How to open a buying house in Bangladesh

by Tahmidur Remura Wahid | Dec 6, 2022 | 2023, Law

The Bangladesh government has ordered that all garment and textile buying houses in Bangladesh must register with the textile department in order to conduct business. The textiles and jute ministry stated in a gazette notification on May 28, 2023 that registration is required within 60 days. If a buying house requests an extension for valid reasons, it may be granted an additional 60 days. The government will take legal action if registration is not completed on time.

On April 1, 2023 the ministry published a gazette notice outlining the registration process. Many buying houses operate unregulated in the country, and the government has no idea how many companies are involved, according to Bangladesh Garment Buying House Association president Kazi Iftequer Hossain, who spoke to a Dhaka-based English-language daily. According to the association, there are over 1,200 buying houses in the country, with approximately 400 of them being members. Ten buying houses have been registered since April 1st of this year.

In summary, there are three major steps that must be taken in order to establish a Buying House in Bangladesh, which are as follows:

• Establishing a Business in Bangladesh (i.e. Limited Company, Partnership or Proprietorship, Branch office or liaison office)
• Register with the Textile Department (DoT)
• Obtain the necessary licenses and memberships.

Step-by-step instructions for establishing a Buying House

What are the procedures for establishing a buying house in Bangladesh?

Step one: Applying for the Name clearance

To begin, a unique selected name must be approved by Joint Stock Companies and Firms before forming a private limited company (RJSC).

Time:

The certificate is usually delivered within 1 to 2 days.

Cost:

The government fee for Buying house name clearance is currently 230 BDT (3 USD including VAT).

Step 2: Create an MOU and an AOA.

A limited company’s Memorandum of Association (MOA) essentially includes the company’s objectives. You can include as many objectives as you want. The Articles of Association (AOA), on the other hand, are the company’s constitution. An AOA contains all of the rules for how a limited company will operate as well as the company’s Managing Director, Chairman, and so on.

Time for drafting:

We can draft the MOA and AOA within the same day, if we have all the necessary information. Fast and efficient client service is always the priority of Tahmidur Rahman Remura.

Step 3: Open a bank account (for foreign nationals or entities)

When it comes to opening a bank account, there will be a distinction between foreign nationals/entities and Bangladeshi nationals.

• Bank Account Documents Required:
• a photocopy of the certificate of name clearance
• AOA and MOA drafts
• Passport photocopy (application for foreign nationals)
• Following receipt of the aforementioned documents, the bank will open a provisional account in the company’s name.

Time:

In Bangladesh, opening a bank account takes one working day.

Step 4: Deposit your share money (for foreign nationals or entities)

Following the opening of the provisional bank account, a share money deposit will be sent from the foreign shareholder’s country to the provisional account. Following that, the bank will issue an encashment certificate.

Step 5: Registration in RJSC

Following receipt of the encashment certificate, a few documents, including the AOA, MOA, and encashment certificate, as well as all other necessary information, must be submitted to the RJSC. RJSC will generate an invoice to be paid to the recognized bank after receiving all necessary documents and information.

a). Documents needed:

• MOA and AOA
• Certificate of Encashment
• Name, parents’ names, passport number, email ID, and mobile number of directors
• Managing Director’s Name Chairman’s Name
• NID (if Bangladeshi national) (if Bangladeshi national)
• TIN (if Bangladeshi national) (if Bangladeshi national)
• Paid-up capital limit
• authorized capital limit
• All shareholders’ photos (1 copy)
• Signatories to the bank account’s address

b) Document filing fees to RJSC: The registration filing fee is BDT 1200 (one thousand and two hundred taka).

c) The government registration fee is determined by the company’s authorized capital. If the authorized capital is 50 lakh, the government fee is BDT 13570 (thirteen thousand five hundred and seventy takas) or USD 160 (one hundred and sixty takas) plus 15% VAT.

d) Incorporation certificate: After receiving all of the aforementioned documents, RJSC will verify all of the information contained in the AOA and MOA, as well as the encashment certificate, with the bank. After reviewing all of the information, the RJSC will issue an incorporation certificate in the company’s name. The formation of a limited company is complete at this point. However, in order to do business in Bangladesh, a few other requirements must be met.

Step 6: Obtain a Tax Identification Number (TIN) for Buying house in Bangladesh.

Following receipt of the incorporation certificate, you must apply to the National Board of Revenue (NRB) for a tax identification number. Following receipt of the application, a tax certificate in the name of the company will be issued.

Step 7: Obtain a business license for Buying house in Bangladesh.

To obtain a trade license, an application must be submitted to the relevant city corporation. This is necessary in order to conduct business in Bangladesh.
a). Documents:
Along with the application, the following documents must be submitted:
AOA and MOA photocopies
TIN Rental agreement Photo of the company’s managing director or chairman
The nature of the business
b). Time
A trade license usually takes 3–4 working days to obtain.

