Tahmidur Remura Wahid logo 2025_Best Corporate law firm in Bangladesh

Contact No:

+8801708000660
+8801847220062
+8801708080817

Global Law Firm in Bangladesh.

Locations

Dhaka:  House 410, Road 29, Mohakhali DOHS
Dubai:
 Rolex Building, L-12 Sheikh Zayed Road
London:
330 High Holborn, London, WC1V 7QH

Employment termination law under the Labour Act 2006

Employment termination law under the Labour Act 2006

Employment termination law under the Labour Act 2006:

In Bangladesh, either the employer or the worker may terminate an employee’s employment. There are multiple ways in which it can take effect. In sections (20-31) of the Labor Act of 2006, the procedure for terminating an employee’s employment is outlined in detail.

Employment termination law in Bangladesh

Causes for dismissal:

May an employer terminate an employee for any reason, or is “cause” required? How does the applicable statute or regulation define cause?

In accordance with sections 23 and 24 of the Labour Act, an employer may terminate an employee who has been convicted of a criminal offense or found guilty of misconduct.

In addition, under section 26, an employee may be terminated without cause by providing the prescribed notice or pay in lieu. Under section 20, a worker may be terminated due to redundancy. In addition, according to section 22, a worker may be let go for reasons of physical or mental incapacity or ongoing ill-health certified by a registered medical practitioner.

Notice : Must termination be communicated prior to dismissal under Employment termination law? May an employer substitute pay for notice?

According to section 23 of the Labour Act, a worker may be terminated (for insubordination or a criminal offense) without notice or pay in lieu of notice. A permanent worker must be given 120 days’ notice for termination under section 26, whereas a temporary worker must be given 30 days’ notice (if he or she is a monthly rated worker) and 14 days’ notice (if he or she is an hourly rated worker) for termination under section 26. (for other workers).

The employer may, however, terminate any employee without notice by paying wages in lieu of notice. If the employee has been continuously employed for at least one year, they are entitled to one month’s notice or wages in lieu of notice. For dismissal, no prior notice is necessary.

In what situations may an employer terminate an employee without notice or payment in lieu thereof?

An employer may terminate an employee without notice or payment in lieu of notice if the employee has been convicted of a felony or found guilty of misconduct.

Separation pay:


Exists legislation establishing the right to severance pay upon employment termination? How is separation pay computed?

If an employee is fired for theft, misappropriation, fraud, or dishonesty in connection with the employer’s business or property, or for disorderliness, riot, arson, or property damage in the workplace, he or she is not entitled to severance pay.

In accordance with subsection 23(3) of the Labour Act, if a worker with at least one year of continuous service is removed under extenuating circumstances rather than being terminated for criminal conduct or misconduct, he or she is entitled to 15 days’ wages for each completed year of service. Nevertheless, a terminated employee is entitled to other benefits under the Labour Act, as applicable (such as provident fund, workers’ profit participation fund, and welfare fund).

If a permanent worker’s employment is terminated pursuant to section 26 of the Labour Act, he or she is entitled to 30 days’ wages for each completed year of service or gratuity (if any), whichever is greater, in addition to any other benefit payable under the Labour Act, as applicable (such as provident fund, etc.).

Under section 20(2)(c) of the Labour Act, a worker who has been in continuous service for at least one year is entitled to 30 days’ wages for each year of service or gratuity, whichever is greater. In addition, he or she will be entitled to any other benefits payable under the Labour Act (such as provident fund, etc).

Section 22(2) of the Labour Act stipulates that a worker who has been in continuous service for at least one year is entitled to 30 days’ wages for every year of service or gratuity (if any), whichever is greater. In addition, he or she is entitled to any other benefits payable under the Labour Act (such as provident fund, etc).

Redundancy:

According to Section 20 of the Act, any employee may be terminated from the company in the event of redundancy. A worker who has been employed by the company for at least one year must be given thirty days’ notice prior to termination. In addition, the worker is entitled to compensation equal to 30 days of wages for each year of service completed.

In accordance with section 21, if a worker is laid off and the employer intends to hire a new worker within a year, the employer must send a notice to the retrenched worker’s last known address inviting him to apply for re-employment. If more than one retrenched employee is available, seniority in the previous service shall be given preference.

Released due to medical inability:

A worker may be discharged from service under section 22 for physical or mental incapacity, as certified by a licensed physician. If a worker has completed one year of continuous service, his employer must compensate him with 30 days’ wages for each completed year of service.

Dismissal due to misconduct:

Section 23 discusses the penalties for infractions and convictions. A worker is punished for his or her misconduct and conviction. A worker may be subject to retrenchment, discharge, or termination of service without notice or pay in lieu of notice if he is found guilty of misconduct or committing a crime.

A worker found guilty of misconduct may receive a sanction other than dismissal, such as:

  • Removal
  • Demotion to a lower rank.
  • Stoppage of promotion for a maximum of one year and withholding of increment for a maximum of seven days.
  • Warning\ fine


The Act constitutes misconduct, specifically:

  • Wilful disobedience to any lawful order from a superior, whether committed alone or in conjunction with others.
  • Theft, deceit, and dishonesty
  • Persistent absence without leave or permission to be absent, absences exceeding ten days.
  • Habitual late attendance.
  • Consistent violation of any law, rule, or regulation.
  • Workplace negligence on a regular basis.
  • Altering, tampering with, damaging, or destroying an employer’s official records.
  • If an employee who was terminated is exonerated on appeal, he must be reinstated to his original position or appointed to a suitable position. If neither option is feasible, he will be compensated.

In the event of an allegation of misconduct, a committee must investigate the matter, and the employee in question must be shown cause and given the opportunity to defend himself. It should be noted that a worker can be terminated without prior notice in the event of a criminal conviction or misconduct.

Methods of punishment:

According to section 24, no order of punishment may be issued against a worker unless the allegation against him is made in writing, he is given a copy of the allegation and at least seven days to respond, and he is afforded the opportunity to be heard. No order of punishment shall be issued against a worker unless the worker is found guilty after an investigation conducted by a committee comprised of employer and worker representatives and concluded within sixty days. If no disciplinary action is taken against an employee, the employer or manager approves the dismissal.

A worker accused of misconduct may be suspended pending an investigation, unless the matter is pending before a court, and for no longer than sixty days. During the period of suspension, however, a worker must be paid by his employer and receive his full allowance. The suspension order must be in writing and take effect immediately upon delivery to the employee. In the event that a worker is punished, a copy of the punishment order must be provided to the worker in question.

No fine exceeding one-tenth of wages payable to a worker during a wage period may be imposed on any worker, according to section 25’s special provision regarding fines.

A worker who is under 15 years old shall not be subject to a fine. No fine imposed on a worker may be collected in installments or more than 60 days after the date it was imposed. Employers are required to record all fines in a prescribed register.

A dismissal without cause

Section 26 permits an employer to terminate a worker’s employment for convenience. Under this Section, an employer may terminate the employment of a permanent worker by providing him with a written notice of 120 days if he is a monthly rated worker and 60 days if he is another worker.

In addition, it is impractical to provide notice to the employee; an employer may offer compensation in lieu of notice. In the event of such a termination, the employee must be compensated at a rate of 30 days’ pay for each completed year of service or gratuity, whichever is greater.

Resignation of an employee under labour law of Bangladesh:

According to section 27, a permanent employee may resign by providing 60 days’ written notice to the employer. In contrast, a temporary worker may terminate his employment by providing 30 days’ written notice if he is a monthly rated worker and 14 days’ written notice in all other cases. However, if an employee wishes to resign without notice, he may do so by paying the employer an amount equal to the wages for the notice period.

Retirement under labour law of Bangladesh:

Retirement is discussed in Section 28. A worker must retire at the age of 60, and he or she must be compensated for all outstanding obligations. To determine the age of a worker, the date of birth recorded in his or her service book shall serve as conclusive evidence. Any authority may employ a contract-holding retiree if it sees fit.

Under section 28, if an industry is shifted or a sector is permanently closed due to a natural disaster or other disaster beyond human control, the government may determine the employer-employee relations in accordance with rules.

According to section 29, if a worker is a member of a provident fund and is entitled to any benefit from such a fund, including the employer’s contribution, he or she is exempt from income tax. He shall not be disqualified from receiving the benefit due to layoff, discharge, dismissal, retirement, removal, or termination of service.

When a worker’s employment ends due to retirement, discharge, retrenchment, dismissal, termination, or any other reason, the appointing authority must pay all amounts owed to him within a maximum of 30 working days.

Section 31 stipulates that, at the time of retrenchment, discharge, or termination of service, every employee is entitled to receive a service certificate from his employer.

Section 307 specifies the amount of punishment for violating a provision of Bangladesh labor law when no other provision of law specifies a punishment. Whereas section 310 stipulates that if an employer is punished for the violation of any law, rule, regulation, or scheme of the law, the court may, by written order, impose additional punishment for removing the cause for which the offense was committed.

Dismissal under labour law in Bangladesh:

Due to “Misconduct,” an employee may be “Fired.” “Dismissal” is defined by Section 2(39) of the Labour Act, 2006 (as amended in 2013) as “the termination of a worker’s services by an employer for misconduct.”

The following definitions of “Misconduct” from Section 23(4) of the said Labour Act, 2006 (as amended in 2013) may be applicable in this instance:

willful insubordination or disobedience, alone or in conjunction with others, to any lawful or reasonable order of a superior theft, embezzlement, or fraud in connection with the employer’s business or property absence without leave for more than ten days riotous or disorderly conduct in the workplace, arson, or any act subversive of discipline

According to Section 24 (1) of Said Labour Act, the following procedures must be followed in the event of a Dismissal:

The charges against him must be documented in writing.


He must be found guilty after an investigation conducted by an Investigation Committee comprised of an equal number of representatives from the Employer and the Workers, with the duration of the investigation not exceeding sixty days.
The employer or manager must approve such a dismissal order.

The said section 24 goes on to state in terms Employment termination law:

i)An employee accused of misconduct may be suspended pending an investigation into the charges against him, but such suspension shall not exceed sixty days unless the matter is pending before a court.
During the period of such suspension, a worker’s subsistence allowance and other allowances, if any, shall be paid by his employer.

ii) A suspension order must be in writing and take effect immediately upon delivery to the employee.

iii) During an investigation, the accused worker may be assisted by any establishment employee nominated by him.

iv) If oral evidence is presented on behalf of a party during an investigation, the opposing party may cross-examine the witness.

v) If, after an investigation, a worker is found guilty and punished under section 23 (1), he is not entitled to wages for any period of suspension, but is entitled to subsistence allowance for such period.

vi) If the charges against the worker are not proven in the investigation, he shall be deemed to have been on duty during the period of suspension for investigation, if any, and shall be entitled to his wages and subsistence allowance for the period of suspension.

When a worker is punished, a copy of the order imposing the punishment must be provided to the worker in question

viii) If a worker refuses to accept any notice, letter, charge-sheet, order, or other document addressed to him by the employer, it shall be deemed that such notice, letter, charge-sheet, order, or document has been delivered to him if a copy of the same has been displayed on the notice board and another copy has been sent to the worker’s address as available from the employer’s records, by registered post.

ix) When determining a worker’s punishment, the employer must consider the employee’s prior record, the severity of the misconduct, and his or her achievements and accomplishments during his or her employment.

According to subsection (2) of section 23 of the aforementioned Labour Act, a worker convicted of misconduct may, in lieu of dismissal under subsection (1), be subject to any of the following punishments, namely:

Removal; reduction to a lower post, grade, or pay scale for a maximum of one year
Promotion halted for a period not to exceed one year;
Withholding of increment for up to a year; fine; suspension without pay and subsistence allowance for up to seven days; reprimand or admonition.

According to section 23(3), a worker who is “removed” as a form of retaliation must be compensated by his employer at the rate of fifteen days for each full year of service if his continuous service is at least one year. Except in cases of theft, embezzlement, or fraud related to the employer’s business or property, riotous or disorderly conduct in the workplace, arson, or any act subversive of discipline.

Reinstatement as per employment law in Bangladesh:

As per Sonali Bank vs Abdul Barek,

“Reinstatement of a dismissed employee pursuant to section 34 of the Industrial Relations Ordinance of 1969 (briefly, the Ordinance).

Mr. Asrarul Hossain, the learned Advocate for the petitioner, the employer, and Mr. Mozammel Huq Bhuiya, the learned Advocate for respondent No. 1, the employee, have been heard. It is not necessary to reproduce the facts of the case in order to dispose of this rule, as it can be disposed of based on the construction of Section 2(XXVIII) of the Ordinance in conjunction with Section 34 of the same ordinance. Respondent No. 1 was employed as a Supervisor by the petitioner, Sonali Bank, at the relevant time; however, he was terminated by the petitioner after an internal investigation into allegations of misconduct.

He had challenged the dismissal order under Section 34 of the Ordinance and was granted the remedy following a thorough hearing. Mr. Asrarul Hossain has referenced section 2 of the Ordinance’s definition of a worker or workman.

He argued that a worker who has been terminated or removed from employment and whose termination or removal is unrelated to any industrial dispute cases is not a worker for the purposes of any proceeding under the Ordinance, and therefore cannot file an application under section 34 with the labor court. He has cited a number of court decisions in support of this position, including the Supreme Court’s decision reported in 30 DLR 251 and two decisions of this court reported in LEX/BDHC/0101/1975: 28 DLR 160 and 30 DLR 211.

Evidently, Mr. Hossain’s argument has merit and must be upheld, as it is now a settled point of law that a dismissed worker, whose dismissal is unrelated to an industrial dispute, cannot file an application under section 34 of the Ordinance, and that his remedy is to file a complaint under section 25 of the Employment of labor (Standing orders) Act, 1965. Consequently, it is evident that the application for reinstatement under section 34 was not maintainable, and that the challenged order of the labor court was void for lack of jurisdiction.”

“The respondent was fired from the company for insubordination after a thorough investigation and with the prior approval of the Managing Director, who is the Chief Executive Officer of the company. As the dismissal order was issued as a matter of routine procedure by the Assistant Labour Officer, the High Court Division found nothing wrong with the order and consequently declared the Labour Court’s judgment and order to have been passed without legal authority and without legal effect.

Hopefully, the preceding discussion has enabled everyone to comprehend layoffs and their prescribed procedures.

What are the procedural requirements for dismissing an employee in Bangladesh?

Section 24 of the Labour Act specifies the procedure for dismissing a worker, which includes informing him or her of the allegation in writing and providing an opportunity for a hearing. However, by law, no prior approval from a government agency is required.

Under what conditions are employees protected from dismissal in Bangladesh?

Despite being found guilty of misconduct, a worker may be sentenced to any of the following punishments under section 23(2) of the Labour Act in extenuating circumstances: 

  • removal (in which case he or she is entitled to 15 days' pay for each completed year of service, provided that he or she has been in continuous service for at least one year); 
  • reduction to a lower post, grade, or pay scale for a period of no more than one year; 
  • Promotion suspension for a period of no more than one year; withholding of increment for a period of no more than one year; fine; suspension without wages or subsistence allowance for a period of no more than seven days; or censure and warning.

Is there a set of rules in place for mass terminations or collective dismissals?

No.

Are class or collective actions permitted, or must employees assert labor and employment claims individually?

In employment cases, class and collective actions are permitted.

Is it legal in your state for employers to impose a mandatory retirement age? If so, at what age and with what restrictions?

The Labour Act, Section 28(1), establishes a retirement age of 60 years.

