied by the prescribed registration fee.
In order for any such society to obtain registry under the Societies Registration Act of 1860, it shall be sufficient that the governing body file with the Registrar of Joint-stock Companies a memorandum showing the name of the society, the objects of the society, and the names, addresses, and occupations of the governing body, together with a copy of the rules and regulations of the society certified and a copy of the report of the proceedings of the general meeting at which
When the Registrar is satisfied with the aforementioned matters, he or she may register the society and its rules and immediately notify the Governor, who will publish a Government Notice. The registration of a society converts it into a body corporate under the name under which it is registered. In addition, the body will have perpetual succession and the authority to hold property, enter into contracts, institute and defend suits and other legal proceedings, and do whatever is necessary to carry out the purpose of its constitution.
Applying for Trade License, TIN and other license!
After incorporation, you should either purchase or rent commercial space in any commercial area.
Then you must apply for a Trade License and Tax Identification Number. Depending on your company’s business activities, you may require additional business licenses.
Dissolving the Cooperative Society.
Any number of not less than three-fifths of the members of any society may vote to dissolve it, and it shall be dissolved immediately or at the time agreed upon. All necessary steps must be taken to dispose of and settle the society’s property, claims, and liabilities in accordance with any applicable society rules. It should be noted that no society may be dissolved unless three-fifths of its members vote in person or by proxy at a general meeting called for that purpose. Furthermore, if the Government is a member, contributor, or otherwise interested in any society registered under this Act, the society may not be dissolved without the Government’s consent.
Comparison
Cost
Before Act Assent
BASIS FOR COMPARISON
NGO and Socities
Not For Profit Association
Meaning
An NGO refers to a non-governmental organization formed by ordinary citizens, that operates autonomously of government.
An organization set up to provide goods and services to people, and operates on the principle that no member will receive share profits or losses of the entity is known as NPO.
Registration
The registration of the INGO or the NGO must be carried out by the body of the NGOAB concerned. Application in the specified form shall be made to the NGOAB along with payment of the required fee and all related documents such as operation report, letter of intent, constitution, copy of the Treasury Challenge with respect to payment of registration fees, etc.
The “non-profit association” or Club may be registered under the Companies Act of 1994.Both types of companies (i.e. “association not-for-profit”) shall enjoy all of the advantages of a limited liability company and be subject to all of its obligations. Both types of businesses are registered as Limited by Guarantee Companies. Company Limited by Guarantee refers to a company that may not have a share capital and whose members promise to pay the company’s debts up to a predetermined limit in the event of liquidation.
Area of operation
Large
Limited
Objective
To work for the betterment of society and economy as well, bring awareness of human rights, women empowerment etc.
To promote art, science, research, commerce or any other useful purpose.
Any company or society established for a literary, scientific, or charitable purpose and registered under Act XLIII of 1850, or any such society established and constituted prior to the passing of this Act but not registered under the said Act XLIII of 1850, may at any time hereafter be registered as a society under this Act; provided that no such company or society shall be registered under this Act unless an assent to its being so registered has been
In the case of a company or society registered under Act XLIII of 1850, the directors are deemed to be the governing body. In the case of a society that is not so registered, if no such body is formed at the time of its establishment, the members of the society may, upon due notice, form a governing body to act for the society from that point forward.
Bangladesh is emerging as one of the world's most promising outbound markets. Because of the country's rapid economic growth, the society formation procedure is frequently asking new entrepreneurs questions. All of your questions about how to register your society have been answered above.
See some of our Clients Reviews in terms of incorporating their companies in Bangladesh!
These esteemed clients are a testament to the trust and satisfaction that TRW Law Firm consistently delivers in the realm of company incorporation in Bangladesh. Marubeni, Walton, ZTE, Yongli Belting—household names in their respective industries—have experienced the seamless and expert assistance provided by TRW Law Firm. Their positive reviews underscore our commitment to excellence, efficiency, and client-focused service
Marubeni
Walton
Yong Li Belting
ZTE
Hikari Kawai
Hikari Kawai, Country Manager
"As the Country Manager for Marubeni Trading, I am compelled to express my utmost satisfaction with the exceptional company incorporation services provided by TRW Law Firm in Bangladesh. From the initial stages of consultation to the finalization of the incorporation process, TRW Law Firm demonstrated unparalleled professionalism, expertise, and efficiency."
Walton
Golam Murshed, Manging Director
"Their team, led by knowledgeable legal experts, exhibited a profound understanding of local regulatory nuances and seamlessly navigated through the complexities of company formation. TRW Law Firm's meticulous attention to detail ensured that every aspect of the incorporation process was executed with precision and adherence to the highest standards."
Yong Li Belting
Derek Wang, Country Director
"The personalized approach and clear communication from TRW Law Firm significantly eased our concerns and fostered a sense of trust throughout the engagement. Their commitment to meeting deadlines and providing tailored solutions to meet Yong Li Belting's specific requirements have solidified TRW Law Firm as our go-to legal partner in Bangladesh.."
ZTE
VIncent Liu, Manging Director Bangladesh
"We extend our sincere appreciation to TRW Law Firm for their unwavering dedication to excellence. ZTE looks forward to continuing this successful partnership and recommends TRW Law Firm to any organization seeking reliable and expert legal services in Bangladesh."
Register your Co operative society with the best law firm in Bangladesh
At TRW Law Firm, we take pride in being the preferred partner for major corporations seeking to establish their presence in Bangladesh. Our team of dedicated professionals ensures that each client’s unique needs are met with precision, facilitating a smooth and reliable process for company incorporation.
In an attempt to encourage foreign companies to establish themselves in the area, the local government of Bangladesh has made the process of registering a company easier over time.
The simplest and most favored option for international investors is to incorporate a Private Limted company in Bangladesh. Official government agency responsible for facilitating the formation of companies and firms is known as the Registrar of Joint Stock Companies and Firms (RJSC).
Types of Legal Entity in Bangladesh
PLC
Branch
A Liaison office
Public
Proprietorship
Joint Venture Company
Private Limited Company
In Bangladesh, a sizable portion of businesses are registered as private limited companies. Only the shared capital of the shareholders is subject to liability. In Bangladesh, private limited companies may be entirely owned by foreign entities. In Bangladesh, anyone over the age of eighteen may register a company.
An extension of a parent company is referred to as a branch. The branch isn't a distinct organization. All of the branch's debts must be paid for by the parent company. A branch is permitted to conduct business in accordance with BIDA.
The liaison office's limited operations serve as a means of coordination and communication for Bangladesh's business resources. In Bangladesh, the representative office is unable to generate any local revenue.
A public limited company allows anyone to become a member. A Public Limited Company can have as few as seven members, and there is no upper limit to the number of members.
The owner and the business entity are the same in a sole proprietorship. The owner’s liability is unlimited, and the owner is personally liable for all the liabilities. A sole proprietor is not required to register with RJSC.
In Bangladesh, a private limited company is a distinct legal entity, and its shareholders are only responsible for the amount of share capital they have contributed to the company’s debts. Any individual (local or foreign) over the age of 18 may register a company in Bangladesh, per the Companies Act of 1994.
Directors
Shareholders
Authorised & Paid up Capital
Trade License
A private limited company in Bangladesh must have two directors at minimum, according to the Companies Act of 1994. Directors may be nationals or international individuals. The directors have to be at least eighteen years old, insolvent, and free of malpractice convictions. According to the Companies Act, qualifying shares specified in the Articles of Association must be owned by a minimum of one director.
In Bangladesh, the minimum number of shareholders for a private limited company is two, and the maximum number of shareholders is fifty. A shareholder and a director may be the same person. In Bangladesh, foreign ownership is permitted to reach 100%. Following the incorporation process, the company may issue new shares or transfer existing shares to a different owner at any time.
Bangladesh does not have a minimum or maximum amount of permitted capital. Both the association's articles and memorandum of association must specify the permitted capital. A portion of the approved capital needs to be held in reserve.
For a private limited company, the minimum paid-up capital requirement is $1, and for a Bangladesh branch, it is US$50,000. It is possible to raise the paid-up capital following incorporation. Prior to registration, the shareholders must deposit the company's indicated paid-up capital into the share capital bank account.