Step 8: Certificate of Value Added Tax (VAT)

To conduct normal business operations in Bangladesh following the formation of a private limited company, the company must have a unique Business Identification Number (BIN). Companies must therefore have a VAT registration certificate in order to obtain a Business Identification Number. The National Board of Revenue’s Customs, VAT, and Excise Department regulates VAT (NBR). It is free to apply for VAT registration.

a). Documents:

• TIN Import/Export License Certificate Certificate of Registration
• Photos in passport size
• Agreement Deed Bank Solvency Certificate
• Memorandum and Articles of Association for BOI Registration

Every private limited company is required to pay VAT on the 15th (fifteenth) of each month.
To learn how to open a branch office in Bangladesh, click here, and to learn how to open a liaison office, click here.

Register with the Textile Department (DoT).

All buyers’ houses in the country must be registered with the Textile Department. As a result, once a company is formed, it must register with the DoT. The following documents must be submitted to the DoT for registration:

a) Documents and information:

Registration letter to the Director General of the Department of Transportation:

• duly completed the registration form.
• a business license (copy attested)
• Certificate of Income Tax (attested copy)
• Certificate of Incorporation, Memorandum of Association, and AoA
• Annual revenue projections
• Membership certificate from a relevant commercial association (for example, BGBA or BGME) (attested copy)
• The registration fee is payable by bank draft.
• bank’s certificate of solvency

b) Registration fee:

The registration fee is BDT 20,000 (twenty thousand takas only) and must be deposited with the appropriate bank.

c) Form of application:

For your convenience, the application form for registration with the DoT is attached below.

d) Registration Process:

Temporary Registration Certificate: Once the primary and main documents are submitted to the DoT, the authority can issue a temporary registration certificate. However, the temporary certificate’s validity period will be 60 (sixty) days from the date of issue, after which it will expire automatically. As a result, all of the above-mentioned documents must be submitted within 60 (sixty) days. It should be noted that a temporary registration certificate will only be issued once to a purchasing house.

Registration certificate:

Once all of the above-mentioned documents are submitted to the authority within 60 days of the temporary registration certificate’s issuance, the documents will be inspected. Following that, the authority will issue the registration certificate within 60 (sixty) days of receiving all of the documents.

e). Certificate validity:

The registration certificate is good for three years.

f) Registration certificate renewal:

It should be noted that you must apply for registration certificate renewal at least 60 (sixty) days before its expiration date. To apply for renewal, submit an application in the appropriate form along with the required documents to the Director General of the DoT.

The following documents must be submitted for renewal:

• a business license (copy attested)
• Certificate of Income Tax (attested copy)
• Certificate of membership in a relevant commercial association (e.g., BGBA or BGME) (attested copy)
• Export data from the previous year
• For the renewal fee, a bank draft pay order is required.
• Following inspection of the aforementioned documents, the authority will issue a new registration certificate within 30 (thirty) days of receipt. This will be valid for another three years.

g) Renewal Fee

The government fee for renewing a registration certificate is BDT 5,000 (five thousand takas only), which must be deposited at the appropriate bank.

Licenses Required

The following licenses are required :

• Certificate of Export Registration (ERC)
• Certificate of Registration for Import (IRC)
• Chamber of Commerce membership
• BGMEA membership

Process of Running a buying house in Bangladesh:

Are you planning to register a private limited company in Bangladesh?

Company formation and registration at Tahmidur Rahman Remura: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, TRW Law Firm in Bangladesh: The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company in Bangladesh . For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

VAT registration and enlistment in Bangladesh

by Tahmidur Remura Wahid | Nov 26, 2022 | 2023, Law

VAT registration and enlistment in Bangladesh

Every company in the country must have a unique Business Identification Number (BIN). A business must first obtain a VAT registration certificate before applying for a BIN.

The annual turnover of a business determines whether it is required to pay VAT. If a company’s annual turnover is less than 30 lakhs taka, it is not required to pay VAT; however, if the company’s annual turnover is between 30 lakhs 1 taka and 80 lakhs taka, it is required to pay 3% Turnover Tax. All other businesses with an annual turnover of more than 80 lakhs must pay VAT at the 15% rate.

To continue your normal business operations, such as tendering, banking, and export and import, you must apply for VAT registration and obtain a Business Identification Number (BIN).

Obtaining VAT Registration

Applying for VAT registration is free, but you must meet certain requirements to be eligible. To support your application, you must provide the necessary information. This will also help to reduce any potential delays in processing your request.

BIN Eligibility

A BIN is not available to everyone. Although anyone can apply for free, only those who are eligible will receive and keep a BIN.

What you will require for your BIN application

Certain information is required to complete your free BIN application.

Request a BIN

To obtain a BIN, you must be running a business.

Following the application for BIN

If your BIN application is approved, your information is saved in the IVAS (Integrated VAT Administration System) at NBR. If your application is denied, you still have options.

How does the VAT procedure function?−

The VAT procedure functions through accepting input tax credit at every level of supply.  The tax payer, in accordance with the law and relevant rules and through maintaining accounts during every tax period, accepts paid up VAT on purchased input or goods. The VAT chain is maintained through accepting credit at every level of supply and paying Value Added Tax on all value additions.

How is VAT levied?

VAT is levied on taxable imports and supplies. VAT will be levied at a rate of 15% on all imports and supplies, except for goods and services exempt from VAT under the provisions of the law’s First Schedule.