How ‘Tahmidur Rahman & TR Barristers in Bangladesh Associates’ helps the Employee/Employer according to Labour Law Provisions of Bangladesh

At TR Barristers in Bangladesh in Gulshan, Dhaka, Bangladesh, the barristers, lawyers and lawyers are highly experienced in dealing with labor disputes. It also has experience in consulting and assisting numerous international clients, in addition to handling various issues related to employment service among domestic clients on a regular basis.

For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165
House 410, Road 29, Mohakhali DOHS

Organ Donation Law in Bangladesh

Organ Donation Law in Bangladesh

Bangladesh has a population of approximately 180 million, of which approximately 2 million suffer from kidney diseases and an additional half a million suffer from corneal diseases. Although the need for organ transplants to cure a growing number of patients is growing, the culture of organ donation in the United States is not well-established.

Even though Act No. 05 of 1999 was enacted in response to instances of abuse in terms of Organ donation, it is riddled with flaws that defeat the very purpose for which it was enacted. Section 3 in conjunction with sections 2(ga) and 6(1) of Act No. 05 of 1999 provides a very narrow definition of donor, namely “close relative.”

This narrow definition of donors in Organ donation exacerbates the already substantial disparity between the demand for and supply of kidneys, resulting in kidney patients dying without transplant.

 

Organ-Donation-Law-in-Bangladesh-tahmidur-rahman-best-law-firm-in-dhaka

The large disparity creates a thriving black market for kidneys, which disproportionately affects the poor. According to Global Financial Integrity (GFI) of Washington, many people in Bangladesh, particularly in rural areas, are compelled to sell their organs to settle debts or for brief financial relief. They are poor, uneducated, destitute, and oblivious to the after-sale complications.

Several of them develop chronic health problems. A minority are better off. The brokers minimize the risk of future complications, and sometimes physicians even assure prospective sellers that their kidneys will regrow. Common postoperative complications include infection, persistent pain, fatigue, and impaired function of the remaining kidney.

Provision for exceptional circumstances for Organ Donation Law in Bangladesh

As a result, a provision had to be made for exceptional circumstances in which a donor may not be a “close relative,” and “exceptional circumstances” must be defined and/or criteria must be established for their determination. The Act No. 05 of 1999 does not establish a central authority to regulate the removal and use of Organs for Transplantation.

The enactment of Act No. 05 of 1999 was necessitated by the need for such a regulatory body to prevent abuse. In the United Kingdom, one such authority is the Human Tissue Authority (HTA) (UK).

Due to the inadequacies of Act No. 05 of 1999, kidney patients are compelled to travel abroad with donors (who do not fall within the Act’s narrow definition of “near relative”) for the purpose of Transplantation in violation of the Act; kidney transplant abroad is very expensive compared to the cost of having it done locally and is therefore out of reach for many.

Organ-Donation-Law-in-Bangladesh-best-barristers-in-dhaka

If section 2(4) is further amended, anarchy will ensue in the organ transplantation sector of our nation. Section 7(kha) of Act No. 01 of 2018 establishes the Cadaveric National Committee, which will oversee all cadaveric kidney transplants in Bangladesh. The Government has already formulated (briefly, the Rules of 2018) in accordance with Act No. 05 of 1999 in order to carry out the purposes of Act No. 05 of 1999.

In light of the global trend of increasing the number of organ donors, the high prevalence of kidney disease in Bangladesh, and the vast disparity between the demand for and supply of kidneys in Bangladesh, the court deemed it necessary to obtain the expert opinions of several individuals prior to deciding the Rule Nisi.

Therefore, by order dated 28.08.2019, this Court directed seven prominent experts in the relevant fields to provide their opinions. Accordingly, the experts provided the court with their consolidated written opinion. In the interest of the public, respondent No. 1 will adhere to the opinion of the experts. Moreover, if this Court issues any directives, the government will comply. Consequently, the Rule may be discarded.

 

Organ-Donation-Law-in-Bangladesh-best-barristers-in-dhaka

Prevalence of kidney disease and the need for organ transplants in Bangladesh:

There is no study in Bangladesh that estimates the prevalence of kidney disease and the need for organ transplants. However, some estimates indicate that at least 20 million people in Bangladesh suffer from kidney disease, and 35,000 of them die annually from kidney failure. The estimated annual demand for kidney transplants is 5,000. However, only about 100 people on average can obtain kidneys from relatives for transplantation.

The Bangladesh Organ Donation Law of 1999 permits posthumous or brain-death kidney donation outside of living close relatives, but such donation has never been implemented. In accordance with the law passed in 1999, only brothers, sisters, father, mother, maternal and paternal uncles and aunts can donate kidneys. Since 1982, approximately 1400 kidney transplants, 5500 cornea transplants, and 4 liver transplants have occurred in Bangladesh. Cornea transplantation, on the other hand, has reached an acceptable level with a threefold increase in transplantation since 2009.

Organ transplantation is a modern medical and technological treatment that saves the lives of hundreds of thousands of patients with end-stage organ failure who are suitable candidates. In Bangladesh, the first successful kidney transplantation from living-related donors was performed in 1982, and the procedure became routine in 1988. This was followed by cornea from deceased donors in 1984, liver from living-related donors in 2010 and bone marrow from living-related donors in 2014.

Organ-Donation-Law-in-Bangladesh-best-barristers-in-dhaka

The Human Organ Transplantation Act was initially passed by the parliament of Bangladesh in 1999, allowing both brain-death donation and transplants from living-related donors. Before 1999, religious approval (fatwa) was obtained from religious leaders that acknowledged brain death donation and permitted deceased donation for transplants. In January 2018, the current law was revised. Only 1791 kidney, six liver, and 25 bone marrow transplants were performed from living-related donors between 1982 and 2017. In Bangladesh, no transplants of deceased organs have yet begun. Only 5,500 corneas from deceased donors have been transplanted.

Long-standing concerns exist regarding the lack of transplantation of vital organs from deceased donors in Bangladesh and its effect on the rising demand for organs from living donors. However, living-related donors are extremely scarce. Patients with multiple failing organs are frequently forced to purchase organs from the poor. In Bangladesh, it creates an illegal and unethical market for human organs.

Condition of Government Hospitals and Clinics:

However, government hospitals and clinics are always overcrowded because the vast majority of treatment, drugs, and medications are supposed to be provided for free or at minimal cost, whereas privately funded hospitals are expensive and unaffordable for the vast majority of the population. Due to limited resources, organ transplantation and other tertiary-level healthcare services are not a top priority for the Bangladeshi government.

Bangladesh was classified as a lower-middle-income country by the World Bank in 2015, with aspirations to become a middle-income country by its 50th anniversary of independence in 2021. The Country Partnership Framework (2016–2020) of the World Bank supports Bangladesh’s goal of achieving middle-income status by its golden jubilee in 2021.

Removal and Transplant and exceptions in regards to Eye and Bone Marrow

According to the initially proposed “Transplantation of Human Organs Act-2017,” organ removal and transplant cannot be performed in any hospital without government approval.

 

Organ-Donation-Law-in-Bangladesh-best-barristers-in-dhaka

Eye and bone marrow transplant donors are not required to be blood relatives.
However, public hospitals with specialized transplant units could perform transplants without government authorization.

In accordance with the current law, which was enacted in 1999, a person who violates the law could face between seven and three years of imprisonment or a fine of Tk 3 lakh, or both. The proposed law stipulated a maximum prison sentence of three years and a fine of Tk 10 lakh, or both.

In addition, there would be a four-person hospital certification board led by the director of the health directorate. Without the board’s certification, no organ transplants would be permitted in any hospital. Under the proposed law, anyone who provides false information about the relationship between an organ donor and a recipient, or who encourages, provokes, or threatens another person to provide such information, faces up to two years in prison or a fine of Tk 5 lakh, or both.

Kidney, liver, bone, eye, heart, lungs, and tissue are among the transplantable organs.

The parliament has passed the “Transplantation of Human Organs (Amendment) Bill, 2018” in an effort to improve health services in Bangladesh in light of technological and medical advancements.

According to the proposed law, there will be a medical board in each hospital to decide transplantation issues and a National Cadaveric Committee to oversee the transplantation of human organs in Bangladesh. According to the proposed law, any organ transplantable to the human body, including the kidney, liver, bone, eye, heart, lung, and tissue, could be transplanted after their collection from heart-beating or actively supported human bodies for transplantation purposes.

 

The Bangladesh Medical and Dental Council will revoke the license of any physician convicted under the law.

In the early years of organ transplantation, there was no law in Bangladesh prohibiting the sale of organs in underground markets. The Human Organ Transplantation Act (HOT A, 1999) was initially passed by the parliament of Bangladesh and published in the Gazette on April 13, 1999 in an effort to restrict organ trade. This act applied to the removal of organs for transplantation from both deceased and living donors. In addition to the kidney, heart, liver, pancreas, bone, asthimajja, eye, skin, and tissue, it authorized the removal of any other transplantable organs or body parts (section- 2a).

Human Organ Transplantation Act and Religious leaders:

Before 1999, religious leaders in Bangladesh issued a fatwa (religious approval) that recognized both living and brain death criteria and permitted both living and brain-dead donors to donate organs for transplantation.

A close relative may only donate organs to save the lives of other close relatives, per the Human Organ Transplantation Act 1999 Act. Only first and second-degree blood relatives and spouses are included. First-degree blood relatives are the father, mother, adult brother and sister, and adult son and daughter; second-degree blood relatives are the paternal and maternal uncles and aunts. Spouses consist of both husbands and wives. Except for these close relatives, no one was legally permitted to donate organs.

A few provisions of the existing law were revised and approved by the government in January 2018. The 2018 revision of the Act expands the definition of “close relatives” to include third-degree blood relatives in addition to the existing donors. Grandparents, grandchildren, and first cousins comprise third-degree blood relatives.

The new law stipulates that anyone can donate bone marrow and cornea to anyone else, but other organs and body parts may only be donated between close relatives who are on the act’s donors list. This act prohibits the sale of organs and the receipt of monetary compensation for organ exchange. It also prohibits organ sales advertisements in their entirety.

Organ-Donation-Law-in-Bangladesh-top-

 Current Scenario for the need of transplants:

Bangladesh has a population of approximately 1.6 million, of which approximately 20 million suffer from kidney diseases and an additional half a million suffer from corneal diseases. Although the need for organ transplants to cure a growing number of patients is growing, the culture of organ donation in the United States is not well-established.

Even though Act No. 05 of 1999 was enacted in response to instances of abuse, it is riddled with flaws that defeat the very purpose for which it was enacted. Section 3 in conjunction with sections 2(ga) and 6(1) of Act No. 05 of 1999 provides a very narrow definition of donor, namely “close relative.” This narrow definition of donors exacerbates the already substantial disparity between the demand for and supply of kidneys, resulting in kidney patients dying without transplant.

The large disparity creates a thriving black market for kidneys, which disproportionately affects the poor. According to Global Financial Integrity (GFI) of Washington, many people in Bangladesh, particularly in rural areas, are compelled to sell their organs to settle debts or for brief financial relief. They are poor, uneducated, destitute, and oblivious to the after-sale complications. Several of them develop chronic health problems. A minority are better off.

The brokers minimize the risk of future complications, and sometimes physicians even assure prospective sellers that their kidneys will regrow. Common postoperative complications include infection, persistent pain, fatigue, and impaired function of the remaining kidney.

Organ-Donation-Law-in-Bangladesh-top-

Close Relative and Exceptional circumstances for Organ Donation Law in Bangladesh

As a result, a provision must be made for exceptional circumstances in which a donor may not be a “close relative,” and “exceptional circumstances” must be defined and/or criteria must be established for their determination. The Act No. 05 of 1999 does not establish a central authority to regulate the removal and use of Organs for Transplantation.

The enactment of Act No. 05 of 1999 was necessitated by the need for such a regulatory body to prevent abuse. In the United Kingdom, one such authority is the Human Tissue Authority (HTA) (UK). Due to the inadequacies of Act No. 05 of 1999, kidney patients are compelled to travel abroad with donors (who do not fall within the Act’s narrow definition of “near relative”) for the purpose of Transplantation in violation of the Act; kidney transplant abroad is very expensive compared to the cost of having it done locally and is therefore out of reach for many.

If section 2(4) is further amended, anarchy will ensue in the organ transplantation sector of our nation. Section 7 of Act No. 01 of 2018 establishes the Cadaveric National Committee, which will oversee all cadaveric kidney transplants in Bangladesh. The Government has already formulated (briefly, the Rules of 2018) in accordance with Act No. 05 of 1999 in order to carry out the purposes of Act No. 05 of 1999.

In light of the global trend of increasing the number of organ donors, the high prevalence of kidney disease in Bangladesh, and the vast disparity between the demand for and supply of kidneys in Bangladesh, the court deemed it necessary to obtain the expert opinions of several individuals prior to deciding the Rule Nisi.

Illegal Organ Donation:

According to various news reports, illegal Organ donation is causing illicit financial flows out of the country, and as a result, people are turning to dialysis as a treatment method, which is economically and medically unsustainable in the long run; patients typically discontinue treatment within three years. In order to prevent the loss of 35,000 to 45,000 lives annually due to completely preventable causes, it is essential that some guidelines are formulated and eventually amendments are made to Act No. 05 of 1999 in order to address the crisis of kidney donation and transplantation.

There is no study in Bangladesh that estimates the prevalence of kidney disease and the need for organ transplants. However, some estimates indicate that at least 20 million people in Bangladesh suffer from kidney disease, and 35,000 of them die annually from kidney failure. The estimated annual demand for kidney transplants is 5,000. However, only about 100 people on average can obtain kidneys from relatives for transplantation.

The Bangladesh Organ Donation Law permits posthumous or brain-death kidney donation outside of living close relatives, but such donation has never been implemented. In accordance with the law passed in 1999, only brothers, sisters, father, mother, maternal and paternal uncles and aunts can donate kidneys.

Since 1982, approximately 1400 kidney transplants, 5500 cornea transplants, and 4 liver transplants have occurred in Bangladesh. Cornea transplantation, on the other hand, has reached an acceptable level with a threefold increase in transplantation since 2009.

Organ Donation Law in Bangladesh and technological treatment

Organ transplantation is a modern medical and technological treatment that saves the lives of hundreds of thousands of patients with end-stage organ failure who are suitable candidates. In Bangladesh, the first successful kidney transplantation from living-related donors was performed in 1982, and the procedure became routine in 1988. This was followed by cornea from deceased donors in 1984, liver from living-related donors in 2010 and bone marrow from living-related donors in 2014.

The Human Organ Transplantation Act was initially passed by the parliament of Bangladesh in 1999, allowing both brain-death donation and transplants from living-related donors. Before 1999, religious approval (fatwa) was obtained from religious leaders that acknowledged brain death donation and permitted deceased donation for transplants.

In January 2018, the current law was revised. Only 1791 kidney, six liver, and 25 bone marrow transplants were performed from living-related donors between 1982 and 2017. In Bangladesh, no transplants of deceased organs have yet begun. Only 5,500 corneas from deceased donors have been transplanted.

Long-standing concerns exist regarding the lack of transplantation of vital organs from deceased donors in Bangladesh and its effect on the rising demand for organs from living donors. However, living-related donors are extremely scarce. Patients with multiple failing organs are frequently forced to purchase organs from the poor. In Bangladesh, it creates an illegal and unethical market for human organs.

Healthcare system in Bangladesh and Organ Donation Law in Bangladesh

The healthcare system in Bangladesh is hierarchically structured from top to bottom. The Ministry of Health and Family Welfare is positioned at the top and provides policy advice to the two directorates of health services and family planning.