As soon as the shareholders send in the share capital, the Bangladesh bank will issue an encashment certificate. This is a crucial document that the authorities demand when registering a company.
Address of the Registered Office
A local registered office address must be given at the time of business registration.
Trade Licesne
Every company registered in Bangladesh is required to apply for a trade license or business license, which verifies that the recently formed company is allowed to operate within the designated industry listed in the trade license. For more details on trade licenses in Bangladesh, click the link provided.
Step by step process of Opening your company in Bangladesh with the help of TRW
The process of setting up a business in Bangladesh consists of three separate steps: a) Name clearance; ii) opening a bank account and depositing funds; and, lastly, b) company registration. Only in the event that the proposed company has any foreign shareholders is step II applicable.
Step 1
Name Clerance
Step 2
Bank & Paid up Capital
Step 3
Company Incorporation
Step 4
Post Registration
Step 1- Name Clearence
To establish a Bangladesh company, the first step is to obtain name clearance for the proposed company name. To get started, go to www.roc.gov.bd and create a username. Then you can apply for name clearance. After submitting your application for name clearance, you will receive a bank payment slip and must pay Taka 600 to the designated bank. After making the payment, you will need to log in to your account on the RJSC website to receive the name clearance.
Use Internet Explorer and Mozilla Firefox to access the RJSC website. Other browsers might not function properly.
To increase your chances of getting your name approved quickly, make sure that:
The name must not be identical or too similar to any existing local company names,
not infringe on any trademarks,
not obscene or vulgar,
and not already reserved.
An approved name will be reserved for six months from the date of clearance. You can extend the name by submitting an extension request shortly before its expiration date.
Step 2: Open a bank account and deposit the paid-up capital.
This step applies only if the proposed company has foreign shareholders.
The next step is to open a bank account in the proposed company's name with any scheduled bank in Bangladesh. After opening the account, you must remit funds equal to the shares owned by the foreign shareholder from outside Bangladesh in the account. The Bank will issue an Encashment Certificate, which is required by RJSC for incorporation.
The final step is to enter all of the required information into the RJSC's website. You will also be required to upload Form IX and Subscriber Pages. After completing the process, you will receive a bank payment slip to pay the registration fees and stamp duty.
You're done once you've made the bank payment. You will now have to follow up with the RJSC to obtain the incorporation certificate. RJSC officials will review the documents and information. If they are satisfied, they will issue the digitally signed i) Certificate of Incorporation, ii) Memorandum of Agreement and Articles of Association, and iii) Form XII. These documents will be mailed to the email address you provided with your RJSC account.
In some cases, the incorporation procedure may be delayed if the shareholders or directors are of a specific nationality, but this occurs only in rare cases. In such cases, authorities may request additional information.
Certificate of Incorporation: RJSC will issue a certificate of incorporation for the company. The certificate will include the registration number, the name of the company, and the date of incorporation.
Form XII: Form XII contains the list of directors for the incorporated company. Certified copies of the MoA and AoA
Some other items you will almost certainly need when registering your Bangladeshi company are:
Applying for Trade License, TIN and other license!
After incorporation, you should either purchase or rent commercial space in any commercial area.
Then you must apply for a Trade License and Tax Identification Number. Depending on your company’s business activities, you may require additional business licenses.
Return Filing requirements:
Annual Return:
Every calendar year, an Annual General Meeting must be held. The AGM must be held within 18 months of the company’s incorporation, with no more than 15 months between each AGM.
Regular Return:
Any change in the board of directors, shareholding structure, or other change must be filed with the RJSC within a certain time frame.
Comparison
Forms
Documents
Sole Proprietorship
Partnership
Private Limited Company
Branch/Liaison Office
Perpetual succession
Up to the owner's death. Later, it will be carried by the heirs.
up to the partner’s death. Later, it will be carried by the heirs.
Perpetual in nature unless agreed otherwise
Perpetual in nature unless agreed otherwise
Equity based share allotment
Not applicable
Not applicable
Applicable
Applicable
Residential status of the owners
Must be BD Citizens
Must be BD Citizens
Not required
Not required
Liability
Owner is required to take on all liability.
Owners are required to take on all liability.
Limited liability applies to directors and shareholders.
Limited liability applies to directors and shareholders.
Taxation
Tax will be calculated on the proprietor's individual head of business at the individual tax rate.
Tax will be calculated on the partner's individual head of business at the individual tax rate.
Tax will be calculated using the corporation tax rate.
For the branch office, tax will be assessed at the corporate tax rate.
May be owned by another business, rather than individuals
No
Yes
Yes
Yes
Obtaining and executing the following forms for registering the company in Bangladesh with RJSC:
Filled in Form I: Declaration on registration of Company;
Filled in Form VI: Notice of situation of registered office;
Filled in Form IX: Consent of director to act;
Filled in Form X: List of persons consenting to be directors;
Filled in Form XII: Particulars of the directors, manager and managing agents.
Documents Required for Company Registration in Bangladesh Name clearance certificate from RJSC:
Memorandum of Association, Articles of Association, and other applicable corporate documents.
A detailed description of the company's business activities.
Detailed information about the shareholders.
If the directors or shareholders are Bangladeshi, they must have a national ID.
If the directors and shareholders are foreign nationals, they must provide a copy of their passport.
The registered office address of the company.
See some of our Clients Reviews in terms of incorporating their companies in Bangladesh!
These esteemed clients are a testament to the trust and satisfaction that TRW Law Firm consistently delivers in the realm of company incorporation in Bangladesh. Marubeni, Walton, ZTE, Yongli Belting—household names in their respective industries—have experienced the seamless and expert assistance provided by TRW Law Firm. Their positive reviews underscore our commitment to excellence, efficiency, and client-focused service
Marubeni
Walton
Yong Li Belting
ZTE
Hikari Kawai
Hikari Kawai, Country Manager
"As the Country Manager for Marubeni Trading, I am compelled to express my utmost satisfaction with the exceptional company incorporation services provided by TRW Law Firm in Bangladesh. From the initial stages of consultation to the finalization of the incorporation process, TRW Law Firm demonstrated unparalleled professionalism, expertise, and efficiency."
Walton
Golam Murshed, Manging Director
"Their team, led by knowledgeable legal experts, exhibited a profound understanding of local regulatory nuances and seamlessly navigated through the complexities of company formation. TRW Law Firm's meticulous attention to detail ensured that every aspect of the incorporation process was executed with precision and adherence to the highest standards."
Yong Li Belting
Derek Wang, Country Director
"The personalized approach and clear communication from TRW Law Firm significantly eased our concerns and fostered a sense of trust throughout the engagement. Their commitment to meeting deadlines and providing tailored solutions to meet Yong Li Belting's specific requirements have solidified TRW Law Firm as our go-to legal partner in Bangladesh.."
ZTE
VIncent Liu, Manging Director Bangladesh
"We extend our sincere appreciation to TRW Law Firm for their unwavering dedication to excellence. ZTE looks forward to continuing this successful partnership and recommends TRW Law Firm to any organization seeking reliable and expert legal services in Bangladesh."
Take your business to the next level in BD
At TRW Law Firm, we take pride in being the preferred partner for major corporations seeking to establish their presence in Bangladesh. Our team of dedicated professionals ensures that each client’s unique needs are met with precision, facilitating a smooth and reliable process for company incorporation.
Bangladesh’s commerce and industry in the twenty-first century
The economy of Bangladesh has emerged as a formidable force in the twenty-first century. It is teeming with laborers, cultivators, and business owners who are resolved to achieve great things. The citizens of Bangladesh constitute the nation’s most valuable asset. Considering that fifty percent of the population is under the age of thirty, there is an obvious demographic dividend to be capitalized upon.
Bangladesh has undergone a significant transformation since the 1970s, when its population was regarded as a liability following its independence. Bangladesh, which had a population of 70 million, had experienced a perennial food deficit of 1 million metric tons, which compelled it to depend on food aid from countries with an abundance of food. Bangladesh has achieved a state of food self-sufficiency after fifty years, after producing 40 million metric tons of food.