Who is responsible for VAT?

The VAT procedure is an automatic taxing procedure based on input tax credit against supply or sale. The supplier accepts the paid-up VAT on the purchase tax of the goods or service as credit against the VAT included in the price during the supply of such goods or service, and he pays the net amount of VAT. As a result, the seller realizes the VAT from the buyer’s price and deposits the net amount of VAT to the government treasury after taking credit for VAT at the purchase level.

Because VAT is a consumer tax, the consumer must pay the full amount of VAT that applies to goods or services. As an intermediary procedure, at all levels of sale, the producer, supplier, and all shall realize VAT on behalf of the government and deposit it in the government treasury.

When was VAT implemented in Bangladesh?

Bangladesh implemented the Value Added Tax on July 1, 1991. The new VAT legislation will go into effect on July 1, 2017.

Who is the VAT payer?

In the Value Added Tax procedure, the VAT payer is the final consumer of goods or services. At each level of sale, the supplier or seller collects VAT from the purchaser and deposits it in the government treasury. Because the consumer is the last among purchasers, the ultimate liability for VAT falls to the consumer. Only at the point of sale does the supplier or seller deposit the VAT realized to the government treasury.

What are the most recent VAT rates under VAT Procedure 1991?

The standard rate of VAT under the VAT Procedure 1991 is 15%. According to the budget for the previous fiscal year (2015-16), in addition to the standard rate, ten lower rates are in place in the case of some services, namely 1.5%, 2%, 2.5%, 4%, 5%, 5.5%, 6%, 7.5%, 9%, and 10%.

What is the registration threshold for VAT and Turnover Tax?

Under the new VAT procedure, the registration threshold is Taka 8 million, and the enlistment threshold is Taka 3 million.

How will I persuade my business that VAT will be applicable?

If any of the goods or services listed in the First Schedule of the law fall within the scope of your economic activities, no VAT obligation will arise in your business, according to the law.

Furthermore, the annual turnover of your company will determine the applicability of VAT in the business. (See also Question 2.2.) However, you can pay VAT after VAT registration regardless of your business’s annual turnover.

What exactly is tax under the new VAT law?

The new VAT law defines tax as VAT, turnover tax, and supplementary duty, as well as interest, fine, and pecuniary penalty to recover arrears.

What is a VAT consumer’s responsibility?

It is the consumer’s responsibility to take delivery of the purchase invoice from the seller at the time of purchase. Because taking proper delivery of the VAT invoice ensures proper deposit of the VAT included in this invoice to the Government treasury.

What can a buyer do if the seller refuses to issue a VAT invoice?

While it is the seller’s responsibility to issue VAT invoices, it is also the purchaser’s responsibility to properly take delivery of the VAT invoice. If the seller refuses to issue a VAT invoice for any reason, he will notify the seller of this responsibility, because proper delivery of the VAT invoice will ensure proper deposit of the VAT included in the invoice to the Government treasury.

Even if the seller does not wish to issue the VAT invoice, he may bring the matter to the attention of the VAT authority, either online or by informing the nearest VAT authority.

What exactly is registration or enlistment?

Any importer, exporter, or taxable supplier must participate in the VAT procedure under the Value Added Tax procedure. This involvement with the VAT procedure occurs through registration or enlistment. He must comply with the VAT law by obtaining a Business Identification Number in the manner prescribed by the VAT law. And, according to VAT law, obtaining a Business Identification Number in the prescribed manner is referred to as registration or enlistment.

When must I take Registration or Enlistment?

When the turnover of economic activities exceeds Taka 8 million in a 12 (twelve) month period, registration is required, and enlistment is required when the turnover of economic activities exceeds Taka 3 million in a 12 (twelve) month period. You must register or enlist within 15 (fifteen) days of becoming eligible for registration or enlistment. Registration or enlistment will take effect on the first of the month following.

What is the meaning of a Business Identification Number (BIN)?

A business identification number is a number assigned to an individual based on the value of his economic activities. The nature and activities of the individual’s economic activities cannot be determined by this identification number. A tax payer can be identified by a specific number of 9 digits. This number can be obtained from the NBR’s website to determine a tax payer’s state of business affairs.

How do I obtain a BIN?

If the annual turnover of my economic activities exceeds the prescribed limit, an application in Form- VAT 2.1 must be submitted to the Commissioner. Within three working days of proper scrutiny and examination, a Registration Certificate/ Turnover Tax Enlistment Certificate in Form- VAT 2.1 containing a BIN from the VAT system will be issued in my favor.

What exactly is a VAT Certificate of Honour?

VAT Certificate of Honour is a letter of recognition issued by the VAT Online System to a tax payer in VAT Form-18.5 after he submits VAT or Turnover Tax returns for all Tax Periods during the relevant one year.

What are the benefits of a Certificate of Honour?