After receiving policy recommendations, the Directorate General of Health Services and the Directorate General of Family Planning implement these policies throughout the nation’s hospitals and healthcare facilities. The healthcare service delivery system is hierarchical, proceeding from the national level to the district, subdistrict, union, and ward levels.

This system provides primary, secondary, and tertiary levels of promotion, prevention, and treatment for outdoor and indoor patients. In rural areas, sub-district, union, and ward-level hospitals and clinics provide primary healthcare services; district hospitals provide secondary services; and hospitals and institutes in divisional and capital cities provide secondary and primarily tertiary level services. In addition, medical college hospitals and institutes supported by the public provide healthcare services.

According to the initially proposed “Transplantation of Human Organs Act-2017,” organ removal and transplant cannot be performed in any hospital without government approval, Additional Cabinet Secretary Ashraf Shameem told reporters after the weekly cabinet meeting.
Eye and bone marrow transplant donors are not required to be blood relatives.
However, public hospitals with specialized transplant units could perform transplants without government authorization.

 

Organ-Donation-Law-in-Bangladesh-tahmidur-rahman-law-firm

Transplantation of Human Organs (Amendment) Bill, 2018

In accordance with the current law, which was enacted in 1999, a person who violates the law could face between seven and three years of imprisonment or a fine of Tk 3 lakh, or both. The proposed law in Organ donation stipulated a maximum prison sentence of three years and a fine of Tk 10 lakh, or both.

In addition, there would be a four-person hospital certification board led by the director of the health directorate. Without the board’s certification, no organ transplants would be permitted in any hospital. Under the proposed law, anyone who provides false information about the relationship between an organ donor and a recipient, or who encourages, provokes, or threatens another person to provide such information, faces up to two years in prison or a fine of Tk 5 lakh, or both.

Kidney, liver, bone, eye, heart, lungs, and tissue are among the transplantable organs.

The parliament has passed the “Transplantation of Human Organs (Amendment) Bill, 2018” in an effort to improve health services in Bangladesh in light of technological and medical advancements.

According to the proposed law for Organ donation, there will be a medical board in each hospital to decide transplantation issues and a National Cadaveric Committee to oversee the transplantation of human organs in Bangladesh. According to the proposed law, any organ transplantable to the human body, including the kidney, liver, bone, eye, heart, lung, and tissue, could be transplanted after their collection from heart-beating or actively supported human bodies for transplantation purposes.

The Bangladesh Medical and Dental Council will revoke the license of any physician convicted under the law.

Organ-Donation-Law-in-Bangladesh-tahmidur-rahman-law-firm

Prohibiting the sale of organs in underground markets

In the early years of organ transplantation, there was no law in Bangladesh prohibiting the sale of organs in underground markets. The Human Organ Transplantation Act (HOT A, 1999) was initially passed by the parliament of Bangladesh and published in the Gazette on April 13, 1999 in an effort to restrict organ trade.

This act applied to the removal of organs for transplantation from both deceased and living donors. In addition to the kidney, heart, liver, pancreas, bone, asthimajja, eye, skin, and tissue, it authorized the removal of any other transplantable organs or body parts (section- 2a). Before 1999, religious leaders in Bangladesh issued a fatwa (religious approval) that recognized both living and brain death criteria and permitted both living and brain-dead donors to donate organs for transplantation.

A close relative may only donate organs to save the lives of other close relatives, per the 1999 Act. Only first and second-degree blood relatives and spouses are included. First-degree blood relatives are the father, mother, adult brother and sister, and adult son and daughter; second-degree blood relatives are the paternal and maternal uncles and aunts. Spouses consist of both husbands and wives. Except for these close relatives, no one was legally permitted to donate organs.

 

Organ-Donation-Law-in-Bangladesh-tahmidur-rahman-law-firm

A few provisions of the existing law were revised and approved by the government in January 2018. The 2018 revision of the Act expands the definition of “close relatives” to include third-degree blood relatives in addition to the existing donors. Grandparents, grandchildren, and first cousins comprise third-degree blood relatives. The new law stipulates that anyone can donate bone marrow and cornea to anyone else, but other organs and body parts may only be donated between close relatives who are on the act’s donors list. This act prohibits the sale of organs and the receipt of monetary compensation for organ exchange. It also prohibits organ sales advertisements in their entirety.

Punishment for illegal dealings in Human tissue in Bangladesh-

Whoever-

(a) makes or receives any payment for the supply of, or for an offer to supply, any Human tissue; or

(b) seeks to find person willing to supply for payment and Human tissue; or

(c) offers to supply any Human tissue for payment; or

(d) initiates or negotiates any arrangement involving the making of any payment for the supply of, or for an offer to supply, any Human tissue; or

(e) takes part in the management or control of a body of persons, whether a society, firm or company, whose activities consist of or include the initiation or negotiation of any arrangement referred to in clause (d); or

(f) publishes or distributes or causes to be published or distributed any advertisement-

(i) inviting persons to supply for payment of any Human tissue; or

(ii) offering to supply any Human tissue for payment; or

(iii) indicating that the advertiser is willing to initiate or negotiate any arrangement referred to in clause (d); or

(g) abets in the preparation or submission of false documents including giving false affidavits to establish that the donor is making the donation of the Human tissues as a near relative or by reason of affection or attachment towards the recipient, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years.

Are you intending to know more of Organ Donation Law in Bangladesh?

Get your advice in regards to Organ Donation Law 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 Leather Business Registration 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


What is the Sunni Muslim Perspective on Organ Donation?

Many Muslims have historically and currently held the view that organ donation is haram, or forbidden. 

This is due to the fact that the human body is regarded as sacred, and the Prophet Muhammad, upon whom be peace, stated that the body remains sacred after death and should not be harmed. He stated that breaking the bones of the deceased is equivalent to breaking the bones of a living person. 

Similarly, the Quran states, "Whoever saves a life is as if he saves the lives of all humanity." 

Therefore, many Muslims conclude from this verse that organ donation is a blessed act. 

In 1995, the Muslim Law (Sharia) Council of the United Kingdom issued a fatwa allowing organ donation. In 2019, Mufti Muhammad Zubair Butt agreed in principle that it was permissible, but he disagreed with the earlier opinion, stating that organs can only be extracted after the heart has stopped beating, whereas the earlier ruling stated that they can be extracted after brainstem death. Most recently, in 2020, Shaykh Dr. Rafaqat Rashid has written further on the subject, reiterating the Islamic legitimacy of using brainstem death as the accepted definition of death for organ retrieval. 

In conclusion, Sunni Muslims may adopt one of three positions regarding donation after death. They may decide to: 

1.Donate their organs following brainstem death (DBD) or circulatory death (CD) (DCD) 

2. Donate their organs, but only after they have died of circulatory failure 

3. Refuse to donate organs

What is the definition of 'donor' as per the Transplantation Act in Bangladesh?

The verdict stated, "The already large gap between demand and supply of kidneys is widened by this narrow definition of donors, resulting in kidney patients dying without a transplant," adding, "The large gap disproportionately affects the poor by creating a black market for kidneys where abuses are rampant." 

The verdict stated that if the definition of a donor pool (close relative) was expanded without any restrictions, the illegal kidney trade in Bangladesh would increase to an unfathomable degree. Therefore, a wholesale expansion of the definition of donor pool (close relative) cannot be tolerated. 

To determine and verify the authenticity of emotional kidney donation, the court ruled that an investigation should be conducted in accordance with the following guidelines. 

According to the ruling, the Authentication Board in Bangladesh, similar to the Authorization Committee in India, could decide on the petitioner's exceptional circumstances. 

The court ruled that the board must ensure that any adult person related to the donor by blood or marriage donates an organ or tissue if a close relative is unavailable.

What are the responsibilities of authentication board in terms of donor law in Bangladesh?

The board must determine that no commercial transaction would take place between the recipient and the donor, and that no payment has been made or promised to be made to the donor or any other person. 

The board must also prepare an explanation of the relationship between donors and recipients, as well as the circumstances that led to the offer being made. 

To investigate why the donor wishes to donate, the board must examine documentary evidence of the link as well as old photographs of the donor and the recipient together. 

The board must ensure that no middleman or tout was involved. 

The board also requires evaluating the donor's and recipient's financial status by asking them to provide evidence in support of their vocations and income for the previous three fiscal years, as well as any gross disparity between the two parties' statuses to prevent commercial dealing. 

The board also requires that the donor not be a drug addict. 

The court ordered the Authentication Board to assess the donor's mental health and inform him of any potential negative consequences of kidney donation. 

The court stated that if the Authentication Board rigorously ascertained the authenticity of an emotional donation by a known or related donor (but not unknown or unrelated), there would be a check and balance and the possibility of illegal kidney trade would be greatly reduced.

What is the most recent high court ruling on Organ Donation law in Bangladesh?

In December 2019, the High Court of Bangladesh issued an order amending the 2018 law to allow known persons other than relatives to donate kidneys. A nine-point policy was issued. Physical and mental examinations, as well as a "authenticity of emotional donation of a known or related donor," old photographs, a record of finances for the previous three years to look for gross anomalies in income, and other procedures were required. 

In light of the high court's plea for such relaxation of Bangladesh's rule, and its contrast with laws in many other countries, it is worthwhile to investigate the possible and known arguments for restricting the act of organ donation. 

Arguments for Donation Restrictions:

Restrictions on organ donation are typically justified by a number of arguments.

Corruption and Commodification: If organs can be sold for a profit, human trafficking may increase. Organ trafficking is a real issue in places like Bangladesh .It has been demonstrated that even when organs are exchanged between known people, money is likely to be exchanged. Any restrictions on behind-the-scenes dealings are nearly impossible to impose. 

Exploitation: An open market for organs would result in the exploitation of weaker parties for organ harvesting. Unevenness in relationships does not have to be monetary. 

Coercion: Similar inequalities in relationships can lead to coercion, even within a family.

Crowding Out:

If organs are bought and sold, wealthy clients will simply participate in the market rather than have an incentive to donate altruistically. Indeed, it has been demonstrated that loosening the restrictions on LURDS (organs exchanged for money) does not increase the number of transplants, but rather shifts the curve from altruistic donations to financially acquired organs. 

The expansion of kinship in 2018 was expected to reduce the black market for organs. 

The recent high court decision wishes to extend this to any known person with a proper mechanism in place, in order to avoid some of the problems mentioned above. While it is possible to distinguish a completely altruistic donation in extremely emotionally charged cases, a permission-based donation may be difficult to implement and manage when the number of donations is large. 

Given that Bangladesh already has a black market for organs, ensuring the genuineness of many of the criteria may be difficult, even if the two are known to one another and come from financially compatible groups. Furthermore, limiting the right to donate for emotional reasons to those who are financially secure may appear discriminatory. 

The poor may have feelings for related fellows to whom they would like to donate organs. A law requiring equal treatment for equal cases increases the possibility of abuse, though it is certainly possible to use the criteria to coerce someone from a wealthy family. The ability to resist is not always linked to one's financial situation, especially when family and peer pressures are involved.

What is the rule on unclaimed bodies in Bangladesh?

The laws of property, trust, and wills do not apply to the dead body because it is not a legal property of the former legal person. The sentiment of society toward the dead is valuable. When possible, a good law balances various interests and also considers social sentiments in policymaking while providing forms of freedom. This takes into account both individual rights and societal cohesive factors. 

The law considers the fabric of the specific society and understands the implications for the various adhesive factors. While Lord Devlin and Hart disagree on the extent to which moral sentiments should be considered in a law, deterioration of values, eventually leading to corruption, which is the consequential corruption of allowing a certain procedure, is important if these consequences can be properly identified. At times, the law refuses to enter areas where the end result is unknown, causing society to slide down a cliff (R v Conway). 

Allowing the acquisition of organs from unclaimed bodies in Bangladesh, where a large number of people are not covered by any social welfare scheme and where homeless and drifting people abound, may be analogous to taxing the dead for a life lived with little social support, placing an undue burden on the already neglected part and possibly creating further social alienation or corruption of values regarding social cohesion.

While obtaining organs from unclaimed bodies may reduce pressure on the black market, the act may also reinforce the notion that certain people are disposable. In the author's opinion, while harvesting organs from unclaimed bodies may increase the number of transplants, it may be a better choice in Bangladesh's socioeconomic context to first try to increase the number of consenting donors.

Leather Business Registration in Bangladesh

Leather Business Registration in Bangladesh

REGISTRATION AND LICENSE PROCESS 

Historically, exports were mostly dependent on wet blue leather. By removing the fur from the skin and preserving it with salt, wet blue leather is produced. However, if raw leather can be further processed to produce completed items, it can increase the value of leather products by up to 90 percent. In 1990, the government of Bangladesh prohibited the export of blue leather in an effort to boost manufacturing of leather goods with more added value.

Consequently, the entrepreneurs modernized their operations further, which contributed to the expansion of the sector. The country’s manufacturing of crust and finished leather commenced at that point. The Leathergoods And Footwear Manufacturers & Exporters Association of Bangladesh (LTahmidur Rahman RemuraEAB) was established in 2003 for the purpose of fostering a business climate through fostering links between local producers and exporters and international customers. 

 

Leather Business Registration in Bangladesh best lawyers

According to a report published in August 2019 by EBL Securities LTD, Bangladesh produces 350 million square feet of leather annually, of which only 20 to 25 percent is used domestically and the remainder is exported. The leather business is currently segmented into various sub-sectors, one of which is “Tanning & Finishing.” Multiple tanneries in this industry produce crust leather, completed leather, and blue wet leather.

Apart from satisfying worldwide demand, there is also a potential to increase Bangladesh’s leather industry’s home market. According to an ADB analysis issued in 2018, the demand for footwear in Bangladesh’s domestic market is over 30 million pairs of shoes, which is constantly increasing along with the expansion of the middle-class population. In addition, the demand for other leather items is expanding.

 

Leather Business Registration in Bangladesh best lawyers in country

 According to LTahmidur Rahman RemuraEAB, Bangladesh currently has 200 tanneries and 3,500 MSMEs. With 2500 footwear units and 90 big enterprises, the footwear & footwear components manufacturing sector contributes significantly to the leather industry. According to the Dhaka Tribune, the local footwear market in Bangladesh was valued at approximately BDT 17,000 billion in 2020. Bangladesh produces 378 million pairs of shoes per year, although the local footwear market requires 200 to 250 million pairs per year.

Benefit of Leather Business Registration in Bangladesh:

Investors in this area benefit from the following advantages:

  • Abundant and inexpensive labor Is perfect for labor-intensive industries.
  • A local supply of high-quality raw materials derived from the vast livestock sector.
  • The government supports the export-oriented leather market via tax breaks, duty-free imports of raw materials, export incentives, and machinery.
  • Huge domestic and international untapped market
  • Increasing global demand for differentiated, value-added products
  • The potential for establishing backward linking businesses
  • Significant value-added potential
  • International fashion and sourcing firms in Bangladesh are interested in RMG’s products

 

Leather Business Registration in Bangladesh best in dhaka

There are numerous opportunities for investment in the Leather sector, including: Sole proprietorship, partnership, and limited liability corporation. The first two options are unavailable to foreign investors, and only the branch office option is available to them.

SOLE PROPRIETARY RIGHTS- Leather Business Registration in Bangladesh

In Bangladesh, a Sole Proprietorship is not a separate legal entity, hence it is not distinct from its owner/ proprietor. In the event that any liability occurs during the course of business, the owner will be held personally liable. Any Bangladeshi citizen at least 18 years old may establish a sole proprietorship.