In 2015, Bangladesh’s economy surpassed the per capita income threshold set by the World Bank, thereby attaining the status of a lower-middle-income country. The country has been deemed to have met all the requirements for graduation from the status of a least developed country (LDC) as classified by the United Nations Committee for Development Policy [1]. Bangladesh is scheduled to graduate to developing country status in 2026, as per the UN’s definition.
Mahmud Hossain Opu captured the image of an international migrant laborer verifying his travel document at the airport entrance in Dhaka, Bangladesh, on September 26, 2021. In the twenty-first century, Bangladesh
The path Bangladesh has taken economically has garnered the praise of numerous preeminent development economists. A headline from the Wall Street Journal in 2010 stated, “Bangladesh, No Longer a “Basket Case.” This reclassification prompted international investment financiers such as Goldman Sachs and JP Morgan to consider Bangladesh as an uncharted investment territory.
Bangladesh quickly surpassed China as the second largest exporter of apparel in the world, an unprecedented achievement for an economy that, unlike its neighboring countries, did not cultivate cotton or have a substantial textile industry to begin with. Prominent apparel retailers in the European Union and North America had already identified Bangladesh as their primary procurement destination for apparel for the subsequent five to ten years by 2023. Migrant laborers from Bangladesh, meanwhile, are in great demand throughout the Middle East and beyond. Another substantial source of foreign exchange revenues.
An increase of a few percentage points in female labor force participation over the next decade may contribute to the expansion of Bangladesh’s economy. Amartya Sen, an economist specialising in development, has praised Bangladesh’s human development advancements, which significantly outpace those of its South Asian counterparts, such as India. Social indicators including life expectancy, maternal mortality, fertility, and female labor force participation have all experienced significant and swift progress. Nonetheless, at 40%, female labor force participation remains modest.
The potential increase in female labor force participation over the next decade may contribute to Bangladesh’s economic development by a few percentage points. The expansion is presently being bolstered by the enormous 6.4-kilometer Padma Bridge mega-infrastructure, which Bangladesh constructed using its own funds subsequent to the withdrawal of multilateral assistance from the World Bank and the Asian Development Bank. In contrast to numerous postcolonial nations, Bangladesh has made strides while maintaining a minimal degree of democratic continuity and relegating the army to its barracks.
Accomplishing the headwinds
After more than ten years of macroeconomic stability, the Bangladeshi economy has started to demonstrate signs of robust development. In this context, effective leadership has been indispensable. Even more so for an economy on the verge of “takeoff,” effective leadership is critical. With profound poverty reduction, it is evident that Sheikh Hasina’s administration has successfully guided the economy toward expansion when viewed in the long run.
Although agriculture has contributed to rural employment and food security, commerce and industry have played a substantial role in the development of Bangladesh. This has become increasingly evident in light of the nation’s emergence as a leading economy in Asia. Without reservation, development economists assert that Bangladesh has transitioned from a “development test case” to a “development paragon” [2].
The Bangladeshi economy, similar to numerous economies across the globe, encountered a severe sustainability challenge in 2022. Bangladesh managed to circumvent the debt and balance of payments crises that befell numerous developing economies, thereby averting macroeconomic turmoil. In summary, the economy of Bangladesh encountered obstacles but managed to persevere.
This was the consequence of persistent macroeconomic management spanning thirty years. Due to its solid foundation, the economy was resilient in the face of the disruptions caused by the Russia–Ukraine conflict that broke out in 2022. Prior to this, the economy’s resilience had been examined in the form of the COVID-19 pandemic in 2020 and the worldwide financial crisis of 2007.
Development and commerce interdependence
Trade is a fundamental catalyst for progress. Throughout history, it has proven to be an effective tool in the struggle against destitution. Trade has been an indispensable means of sustenance for nations and communities across the annals of time. Presently, international commerce is a revenue-generating and employment-producing force.
Bangladesh is a developing country that has overcome the challenges posed by limited resources. Notwithstanding the enormous demographic burden of 170 million in 2023, it has effectively expedited expansion through the maintenance of macroeconomic stability. Trade has been an integral component of Bangladesh’s development since 2010. Long-term policies (the long “perspective plans” for 2021 and 2041) and mid-term national policies (the three five-year plans from 2009) have unequivocally endorsed trade- and export-driven development.
Open trade with the global economy promotes economic expansion and poverty reduction, according to research. Bangladesh’s economy has been predicated on a trade-driven approach since the latter part of the 1990s. Bangladesh underwent a significant turn of events during the 1990s when it shifted its trade approach from import substitution to export promotion. It was dubbed a “globalizer” by the World Bank in the context of developing economies. The economy of Bangladesh benefited from this regime change. This trading strategy has been vigorously maintained by the current Hasina administration.
The Korean entertainment industry is a prosperous export sector for services. “World of the Married” is a highly regarded Korean television program. The series’ ‘Gason station’ was shot in Gangneung train station, Republic of Korea, on October 26, 2019 | Image courtesy of Pavel Dudek. The open commerce triumphed
Trade policies can be classified into two distinct types: those that prioritize exports and those that aim to import substitutes. This classification can be defined by the markets under consideration: the domestic market for the former category and the global market for the latter category. According to research, policies that substitute imports have no positive impact on industrialization or growth.
In the 1960s and 1970s, the extraordinarily prosperous industrialization of East Asian economies established a paradigm shift for growth driven by exports. Twenty years later, Bangladesh implemented a policy shift in its trade approach, adopting a focus on exports. East Asia’s progress had served as a model for other emerging economies. Since 2010, Bangladeshi policymakers have implemented a trade-driven development strategy that has resulted in substantial economic expansion. Presenting itself to the world is the Bangladesh method, the nation’s own export-driven model.
Since 2010, Bangladeshi policymakers have implemented a trade-driven development strategy that has resulted in substantial economic expansion. Clothing items have dominated Bangladesh’s export achievements. However, this has been a significant paradigm shift for an economy that was heavily dependent on the exportation of raw materials like jute, tea, and crustaceans during the 1970s. Bangladesh has experienced the positive outcomes of global trade by establishing a manufacturing export sector that places a densely populated developing economy on the global stage.
The enduring philosophy of ‘comparative advantage’ as elucidated by classical economists such as David Ricardo is substantiated by the textile export success of Bangladesh. As garment manufacturing is a labor-intensive industry, Bangladesh’s ample labor force was an ideal complement. It allowed the nation to manufacture and compete internationally. Equal trade conditions on the international market and Bangladesh’s trade policies were also significant.
A liberalized export-driven growth regime has firmly established itself within the policy sphere of Bangladesh. The momentum generated by the reforms that were initiated in the 1990s was adequate to stimulate manufacturing, employment creation, and poverty reduction. Presently, this momentum remains constant. The decade-over-decade average growth rate of the gross domestic product (GDP) has been consistent upward. In the 1990s, the average rate of growth was 4.8%; by 2010, it had risen to 7.2% from 5.9% in the 2000s. In contrast, the poverty rate experienced a significant reduction of two-thirds, falling from 57% in 1990 to 20% in 2019. This instance exemplifies inclusive growth to the letter.
The reform agenda for commerce
Tariff reforms will be of the utmost importance to Bangladesh’s trade policy. Can the economy attain its long-term objectives in the absence of a tariff structure modernization? The negative response is the case. Policymakers in Bangladesh recognise that the existing tariff regime poses an obstacle to the aim of diversifying exports, a critical aspect of the country’s development agenda. In order to implement this reform, a task force tasked with developing a modernized tariff policy has been formed.
Bangladesh is capable of experiencing development rates in excess of 7%. In order to optimize the benefits presented by the worldwide market, it is imperative to implement assertive trade reforms, similar to those observed in the economies of East Asia. By implementing these measures, Bangladesh can bolster its reputation as a “resilient economy” and allay the concerns of geopolitical skeptics.
Numerous factors warrant celebration. In Bangladesh, trade-driven expansion has demonstrated a mutually reinforcing correlation. In 2021–2022, total trade, imports, and exports treble in comparison to 1999–2000. Trade has experienced an average annual growth rate of 12%. The successful performance of Bangladesh in the 2010s was the result of a policy that encouraged private enterprise rather than interfering with it.