Any individual may benefit from the following benefits by obtaining a Certificate of Honour under VAT law, for example:

• Import Registration Certificate and Export Registration Certificate Renewal
• Providing to a Withholding Entity
• Taking part in any tender.
• Enrolling in any organization.
• Bond Licence Renewal
• Bank loan sanction/renewal
• Registration of real estate, etc.
• Furthermore, under the Taxpayer Motivation Programme, various social benefits, such as- Discounts in various hospitals, hotels, restaurants, super markets, branded stores, air tickets, and so on; and Priority in having various services, etc.

How should I calculate Annual Turnover in my business?

You will calculate annual Turnover in your business by adding the total amount of money received from goods manufactured at, imported to, or purchased by your business concern during the previous 12 (twelve) months.

Method of calculating annual business turnover in the event of registration:

In the case of a business, calculate turnover over the last 12 months beginning on the last day of the previous month (tax period).
Assuming that January 2017 is the current month, turnover should be calculated from 31 December 2016, the last day of the preceding month, for a period of the last 12 months, i.e., from 1 January 2016 to 31 December 2016.

In the case of a new business:

(a) estimating net turnover for the next 12 months beginning on the first day of the preceding month based on actual turnover (tax period).
That is, in order to register my entirely new business, I will compute the net turnover for the next 12 months beginning on the first day of the previous month.

Assume you are going to start a new business in the month of January 2017. At this point, calculating from the first day of the preceding month, 1 December 2016, turnover should be determined for the next 12 months, i.e., from 1 December 2016 to 30 November 2017.

(b) on the basis of estimated turnover, if the person liable to be registered expects to cross the registration threshold, estimating net turnover for the next 12 months beginning on the first day of the month (tax period) in which he will examine the probability of his registration, he must obtain VAT registration.

What are the advantages of having a BIN?

A businessman’s legal validity of business is established through the BIN. You can avail the following advantages:

• All import- export activities except baggage import.
• Registration of land or building in the name of the person registered or enlisted.
  Obtaining Import Registration Certificate or Export Registration Certificate.
  Supplying to any Withholding Entity.
• Participating in any tender.
• Enlisting with any organization.
• Obtaining Bond Licence.
• Sanction of Bank loan in favour of a registered or enlisted person.
  
  

Where to submit application for registration or enlistment?−

Application for registration or enlistment shall have to be submitted at the following places:

• Web Portal of Online Board.
• Central Information Processing Centre run by the Board.
• Any Customs, Excise and VAT Commissionerate or Departmental Office, which may be
  convenient for the applicant.
• Any service centre specified by the Board or the concerned Commissioner.
• Any fair conducted by the Board or the concerned Commissioner.
• Any other place ordered by the Board or the concerned Commissioner.

What are the Forms concerned with Registration or Enlistment?−

The Forms concerned with Registration or Enlistment are as follows:

How do I get registered or enrolled?

You must apply to the concerned commissioner for registration or enlistment using form VAT 2.1 for registration or enlistment.

Following verification of documents and information, the commissioner shall enlist or register you within 3 (three) working days and issue you a Business Identification Number in accordance with VAT 2.3. The registration certificate can be obtained online or in hard copy from the VAT Online help center.

My company has several branches. I’ve been running a business and should I be obtaining separate BINs for each of the branches?

According to Section 5 of the Value Added Tax and Supplementary Duty Act of 2012, there is no need for separate registration for each branch of the same company; business operations can be managed with a single registration.

Is it possible for the Commissioner to register or enlist me on his own?

If the Commissioner determines that you are eligible for registration after proper verification, he may register or enlist you on his own.

Is it necessary to obtain registration or enlistment for economic activities that are exempt under the purview of…

Exempted economic activities do not necessitate registration or enlistment.

Can I obtain voluntary registration even if I operate a business in an exempted economic zone?

You certainly can.

How can I change the information I gave during registration or enlistment?

If you want to change any of the information provided during registration or enlistment, you can do so yourself, but the Commissioner must be notified online via the VAT-2.6 Form within 15 (fifteen) days of the change.

How do I move the address of my business from one location to another?

You can change the location of your business by submitting an application to the Commissioner in VAT-2.7 Form 15 (fifteen) days before the transfer, subject to justification.

What documents are required for registration or enlistment?

There will be no documents required to be submitted during registration or enlistment. VAT registration or enlistment applications must be submitted in VAT-2.1 Form.

Is registration possible in any residential area?

The VAT law imposes no geographical restrictions on registration. Under the new procedure, no Trade Licence or similar document is required for registration. Postal Codes will be used to determine registration. As a result, registration can be obtained from any location in Bangladesh.

Is it possible to switch from Enlistment to Registration or from Registration to Enlistment?

You certainly can. You can change from Enlistment to Registration based on the Annual Turnover threshold, i.e. if the enlisted Annual Turnover threshold exceeds Taka 8 million. You can also switch from Registration to Enlistment if the registered business’s annual turnover exceeds Taka 3 million but is less than Taka 8 million.

How do I cancel my Registration or Enlistment?

In the event that your business’s registration or enlistment is revoked, you may apply to the Commissioner using the VAT-2.4 Form. If the Commissioner considers reasonable, causes for revocation of registration after suspending registration or enlistment for the time being, he shall direct the provision of a final return within 15(fifteen) days. The Commissioner shall revoke registration or enlistment within 15 (fifteen) days of receiving the final return, subject to proper receipt of information.