Method of Leather Business Registration in Bangladesh

To establish a single proprietorship in Bangladesh, the following actions must be taken:

Step 1: Proposed Bangla business name 

Step 2: Obtaining a Business License 

 

Leather Business Registration in Bangladesh top lawyers in dhaka

General Licenses for Leather Business Registration in Bangladesh:

Trade License – This is the fundamental need for business ownership. This can be obtained by submitting an application to the appropriate City Corporation or local government together with the office lease or rental agreement. Entities that will operate in the commercial sector must apply for a commercial trade license, while those that will operate in the industrial sector must apply for an industrial trade license.

TIN Certificate:

The application must be submitted through the National Board of Revenue’s online portal (NBR).

VAT certificate:

The application must be submitted using the National Board of Revenue’s online portal (NBR).

 

Leather Business Registration in Bangladesh best law firm

Leather Business Registration in Bangladesh steps:

The Registrar of Joint Stock Companies and Firms of Bangladesh (“RJSC”) must register a Leather Business to initiate the incorporation.

STEP 1- CHOOSING THE PARTNERSHIP NAME

The Registrar of Joint Stock Companies And Firms must grant a Name Clearance for the proposed name of the Partnership Business (RJSC).

STEP 2 – PREPARE A PARTNERSHIP DEED

In compliance with the Stamp Act, the Partnership Deed must be prepared on stamp paper, and all partners must sign it before having it notarized.

STEP 3- REGISTER PARTNERSHIP DEED WITH RJSC

The partnership agreement and a completed Form I must be submitted to RJSC. The RJSC officials will analyze the submitted documents and issue a Certificate of Registration.

Timeline for incorporation-

It takes approximately two weeks to get the Certificate of Registration from RJSC after submitting the required papers in accordance with STEP 3.

General Licenses for Leather Business in Bangladesh

TIN Certificate:

The application must be submitted through the National Board of Revenue’s online portal (NBR).

 

Leather Business Registration in Bangladesh best advocates for company formation

 

Trade License –

The application, along with the applicable government fees, must be submitted to the relevant municipal corporation office/local government office, along with the business paperwork and the lease/rent deed of the Business’s office space. Entities that will operate in the commercial sector must apply for a commercial trade license, while those that will operate in the industrial sector must apply for an industrial trade license.

VAT certificate —

The application must be submitted using the National Board of Revenue‘s online portal (NBR).

PRIVATE LIMITED COMPANY for Leather Business:

Method for Leather Business company formation in Bangladesh:

The steps involved in establishing a company are as follows:

Organizational Formation:

First step:

A Name Clearance must be obtained from RJSC for the proposed name of the company.

The second step:

Second step is to draft and sign the following:

• The company’s Memorandum and Articles of Incorporation;

• Form IX: Consent of director to act has been completed;

• Form XII: Particulars of the directors, manager, and managing agents has been completed.

STEP 3 –

Opening a bank account for the Bangladeshi company and transferring the foreign owners’ share capital (not required for local shareholders)

The bank must give an encashment certificate for the international transfer (not required for local shareholders)

The documents specified in step 2 must be signed and submitted to the RJSC along with the encashment certificate and the incorporation fees.

Step 4:

The RJSC will conduct a document verification and give the certified incorporation paperwork.

Step 5 :

Timeline – It typically takes three to four weeks for RJSC to issue the certifications following the submission of the required documents.

 

Leather Business Registration in Bangladesh top advocates

General Licenses for Leather Business:

TIN certificate:

After the company has been properly created, an online application must be submitted to get the certificate. In addition, the application requires a local phone number and a registered office address.

Trade License:

The application must be submitted to the relevant city corporation office, together with the applicable government fees, corporate paperwork, and the lease/rent deed of the company’s office space. Entities that will operate in the commercial sector must apply for a commercial trade license, while those that will operate in the industrial sector must apply for an industrial trade license.

The application for a VAT certificate must be submitted via an internet portal, together with company documentation.

Specific licenses/approvals for Leather Business

Import Registration Certificate (IRC) & Export Registration Certificate (ERC) –

Entities importing and/or exporting products and/or services must get IRC and/or ERC, accordingly. IRC is a crucial certificate for investors who wish to import leather, leather products, or leather machinery. After receiving ERC, an exporter can export any quantity of Leather and Leather goods from Bangladesh at any price.

Applications for IRC and/or ERC must be submitted to the Office of the Chief Controller of Imports and Exports along with the entity’s incorporation paperwork, TIN certificate, trade license, bank solvency certificate, chamber of commerce membership certificate, and applicable government fees. Both credentials must be renewed each year.

Registration and Factory Plan Approval for Leather Business

The entity must receive approval of its factory plan and register it with the Department of Inspection for Factories and Establishment in order to establish a factory for the manufacture of leather and leather products in Bangladesh. This should be renewed each year.

The following documents are necessary for the issuance of approval and registration certificates for Leather Business:

1. Land document;

2. Construction Plan

3. Master plan, site plan, or layout;

4. Machine layout;

5. diagram of the manufacturing process flow;

6. Note on electricity demand

7. Trade license;

8. Fee payment slip;

9. Organizational formation and related documentation

Environment Clearance Certificate for Leather Business –

The Bangladesh Environment Conservation Act (ECA) 1995 and Bangladesh Environment Conservation (Amendment) Act require that all industries and projects get Environmental Clearance (ECAA). Bangladesh’s Department of Environment (DOE) is responsible for issuing Environmental Clearance Certificates. Environmental Clearance Certificate can be divided into the following four categories:

• Green

• Orange-A

• Orange-B

• Red

 

Leather Business Registration in Bangladesh best lawyers in bd

Environmental Clearance Certificates shall be given for all existing industrial units and projects, as well as prospective industrial units and projects, that fit under the Green Category. For industrial units and projects falling in the Orange-A, Orange-B categories, initially a Location Clearance Certificate, then Environment Impact Assessment (EIA) approval, and finally an Environmental Clearance Certificate shall be issued. For Red category industries, initially a Location Clearance Certificate, then Environment Impact Assessment (EIA) approval, and finally an Environmental Clearance Certificate shall be issued.

General Environmental Clearance Procedures for Leather Business:

Step 1: First step is to submit the application with the required documentation.

Step 2: Department of Energy verification of application and accompanying documents

Step 3: The authorized officer conducts an inspection after verifying all reports and documentation.

[Thereafter, make a determination on clearance (Only Green and Orange-A)]

Step 4: Environmental Clearance Committee Meeting (for Orange-B and Red Category)

Timeline and documentation details:

S.L.CategorySite ClearanceEnvironmental ClearanceSupporting documents
1.GreenN/A15 DaysApplication using specified form-3 under the Environment Conservation Rules 1997 Fees specified in Schedule 13 of the Environment Conservation Rules 1997 (Amended 2002) General information on the industrial unit or project; a detailed description of the raw materials and processed product; and a certificate of no objection (Prescribed Form) from the local authorities;
2.Orange-A30 Days15 DaysApplication using specified form-3 under the Environment Conservation Rules 1997 Fees specified in Schedule 13 of the Environment Conservation Rules 1997 (Amended 2002) General information about the industrial unit or project; Precise description of the raw materials and manufactured product; No objection certificate (Prescribed Form) provided by the local authority; Process flow diagram; Layout Plan (showing location of Effluent Treatment Plant); Effluent discharge arrangement; Outlines of the plan for relocation, rehabilitation (if applicable); Other necessary information
3.Orange-B60 Days30 DaysApplication via prescribed form-3 under the Environment Conservation Rules 1997 Prescribed fees via schedule-13 under the Environment Conservation Rules 1997 (Amended 2002) Report on the viability of the industrial unit or project (only applicable to proposed industrial units or projects); Report on the Initial Environmental Examination of the industrial unit or project, as well as the process flow diagram, Layout Plan (showing location of Effluent Treatment Plant), and design of the unit or project’s Effluent Treatment Plant (ETP) (applicable only for a proposed industrial unit or project); Report on the Environmental Management Plan (EMP) for the industrial unit or project, as well as the Process Flow Diagram, Layout Plan (showing the location of the Effluent Treatment Plant), design of the Effluent Treatment Plant, and information on the effectiveness of the unit or project’s ETP (these are only applicable to an existing industrial unit or project); No objection certificate (Prescribed Form) from the local authority; Emergency plan dealing to adverse environmental impact and pollution mitigation plan; Skeleton of relocation and rehabilitation plan (if appropriate); Other essential information (where applicable).
4.Red60 Days30 DaysApplication via prescribed form-3 under the Environment Conservation Rules 1997 Prescribed fees via schedule-13 under the Environment Conservation Rules 1997 (Amended 2002) Report on the viability of the industrial unit or project (only applicable to proposed industrial units or projects); Report on the Initial Environmental Examination (IEE) relating to the industrial unit or project, as well as the terms of reference (ToR) for the Environmental Impact Assessment (EIA) of the unit or project and its Process Flow Diagram; or Environmental Impact Assessment (EIA) report prepared on the basis of terms of reference previously approved by the Department of Environment, along with the Layout Plan (showing location of Effluent Treatment Plant), Process Flow Diagram, and Process Flow Diagram; Report on the Environmental Management Plan (EMP) for the industrial unit or project, as well as the Process Flow Diagram, Layout Plan (showing the location of the Effluent Treatment Plant), design, and information about the effectiveness of the unit or project’s Effluent Treatment Plan (these are only applicable to an existing industrial unit or project); Local authority No Objection Certificate (Prescribed Form): Emergency plan relating to adverse environmental impact and plan for pollution reduction; outline of relocation and rehabilitation plan (where applicable); other essential information (if applicable);

 

Leather Business Registration in Bangladesh best lawyers in bangladesh

Fee Schedule

S.LInvestment Amount (BDT.)Environment Clearance Fee.Renewal Fee.
01.01 (One) Lac to 5 (Five) Lac1500¼ of the Environment Clearance Fee.
02.5 (Five) Lac to 10 (Ten) Lac3,000¼ of the Environment Clearance Fee.
03.10 (Ten) Lac to 50 (Fifty) Lac5,000¼ of the Environment Clearance Fee.
04.50 (Fifty) Lac to 01 (One)Crore10,000¼ of the Environment Clearance Fee.
05.01 (One) Crore to 05 (Five) Crore20,000¼ of the Environment Clearance Fee.
06.05 (Five) Crore to 20 (Twenty) Crore40,000¼ of the Environment Clearance Fee.
07.20 (Twenty) Crore to 50 (Fifty) Crore80,000¼ of the Environment Clearance Fee.
08.50 (Fifty) Crore to 100 (One Hundred) Crore1,20,000¼ of the Environment Clearance Fee.
09.100 (One Hundred) Crore to 200 (Two Hundred) Crore2,00,000¼ of the Environment Clearance Fee.
10.200 (Two Hundred) Crore to 500 (Five Hundred) Crore3,00,000¼ of the Environment Clearance Fee.
11.500 (Five Hundred) Crore to 1000 (One Thousand) Crore4,00,000¼ of the Environment Clearance Fee.
12.1000 (One Thousand) Crore to Above5,00,000¼ of the Environment Clearance Fee.

Additional pertinent information (where applicable) for Leather Business or Tannery Industry in Bangladesh:

Fire License – Buildings and commercial organizations are required to obtain a fire license in consideration of the environment and to protect the safety of the firm and its employees. The Bangladeshi Fire Service and Civil Defense (FSCD) authority under the Ministry of Home Affairs issues fire licenses for Leather Business in Bangladesh.

The following documentation must be provided in order to receive a fire license: –

1. Form prescribed for applications;

2. Deed of agreement;

3. Annual appraisal certificates;

4. Design of the structure;

5. Constitution and Articles of Incorporation;

6. Document of Incorporation;

7. Trade license;

8. Certificate of no objections from the local government;

9. Certificate of clearance from the FSCD office;

10. Treasury deposit slip/challan.

BIDA Membership (Local and Foreign Investment Projects)

If it is a manufacturing firm, it must be registered with the BIDA in order to receive numerous monetary and non-monetary incentives from the Bangladeshi government.

 

Leather Business Registration in Bangladesh top law firm in bangladesh tahmidur rahman remura

The documentation required for Leather Business in Bangladesh project registration with BIDA are: –

1. Form prescribed for applications;

History of directors and partners;

2. Deed of prospective property;

3. Project profile;

4. Constitution and Articles of Incorporation;

5. Document of incorporation;

6. Bank draft or pay order for the registration fee;

7. Trade License;

9. TIN Certificate.

The documentation required for foreign investment project registration with BIDA are: –

1. Form prescribed for applications;

2. Deed of prospective property;

3. Project profile;

4. List of investors and directors;

5. List of equipment;

6. Constitution and Articles of Incorporation;

7. Joint Venture Agreement;

8. Cashable Certificate

9. Document of incorporation;

10. Bank draft or pay order for the registration fee;

11. Trade License;

12. TIN Certificate.

The goods and Footwear Manufacturers and Exporters Association of Bangladesh (LTahmidur Rahman RemuraEAB) Membership Certificate for Leather Business in Bangladesh——

The products and Footwear Manufacturers and Exporters Association of Bangladesh represents the majority of the leading export-oriented manufacturers and exporters of goods and footwear in Bangladesh (LTahmidur Rahman RemuraEAB).

Procedure for getting (LTahmidur Rahman RemuraEAB) Membership Certificate:

To obtain provisional membership in the LTahmidur Rahman RemuraEAB, the following actions must be taken:

• A corporation must have goods or footwear makers, or both. In addition, the company’s export orientation must be at least 80 percent.

• To meet these requirements, a business must submit the legal documents specified below, along with 45,000 BDT (for a sole proprietorship) or 60,000 BDT (for a limited liability company) and a letter of application on company letterhead.

• Following the submission of all required documentation, the compliance team evaluates the factory. If everything meets LTahmidur Rahman RemuraEAB requirements, the factory is eligible for provisional membership.

• Following the submission of a membership application, LTahmidur Rahman RemuraEAB will conduct a survey and analysis of the applicant company to determine whether or not it fits all LTahmidur Rahman RemuraEAB standards.

• If, after inspection, the organization is satisfied that the company meets the conditions, membership will be granted.

Timeline – The provisional membership certification will be issued 20 days after the legal paperwork is submitted by checklist.

Documents Required for Provisional Membership:

1. Request on Letterhead Pad.

2. Form properly filled out and signed.

3. Memorandum of the Corporation. (For Limited Partnership)

4. Articles of Incorporation (For Limited Partnership)

5. Document of Incorporation (COI). (For Limited Partnership)

6. Copy of Registration from the Bangladesh Investment Development Authority (BIDA)

7. Current Trade License.

8. Modernized Tin Certificate

9. List of Machineries.

10. Fire Service License.

11. Production License. (If accessible)

12. Plan for a factory’s layout that has been authorized by the relevant authority and is exhaustive. (If accessible)

13. Approved Factory Structure Layout / Building Design Document by Competent Authority.

14. Group Insurance Copy in accordance with the Bangladesh Labour Act of 2006. (If relevant)

15. Environmental Clearance Certificate (ECC) from the Department of Energy (DOE) / No Objection Certificate (NOC)

Certificate of Objection) from Local Authority.