The future of commerce and the expansion of services
The process of global commerce is dematerializing. This consequently indicates that trade in services has increased steadily alongside trade in commodities. According to recent data released by reputable international organizations such as the Organisation for Economic Co-operation and Development and the World Trade Organisation (WTO), the proportion of services in worldwide trade had decreased to approximately 50% by 2009.
In order to place Bangladesh’s services exports into context, it is vital to recognise the substantial influx of remittances sent by migrant labourers. Remittances rank second in terms of export earnings, following merchandise products. Remittance inflows contribute to foreign exchange inflows that are indistinguishable from earnings generated from the exportation of products, particularly clothing. Bangladesh is also a major player in the international commerce of services, with remittances contributing up to 6% of GDP.
Analysts predict that in the future, industries driven by services will predominate, while companies that prioritize sustainability will prosper. In order to capitalize on opportunities, policy attention must be directed immediately, as trade barriers in services will progressively diminish. The key to Bangladesh’s future export competitiveness is the development of service industries of international caliber.
An Examination of Globalization
In its journey towards shedding the label of least developed country (LDC), Bangladesh must exercise caution regarding specific World Trade Organization (WTO) regulations that have previously been disregarded. Concerns pertaining to intellectual property and subsidies will inevitably impact all economies.
In order to qualify for membership in regional trading blocs such as the Regional Comprehensive Economic Partnership Agreement, Bangladesh must further demonstrate adherence to its rigorous discipline. In general, it is imperative that economic institutions in Bangladesh make the necessary preparations to function in a global trading environment that is more regulated and competitive.
The South Korean conglomerate LG performed K-pop music at the IFA trade exhibition in Germany on August 31, 2011 (photo courtesy of LG). Numerous analysts believe that tensions between the United States and China and the 2020 COVID-19 pandemic will contribute to a decline in globalization. Upon closer inspection, however, global integration appears to be here to stay. The world will continue to be interconnected through the exchange of products, services, information, and concepts. Globalization might require a reconfiguration. Bangladesh is confronted with the task of recognizing potential prospects within this dynamic international landscape.
Progress by means of industrialization
Since the 1960s, industrialization has been regarded as a mechanism to facilitate the progress of economies that are comparatively less developed. Diverse policy orientations have been necessary along the way to industrialization, with varying degrees of success. Industrialization, in conjunction with commerce, is an integral component of Bangladesh’s economic narrative.
A remarkable industrial performance was observed in Bangladesh throughout the 2010s. It was propelled by the dynamic apparel trade, which produced unprecedented results. Agricultural growth rates averaged 3% for the majority of the decade, whereas industry, especially manufacturing, propelled GDP growth rates to 6–7%. The sector’s contribution to the economy grew from 25% in 1999–2000 to 37% in 2021–2022, bringing it closer to the policy objective of 40% by 2041.
Industrial strategies and broader development policies are intricately intertwined in developing economies. Development necessitates a shift in focus from agriculture to industry, with an increasing proportion of manufacturing within the industrial sector. The news is extremely positive for Bangladesh. The structural transformation of the Bangladeshi economy has adhered to this prescription for more than ten years.
The key to Bangladesh’s future prosperity is an external focus. This will necessitate the alignment of Bangladesh’s industrial policies with worldwide developments. Specifically, Bangladeshi policymakers will need to acknowledge that the nation’s competitive advantage, which has been predicated on inexpensive labor, will be imperiled by technologies of the twenty-first century.
Bangladesh’s Perspective Plan 2041 delineates its long-term policies, capitalizing on the worldwide pattern, to establish a high-income, developed economy by the 2040s. The transformation envisioned by the 20-year plan is among the most rapid in the history of developing economies.
Beyond inexpensive labor
As the twenty-first century progresses, Bangladeshi entrepreneurs will be presented with extraordinary prospects to participate in international trade. Strict competition will accompanies the opportunities. Whether or not Bangladesh integrates its economy effectively with the global economy will determine the rate of industrialization.
Bangladesh can draw profound insights from this. Permanent assurance of the competitive advantage conferred by low-cost labor is unattainable. In the global arena of the future, competitive advantage will be a dynamic concept rather than a static one. Karl Schwab, the progenitor of the World Economic Forum, asserts that the digital age will usher in an era of transformation “unparalleled in human history.” Bangladeshi enterprises operating in the export sector should acknowledge that unwavering innovation is what sustains competitive advantage.
On June 28, 2007, an employee of Toyota’s Tahara facility in Toyohashi city, Japan, puts together a high-end Lexus engine. This image was captured by Robert Gilhooly. Consider the case of South Korea, which within a matter of years surpassed Japan in the production of televisions and electronic goods. Brazil performed similarly to Italy in leather footwear. This implies that Bangladesh’s present preeminence in garment exports can solely be maintained through unwavering investment and innovation, followed by the expansion of this advantage to encompass a broader range of products. Prioritize a harmonious public–private effort in order to guarantee competitiveness by:
Infrastructure constraint alleviation;
Obtaining substantial financial support for social and physical infrastructure;
Improving the overall caliber of the personnel;
Facilitating innovation through research and development expenditures;
Cost reduction in the conduct of business;
Protecting against climate change.
Aims of industrial policy
The primary objectives of industrial policy in Bangladesh are industrial development that substitutes imports and industrialization geared toward exports. This necessitates that the nation’s industrial policy and trade policy be coordinated. A conflict arises in the articulation of incentives between import substitution and export promotion, the two branches of trade policy that comprise the two-track industrialization policy.
Practically speaking, Bangladesh’s industrial policy aims to accomplish a number of goals, including the promotion of technological advancements, the mitigation of regional disparities, and the establishment of jobs and income inequality.
By implementing structural transformation, Bangladesh will attain its industrial policy objectives, which entail increasing the industry’s contribution to GDP to 40% by 2030. Thus, the majority of the labor force currently employed in agriculture and informal services will be absorbed. Furthermore, for Bangladesh to remain competitive in the manufacturing sector, it should provide performance-based assistance to nascent industries within specified timeframes. Ultimately, the industry policy ought to foster effective strategic collaboration between corporate entities and governmental entities.
In order to align with the industrialization strategy, it will be imperative for the trade policy to prioritize a robust export performance and a competitive manufacturing sector. The implementation of a strategic approach will capitalize on the extensive global market by increasing trade openness. Renewable expansion is exclusively attainable via strong export performance.
The predominant sector for employment generation in Bangladesh during the forthcoming quarter-century will be diverse manufacturing industries that operate on a global scale. These are the corporations that will expand their market share in developed economies while penetrating emerging markets.
The predominant sector for employment generation in Bangladesh during the forthcoming quarter-century will be diverse manufacturing industries that operate on a global scale.
Bangladesh in the century of Asia
Prominent economic historians have designated the twentieth century as the American century and the nineteenth century as the British century. Presently, prominent analysts anticipate that the twenty-first century will be characterized as the Asian century, owing to the rapid economic expansion of Asian countries including China, Japan, India, South Korea, Indonesia, Vietnam, and Bangladesh. Asia is projected to accommodate over half of the global economy and three of the five major economies by 2050. Bangladesh is positioned to emerge as a formidable participant in the current Asian century.
Bangladesh celebrated its independence jubilee in 2021, and there are numerous reasons for festivity. Bangladesh, upon its establishment in 1971, was arguably the cheapest nation on the planet. As predicted by international analysts, the situation appeared desperate. Bangladesh, which had a per capita income of less than $100, was positioned in the same category as countries including Chad, Rwanda, Burundi, and Nepal. Nonetheless, as of today, its economy has surpassed the USD 2,500 per capita threshold and stands at approximately USD 450 billion, ranking it among the top 40 economies globally.
Bangladesh is anticipated to surpass the United Kingdom and become the ninth largest consumer market globally by 2030, per HSBC Global. The country’s economic policies have facilitated growth momentum and poverty reduction, as is now evident.
Bangladesh, now over the age of fifty, has established a dignified standing among nations and is no longer deserving of derision. Its economic development has not been “paradoxical” despite its weak administration. It is the outcome of a determined and coordinated endeavor.