What are the differences between provisions in the old and the new law in respect of VAT registration and enlistment in Bangladesh?

The differences between provisions in the old and the new law in respect of registration and enlistment are as follows:

What is the method of online application for VAT registration and enlistment?

You can apply for online registration in accordance with the following methods:

Step-1:  At first visit www.nbr.gov.bd . Select Online VAT Registration option. You reach VAT Online Portal.

Step-2:  Create first, User ID and Password there in the name of the individual liable to be registered or enlisted.

Step-3:   Enter into the VAT Online System using the User ID and Password and after selecting Registration option, submit VAT- 2.1 Form, duly filled in. 

Step-4:  If the submission is correct, VAT Registration Certificate or Turnover Tax Enlistment Certificate will be created. You will get that from the System. That will also be sent to your email.

NB:  Before furnishing any online application, please go through the relevant practical guide from the website of the NBR. Moreover, you can train yourself from www.nbrelearning.gov.bd in order to learn more in details including watching relevant video films.

Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?

Get your tax and vat sorted out (a/c current Tax rate in Bangladesh) with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in doing taxes as per the current Tax rate in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

VAT agent in Bangladesh

by Tahmidur Remura Wahid | Nov 26, 2022 | 2023, Law

When and why is a VAT agent required in Bangladesh?

A non-resident entity that conducts business in Bangladesh but does not have a fixed place of business must appoint a VAT Agent in Bangladesh, according to the Value Added Tax and Supplementary Duty Act, 2012, and the Value Added Tax and Supplementary Duty Rules, 2016, which take effect on July 1, 2017. The VAT Agent will be the person authorized to act on the Business entity’s behalf.

The VAT agent will be the person authorized to represent the non-resident to the VAT authorities.

How Will A VAT Agent Work in Bangladesh?

On behalf of the non-resident, the VAT Agent must obtain a VAT Agent certificate, which is typically valid for three years. The certificate can be renewed using an application before it expires.

After nominating a VAT agent, the non-resident must notify the National Board of Revenue, and the National Board of Revenue must contact the VAT agent to obtain his consent.

Such VAT Agent of a non-resident shall bear all responsibilities and carry out all activities of the non-resident, and shall be jointly and severally liable for the payment of all dues, including taxes, fines, penalties, and interest.

Nonetheless, a VAT Agent must register economic activities for VAT in the name of the principal.

VAT Agent in Bangladesh

Tahmidur Rahman Remura Wahid Associates law Firm is a group of professionals that includes Chartered Accountants registered with the Institute of Chartered Accountants of Bangladesh, Cost and Management Accountants registered with the Institute of Cost and Management Accountants of Bangladesh, and lawyers registered with the Bangladesh Bar Council.

Our professionals are qualified to act as VAT agents for non-resident entities in Bangladesh, and they have the necessary experience dealing with VAT authorities regarding VAT return submission, obtaining VAT exemption, input/output tax credit, VAT Audit, and VAT registration.

What exactly is VAT?

VAT, or Value Added Tax, is an indirect tax paid by the consumer through a registered person. VAT on a specific good or service is calculated by adding the actual level of value of the said good or service and adjusting the input tax payable against the supplied goods or service.

If a good is purchased for Taka 1000 and sold for Taka 1500, an amount of Taka 130.43 is included as VAT for the purchase of Taka 1000 (Calculation: 1000×15/115); similarly, a VAT amount of Taka 195.65 is included if the good is sold for Taka 1500. (Do the math: 1500×15/115.)

Actual addition will be Taka 500 if the goods is sold at Taka 1500 and as the seller had paid the price of the goods during purchase inclusive of the VAT, he will pay the VAT at the actual level of addition at the stage of sale, that is on Taka 500, taking back the VAT paid by him at the stage of purchase.
Payable VAT on Taka 1500- Taka 195.65
VAT included in Taka 1000- Taka 130.43

Net payable VAT on Taka 500- Taka 65.22 (Calculation: 500×15/115)
Method of calculation by seller- = (1500×15/115) – (1000×15/115)
=195.65-130.43
=65.22 Taka

How does the VAT procedure function?−

The VAT procedure functions through accepting input tax credit at every level of supply.  The tax payer, in accordance with the law and relevant rules and through maintaining accounts during every tax period, accepts paid up VAT on purchased input or goods. The VAT chain is maintained through accepting credit at every level of supply and paying Value Added Tax on all value additions.

What are the Forms concerned with Registration or Enlistment?−

The Forms concerned with Registration or Enlistment are as follows:

What are the differences between provisions in the old and the new law in respect of The Value Added Tax and Supplementary Duty Act 2012 and The Value Added Tax Act 1991?

The differences between provisions in the old and the new law in respect of registration and enlistment are as follows:

What is the online application procedure?

You can apply for online registration using the following methods:

Step 1: Go to www.nbr.gov.bd .

Select the option for Online VAT Registration. You have arrived at the VAT Online Portal.

Step 2: First, create a User ID and Password in the name of the person who will be registered or enlisted.