16. Two (2) copies of passport-sized photos of the Managing Director/Owner/Owner.

17. Manufacturing Profile.

18. Generator Certificate. (If accessible)

19. ERC and IRC. (If any)

20. Custom Bond Permit. (If accessible)

21. Membership Fee: BDT 60,000 for Limited Companies (Renewal Fee BDT 23,000)

For Ownership: 450,000 BDT (Renewal Fee BDT 20,000)

22. The KRC membership fee is 8,000 BDT.

23. From the date of receipt, Provisional Membership Certification will take One (01) Month.

 

Leather Business Registration in Bangladesh best law firm in dhaka

Bangladesh Certification From Bureau Veritas for Leather Business in Bangladesh:

Bureau Veritas aids businesses in meeting the increasing demands of quality, safety, social responsibility, and sustainability. The business requires a certificate from Bureau Veritas for its products. This certificate is globally recognized, enabling the business to operate internationally. Three steps are followed by the organization: testing, inspection, and certification.

TESTING

The testing phase determines whether the products are safe, of the proper quality, and compliant with applicable specifications and laws.

INSPECTION for Leather Business in Bangladesh

In this phase, the conformance of a product, asset, or system to a set of criteria is verified.

Inspection encompasses services designed to enhance performance, reduce risk, confirm quantity control and quality, and meet additional regulatory requirements. Also included are the verification of documents, visual inspection, manufacturing supervision, and electronic and mechanical testing.

CERTIFICATION for Leather Business in Bangladesh

Customized, independent certification serves as a source of assurance.

A certificate is a third-party stamp of approval indicating that a product, service, or system conforms to a specified standard. This certification service encompasses individuals, goods, and systems.

Bangladesh Tanners Association membership (BTA) for leather business:

BTA is a non-profit industry association in Bangladesh that plays an important role in a number of areas, including the issuance of export certificates, the implementation of an EU-funded project titled “Implementation of Environmental Management Systems and eco-labeling schemes in the SMEs of the Sector in Bangladesh (ECOLEBAN),” and liaison with the government. Departments in relation to sector development. BTA works for the welfare of all Bangladeshi tanneries.

Download a membership application from the Bangladesh Tanners Association website in order to become a valuable BTA member. The form should be submitted to tanners@net2bd.com. 

The Bangladesh Tanners Association offers two types of membership: 1) General Membership and 2) Associate Membership.

Documents required for General Membership for Leather Business in Bangladesh are as follows:

1. Land title documentation or lease deed

2. Design or arrangement of a tannery factory

3. Tannery factory liquidation (if applicable)

4. The information must be written on the organization’s notepad.

5. Copy of Commercial license (updated)

6. National Identity Card Copy

7. 2(two) copies for the owner/chairman/management director/director/managing partner (photo with the name written on the back)

8. The applicant’s photograph must be attested by the applicant’s proposer or supporter.

9. Bank Solvency Certificate Copy

10. E-TIN/TIN Certificate Copy

11. E-BIN/BIN Certificate Copy

12. Each owner, chairman, managing director, director, and managing partner must complete the required form.

13. The association’s current and qualified members must be advocates and backers. Proponent or supporter. The Association’s General Membership is open to everyone.

14. The machinery utilized by tanning factories. [If any]

15. Copy of the Memorandum and Articles of Incorporation / Partnership Agreement. [if relevant]

16. Admission fee…………………………………………… The cost and amount of the annual subscription………………. Funds that are required at the time an application is submitted.

17. The association must be informed in writing if the organization’s address changes.

18. Copy of the most recent business license and payment of the annual membership fee are required to obtain a membership certificate. subject to application in writing The certificate is subject to a two-day processing period.

19. On behalf of the approved Associate Member, Member Cards, Voter ID Cards, and Correspondence will be issued, and the Associate Member will be contacted as needed. In the case of the nomination of a representative, an ordinary person will be nominated in accordance with the rules.

 

Leather Business Registration in Bangladesh

Following are the required documents for Associate Membership for Leather Business in Bangladesh:

1. Land title documentation or lease deed

2. Copy of National Identification Card

3. Copy of Deed/Rent Agreement

4. 2(two) copies for the owner/chairman/management director/director/managing partner (photo with the name written on the back)

5. The photo of the applicant must be attested by the proposer or supporter.

6. Copy of the ERC

7. Bank Solvency Certificate Copy

8. E-TIN/TIN Certificate Copy

9. E-BIN/BIN Certificate Copy

10. Each owner, chairman, managing director, director, and managing partner must complete the required form.

11. The association’s current and qualified members must be advocates and backers. Advocate or supporter. The Association’s General Membership is open to everyone.

12. The machinery utilized by tanning factories. [If any]

13. Copy of the Memorandum and Articles of Incorporation / Partnership Agreement. [if relevant]

14. Admission fee…………………………………………… Funds and annual subscription fee……….. ………………… Funds that must be included with the application submission.

15. The association must be informed in writing if the organization’s address changes.

16. Copy of the most recent business license and payment of the annual membership fee are required to obtain a membership certificate. subject to application in writing The certificate is subject to a two-day processing period.

17. On behalf of the approved Associate Member, Member Cards, Voter ID Cards, and Correspondence will be issued, and the Associate Member will be contacted as needed. In the case of the nomination of a representative, an ordinary person will be nominated in accordance with the rules.

Bond License for Leather Business in Bangladesh:

To use the Bonded Warehousing facility, interested businesses must obtain a Bond License from the Customs Bond Commissionerate. Licenses are issued and maintained in accordance with the 2008 Bonded Warehouse Licensing Rules. After obtaining Bond Licenses, licensee industries will be able to clear their inputs/raw materials or packaging materials imported under Back-to-Back Letter of Credit without paying any import duty or other taxes. However, the volume of these inputs and packaging materials must remain within the limitations of their Bond Licenses’ entitlements. Any quantity of inputs/raw materials that exceeds the entitlements specified in the Licenses will be subject to full duty and taxes.

To obtain a bonded warehouse license, applicants must complete a bond license application form and submit it, along with the required documents and application fee, to the respective Bond Commissionerate or any Customs, Excise, or VAT Commissionerate authorized by the NBR to issue bonded warehouse licenses.

LEGAL ISSUES relating Leather Business in Bangladesh:

Annual General Compliances of Business Entities – Entities are required to comply with annual filing requirements, such as updating trade license at the respective city corporation, renewing chamber membership, renewing IRC & ERC, filing taxes, updating the annual filings at the RJSC for limited liability companies, and renewing branch office permission at BIDA when it expires.

Implications of Contract Law in regards to Leather Business in Bangladesh:

The entities’ relationship with dealers/vendors who provide products or services to the business is an integral component. When selling products to dealers or receiving goods and/or services from vendors, there should be a dealership/vendor agreement in place. Vendor Agreements can cover a wide range of services, including software, professional services, office supplies, technology services, event planning, marketing, and consultants. In the event of a dispute, the agreement, in addition to the applicable laws, plays a crucial role in resolving the dispute; therefore, it is crucial to protect one’s interests when drafting agreements.

The franchise agreement is also an important aspect of this industry, as numerous entities bring the products of international bands to market as franchisees. It is essential that this agreement be drafted with all legal aspects clarified, particularly in accordance with Bangladesh Bank’s foreign exchange guidelines. This will be useful when remitting royalties to the franchisor via banking channels. Foreign shareholders may also remit the dividend after deducting the applicable taxes, in addition to the royalty payment.

Labour laws and Leather Business in Bangladesh:

The entities must ensure that their relations with their employees comply with Bangladesh’s labour laws. Employees must have a letter of appointment that specifies their job title, job description, salary, benefits and welfare, applicable working hours and leaves, etc. It should be noted that an employer cannot, by contract or appointment letter, provide less than what the labor laws require. It is also the responsibility of the employer to provide a safe and healthy work environment. According to Bangladesh’s labour laws, a number of additional provisions must be made for factory workers. Such as: Health and Safety Concerns

1. The emergency exit must be on the opposite side of the main exit (that must be in outward direction).

2. The facility or factory must have an emergency exit stair with a handle if it is located in a multi-story building.

3. Also necessary is an emergency assembly point in front of the structure.

Foreign Exchange Regulations for Leather Business in Bangladesh or for Tannery Industry:

– Entities having foreign investors must ensure that the first investment is made through the appropriate banking channels, e.g., wire transfer. Foreign investors should transfer the share capital amount from their foreign bank account to the business’s bank account with the notation “investment in the share capital of (Company Name)” at the time of company incorporation or share purchase. This will demonstrate that the investment was made through the proper channels, and when remitting the profit, these initial investment paperwork and information will facilitate a smooth transfer in accordance with Bangladesh Bank regulations.

 Tahmidur Rahman Remura Wahid TRW AND ITS SERVICES relating Leather Business in Bangladesh:

 Tahmidur Rahman Remura Wahid TRW Associates, being a full-service law practice, offers all forms of legal and financial services through its experienced and talented employees.

 Tahmidur Rahman Remura Wahid TRWAssociates provides services for establishing entities, such as sole proprietorships, partnerships, and/or limited liability companies, in Bangladesh and getting the necessary permits from the applicable government authorities. The services include drafting relevant documents, forms, and providing the required document list and procedure, as well as submitting the application with the relevant documents to the appropriate government office, liaising with them throughout the verification process, and obtaining the required certified documents.

Drafting and vetting agreements for Leather Industry:

As stated previously, the entities require the drafting of various types of agreements, such as vendor, employment, and franchises agreements, which are required to be drafted in accordance with the applicable laws of Bangladesh, while at the same time safeguarding their interests in order to use these agreements to their advantage in the event of future disputes.

Legal Opinion and/or Due Diligence Report for Leather Industry:

Tahmidur Rahman Remura Wahid gives legal opinion to clients in regards to the implication of laws and its impact on a variety of matters, allowing them to make informed business decisions by considering the legal aspect.

In addition,  Tahmidur Rahman Remura Wahid TRW offers interested customers with a due diligence report for their entities that highlights all the legal criteria that must be met and any non-compliances that must be addressed.

 Tahmidur Rahman Remura Wahid offers a formidable litigation team that assists and represents clients in defending/filing disputes before courts or tribunals for all sorts of litigation.

Leather Business Registration in Bangladesh

Taxation for Leather Business in Bangladesh

The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Opening a TIN, Monthly Tax deduction statement, Half Yearly Withholding Tax statement, Yearly statement related to tax return submission of its employees, Yearly statement related to salary disbursed from company to its employees, Quarterly Advance tax deposition, Annual Tax return submission, and attending appeal/hearing session on behalf of the company are among the nominal requirements for a limited company formed locally.  Tahmidur Rahman Remura Wahid TRW may provide guidance and assistance to ensure that all regulatory compliances are met, allowing the business to operate without difficulty.

The current global demand for leather products and footwear is over $215 billion, whereas Bangladesh exports only $1.08 billion. If more investors were to participate in the leather sector, we would have a fantastic opportunity to capture the market with our highest degree of efficiency and strategic planning. The demand for leather goods will only increase as individuals from all over the world flock to fashionable leather goods. Therefore, the industry will continue to strengthen its position within the corporate sector.

The Leather and Leather Goods Industry is the second largest industry in Bangladesh, behind the RMG sector. The availability of raw materials and low-cost labor are the primary factors contributing to the industry’s achievement of its intended level. In FY2018-19 (July-November), the leather and footwear industry’s total exports was 626.57 million USD.

As the global demand for leather items and shoes rises, the manufacturing industry has a tremendous deal of potential.

Bangladesh exports footwear duty-free, which encourages overseas buyers to invest in the country.

Investors may choose from Sole Proprietorship, Partnership Business, Branch Office, or Private Limited Company in order to participate in the Electrical business.

Investors have the option of forming a Sole Proprietorship, Partnership Business, or Private Limited Company in order to participate in the Leather sector. The Trade License and VAT Certificate are necessities for all three business kinds. To promote a business-friendly climate, BIDA has opened a one-stop services center for investors, where services ranging from entity incorporation to post-incorporation licenses are accessible.

 Tahmidur Rahman Remura Wahid TRW Associates is a full-service law firm that offers all types of legal and financial services, including entity registration, license acquisition, agreement and notice drafting, annual compliances, and litigation services.  Tahmidur Rahman Remura Wahid TRW Associates is comprised of competent Barristers and Advocates with knowledge in a variety of legal fields, allowing them to perform the required services at a high degree, and allowing customers to acquire all essential and supplementary legal services under one roof.

Are you intending to get into the Leather Business in Bangladesh?

Get your Leather Business Registration done 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 Leather Business Registration 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

Frequently Asked Questions about-

Leather Business Registration in Bangladesh

In regards to seeking a help from this specific subject, people also ask these questions frequently to our esteemed lawyers in Bangladesh, hence this FAQ content block is dedicated to answering your questions.


What are the Exports trend of Bangladesh leather industry in 2023?

Exports trend of Bangladesh leather industry
The domestic market for leather goods and footwear is estimated to be worth Tk 160 billion, but 40% of that demand is satisfied by imports, according to the Leather Goods and Footwear Manufacturers' and Exporters' Association of Bangladesh (LTahmidur Rahman RemuraEAB). 
The country's second-largest export-earning sector, the leather industry, is experiencing a consistent decline in export revenues. In the first five months of the fiscal year 2018–19, export sales of leather and leather products fell by 16.11% to US$434 million from US$518 million in the same period the previous year, according to data from the Export Promotion Bureau (EPB). 
Data from the EPB show that exports of leather, leather goods, and footwear totaled USD 1.08 billion in the fiscal year 2017–18. Bangladesh exported leather and leather goods for $1.23 billion in 2016–17, up from $1.16 billion the year before. The five months of the current fiscal year saw a 16.11% decline in leather and leather product export revenue. As a result, it demonstrates that the sector is not experiencing a robust or noteworthy growth. Fiscal Year Leather Export Earnings(in billion US$) 2013-2014 1.12 2014-2015 1.13 2015-2016 1.16 2016-2017 1.23 2017-2018 1.08

What are the Opportunities for the Leather Business Registration in Bangladesh?

Opportunities for the sector

The main benefit of the leather industry of Bangladesh is the ample supply of raw materials. The availability of raw materials is the biggest strength of the sector. As Bangladesh’s RMG is going ahead smoothly, so leather industries of Bangladesh will get a plus point in it. 

When RMG has brought up many leading brands in Bangladesh with their direct presence, they will be very happy to put their own orders of leather products in the same country Bangladesh from where they are sourcing apparels. So the growth of textile and RMG sector is actively helping the growth of leather and allied industries like footwear and other leather goods industry.

Some opportunities are highlighted here:

  • Huge untapped international market, as well as the domestic market
  • Increasing global demand for value-added, diversified products
  • The scope of developing backward linkage business
  • High-value addition potential
  • Labor intensive; employment opportunities
  • Local and Foreign Direct Investment opportunity in value-added leather products sector
  • China is losing competitiveness
  • Government policies toward leather exporters; GSP, Cash Incentive; etc.
  • Increasing International and Local demands for value-added leather products
  • International Fashion and sourcing houses in Bangladesh for RMG showing interest in leather products

What are the government initiatives in the leather sector of Bangladesh?

The Bangladeshi government has made numerous efforts to modernize the sector. If the current administration is re-elected in the upcoming election, two additional leather industrial parks will be established in Chattogram and Rajshahi, in addition to the modern leather industrial estate that has already been established by the government in Savar. 

Tanneries from the Hazaribagh region have been relocated to Savar's contemporary, environmentally friendly tannery estate. Tanners now have the option to construct their industrial facility using contemporary ideas. They can incorporate modern hydraulic and pneumatic equipment, use cutting-edge production techniques, and make use of technological advancements. After shifting, the leather industry has very low export earnings. 