Capital punishment, in the form of a death sentence, is applied to serious crimes. Additionally, one of the harshest penalties is life in prison. These penalties and sentencing guidelines are applied in rare circumstances. As an example, consider the numerous cases in Bangladesh where the punishment is either life in prison or the death penalty: murder under Section 302 of the Penal Code, 1860; dacoity with murder under Section 396 of the Penal Code, 1860; murder for dowry under Section 11(Ka) of the Nari O Shishu Nirjatan Daman Ain, 2000; causing murder through acid under Section 4 of Acid Oporadh Daman Ain, 2002; and several other laws. Unfortunately, there are a lot of offenses committed in our nation.
A person’s life is taken away by a death sentence, and a life sentence restricts freedom through the legal system even though the prisoner is at fault.
Nonetheless, it is the harshest punishment that ought to be applied in exceptional circumstances involving horrible crimes1 and the accusation is proven true beyond a reasonable doubt. Even though Bangladesh is a signatory to the Rome Statute, the alarmingly high rates of these crimes in our nation may still serve as justification for keeping the death penalty in place.
The harshest penalties available under the law are a life sentence and the death penalty. Furthermore, it is standard procedure in our nation for an individual who has been found guilty of a capital crime to not be eligible for bail, even if the sentence is not to be carried out while an appeal is pending and the death penalty is referenced. The question of whether there is a legal barrier to granting bail to a death-sentence convict under Bangladeshi law is moot.
Definition of bail
Nothing in any Bangladeshi statute defines bail. The Law Lexicon, the dictionary, and the Code do not define bail; instead, they define it as security for the appearance of the prisoner upon payment, after which the accused is freed pending trial or investigation. The definition of “bail” according to a dictionary is the act of releasing an individual who has been detained or arrested in exchange for security for a court appearance.3. The old French verb “Baillier,” which meaning “to give or deliver,” is the source of the English word “bail.” The Latin word “Bajulare,” which means “to bear a burden,” is also connected to the word. “Bail” mentioned in Wharton’s Law Lexicon is “to set at liberty a person arrested or imprisoned on security being taken for his appearance on a day and at a place certain, which security is bail.”
In Blackstone’s5, it has been observed that “the intent of the arrest being only to compel an appearance in Court at the return of the writ, that purpose is equally answered whether the sheriff detains his person or takes sufficient security for his appearance called bail (from the French word Bailler, to deliver) because the defendant is bailed or delivered to his sureties upon their giving security for his appearance.”
Bail using as a noun refers to an amount of money that a person who has been accused of a crime pays to a law court so that they can be released until their trial. The payment is a way of making certain that the person will return to court for trial.
Bail is therefore a privilege granted by the Court to any accused and not a right. Same view was expressed by Thomas M. Cooley in his Treaties on the Constitutional Limitations 1868 where he wrote “but in the case of felonies, the privilege of giving bail before trial was not a matter of right; and in this country, although the practice is much more merciful than it was formerly in England, there are some cases where it is deemed almost a matter of course, and in others where it is discretionary with the magistrate to allow it or not, and where it will sometimes be refused if the proof of guilt is strong or the presumption great.
Capital offences are not generally regarded as bailable; at least after indictment, or when the party is charged upon the finding of a coroner’s jury; and this upon the supposition that one who may be subjected to the terrible punishment that would follow a conviction would not for any mere pecuniary considerations remain to abide the judgment.
Object of bail
The object of bail is to secure the attendance of the accused in the Court on future date and at the time of trial. Bail connotes the process of procuring the release of an accused charged with an offence by ensuring his future attendance in Court. An order of bail gives back the accused freedom of movement on condition that he would appear in Court to take his trial.
The object of the bail is to secure the attendance of the accused at the time of the trial and that the proper test to be applied for the solution of the question whether bail should be granted or not is whether it is probable that the party will appear to take his trial.10 The requirement for bail is merely to secure the attendance of the prisoner for trial that it is the duty of the Court to admit the accused to bail, wherever practical, unless there are strong grounds for supposing that such person would not appear to take the trial.
The provision for bail in a criminal case beginning from the initiation of proceeding upon the conclusion of the trial has been made in Chapter XXXIX of the Code of Criminal Procedure. It is well settled that the basic conception of the word ‘bail’ is release of a person from the custody of police and delivery into the hands of sureties, who undertake to produce him in Court whenever obligated to carry out. At common law, an accused person is said to be admitted to bail when he is freed from the custody of the court officers and placed in the care of individuals known as his sureties. These sureties are required to produce the accused person to answer to the charges against him at a designated time and are subject to forfeiting the amount specified when bail is granted if they fail to do so.
Even though bail is a privilege and a significant right, no condition may be placed before or after (to be completed or carried out) bail unless permitted by law. Bail privileges are unrestricted. There may only be instructions for attendance at a specific time and location because the main goal of bail is to guarantee the accused’s appearance on a given day and at a specific location. It is illegal to grant bail contingent on the fulfillment of the requirements outlined in the bail bond. “On our discussion made above, we are of the view that the Tribunal has no power to impose conditions when it grants bail to an accused person, and even the Tribunal is not competent to accept any of the conditions contrary to provision of law which an accused person may like to submit himself in his prayer for bail,” the High Court Division held in Md. Rafiqul Islam v. The State (2013).
It is our conclusion that any conditions imposed on the bail must be reasonable and able to be met by the applicant for bail as well as his surety without compromising any civil rights of parties. If bail is granted contingent on the suit being withdrawn, the intent behind the grant may be undermined. The contested order in this case, which sought to withdraw the lawsuit in order to obtain bail, is not justified by the law or by the reasonableness standard.
The Supreme Court of India recently reviewed the goals, rationale, and guiding principles of granting bail in the following manner:
“The presumption of innocence is a fundamental tenet of criminal jurisprudence, which states that an individual is presumed innocent until proven guilty. Nonetheless, there are situations in our criminal code where an accused party has been given the burden of proof in reverse for certain offenses; however, this is a separate issue and does not change the basic premise for other offenses. The fact that granting bail is the norm rather than the exception—that is, that someone can be placed in jail, prison, or a correctional facility—is another significant aspect of our criminal jurisprudence. Unfortunately, it seems that some of these fundamental ideas have been forgotten, which has led to an increase in the number of people serving longer sentences in prison. Neither our society nor our criminal jurisprudence benefit from this.
Undoubtedly, the decision to grant or refuse bail is solely within the judge’s discretion when evaluating a case; however, this discretion has been limited by numerous rulings from this Court and all other High Courts across the nation. However, there are times when it becomes necessary to consider whether it is appropriate to deny bail to an accused person given the circumstances and facts of the case.
While being so self-reflective, one of the things that must be taken into account is whether the accused was detained during an investigation when they might have had the best chance to tamper with the evidence or influence witnesses. After a charge sheet is filed, there should be a compelling argument made for the accused person to be placed in judicial custody if the investigating officer determines that an arrest is not required during the course of the investigation.
In a similar vein, it is critical to determine whether the accused was satisfactorily cooperating with the investigation and was not fleeing or failing to appear as required by Crl. Appeal No. 227/2018 (@ S.L.P. (Crl.) No. 151 of 2018) Page 2 of 9. A judge would undoubtedly need to take this into account in a suitable case if the accused is not hiding from the investigating officer or is hiding because of a sincere and articulated fear of being victimized. The accused’s general conduct and the nature of any prior offenses, if any, must also be taken into account by the judge, in addition to whether this is the accused’s first offense. An important consideration is the impoverishment or presumed indigence of the accused, a fact that even Parliament has acknowledged with the addition of an Explanation to Section 436 of the 1973 Code of Criminal Procedure. By adding Section 436A to the 1973 Code of Criminal Procedure, Parliament has demonstrated that it is taking an equally lenient stance toward imprisonment.
In other words, when considering an application to remand a suspect or an accused individual to police custody or judicial custody, a judge must act with compassion. This is due to a number of factors, including the need to uphold an accused person’s dignity regardless of their financial situation, the requirements of Article 21 of the Constitution, and the extreme overcrowding in prisons that results in social unrest and other issues, as this Court noted in Re-Inhuman Conditions in 1382 Prisons. 1 (2017) 10 SCC 658. Crl. Appeal No. 227/2018 (@ S.L.P. (Crl.) No. 151 of 2018). 3rd page out of 96.