Step 3: Log in to the VAT Online System with your User ID and Password and, after selecting the Registration option, submit the completed VAT-2.1 Form.

Step 4: If the submission is valid, a VAT Registration Certificate or Turnover Tax Enlistment Certificate will be issued. That will be provided by the System. This will also be sent to your email address.

NB: Before submitting any online application, please read the relevant practical guide from the NBR’s website. Furthermore, you can train yourself from www.nbrelearning.gov.bd to learn more in depth, including by watching relevant video films.

Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?

Get your tax and vat sorted out (a/c current Tax rate in Bangladesh) with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in doing taxes as per the current Tax rate in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

Warisan and Succession Certificate in Bangladesh

by Tahmidur Remura Wahid | Nov 23, 2022 | 2023, Law

Warisan and Succession Certificate in Bangladesh

Warisan and Succession Certificate in Bangladesh is a vital document used to identify the heirs or successors of a deceased person. The Warisan Certificate is issued by the Ward Councilor’s Office in the City Corporation area, the Ward Commission’s Office in the Pourashava area, or the Union Parishad Chairman’s Office in the Union Parishad area.

The Succession Certificate, on the other hand, can only be granted by the Court under Section 371 of the Succession Act, 1925. In this article, we will look at how to obtain a Warisan Certificate and a Succession Certificate from the appropriate authorities in Bangladesh.

Before we get into the details, here is a table outlining the steps involved in obtaining a Warisan (inheritance) and Succession Certificate in Bangladesh:

Please note that this is a general overview of the process and may vary depending on the specific circumstances of your case. It is advisable to seek legal and professional guidance to ensure that all necessary steps are taken and all necessary documents are properly completed and filed.

WHO CAN MAKE A CLAIM?

Anyone among the heirs can file an inheritance right appeal with the court using a lawyer. The District Judge Court or someone nominated by the District Judge Court exempts a succession case.

The Third Joint District Judge Court in Dhaka has been given jurisdiction over succession certificate matters. As a result, if the property is located within Dhaka, a succession certificate case must be filed in the Third Joint District Judge Court.

The application must be accompanied by an affidavit stating:

Relationship with the deceased:

Confirmation that the deceased’s money was not donated or bequeathed to anyone; confirmation that no probate or letter of administration was filed for the will; and confirmation that he was given the authority to withdraw money by other heirs.
A detailed accounting of the deceased person’s assets should also be provided.

After filing an application with the court, the court will take the applicant’s statement at the appointed time and verify the veracity of all the information. At this point, the court sends a notice to the deceased’s relatives to see if they have any claims or objections. If anyone has an objection, it must be submitted at this time. If no objections are raised, the court issues a certificate of success on the applicant’s behalf.

HOW MUCH MONEY DO YOU NEED TO SPEND?

The court fee must be paid if the court grants the application for the succession certificate after the case is filed. The court fee is calculated based on the amount of money the applicant wishes to withdraw from the bank.

There is no court fee if the amount claimed is less than Tk 20,000. However, from Tk 20,000 to Tk 1,00,000, a 1% court fee is required. A 2% court fee, on the other hand, must be paid on any amount greater than Tk 1,00,001. The certificate is issued by the court within the time frame specified after the court fee is paid.

WHAT EXACTLY IS A WARISAN CERTIFICATE?

It is a certificate that contains the list of heirs of a deceased person and is printed on the letterhead pad of the Ward Councilor’s Office in the City Corporation area, the Ward Commission’s Office in the Pourashava area, or the Union Parishad Chairman’s Office in the Union Parishad area. Unless cancelled by the proper authority, this certificate is evidence of the deceased person’s heirs.

WHAT EXACTLY IS A SUCCESSION CERTIFICATE?

It is a certificate that confirms the proportion of the share of property, specifically deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, and so on, and it must be granted by the appropriate court.

According to Section 371 of the Succession Act 1925, the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if he had no fixed place of residence at the time of his death, the District Judge within whose jurisdiction any part of the deceased’s property may be found, may grant a certificate.

WHY IS A WARISAN CERTIFICATE REQUIRED?

It is required for the division and distribution of immovable property among the deceased person’s heirs. Furthermore, this document is required for a variety of purposes and government offices, such as the AC Land and Sub-Registry Office for the completion of land mutation and transfer.

WHY IS A SUCCESS CERTIFICATE REQUIRED?

It is necessary, where the deceased person has left some immovable property, such as deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, etc., for the court to issue an order under Section 372 of the Succession Act, 1925 to establish the ownership of the deceased person’s legal heirs.

The bank and other government offices require this certificate in order to transfer ownership of these immovable properties.

WHERE CAN I GET A WARISAN CERTIFICATE?

Step 1- Required documents:

Photographs (passport size) of the applicant and heirs, NIDs of the applicant and heirs, Applicant’s parents’ names, Applicant’s current address, Applicant’s permanent address, NID of the deceased person, and Death Certificate of the deceased person.

Step 2: Complete the application form.

If the deceased person ordinarily resided within the city corporation area at the time of his death, the application form can be found in the Ward Councilor’s Office. This form is also available online for Dhaka North City Corporation (click here) and Dhaka South City Corporation (click here).