The Savar tannery estate is home to about 155 tanneries. Forty or so small tanneries were unable to afford the relocation and ceased operations. However, large tanneries seized the chance to expand their businesses with greater production capabilities by integrating more equipment and technology. The cluster's installed capacity in Hazaribagh was close to 280 million square feet, but these tanneries have set a goal of 450 million square feet of annual production capacity in Savar.

What are the export destinations for the leather industry in Bangladesh?

About 85% of Bangladesh's leather and leather goods are exported to other countries, primarily in the form of crushed leather, blue wet leather, finished leather, leather apparel, and leather shoes. 
The EU, US, Australia, Japan, Singapore, South Korea, etc. are among the countries that import the majority of leather and leather goods. Leather and leather goods market for Bangladesh EU USA Japan Australia Singapore South Korea

Overview of 2nd largest export item in Bangladesh

Due to its comparative labor pool and domestic production of sustainable raw materials, the leather and leather products sector, which ranks second in terms of export earnings after RMG, has seen significant investment recently.  The leather industry in Bangladesh is well-established and comes in second in terms of export revenue. Leather is already a top priority sector due to its high value addition, rapid growth, and employment opportunities. Bangladesh holds a 3% market share for leather and leather-related goods worldwide. Exports account for nearly 60% of its total annual output. Over the past few decades, the export of leather and leather goods has multiplied. Bangladesh's production of finished leather as opposed to a variety of finished products has caused a structural change in the composition of leather and leather goods. From 36.64% of total sectorial export revenues in FY 2007–08 to 60.90% in FY 2017–18, the footwear industry has grown.  Finishing & Tanning  Shoes and Footwear Accessories  Accessory Leather  Bags, wallets, belts, accessories, and other items made of leather Overview As the local market for leather goods expands, the nation's economy is expanding steadily and the middle class is expanding. According to projections, 30 to 40 million people will enter the middle class by 2025, and another 30 million may join the aspirant or emerging middle class.  Particularly, the domestic footwear market has been expanding at a rate of 10–15% annually, with per-capita footwear consumption rising to 3 pairs from 1.7 pairs a few years ago. 

Following are the required documents for Associate Membership for Leather Business in Bangladesh:

1. Land title documentation or lease deed

2. Copy of National Identification Card

3. Copy of Deed/Rent Agreement

4. 2(two) copies for the owner/chairman/management director/director/managing partner (photo with the name written on the back)

5. The photo of the applicant must be attested by the proposer or supporter.

6. Copy of the ERC

7. Bank Solvency Certificate Copy

8. E-TIN/TIN Certificate Copy

9. E-BIN/BIN Certificate Copy

10. Each owner, chairman, managing director, director, and managing partner must complete the required form.

11. The association’s current and qualified members must be advocates and backers. Advocate or supporter. The Association’s General Membership is open to everyone.

12. The machinery utilized by tanning factories. [If any]

13. Copy of the Memorandum and Articles of Incorporation / Partnership Agreement. [if relevant]

14. Admission fee…………………………………………… Funds and annual subscription fee……….. ………………… Funds that must be included with the application submission.

15. The association must be informed in writing if the organization’s address changes.

16. Copy of the most recent business license and payment of the annual membership fee are required to obtain a membership certificate. subject to application in writing The certificate is subject to a two-day processing period.

17. On behalf of the approved Associate Member, Member Cards, Voter ID Cards, and Correspondence will be issued, and the Associate Member will be contacted as needed. In the case of the nomination of a representative, an ordinary person will be nominated in accordance with the rules.

Bond License for Leather Business in Bangladesh:

To use the Bonded Warehousing facility, interested businesses must obtain a Bond License from the Customs Bond Commissionerate. Licenses are issued and maintained in accordance with the 2008 Bonded Warehouse Licensing Rules. After obtaining Bond Licenses, licensee industries will be able to clear their inputs/raw materials or packaging materials imported under Back-to-Back Letter of Credit without paying any import duty or other taxes. However, the volume of these inputs and packaging materials must remain within the limitations of their Bond Licenses’ entitlements. Any quantity of inputs/raw materials that exceeds the entitlements specified in the Licenses will be subject to full duty and taxes.

To obtain a bonded warehouse license, applicants must complete a bond license application form and submit it, along with the required documents and application fee, to the respective Bond Commissionerate or any Customs, Excise, or VAT Commissionerate authorized by the NBR to issue bonded warehouse licenses.

LEGAL ISSUES relating Leather Business in Bangladesh:

Annual General Compliances of Business Entities – Entities are required to comply with annual filing requirements, such as updating trade license at the respective city corporation, renewing chamber membership, renewing IRC & ERC, filing taxes, updating the annual filings at the RJSC for limited liability companies, and renewing branch office permission at BIDA when it expires.

Implications of Contract Law in regards to Leather Business in Bangladesh:

The entities’ relationship with dealers/vendors who provide products or services to the business is an integral component. When selling products to dealers or receiving goods and/or services from vendors, there should be a dealership/vendor agreement in place. Vendor Agreements can cover a wide range of services, including software, professional services, office supplies, technology services, event planning, marketing, and consultants. In the event of a dispute, the agreement, in addition to the applicable laws, plays a crucial role in resolving the dispute; therefore, it is crucial to protect one’s interests when drafting agreements.

The franchise agreement is also an important aspect of this industry, as numerous entities bring the products of international bands to market as franchisees. It is essential that this agreement be drafted with all legal aspects clarified, particularly in accordance with Bangladesh Bank’s foreign exchange guidelines. This will be useful when remitting royalties to the franchisor via banking channels. Foreign shareholders may also remit the dividend after deducting the applicable taxes, in addition to the royalty payment.

Labour laws and Leather Business in Bangladesh:

The entities must ensure that their relations with their employees comply with Bangladesh’s labour laws. Employees must have a letter of appointment that specifies their job title, job description, salary, benefits and welfare, applicable working hours and leaves, etc. It should be noted that an employer cannot, by contract or appointment letter, provide less than what the labor laws require. It is also the responsibility of the employer to provide a safe and healthy work environment. According to Bangladesh’s labour laws, a number of additional provisions must be made for factory workers. Such as: Health and Safety Concerns

1. The emergency exit must be on the opposite side of the main exit (that must be in outward direction).

2. The facility or factory must have an emergency exit stair with a handle if it is located in a multi-story building.

3. Also necessary is an emergency assembly point in front of the structure.

Foreign Exchange Regulations for Leather Business in Bangladesh or for Tannery Industry:

– Entities having foreign investors must ensure that the first investment is made through the appropriate banking channels, e.g., wire transfer. Foreign investors should transfer the share capital amount from their foreign bank account to the business’s bank account with the notation “investment in the share capital of (Company Name)” at the time of company incorporation or share purchase. This will demonstrate that the investment was made through the proper channels, and when remitting the profit, these initial investment paperwork and information will facilitate a smooth transfer in accordance with Bangladesh Bank regulations.

 Tahmidur Rahman Remura Wahid TRW AND ITS SERVICES relating Leather Business in Bangladesh:

 Tahmidur Rahman Remura Wahid TRW Associates, being a full-service law practice, offers all forms of legal and financial services through its experienced and talented employees.

 Tahmidur Rahman Remura Wahid TRWAssociates provides services for establishing entities, such as sole proprietorships, partnerships, and/or limited liability companies, in Bangladesh and getting the necessary permits from the applicable government authorities. The services include drafting relevant documents, forms, and providing the required document list and procedure, as well as submitting the application with the relevant documents to the appropriate government office, liaising with them throughout the verification process, and obtaining the required certified documents.

Drafting and vetting agreements for Leather Industry:

As stated previously, the entities require the drafting of various types of agreements, such as vendor, employment, and franchises agreements, which are required to be drafted in accordance with the applicable laws of Bangladesh, while at the same time safeguarding their interests in order to use these agreements to their advantage in the event of future disputes.

Legal Opinion and/or Due Diligence Report for Leather Industry:

Tahmidur Rahman Remura Wahid gives legal opinion to clients in regards to the implication of laws and its impact on a variety of matters, allowing them to make informed business decisions by considering the legal aspect.

In addition,  Tahmidur Rahman Remura Wahid TRW offers interested customers with a due diligence report for their entities that highlights all the legal criteria that must be met and any non-compliances that must be addressed.

 Tahmidur Rahman Remura Wahid offers a formidable litigation team that assists and represents clients in defending/filing disputes before courts or tribunals for all sorts of litigation.

 

International law firm in Bangladesh top lawyers in dhaka

Taxation for Leather Business in Bangladesh

The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Opening a TIN, Monthly Tax deduction statement, Half Yearly Withholding Tax statement, Yearly statement related to tax return submission of its employees, Yearly statement related to salary disbursed from company to its employees, Quarterly Advance tax deposition, Annual Tax return submission, and attending appeal/hearing session on behalf of the company are among the nominal requirements for a limited company formed locally.  Tahmidur Rahman Remura Wahid TRW may provide guidance and assistance to ensure that all regulatory compliances are met, allowing the business to operate without difficulty.

The current global demand for leather products and footwear is over $215 billion, whereas Bangladesh exports only $1.08 billion. If more investors were to participate in the leather sector, we would have a fantastic opportunity to capture the market with our highest degree of efficiency and strategic planning. The demand for leather goods will only increase as individuals from all over the world flock to fashionable leather goods. Therefore, the industry will continue to strengthen its position within the corporate sector.

The Leather and Leather Goods Industry is the second largest industry in Bangladesh, behind the RMG sector. The availability of raw materials and low-cost labor are the primary factors contributing to the industry’s achievement of its intended level. In FY2018-19 (July-November), the leather and footwear industry’s total exports was 626.57 million USD.

As the global demand for leather items and shoes rises, the manufacturing industry has a tremendous deal of potential.

Bangladesh exports footwear duty-free, which encourages overseas buyers to invest in the country.

Investors may choose from Sole Proprietorship, Partnership Business, Branch Office, or Private Limited Company in order to participate in the Electrical business.

Investors have the option of forming a Sole Proprietorship, Partnership Business, or Private Limited Company in order to participate in the Leather sector. The Trade License and VAT Certificate are necessities for all three business kinds. To promote a business-friendly climate, BIDA has opened a one-stop services center for investors, where services ranging from entity incorporation to post-incorporation licenses are accessible.

 Tahmidur Rahman Remura Wahid TRW Associates is a full-service law firm that offers all types of legal and financial services, including entity registration, license acquisition, agreement and notice drafting, annual compliances, and litigation services.  Tahmidur Rahman Remura Wahid TRW Associates is comprised of competent Barristers and Advocates with knowledge in a variety of legal fields, allowing them to perform the required services at a high degree, and allowing customers to acquire all essential and supplementary legal services under one roof.

Are you intending to get into the Leather Business in Bangladesh?

Get your Leather Business Registration done 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 Leather Business Registration 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

Frequently Asked Questions about-

Leather Business Registration in Bangladesh

In regards to seeking a help from this specific subject, people also ask these questions frequently to our esteemed lawyers in Bangladesh, hence this FAQ content block is dedicated to answering your questions.


What are the Exports trend of Bangladesh leather industry in 2023?

Exports trend of Bangladesh leather industry
The domestic market for leather goods and footwear is estimated to be worth Tk 160 billion, but 40% of that demand is satisfied by imports, according to the Leather Goods and Footwear Manufacturers' and Exporters' Association of Bangladesh (LTahmidur Rahman RemuraEAB). 
The country's second-largest export-earning sector, the leather industry, is experiencing a consistent decline in export revenues. In the first five months of the fiscal year 2018–19, export sales of leather and leather products fell by 16.11% to US$434 million from US$518 million in the same period the previous year, according to data from the Export Promotion Bureau (EPB). 
Data from the EPB show that exports of leather, leather goods, and footwear totaled USD 1.08 billion in the fiscal year 2017–18. Bangladesh exported leather and leather goods for $1.23 billion in 2016–17, up from $1.16 billion the year before. The five months of the current fiscal year saw a 16.11% decline in leather and leather product export revenue. As a result, it demonstrates that the sector is not experiencing a robust or noteworthy growth. Fiscal Year Leather Export Earnings(in billion US$) 2013-2014 1.12 2014-2015 1.13 2015-2016 1.16 2016-2017 1.23 2017-2018 1.08

What are the Opportunities for the Leather Business Registration in Bangladesh?

Opportunities for the sector

The main benefit of the leather industry of Bangladesh is the ample supply of raw materials. The availability of raw materials is the biggest strength of the sector. As Bangladesh’s RMG is going ahead smoothly, so leather industries of Bangladesh will get a plus point in it. 

When RMG has brought up many leading brands in Bangladesh with their direct presence, they will be very happy to put their own orders of leather products in the same country Bangladesh from where they are sourcing apparels. So the growth of textile and RMG sector is actively helping the growth of leather and allied industries like footwear and other leather goods industry.

Some opportunities are highlighted here:

  • Huge untapped international market, as well as the domestic market
  • Increasing global demand for value-added, diversified products
  • The scope of developing backward linkage business
  • High-value addition potential
  • Labor intensive; employment opportunities
  • Local and Foreign Direct Investment opportunity in value-added leather products sector
  • China is losing competitiveness
  • Government policies toward leather exporters; GSP, Cash Incentive; etc.
  • Increasing International and Local demands for value-added leather products
  • International Fashion and sourcing houses in Bangladesh for RMG showing interest in leather products

What are the government initiatives in the leather sector of Bangladesh?

The Bangladeshi government has made numerous efforts to modernize the sector. If the current administration is re-elected in the upcoming election, two additional leather industrial parks will be established in Chattogram and Rajshahi, in addition to the modern leather industrial estate that has already been established by the government in Savar. 

Tanneries from the Hazaribagh region have been relocated to Savar's contemporary, environmentally friendly tannery estate. Tanners now have the option to construct their industrial facility using contemporary ideas. They can incorporate modern hydraulic and pneumatic equipment, use cutting-edge production techniques, and make use of technological advancements. After shifting, the leather industry has very low export earnings. 

The Savar tannery estate is home to about 155 tanneries. Forty or so small tanneries were unable to afford the relocation and ceased operations. However, large tanneries seized the chance to expand their businesses with greater production capabilities by integrating more equipment and technology. The cluster's installed capacity in Hazaribagh was close to 280 million square feet, but these tanneries have set a goal of 450 million square feet of annual production capacity in Savar.

What are the export destinations for the leather industry in Bangladesh?

About 85% of Bangladesh's leather and leather goods are exported to other countries, primarily in the form of crushed leather, blue wet leather, finished leather, leather apparel, and leather shoes. 
The EU, US, Australia, Japan, Singapore, South Korea, etc. are among the countries that import the majority of leather and leather goods. Leather and leather goods market for Bangladesh EU USA Japan Australia Singapore South Korea

Overview of 2nd largest export item in Bangladesh

Due to its comparative labor pool and domestic production of sustainable raw materials, the leather and leather products sector, which ranks second in terms of export earnings after RMG, has seen significant investment recently.  The leather industry in Bangladesh is well-established and comes in second in terms of export revenue. Leather is already a top priority sector due to its high value addition, rapid growth, and employment opportunities. Bangladesh holds a 3% market share for leather and leather-related goods worldwide. Exports account for nearly 60% of its total annual output. Over the past few decades, the export of leather and leather goods has multiplied. Bangladesh's production of finished leather as opposed to a variety of finished products has caused a structural change in the composition of leather and leather goods. From 36.64% of total sectorial export revenues in FY 2007–08 to 60.90% in FY 2017–18, the footwear industry has grown.  Finishing & Tanning  Shoes and Footwear Accessories  Accessory Leather  Bags, wallets, belts, accessories, and other items made of leather Overview As the local market for leather goods expands, the nation's economy is expanding steadily and the middle class is expanding. According to projections, 30 to 40 million people will enter the middle class by 2025, and another 30 million may join the aspirant or emerging middle class.  Particularly, the domestic footwear market has been expanding at a rate of 10–15% annually, with per-capita footwear consumption rising to 3 pairs from 1.7 pairs a few years ago. 