The case of Nikesh Tarachand Shah v Union of India provides a clear and comprehensive explanation of the historical background of the bail provision, dating back to the Magna Carta era. The Gurbaksh Singh Sibbia v. State of Punjab case was cited in that ruling, wherein it was noted that the precedent from Nagendra v. King-Emperor stated that bail could not be denied as a form of punishment. Additionally, reference was made to the ruling in Emperor v. Hutchinson, which noted that bail is typically granted and refused cases are the exception. As a result, the bail provision is ancient, and its liberal interpretation dates back to the colonial era, nearly a century. We do not, however, intend to imply that bail should always be granted. The court hearing the case has complete discretion over whether to grant or refuse bail; however, this discretion is unrestricted and must be used wisely, humanely, and compassionately. Furthermore, the terms of the bail award shouldn’t be so onerous that they become unachievable, rendering the bail award fictitious.”
Therefore, granting bail has the effect of releasing the prisoner from custody or jail but rather entrusting him to the care of the law and his sureties, who are obligated to produce him upon the court’s request.16 The ultimate goal is to grant him/her the sacred privilege of liberty through the judicial system and within the bounds of the law. Bail is a type of temporary relief granted while a trial, appeal, or proceeding is pending. The individual granted bail is required to appear in court and accept the outcome of the case. It eventually enables him or her to become a law-abiding accused in due course and not be considered an absconder in the eyes of the law.
What’s Bailable and What’s Not
As previously mentioned, the Code does not define “bail,” but it does classify offenses as “Bailable” or “Non-Bailable.” According to Section 4(b), a “Bailable Offense” is defined as any offense that is listed as such in the “second schedule”17 or that is designated as such by any other law currently in effect. A “Non-Bailable Offence” is defined as any other offense.
As a matter of right, the accused in a bailable offense is entitled to bail.18 When an offence is not subject to bail, the accused is not entitled to request bail. The Court retains complete discretion in determining the appropriate bail amount based on the facts and circumstances of each case. The High Court Division cannot intervene because the offence listed in the FIR is not bailable; even magistrates, lower courts, and tribunal judges are qualified to grant additional bail to those accused of non-bailable offenses in meritorious cases.
In a welfare state, the law pertaining to bails—which is a significant area of procedural law—cannot be considered static. It must balance two opposing demands: the first is the need for society to be protected from the risks of learning about the misadventures of someone who is accused of committing a crime; the second is the core principle of criminal justice, which is the accused’s presumption of innocence until proven guilty.20 Due to the restricted nature of bail, the amount set for each defendant must be determined using criteria that are pertinent to ensuring their appearance in court.
Bail privilege
Bail is a conditional release granted while the case is pending. It’s awarded subject to sureties and a bond. The beneficiary of the bail privilege is not permitted to continue receiving it in the absence of a bail bond. Additionally, the individual is not permitted to abuse the right to bail or refuse to appear in court when the court requests or orders it. If the court is satisfied with the bond that the individual has executed, either on their own behalf or through another party, they will be granted bail and may also receive a specific sum of money.22 The person for whose appearance the bond has been executed will be released as soon as it is executed; if the person is in custody, the court admitting them to bail will issue a release order to the jail’s officer, who will then release the person upon receiving it.23 In the event of misuse, the bail may also be revoked. It is a well-established legal principle that granting bail in a case where the accused is not eligible for bail implies that the accused will not abuse the privilege or break the law while he is free on bond. If an individual freed on bail engages in violent acts of retaliation against the complainant, prosecution witnesses, or law enforcement, their bail may be revoked. However, there must be substantial evidence supporting the claim of bail privilege abuse before canceling bail on these grounds.
Bail as an essential legal right
The argument that bail is a fundamental right of the respondent was made by learned Senior Advocate Rafique-ul Huq in the case of Government of Bangladesh and Others v. Sheikh Hasina and Others. However, the Court responded negatively, noting that it could not find a right comparable to the right to bail anywhere in Part III of the Constitution.
Only Article 32 protects the right to life and personal liberty, saying that no one may be deprived of either without legal justification. If someone commits a crime and the victim files a complaint with a court, the offender’s freedom may be revoked legal justification because the offender violated others’ rights and abused their right to personal liberty. If the offender is imprisoned to ensure that he appears in court to answer to the charge and receive any necessary punishment, this restriction on his freedom will be legal and will not violate Article 32 of the Constitution. According to Sir John Salmond, who defined “right” after Jhering, “right” is a “legally recognized and protected interest.” A legal right is any interest that the law recognizes or upholds, regardless of the type or degree of that recognition or upholding.
A legal right is “nothing but a permission to exercise certain natural powers and upon certain conditions to obtain protection, restitution, or compensation by the aid of the public force,” according to Justice Holmes of the Supreme Court of the United States of America.
“Holmes’ definition narrows down rights to being considered as ‘liberties’ but there are certain other interests which law enables us to enjoy which are on the face of them unlawful but are nevertheless allowable in certain circumstances,” writes A.K. Brohi in his Fundamental Law of Pakistan. Usually, these are referred to as privileges.”
Bail is therefore a privilege granted by the Court to any accused and not a right. The provision of bail is provided in the Code of Criminal Procedure in Sections 496, 497, 498 and 426 thereof and in bailable offences court will grant bail as a matter of course but in non-bailable offences bail is never a right and it is sometime granted in appropriate cases as a privilege.
This Court dealt upon the bail matter in the case of Anti-Corruption Commission vs. Barrister Mir Mohammad Helal Uddin and another and Barrister Nazmul Huda and another,27 and Criminal Appeal No. 65 of 2007 and no further discussion is called for here.”
Bail is not the release from the charge of the case. Bail is more like surrendering thyself before the Court and coming under the process of law with a legal promise (oath, in good way) not to misuse the privilege of bail. Bail as opposite to ‘staying behind the bar’ is something which goes with personal liberty and freedom. Liberty, thus freedom is our fundamental right as guaranteed under Article 32 of the Constitution of the People’s Republic of Bangladesh.
Bail gives the accused to continue with his/her normal life and livelihood until he/she is proved guilty beyond all reasonable doubts. It also gives a good escape to the State as well for not putting an accused behind the bar until the charge against him/her is proved beyond doubt through the microscopic process of trial and delineate examination of witnesses and evidences on record. If an accused needs to stay in jail till the end of trail (which requires a quite time indeed) but later is proved not guilty after trial, it brings total disaster in his/her life, and this kind of loss is literally irreparable. For that reason, during continuation of trial until the accused is proved guilty beyond reasonable doubt, bail is considered positively.
The significance and sweep of Article 2128 make the deprivation of liberty a matter of grave concern and permissible only when the law authorizing it is reasonable, even-handed and geared to the goals of community good and State necessity spelt out in Article 19. Indeed, the considerations I have set out as criteria are germane to the constitutional proposition I have deduced. Reasonableness postulates intelligent care and predicates that deprivation of freedom by refusal of bail is not for punitive purpose but for the bifocal interests of justice to the individual involved and society affected.29
It is well known that while considering the application for bail and in order to ascertain as to whether a prima facie case for bail has been made out or not, the court may take into consideration the nature of accusation, the nature of evidence in support of the same, the severity of punishment to be awarded the conduct and character of the accused. But at the stage of granting an application for bail merits of the case need not be discussed which might adversely affect the case and prejudice the accused.
Bail in an ongoing legal case involving a death penalty-related offense
A few judicial discretion and bail guidelines
As was previously mentioned, the fundamental concepts pertaining to bail are provided by Sections 496 through 498 of the Code. What situations are covered by section 496 when bail is required. Section 496 addresses offenses subject to bail. Naturally, the accused has the unalienable right to bail in the event of a bailable offense, provided that suitable sureties are provided.33 Regarding bail in non-bailable offenses, see Section 497.34 The Court may order admission to bail or a reduction in bail under Section 498. Depending on the kind or severity of the offense, the principles are roughly the same.
However, the impression that crimes covered by bail are of a simpler kind, carrying a lighter sentence and having less of an impact on the community, comes from the Code’s second schedule, which lists some offenses as qualifying for bail. However, there are distinctions when it comes to serious offenses. For example, rape or murder cannot be equated with simple dacoity, extortion, or severe harm. One accidental death during a sudden illness cannot be equated with brutal or serial killings. However, no statute specifically outlines the bail guidelines that the court will adhere to in these circumstances.