If the deceased person ordinarily resided in the Pourashava area at the time of his death, the application form can be found in the Ward Commission’s Office.

If the deceased person ordinarily resided within the Union Parishad area at the time of his death, the application form can be found in the Union Parishad Chairman’s Office.

It is worth noting that this Warisan Certificate is now available through a full-fledged online process by clicking here. The online process for obtaining the Warisan Certificate is simple and quick, with no unnecessary complications.

This online process, however, is not available to all city corporations, Pourashava, or Union Parishad, and this information can also be found by clicking the above-mentioned link.

Step 3: Application Submission

The completed application form, as well as the above-mentioned documents, must be submitted to the appropriate authority.

Requisition of security from grantee of certificate

(1) The District Judge shall in any case in which he proposes to proceed under sub-section (3) or sub-section (4) of section 373, and may, in any other case, require, as a condition precedent to the granting of a certificate, that the person to whom he proposes to make the grant shall give to the Judge a bond with one or more surety or sureties, or other sufficient security, for rendering an account of debts and securities received by him and for indemnity of person who may be entitled to the whole or any part of those debts and securities.

(2) The Judge may, on application made by petition and on cause shown to his satisfaction, and upon such terms as to security, or providing that the money received be paid into Court, or otherwise, as he thinks fit, assign the bond or other security to some proper person, and that person shall thereupon be entitled to sue thereon in his own name as if it had been originally given to him instead of to the Judge of the Court, and to recover, as trustee for all persons interested, such amount as may be recoverable thereunder. 

Extension of certificate

(1) A District Judge may, on the application of the holder of a certificate under this Part, extend the certificate to any debt or security not originally specified therein, and every such extension shall have the same effect as if the debt or security to which the certificate is extended had been originally specified therein.

(2) Upon the extension of a certificate, powers with respect to the receiving of interest or dividends on, or the negotiation or transfer of, any security to which the certificate has been extended may be conferred, and a bond or further bond or other security for the purposes mentioned in section 375 may be required, in the same manner as upon the original grant of a certificate. 

Forms of certificate and extended certificate

Certificates shall be granted and extensions of certificates shall be made, as nearly as circumstances admit, in the forms set forth in Schedule VIII. 

Amendment of certificate in respect of powers as to securities

378. Where a District Judge has not conferred on the holder of a certificate any power with respect to a security specified in the certificate, or has only empowered him to receive interest or dividends on, or to negotiate or transfer, the security, the Judge may, on application made by petition and on cause shown to his satisfaction, amend the certificate by conferring any of the powers mentioned in section 374 or by substituting any one for any other of those powers.

HOW TO OBTAIN A SUCCESS CERTIFICATE:

Step 1- Documents required:

Photographs (passport size) of the applicant and heirs, NIDs of the applicant and heirs, Warisan Certificate, and Death Certificate of the deceased person

Step 2- Application Preparation:

According to Section 372 of the Succession Act of 1925, the applicant will prepare an application, verify and sign it, and submit it to the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if he had no fixed place of residence at the time of his death, the District Judge within whose jurisdiction any part of the deceased’s property may be found after paying the appropriate court fees.

Step 3: Court Proceedings:

The appropriate Court will begin the proceedings by holding a preliminary hearing on the application and determining whether or not the application is admissible.

Following the preliminary hearing, the Judge will set a date for the final hearing and send notice of the hearing to whomever the Judge deems appropriate.

After the final hearing, if the Judge determines that the applicant has the right to the certificate, the Judge shall issue an order granting the certificate to the applicant.

If the Judge cannot decide the right to the certificate without deciding questions of law or fact that appear to be too intricate and difficult to resolve in a summary proceeding, he may still grant a certificate to the applicant if he appears to be the person with the best prima facie title to it.

Step 4: Certificate Contents:

When the District Judge grants a certificate, he must specify the debts and securities specified in the application for the certificate, and may thus empower the person to whom the certificate is granted to (a) receive interest or dividends on, (b) negotiate or transfer, or (c) both receive interest or dividends on and negotiate or transfer the securities or any of them.

Time Period:

Warisan Certificate:

Around 15 days to 30 days are required for the issuance of the Warisan Certificate.

Succession Certificate:

Firstly, a newspaper notice for a span of 45 days is issued by the court. If any individuals have any kind of objections towards the particular advertisement then they have a chance to file an opposition in the court. When the objections are received by the court it might take time for the issuance of the succession certificate till all of them are cleared.

If the court doesn’t receive any kind of objections from anyone ten the succession certificate is issued immediately.

Here are five frequently asked questions about Warisan (inheritance) and Succession Certificates in Bangladesh:

1. What is a Warisan and Succession Certificate?
   
   A Warisan and Succession Certificate is a legal document issued by a court in Bangladesh that establishes the legal heirs of a deceased person and their rights to the deceased’s property.
   
2. Who is eligible to apply for a Warisan and Succession Certificate?
   
   Any legal heirs of the deceased person, including their spouse, children, and parents, may apply for a Warisan and Succession Certificate.
3. What documents are required to apply for a Warisan and Succession Certificate?
   