Pharmaceutical Company in Bangladesh

Pharmaceutical Company in Bangladesh

How to Establish a Pharmaceutical Company in Bangladesh:

Due to the fact that 98% of the country’s total medicine demand is satisfied by local institutions, the pharmaceutical business in Bangladesh has tremendous growth potential. In addition to serving domestic demand, the enterprises export pharmaceuticals to a number of international markets. During the fiscal year 2019-20, Bangladesh earned 136 million from the export of pharmaceuticals. Moreover, Bangladesh ranks 71st globally out of 134 nations in terms of pharmaceutical exports.

Bangladesh produces homeopathic, unani, and ayurveda medicines in addition to allopathic medications. Presently, there are over 257 pharmaceutical businesses in Bangladesh that produce approximately 80% of generic medications. Presently, indigenous businesses such as Square, Beximco, Reneta, and Opsonin dominate the Bangladeshi pharmaceutical sector.

Industry Analysis of Pharmaceutical Companies in Bangladesh

The pharmaceutical industry in Bangladesh was founded in the 1950s by multinational corporations and local businesses. The British Patents and Designs Act of 1911 exempted Bangladesh, as a least developed nation, from patents in the pharmaceutical business upon its independence in 1971. As a result, the nation’s output of generic drugs began to expand. However, the pharmaceutical sector began to expand in the 1980s. In 1981, Bangladesh had 166 licensed pharmaceutical firms.

However, eight international corporations such as Glaxo, Pfizer, and Hoechst dominated the country’s pharmaceutical production and supplied 75% of the country’s pharmaceuticals. At that time, 25 medium-sized local pharmaceutical companies produced 15% of the nation’s total pharmaceuticals, while 133 companies produced the remaining 10%. All of these enterprises used to produce pharmaceuticals locally using imported raw materials valued at BDT 60 billion annually. Despite having 16 domestic pharmaceutical businesses, 30 billion Bangladeshi Taka worth of pharmaceuticals were imported annually.

Pharmaceutical-Company-in-Bangladesh-tahmidur-lawyers

Bangladesh’s pharmaceutical value chain is mostly separated into two sections. The first is Active Pharmaceutical Ingredients, or API, and the second is Formulation Complete. API essentially refers to medications that include unique active components to treat certain ailments. On the other hand, Finished Formulation refers to the drug created by combining several substances with Active Ingredients.

In March of 1982, the government established a committee of experts to design a drug strategy. The group develops policies for both the formulations and API industries. However, the previous government only permitted the issuance of the Drugs (Control) Ordinance for the formulations sector, and in June, two other new regulations were established. The first was to restrict the manufacture, import, and sale of hazardous and unnecessary pharmaceuticals, and the second was to ban the products of multinational corporations that did not have their own manufacturing facilities in the country. According to Sudip Chaudhuri’s research, EVOLUTION OF THE PHARMACEUTICAL INDUSTRY IN BANGLADESH, Bangladesh did not remove any of the regulations despite pressure from the U.S. administration at the time.

Market cap-shares of Pharmaceutical Company in Bangladesh

In 2018, the local pharmaceutical market was worth 205.12 billion BDT. The market grew at a CAGR of 16.51 percent between 2014 and 2018. Five businesses control 46.66 percent of the market, according to Square Pharmaceuticals officials using IQVIA data.
Although Square Pharma’s annual sales in 2018 climbed to BDT 1.06 billion from BDT 33.70 billion in 2017, the company’s market share decreased by 0.52% points, from 17.47%.

Incepta’s annual sales are BDT 22.73 billion, Beximco’s are BDT 16.94 billion, Renata’s are BDT 10.66 billion, Health Care’s are BDT 10.61 billion, Opsonin’s are BDT 10.42 billion, ACI’s are BDT 8.99 billion, Eskayef’s are BDT 8.96 billion, Aristopharma’s are BDT 8.42 billion, and ACME’s are BDT 7.21 billion. Square has dominated the market for the past 32 years. The reasons are the doctor’s confidence and the customers’ and people’s trust due to the company’s commitment to ethics, transparency, and honesty.
In 2018, six of the top ten firms, including Square, Beximco, Opsonin, ACI, Aristopharma, and ACME, lost market share due to increased competition.

The research also revealed that the sales of eight companies climbed in 2018, while the revenues of only two companies, namely Opsonin and ACME, declined.

The top ten organizations are very likely to adopt current technology and retain manufacturing and marketing excellence. Consequently, over 70% of the market share is held by these companies. The nation’s leading pharmaceutical corporations are creating the infrastructures and procedures necessary to meet global quality standards.

According to IQVIA data from 2018, the antiulcerants class (acidity) had the largest sales (BDT 30,134.8 million) among the top 20 therapeutic drugs, followed by the cephalosporin class (antibiotic) with sales of BDT 16,876.1 million. The sales rise of antiulcerants was 6.55 percent last year.

Square Pharmaceuticals has sold the most medications in this class. The company manufactures and distributes Seclo medications. Healthcare and Incepta are the second and third best-selling subjects in this category, respectively. Companies sell assidy medications under the brand names Sergel and Pantonix. Human insulin accounted for BDT 7,021.9 million in annual sales, calcium for BDT 7,009.5 million, antirheumatic medications (non- steroid painkiller) for BDT 6,594.1 million, antiepileptic (nervous system drug) for BDT 6508.7 million, and non- narcotic analgesics (painkiller) for BDT 6434.7 million.

LICENSE AND REGISTRATION PROCESS for a Pharmaceutical Company in Bangladesh

In Bangladesh, the Pharmaceutical Company business can be conducted by founding a corporation:

Pharmaceutical Company Formation in Bangladesh:

A company lawfully registered in Bangladesh may participate in any business activity permitted under its Object Clause, as stated in its Articles of Association. A firm in Bangladesh may be either public or private. For the formation of a public company, a minimum of seven shareholders are necessary.

Alternatively, a minimum of two shareholders is required to incorporate a private corporation. A private corporation cannot invite the public to subscribe for its shares, but a public firm can offer its shares to the general public. In actuality, private companies are the most preferred business structure for both foreign and domestic entrepreneurs. There are no restrictions on foreign equity involvement for foreign direct investment, hence 100 percent foreign equity is permitted.

Foreign investment gets the same level of protection and security as domestic investment in Bangladesh. The laws of Bangladesh guarantee non-discrimination between international and domestic investment, as well as the repatriation of share sales revenues and profits.

The following actions must be taken to establish a company:

Pharmaceutical-Company-in-Bangladesh-tahmidur-rahman-lawyerss

The prospective company must get a Name Clearance from the Registrar of Joint Stock and Companies.

  1. Drafting and signing the following documents: • Memorandum and Articles of Association of the company; • Form I: Declaration On Registration Of Company; • Form VI: Notice Of Situation Of Registered Office; • Form IX: Consent of director to act; • Form X: List of Individuals Consenting to be Directors; • Form XII: Particulars of the directors, manager, and managing agents.
  2. Establishing a temporary bank account for the Proposed Company with any Bangladeshi bank on the list
  3. Transfer the paid-up capital amount from each foreign shareholder’s account to the Bangladeshi bank account of the proposed company.
  4. Obtain an encashment certificate from the Bank of the Proposed Company for each international transaction.
  5. Submit the required documentation to the Company House.
  6. Pay the Government Registration Fees

Obtain the certificate of registration from the RJSC for a Pharmaceutical Company in Bangladesh:

Required Company Formation Documents:


a) A copy of the Valid Name Clearance for the proposed company; b) an executed copy of the company’s Memorandum and Articles of Association.
c) Executed copy of Form I: Declaration On Registration Of Company; d) Executed copy of Form VI: Notice Of Situation Of Registered Office; e) Executed copy of Form IX: Consent of director to act; f) Executed copy of Form X: List of Individuals Consenting to Be Directors; g) Executed copy of Form XII: Particulars of the directors, manager, and managing agents;
h) Copies of National ID of shareholders and directors (for Bangladeshi Nationals); I Copies of TIN Certificate of shareholders and directors (for Bangladeshi Nationals); j) Copies of passport of shareholders and directors (for Foreign Nationals); k) Passport size photographs of shareholders and directors; l) Bank Encashment Certificate for each foreign shareholder; m) Receipt of payment of the government fees.

In addition to the above-mentioned formats, a firm with 100% foreign ownership may also register as a Branch Office to commence Pharmaceutical Company business. However, a Branch office can only serve the job envisioned by the parent firm if Bangladesh Investment Development Authority has granted prior authorisation. Depending on the expansion/scope of the business, further licenses or approvals may be necessary following the formation of the specific firm.

Additional Permissions for Pharmaceutical Company in Bangladesh

The following are the additional licenses required to create a Pharmaceutical Company industry:
I.Trade License; II. TIN Certificate; III. VAT Registration Certificate; IV. Registration of Industrial Investment Project; V. Factory Layout Approval; VI. Factory License;VII. Membership Certificate; VIII. Import Registration Certificate (applicable for Import Business); IX. Export Registration Certificate (applicable for Export Business); X. Environment Clearance Certificate; XI. Fire License; XII. Registration of Trademark; XIII. Membership of Bangladish Chamber of Commerce and Industry

The procedure for acquiring extra licenses is outlined below:

Trade License Acquiring a trade license is the most crucial prerequisite for launching a business in Bangladesh. Every business entity is required to get a Trade License from the appropriate local government body. To obtain a Trade License, a complete application must be submitted to the appropriate local governmental entity (i.e., City Corporation/Municipal Corporation/Union Parishad) along with the required documentation.

TIN Certificate for a Pharmaceutical Company in Bangladesh:

The Government of Bangladesh issues a TIN Certificate to individuals and businesses in order to monitor tax payments. The National Board of Revenue (NBR) is the only organization authorized to issue TIN Certificates. To receive the TIN Certificate, one must submit an online application to the NBR.

VAT Certificate for a Pharmaceutical Company in Bangladesh:

Every business must have a Business Identification Number in order to function (BIN). A BIN can be obtained through the National Board of Revenue’s VAT registration process. Every business organization must get a certificate of VAT registration. To obtain the VAT Certificate, the NBR must receive an online application along with the required supporting documentation.

Registration of Industrial Investment Project: Local or foreign industrial businesses in Bangladesh must register with the Bangladesh Investment Development Authority (BIDA). To register an Industrial Investment Project with the BIDA, an application and the required documentation must be submitted.

Factory Layout Approval:

Prior to the use, modification, or enlargement of any dwelling, building, or premises as a factory, the Department of Inspection for Factories and Establishments (DIFE) must grant written approval. The DIFE must receive an application accompanied by the required documentation in order to grant approval for the proposed layout.

License of Factory: Each owner or occupier must submit an application for registration and license of factory to the Department of Inspection for Factories and Establishments (DIFE) within thirty (30) days prior to the start of work for factories.

After establishing the related business, the entrepreneur must become a member of a local Chamber of Commerce and Industry or pertinent Trade Association. The membership application is accessible at the office of the respective Chamber of Commerce or Trade Association.

Certificate of Import Registration and Certificate of Export Registration for Pharmaceutical Company in Bangladesh:

An importer who possesses an Import Registration Certificate (IRC) and an exporter who possesses an Export Registration Certificate (ERC) are able to import and export any permissible goods without any value or quantity restrictions or approval from any authority. The Office of the Chief Controller of Imports and Exports (CCI&E) provides applicants with Import Registration Certificates and Export Registration Certificates. To obtain the IRC or ERC, an online application and supporting documentation must be submitted to CCI&E.

Environmental Clearance for Pharmaceutical companies in Bangladesh

In Bangladesh, the Environment Clearance Certificate (ECC) is one of the essential permits required to launch an industrial unit or project. To get this Certificate, the owner of the industrial unit or project must submit an application to the Department of Environment along with the required documentation.

 Fire License for Pharmaceutical companies in Bangladesh

Buildings and commercial organizations are required to obtain a fire license out of consideration for the environment and to safeguard the safety of the facility and its employees. It is issued by the Fire Service and Civil Defense (FSCD) body functioning under Bangladesh’s Ministry of Interior. To receive this license, the concerned entrepreneur of the industrial unit or project must submit a request to the FSCD along with the required documentation for a Pharmaceutical Company in Bangladesh.

Application for Trademark Registration for a Pharmaceutical Company in Bangladesh:

After the registration of the entity, it may apply to the Department of Patents, Designs and Trademarks (DPDT), which is administered by the Ministry of Industries, for the registration of its trademarks and/or any other Intellectual Property. The Trademark Registry Wing of the DPDT must receive the required documentation for the registration of a trademark from a candidate.

In addition to the Membership Application Form, the following materials must be submitted:

  1. Membership Application on Letterhead Pad.
  2. Constitution and Articles of Incorporation
  3. Incorporation Certificate.
  4. Trade License Validity of the Company
  5. BOI Registration Certificate
  6. Certificate of Taxation for the Company
  7. Company’s Certificate of VAT Registration
    Three (3) copies of the Representative’s latest passport-sized photograph and two (2) business cards.

BSTI Certification of Marks (CM) License for a Pharmaceutical Company in Bangladesh:

To use the BSTI Standard Mark, a Certification of Marks (CM) License is required. The following are the steps:

Step 1: Submit a completed application form and the required documentation to the BSTI in order to receive a CM license.

Step 2: The BSTI will inspect the application and all supporting documents.

If the inspection report is deemed satisfactory in Step 3, then random samples are gathered and signed and sealed by the BSTI Officer and the producer.

Step four: The obtained sample is analyzed in the BSTI Laboratory or any other lab recognized by BSTI in accordance with the applicable Bangladesh Standard (BDS)

Step 5: If the results of the test parameters are deemed to be in accordance with the applicable BDS, a license is issued for that article.

Step 6: Typically, a license is granted for a term of three years, which is extended for a subsequent period of three years if the samples are deemed acceptable following the same approach outlined in steps (2) and (5).

A license is required to pay fees to the BSTI, known as the CM fee.

Step 8: A license granted for any object may be cancelled, withdrawn, or revoked at any time if it is determined that the license has violated any of the requirements outlined in the license and the BSTI Ordinance.

Legal Issues:

Foreign Investment Law in regards to Pharmaceutical companies in Bangladesh:

The liberalized Industrial Policy and export-oriented, private sector-led economic strategy of Bangladesh offer substantial investment prospects to foreign businesses and individuals considering investing in Bangladesh. Except for a few regulated industries, Bangladesh welcomes private investment in all areas. The Pharmaceutical Company industry is completely open to foreign investment.

The government’s objective is to facilitate the increase of domestic and international private investment by fostering an enabling environment. The policy framework for foreign investment in Bangladesh is based on the Foreign Private Investment (Promotion & Protection) Act of 1980, which provides legal protection against nationalization and expropriation for foreign investment in Bangladesh. This also provides a non-discriminatory handling of international and local investments, as well as the repatriation of capital gains and income.