That is up to the court’s discretion. It is for the best; otherwise, restricting the court’s ability to use its discretion on a case-by-case basis would be too unfair. However, the judiciary has established a number of guiding principles in its own unique manner, contributing to the development of a significant area of criminal jurisprudence.
However, the question of what the judge’s discretion is in relation to bail is one that is frequently posed. Benjamin Cardozo put it elegantly: “The Judge is not entirely free, even in his state of freedom. He’s not supposed to invent just for fun. He is not a vagrant knight out to fulfill his own ideal of virtue or beauty. His source of inspiration should be devoted principles. He is not to submit to erratic and uncontrolled kindness or spasmodic feelings. He must use discretion that is based on custom, methodized through analogy, disciplined by structure, and yielded to the fundamental need for order in social interactions. Remaining discretion is a field sufficiently broad in conscience. As a result, even though the court has broad authority, it would exercise self-control based on the facts and circumstances of each case.
According to the Supreme Court, “it seems better to me that the Criminal Procedure Code’s Section 497 lays out the law’s policy regarding bail for those accused of crimes for which there is no possibility of bond, and that the same policy should be kept in mind when considering the question of bail under Section 498, Criminal Procedure Code.” After all, the authority granted by Section 498 of the Code cannot be interpreted as entirely arbitrary, and the court must use its discretion when granting bail.37 In no way does Section 498 of the Code of Criminal Procedure broaden the range of individuals to whom bail may be granted under Chapter XXXIX; rather, it is a subsidiary or ancillary provision to Sections 496 and 497.38 This inevitably implies that before the High Court or the Court of Sessions can grant any sort of relief to these individuals, they must first be placed under custody.39 When determining bail under section 498 of the Code, consideration should be given to the Policy of Law regarding bail to individuals accused of non-bailable offenses as outlined in section 497.
When an offence is not subject to bail, the accused is not entitled to bail and the court cannot arbitrarily increase their bond. In these situations, the Court may exercise its discretionary authority with due application of the judicial mind; however, this power should not be used arbitrarily as this could undermine the goals of justice. However, without a judge’s approval, the police are legally permitted to detain anyone who seems to have participated in the commission of the crime and to look into the matter. The police officer conducting the investigation pursuant to section 156(3) is not the magistrate’s delegate, nor is it the magistrate’s or the court’s. Unless it is evident that the case is absurd, the High Court Division lacks the inherent authority to obstruct the use of that authority.Forty
Both identifiable and non-identifiable offenses
Police are able to make an arrest without a warrant in cases of cognizable offenses, but not in cases of non-cognizable offenses.42 But following an arrest, the accused is brought before the court by the police. Upon being produced or making an appearance before the court, the accused may ask for bail.43 In addition, an accused person may request bail by willingly turning themselves in to the court. There are two different ways that this type of surrender can occur: (i) before the trial court or the cognizance court, depending on the case’s status; and (ii) before higher courts, which is also referred to as anticipatory bail. Sections 496 through 498 serve as guidelines for bail in these situations.
Certain authorities have addressed the laws and principles governing the granting of bail under sections 496, 497, and 498 of the Code. In the case of Crown v. Khushi Muhammad,44 it was decided that an individual who has had a report filed at the police station but who has not been arrested, placed under custody, or subjected to any other type of restraint cannot be granted bail. Their Lordships of the Pakistan Supreme Court expanded the application of the Rule established in Crown v. Khushi Muhammad to include the granting of Anticipatory Bail to an individual whose arrest by police is imminent on a criminal charge.
The Pakistan Supreme Court heard arguments regarding the scope of granting bail under sections 496, 497, and 498 of the Code in Muhammad Ayub v. Muhammad Yaqub and State45. “Under section 496 and 497, Criminal Procedure Code, the Court can bail out a person only, if he has been placed under actual custody or appears in answer to a process issued or is brought before the Court, presumably by the police, or by some other arresting authority,” reads the statement made by the Pakistan Supreme Court, which is incorrectly quoted. To put it another way, these sections are applicable when there has been a real arrest that brings the court into question or when the court is directly involved in the proceedings where bail is being sought. But even in cases where the Court is not immediately involved in the proceedings in question and where no arrests have been made yet but anticipatory bail is requested—for example, when the case is still in the police investigation stage or is pending in a subordinate court—Section 498 would be called in aid before the Court of Session and the High Court.
The High Court would thus be the only body with the authority to grant such anticipatory bail, with the Court of Session and other courts falling outside of its purview.
Section 498 is used in cases of regular bail as well as anticipatory bail, including cases involving the death penalty. The judge must keep in mind that the investigation should never be impeded when deciding whether to grant bail because doing so could thwart the administration of justice. That is not acceptable. Additionally, the judge needs to keep in mind that the applicant is being granted a temporary reprieve in a case that appears to have been started more for side purposes than to secure justice. However, in the end, he must appear before the relevant Magistrate’s Court. For this reason, anticipatory bail may be granted in appropriate cases, but only for a very brief amount of time—between two and four weeks, at most—and not for a longer amount of time. It is also important to keep in mind that the earlier he appears before the magistrate, the better. The magistrate would take the appropriate action after hearing from both parties. Any party may always seek justice in a higher forum if they feel wronged. However, the length of such a bail shouldn’t be extended as this could obstruct the investigation.
Our Appellate Division recently held that “No inflexible guidelines or straitjacket formula can be provided for grant or refusal of anticipatory bail.” The division went into great detail about the development of principles in granting anticipatory bail. Since it is impossible to foresee every scenario that may arise in the future that would warrant the granting or rejection of anticipatory bail, no attempt should be made to establish strict and appropriate guidelines in this regard. A few guidelines for anticipatory bail awards can be summed up as follows:
(i) The FIR lodged against the accused needs to be thoroughly and carefully examined; (ii) The gravity of the allegation and the exact role of the accused must be properly comprehended; (iii) The danger of the accused absconding if anticipatory bail is granted; (iv) The character, behavior, means, position and standing of the accused; (v) Whether accusation has been made only with the object of injuring or humiliating the applicant by arresting him. Because it is to be remembered that a worst agony, humiliation and disgrace is attached to arrest. Arrest leads to many consequences not only for the accused but for his entire family and at the same time for the entire community; (vi) A balance has to be struck between two factors, namely, no prejudice should be caused to free, fair and thorough investigation and there should be prevention of harassment, humiliation and unjustified detention of the accused; (vii) The anticipatory bail being an extra ordinary privilege, should be granted only in exceptional cases. Such extraordinary judicial discretion conferred upon the Higher Court has to be properly exercised after proper application of mind to decide whether it is a fit case for granting anticipatory bail not according to whim, caprice or fancy;
(viii) A condition must be imposed that the applicant shall not make any inducement or threat to the witnesses for tampering the evidence of the occurrence;
(ix) The apprehension that the accused is in a position to influence, induce or coerce witnesses to desist from furnishing relevant information to the investigating agency cannot be considered to be imaginary and the court ought to have considered that aspect seriously before granting anticipatory bail;
(x) In the cases involve grave offence like murder, dacoity, robbery, rape etc. where it is necessary to arrest the accused and bring his movements under restraint to infuse confidence among the terror-stricken victims the accused should never be enlarged on anticipatory bail. Such discretion should be exercised with care and circumspection depending upon the facts and circumstances justifying its exercise;
(xi) It is to be borne in mind about the legislative intention for the purpose of granting anticipatory bail because legislature has omitted the provision of Section 497A from the Code; (xii) It would be improper exercise of such extraordinary judicial discretion if an accused is enlarged on anticipatory for a indefinite period which may cause interruption on the way of holding thorough and smooth investigation of the offence committed;
(xiii) The Court must be extremely cautious since such bail to some extent intrudes in the sphere of investigation of crime; (xiv) While enlarging an accused on anticipatory bail, the Court must direct the applicant to co- operate with the investigating officer in every steps of holding proper investigation if the same is needed;
(xv) The anticipatory bail granted by the Court should ordinary be continued not more than 8(eight) weeks and shall not continue after submission of charge sheet, and the same must be in connection with non-bailable offence; (xvi) The Court granting anticipatory bail will be at liberty to cancel the bail if a case for cancellation of bail is otherwise made out by the State or complainant.”4849
In expressing the ratio decidendi in State v Zakaria Pintu, 31 BLD (AD) 20, 62 DLR (AD) 420 the Appellate Division kept no room for deviation from the following essentialities:
i) Assumption of jurisdiction to consider anticipatory bail is an extra-ordinary one.