   To apply for a Warisan and Succession Certificate, you will need to provide copies of the death certificate of the deceased person, the national identification card (NID) of the deceased, and any relevant deeds, wills, or other documents related to the deceased’s property. You may also need to obtain an affidavit stating that the deceased did not leave any will or any other legal document regarding the distribution of their property.
   
4. How do I apply for a Warisan and Succession Certificate?
   
   To apply for a Warisan and Succession Certificate, you will need to file a petition with the appropriate court and provide all necessary documents and information, including the death certificate, NID, affidavit, and any other relevant documents. You may also need to attend any hearings or provide any additional information that may be required by the court.
5. What happens if there is a dispute over the Warisan and Succession Certificate?
   
   If there is a dispute over the Warisan and Succession Certificate, the court will resolve the dispute based on the evidence and arguments presented by the parties involved. It is advisable to seek legal and professional guidance if you are involved in a dispute over a Warisan and Succession Certificate.

Are you intending to get a Warisan and Succession Certificate in Bangladesh?

Get yourWarisan and Succession Certificate in Bangladesh with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to Warisan and Succession Certificate in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165 or +8801708080817

Address: House 410, Road 29, Mohakhali DOHS

PI Visa for foreign investor in Bangladesh

by Tahmidur Remura Wahid | Nov 22, 2022 | 2023, Law

PI Visa for foreign investor in Bangladesh

• In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA.

• BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA.

• VoAs may be converted to E2, E3, and PI visa types upon submission of all necessary documentation. E2, E3, and PI visa eligibility under the revised VISA Policy 2019 (effective July 2021):

PI (private investor) VISA: for foreign investors investing in industrial/commercial establishments under 100 percent foreign ownership or joint venture in the private sector.

E2 VISA:

for I expatriates working in national/international/ government/ semi-government/ autonomous/ private industrial/ commercial organizations/ branch/liaison/ representative office and ii) expatriates working under contractor including EPC contractor/ sub-contract or in projects of the government/ semi-government/ autonomous bodies of Bangladesh.

E3 VISA:

for foreign nationals engaged in machinery and software installation, maintenance supervision, or project inspection.

Basic requirements for Bangladeshi work permit and visa procedure for PI and E visas:

REQUIREMENTS FOR INVESTOR VISA (PI) VISA

Who are eligible

Foreign capital investor

Arrival / travel purpose 

Conducting Investment / business / Commercial organization.

Essential Documents to issue

All documents for Tourist Visa.

Recommendation of Bangladesh Investment Development Authority (BIDA)/Bangladesh Export Processing Zone Authority (BEPZA) declaring that the applicant is a genuine investor.

Essential Documents to extend

Security clearance; request from concerned organization/ institution and recommendation of BIDA/BEPZA declaring that investment of the relevant applicant is existing on.  

• Include authorization letter for liaison office;
• Provide MoA and AoA as well as incorporation Copies of Private Limited (LLC) or Joint Venture firms;
• Provide a consent letter from the board of directors that includes compensation and title on the letterhead.
• Send passports and photographs of the directors in color;
• Do not forget to attach the employee’s service contract or engagement letter;
• All academic certificate and experience letter copies must also be attached;
• A wholly-owned limited liability company or a joint venture must advertise in the newspaper in order to hire personnel.
• Do not forget to provide a copy of business activities that is written on letterhead and signed by the country manager.
• Personnel listing with organogram (hierarchy) on letterhead;
• Attach only the income tax for branch offices;
• There is no place for newspaper advertisements in the liaison office;
• Application must be accompanied by a Trade License, VAT, Export and Import letter (if applicable), and an encashment certificate for fifty thousand (fifty thousand) US dollars;
• Ensure that all newsprint and copies are attested by the company’s owner (director) or chief executive officer;
• A branch, representative, or liaison office is not required to provide a trade license, export and import documents, or a VAT certificate;
• Only include form 18 B from Bangladesh bank for branch offices that are open.
• Contact BOI (Old), BIDA, or our law firm to collaborate;
• Collect form from BOI (Old), BIDA, or our office; attach it to a cover letter addressed to the chairman or director of BOI (OLD) or BIDA.
  
  

General Requirements for all Categories:

1. Filled-in online application Form

2. Photographs (Size 45x35mm and recent one); 02 copies (Photo is mandatory with white background )

3. Valid Passport

4. Payment receipt of Visa fee (No fee is required for Indian citizen). For countries (other than India) Visa fee is applicable.

5. Old Passport required if any

While filling in online, we suggest that you have the following information on hand-

1. Valid Passport

2. 45x35mm digital photo in jpeg format, maximum size is 300kb

3. Address in Bangladesh (should consist details of Village, Post Office, Police Station, District, Pincode, City and Country)

4. Email Address

PI-visa recommendation:

Are you intending to get a PI Visa as a foreign investor in Bangladesh?

Get your PI Visa for foreign investor in Bangladesh with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to PI Visa for foreign investor in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165 or +8801708080817

Address: House 410, Road 29, Mohakhali DOHS