ii) Discretion of the High Court Division in granting bail, very wide though, must be encompassed by judicial circumspection based on established legal principles, without resorting to arbitrary consideration. iii) The Judges concerned must go through the FIR meticulously and it must be reflected in their order that they have thoroughly scanned the facts and the allegations scripted in the FIR.
iv) Sometimes it is imperative on the part of the Court to refuse pre-arrest-bail when allegations against the petitioners are of serious nature, because the Court must always nurture in their introspection that justice must eventually be done by ensuring punishment for the offenders, as otherwise the fabrics of the civilized society will crumble.
v) The Judges must not be oblivious of the interest of the victims and the society as a whole, for justice connotes even handedness. vi) Anticipatory bail application must be considered in the backdrop of the possibility that investigation process, in consequence of enlarging the accused on bail, may be impeded.
vii) Prevailing situation should not be ignored.
In State v Abdul Wahab Shah Chowdhury,50 ATM Afzal C.J., making it abundantly clear that pre-arrest bail is an extraordinary remedy, an exception to the general law of bail, can be granted only in extra-ordinary and exceptional circumstances upon proper and intelligible exercise of discretion.51 Therefore, there are not many differences in principles applying for grating anticipatory bail or regular bail in cases attracting death penalty or not. Discretion of the court is important which the court exercises judiciously and reasonably. It develops the jurisprudence in the relevant pasture.
Opposition
It is argued by the opponents that if a death penalized convict would escape away in such a manner that he/she cannot be found later by the law enforcing agencies, and then it would create tyranny and spread danger in the society. This argument seems worrying but should have no force in the eye of law. Because, when a convict person gets bail, he furnishes bail bond through the lawyer and tadbirkar, it makes him connected with the process of law and Court on regular basis. More so, we should not think our State and the law enforcing agency so weak and incapable that they would fail to find out a fugitive, or prevent that person from escaping the eyes of law.
Bail as an important right
Bail is an important right of an individual. If there is ground to enlarge the convict-appellant on bail, the person should be enlarged on bail. One should not deprive of it only because he/she is convicted with death penalty or life imprisonment. In appeal, a convict may get released from sentence. If so, neither the State nor the Court can repay his life which he/she had spent behind the bar. Each and every case should be adjudged minutely respecting the particularity of each situation. At least, the Judges should have time and patience for that as people expect. It is justice system which is necessary to be kind and considerate towards people. People have no alternative to Court. Therefore, no principle and practice should grow up or develop blindly which in anyway prejudices the right of the innocent. ‘Let the heaven fall, justice be done’ is to beremembered always. Hope our judiciary will consider this issue. It is a need of time now. Since there is no legal bar to grant bail, therefore it is highly expected that our Courts will exercise their jurisdiction under Section 426 of the Code to grant bail to the convict-appellant sentenced with death penalty or life imprisonment in appropriate case considering the entire facts and circumstances.
This question of taking a step ahead and managing time in serving justice has nicely been asked itself by the Supreme Court of India saying that “we have admitted your appeal because we think you have a prima facie case, but unfortunately we have no time to hear your appeal for quite a few years and, therefore, until we hear your appeal, you must remain in jail, even though you may be innocent?”.
Most tragic part would arise when after long continuation of appeal, if the person wound be found ‘not guilty’. By then golden time of his/her life has been gone which is totally un- returnable. Humans cannot go back to past. No system could ever do that yet. On the other hand, if he would be found guilty, it will nothing better than taking his life away in accordance with law or keeping him in jail for lifetime. If no misuse is found against him, or his behavior could
be observed under regular legal surveillance, the convict should get a chance to enjoy the limited liberty under bail.
It was held that the appellant contends in this application that pending the hearing of the appeal he should be released on bail. Now, the practice in this Court as also in many of the High Courts has been not to release on bail a person who has been sentenced to life imprisonment for an offence under Section 302 of the Indian Penal Code. The question is whether this practice should be departed from and if so, in what circumstances. It is obvious that no practice howsoever sanctified by usage and hallowed by time can be allowed to prevail if it operates to cause injustice. Every practice of the Court must find its ultimate justification in the interest of justice.
The practice not to release on bail a person who has been sentenced to life imprisonment was evolved in the High Courts and in this Court on the basis that once a person has been found guilty and sentenced to life imprisonment, he should not be let loose, so long as his conviction and sentence are not set aside, but the underlying postulate of this practice was that the appeal of such person would be disposed of within a measurable distance of time, so that if he is ultimately found to be innocent, he would not have to remain in jail for an unduly long period. The rationale of this practice can have no application where the Court is not in a position to dispose of the appeal for five or six years.110
It would indeed be a travesty of justice to keep a person in jail for a period of five or six years for an offence which is ultimately found not to have been committed by him. Can the Court ever compensate him for his incarceration which is found to be unjustified? Would it be just at all for the Court to tell a person: “We have admitted your appeal because we think you have a prima facie case, but unfortunately we have no time to hear your appeal for quite a few years and, therefore, until we hear your appeal, you must remain in jail, even though you may be innocent?” What confidence would such administration of justice inspire in the mind of the public? It may quite conceivably happen, and it has in fact happened in a few cases in this Court, that a person may serve out his full term of imprisonment before his appeal is taken up for hearing.
Would a judge not be overwhelmed with a feeling of contrition while acquitting such a person after hearing the appeal? Would it not be an affront to his sense of justice? Of what avail would the acquittal to be such a person who had already served out his term of imprisonment or at any rate a major part of it? It is, therefore, absolutely essential that the practice which this Court has been following in the past must be reconsidered and so long as this Court is not in a position to hear the appeal of an accused within a reasonable period of time, the Court should ordinarily, unless there are cogent grounds for acting otherwise, release the accused on bail in cases where special leave has been granted to the accused to appeal against his conviction and sentence.
It is absolutely undeniable that bail in murder case or any such case attracting death penalty or life imprisonment is not easy as it can be considered in all other cases; because, murder case or such type of heinous crimes have serious social impact. With these kinds of serious nature crimes, not only does the victim and his or her family suffer, but the whole society is made to feel uneasy. It calls into question the social security and legal systems as a whole. However, it is also devastating when an innocent person is punished or faces legal injustice. Between these two opposing viewpoints, bail under the custody of the law serves as a useful transition.
It is helpful to note that the court’s role is magnified and its burden is heavy when citizens are afraid to live peaceful lives and when crimes of this nature impede the development of an orderly society. A thorough examination of the criminal history was necessary. It goes without saying that setting conditions comes after the decision to grant bail to an accused person. The issue of imposing conditions should come after determining whether or not the accused is worthy of an extended bail. We do not dispute for a second that the length of custody is an important consideration, but we also need to consider the totality of the situation and the criminal history. They must be measured against the weight of the general outcry and desire. It is important to consider societal concerns when weighing individual liberties. With regard to the aforementioned criterion, we are inclined to believe that the social concern in the particular case should take precedence over removing the accused’s restriction on their freedom.
It should be kept in mind that a court may take into account a variety of factors when deciding whether to grant bail. To put it all together, though, the goal that a court must consider when considering a bail request is that there should never be a barrier to the fair trial’s advancement.
In conclusion, it can be said that since there is no legal prohibition against granting bail to defendants who have been found guilty and are facing the death penalty, and because bail is a discretionary measure governed by the law and the values established by the judiciary over time, our higher Court may give this matter some thought and consider expanding the boundaries of our criminal jurisprudence. There won’t be anyone to act if the Court doesn’t open its doors. No one can do what the Court can. Our modest attempt with this article is to kindly ask our higher Court to give this matter some serious consideration.