The Foreign Exchange Regulations Act of 1947, the Bangladesh Export Processing Zones Authority Act of 1980, the Bangladesh Private Export Processing Zone Act of 1996, the Bangladesh Economic Zone Act of 2010 and the Bangladesh Investment Development Authority Act of 2016 also address foreign investment.

Employment Law in regards to Pharmaceutical Company in Bangladesh:

The Labour Act of 2006 primarily governs employment law in Bangladesh. In addition to this Statute, the Labour Rules 2015, the National Labour Policy 2012, the Bangladesh Labour Welfare Foundation Act 2006, the Bangladesh Labour Welfare Foundation Rules 2010, the National Occupational Health and Safety Policy 2013, the Domestic Workers Protection and Welfare Policy 2015, and the National Child Labour Elimination Policy 2010 all contain rules and regulations pertaining to this issue.

The Labour Act of 2006 addresses employment of labor, employer-employee relations, payment of wages and compensation for injuries to workers, leaves, benefits, formation of trade unions, resolution of industrial disputes, welfare, health, safety, and working conditions in the establishment, amongst other matters. Additionally, maternity benefits are provided to female employees. Note that if the company is established within an EPZ, the Bangladesh EPZ Labour Act 2019 will apply.

Contract Law: The center of the economic world is contractual agreement. It specifies the obligations and responsibilities of the parties on the subject of the contract. A contract binds both parties to its agreed-upon and stipulated conditions, such as the party’s liability in the event of a breach of contract and the extent to which it would reimburse the other party’s damages. It is advisable to take the utmost care while drafting the contract’s terms and conditions so that they accurately reflect the parties’ intentions. The Contract Act of 1872 governs all contracts in Bangladesh.

A force majeure event is an extraordinary occurrence or scenario beyond the parties’ control, such as an act of God, war, or natural disaster. Generally, a successful use of the force majeure clause releases the parties from their respective contractual responsibilities and/or liability.

A force majeure in Pharmaceutical Company clause does not totally excuse a faction’s failure to comply, but merely suspends it for a period of time. Section 56 of the Contract Act of 1872 of Bangladesh outlines the notion of frustration. According to this doctrine, a contract is null and void if its performance becomes impossible owing to the occurrence of an event or if it becomes unlawful after it has been entered into.

Compliances of the business entities – The entities must comply with the annual filing requirements, such as updating trade license at the respective city corporation, renewal of chamber membership, renewal of IRC & ERC, filing taxes, updating the annual filings at the RJSC, reporting to Bangladesh Bank, NBR, etc.

Property Law: In order to finalize the registration of the lease or purchase of the land, property laws must also be applied. The Land Reform Act of 2014, the East Bengal Tenancy Rules of 1954, the Survey Act of 1875, the Non-Agricultural Tenancy Act of 1949, the Registration Act of 1908, and the Transfer of Property Act of 1882 are the major statutes in these sectors.

Introduction to the services of Tahmidur Rahman Remura Wahid in regards to Pharmaceutical Company in Bangladesh:

Tahmidur Rahman Remura Wahid TRW Associates (TAHMIDUR RAHMAN REMURA) is a full-service corporate law practice that attempts to provide customers with a comprehensive spectrum of legal services as opposed to specializing on a single area of law. It is one of the largest and most reputable law companies in Bangladesh, providing domestic and international customers with legal counsel that fulfills their needs and expectations. Tahmidur Rahman Remura Wahid offers all services associated with Company Incorporation, Sole Proprietorship, Partnership, and Foreign Company Registration, among others.

The Tahmidur Rahman Remura Wahid Law firm has legal professionals who can guarantee a smooth legal process and assist in obtaining Certificates or Licenses required for Company Incorporation, such as VAT Certificate, IRC/ERC, Name Clearance, Factory/Fire/Environmental License, TIN, Trade License, and other certificates.

In order to establish a Pharmaceutical Company in Bangladesh, Tahmidur Rahman Remura Wahid can give the following services:

Tahmidur Rahman Remura Wahid offers a great and experienced team that can set up a Pharmaceutical Company business efficiently and without difficulty. The legal counsel of Tahmidur Rahman Remura Wahid is able to assist clients with any form of business incorporation through consultations and discussions.

In order to incorporate any form of business, a number of deeds, contracts, and other documents must be created. The legal experts at Tahmidur Rahman Remura Wahid can assist clients in formulating and writing these documents.

Before establishing a business, it is necessary to find an appropriate piece of land. Tahmidur Rahman Remura Wahid can provide a service to the client by locating an ideal place for the client’s business establishment. In addition, Tahmidur Rahman Remura Wahid can assist with the drafting of lease agreements, the inspection of land by the appropriate land registry office, the preparation for the acquisition of land, including registration, and so on.

Tahmidur Rahman Remura Wahid can also assist with the payment of government fees to the appropriate body, such as BIDA or RJSC, and interact with them to get the necessary documentation for business incorporation. Legal professionals, such as TAHMIDUR RAHMAN REMURA, have excellent working relationships with government authorities, making it easy to obtain any certificate or license.

Trademark/Copyright/Patent registration is sometimes required to incorporate a Pharmaceutical Company in order to obtain protection against infringement, to add value to the organization, and to increase legal protection. Tahmidur Rahman Remura Wahid aids its customers in registering for

Trademark/Copyright/Patent from the Department of Patents, Designs, and Trademarks (DPDT), providing the legal protection of the company.

Tahmidur Rahman Remura Wahid also offers services for obtaining or renewing any form of license; for operating a Pharmaceutical Company business in Bangladesh, it is necessary to obtain multiple licenses. The legal experts at Tahmidur Rahman Remura Wahid can aid with acquiring these licenses and, if necessary, renewing them on time.

Tahmidur Rahman Remura Wahid provides clients with labor-related services, such as creating employment agreements, resolving labor-related issues, and rendering legal opinions on labour legislation.

Tahmidur Rahman Remura Wahid is able to provide counsel and assistance to ensure that a company’s routine operations function smoothly.

Impact of COVID-19 on business

While the entire world is urging people to remain at home for safety reasons, this has had a devastating effect on the global economy. In order to safeguard its citizens from the COVID-19 pandemic, the Bangladeshi government has resorted to a lockdown mechanism, as have other governments around the world. However, this has had a negative impact on the country’s economic sectors, particularly export-oriented companies.

Economic Package COVID-19 for the sector:

The Bangladeshi government has announced stimulus packages totaling Tk 95,619 crore (3.3% of the country’s GDP) to combat the potential negative effects of the COVID-19 outbreak on the national economy. The government has offered export-oriented firms a Tk 5,000 billion “stimulus package” to pay workers’ wages. The fund may only be utilized to compensate workers and employees in export-oriented industries with salary and benefits. In addition, the government would give significant enterprises and service sectors affected by COVID-19 with operating capital of Tk 30,000 billion at an interest rate of 4.5 percent. Although the loan’s interest rate will be 9 percent, the government will subsidize the remaining interest paid by each bank.

Taxation for Pharmaceutical Company in Bangladesh:

The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Locally created limited liability companies are required to submit a variety of reports to the National Board of Revenue (NBR), including: opening a Tax Identification Number (TIN), submitting an annual return, and submitting an annual return for the previous year. Monthly Tax Deduction Statement, Semi-Annual Withholding Tax Statement, Annual Statement Relating to Employee Tax Return Filing, Annual Statement Relating to Salary Paid by the Company to Employees. Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc. Tahmidur Rahman Remura Wahid is able to provide counsel and assistance to ensure that all regulatory compliances are met, so allowing the business to operate without difficulty.

The article’s information may be influenced by market data system outages or faults, both internal and external, as well as by the rapid occurrence of market events. The report may contain forward-looking statements, projections, estimates, and forecasts that are based on reasonable assumptions and information currently available to us and are subject to certain risks and uncertainties.

Numerous unknown or uncontrollable risks and uncertainties may cause actual results to differ materially from the results, performance, or expectations expressed or implied by such forward-looking statements. All investors should be warned that the forward-looking statements contained in this report are not assurances of future performance. Prior to making any investment, investors should exercise sound discretion and conduct thorough research.

All opinions and estimations in this report are subject to change without notice and without legal liability due to unforeseen circumstances. Tahmidur Rahman Remura Wahid TRW disclaims any duty to update or alter any such forward-looking statements to reflect new information, events, or circumstances after the article’s publication to reflect the occurrence of unanticipated events and their outcomes.

Are you intending to set up a Pharmaceutical Company in Bangladesh?

Get your Pharmaceutical Company in Bangladesh set up 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 acquiring a Pharmaceutical 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

What are the required documents for Issuance of Registration for Foreign Medicine in Bangladesh?

Required Documents

Remarks

Application by the local nominated representative in Bangladesh

Original

Completed Form DA-1/88

Original

Evaluation fee of Recipe through Treasury Challan

Through Bangladesh Bank/Sonali Bank

Organization’s Profile  

 

Product Profile 

 

Certificate of Pharmaceuticals Products (CPP)/Free sale certificate (FSC)6 Signed by the producing country’s health authority

A copy duly attested by the Bangladesh Embassy of that concern county

In case of medicine for human being:
FSC/CPP of Country of Origin (if Australia, France, Germany, Switzerland, Japan, UK, USA )

 

In case of veterinary Medicine  Registration :
CPP of country of origin (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Japan, The Netherlands, Norway, Singapore, Sweden, Switzerland, UK, USA, Russia, Poland, Spain and South Korea)
FSC/CPP from one of the 24 countries (if the country is none of the above mentioned then Country of Origin)

 

Packet sample in English/Bengali and Brochure

What are the Process Steps for Registration of Foreign Medicine in Bangladesh?

Process Steps for Registration of Foreign Medicine

Step 1

Collects information form the Drug Administration Office

Step 2

Deposits by Treasury Challan and collects the Money Receipt from the Bank

Step 3

Submits the filled- in Application From along with supporting documents, Treasury Challan/Money Receipt

Step 4

Drug Control Committee (DCC) evaluates the Application and Recipe

Step 5

DCC decides whether to provide with the Registration for Foreign Medicine

Step 6

Issues an approval letter if the decision is positive

Step 7

Applicant deposits and submits the Registration Fee, Analysis Fee, CPP/FSC and Packet of the Product (according to the issued letter)

Step 8

Approval of Registration

What are the CTD guidelines and Risk Management Plan provided by DG health in Bangladesh?

According to the CTD guidelines, applications for proposed indications that occur in children must routinely analyze the safety and efficacy in the pediatric population. 

If this medication has a pediatric development program, please mention it and, if so, refer to the appropriate sections of the dossier. 

Plan for Managing Risk 

When a safety concern with the reference product necessitates additional risk minimization actions, the applicant should include a risk management plan for biological products as well as for generic medications. 

Include a risk management plan in applications involving: A significant new registration (for instance, a new dosage form, new route of administration, or a significant change in indications), unless the DGDA has agreed that it is not necessary. 

A material modification to a registration (such as a new method of producing a biotechnologically derived product). 

Certain products, like fixed-dose combination applications, might call for a risk management strategy.

What are the related laws when it comes to Pharmaceuticals company in Bangladesh?

আইন

ক্রমিক
শিরোনাম
প্রকাশের তারিখ
ডাউনলোড


জাতীয় ঔষধ নীতি ২০১৭
২০২১-১০-২৬

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/f65ac2f6_bd35_4bda_94fc_3322b04b4075/2021-10-26-05-26-5d0b9bdb903fe45aceb2f2b7e2453c56.pdf" title=" 2021-10-26-05-26-5d0b9bdb903fe45aceb2f2b7e2453c56.pdf" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/pdf.png" alt="pdf" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> 2021-10-26-05-26-5d0b9bdb903fe45aceb2f2b7e2453c56.pdf


দি ড্রাগ রুলস ১৯৪৫
২০১৪-০৯-২৫

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/e8b9aec5_20df_4576_8766_62a954905478/1411633335-2198" title=" 1411633335-2198" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/.png" alt="" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> 1411633335-2198


ওষুধ নিয়ন্ত্রণ অধ্যাদেশ ১৯৮২
২০১৪-০৯-২৫

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/d7161df8_ee32_4d19_bf16_a663382ae7b5/drug-policy-1982.pdf" title=" drug-policy-1982.pdf" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/pdf.png" alt="pdf" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> drug-policy-1982.pdf


দি বেঙ্গল ড্রাগ রুলস ১৯৪৬
২০১৪-০৯-২৩

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/67b76b74_3eac_4e60_a91d_efa08041c312/bengal-drug-rules.pdf" title=" bengal-drug-rules.pdf" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/pdf.png" alt="pdf" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> bengal-drug-rules.pdf


দি ড্রাগস অ্যাক্ট ১৯৪০
২০১৪-০৯-২৩

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/e4b84e61_6b76_43d6_b235_3e489f68220a/drugs-act-1940.pdf" title=" দি ড্রাগস অ্যাক্ট ১৯৪০" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/pdf.png" alt="pdf" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> দি ড্রাগস অ্যাক্ট ১৯৪০


ড্রাগ কন্ট্রোল অধ্যাদেশ - ২০০৬
২০০৫-০২-০৯

https://dgda.portal.gov.bd/sites/default/files/files/dgda.portal.gov.bd/law/e5335cbe_724c_496f_824a_96cc8a0ea67e/dgda-sro.pdf" title=" dgda-sro.pdf" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline; color: rgb(102, 102, 102); text-decoration: none; outline: 0px;">https://dgda.portal.gov.bd/themes/responsive_npf/img/file-icons/16px/pdf.png" alt="pdf" class="file-icon" style="padding: 0px; margin: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; border: 0px; vertical-align: baseline;"> dgda-sro.pdf

What is DGDA in Bangladesh?

The government of the People's Republic of Bangladesh's Ministry of Health & Family Welfare is home to the Directorate General of Drug Administration (DGDA), which serves as the nation's drug regulatory body.

The DGDA is responsible for overseeing and enforcing all drug regulations currently in effect in the nation. It also regulates all activities related to import, procurement of raw materials and packing materials, production and import of finished drugs, export, sales, pricing, etc. of all types of medications, including those from the Ayurvedic, Unani, Herbal, and Homoeopathic systems.

The DGDA currently oversees 47 district offices across the nation. According to drug laws, all DGDA officers perform the duties of "Drug Inspectors" and aid the licensing authority in carrying out his duties effectively. In addition, a number of Committees, including the Drug Control Committee (DCC), the Standing Committee for Imports of Raw Materials and Finished Drugs, the Pricing Committee, and other pertinent Committees, comprised of experts from various fields, are available to advise the Licensing Authority and recommend him on matters relating to drugs and medicines. Field Activities MonitorRegistration Monitor

Pre-emption in land law of Bangladesh

Pre-emption in land law of Bangladesh

Pre-emption is a prior right of a co-sharer of a parcel of land by purchase or inheritance, the owner of adjacent property, or a land’s neighbor. When a piece of land is sold to a third party without acknowledging the land’s co-owners, the issue of pre-emption emerges, i.e., the co-owner has the right to purchase the land and claim ownership.

If he waives his right, either directly or implicitly, a stranger or a third party can purchase it. Regarding pre-emption, Bangladesh has three distinct legal approaches: I the Muslim Law Approach, (ii) the State Acquisition & Tenancy Act, 1950 Approach, and (iii) the Non-agricultural Tenancy Act, 1949 Approach. This paper will compare and contrast pre-emption under Islamic law and statute law in Bangladesh.

It will assess the current condition or approach of pre-emption in Bangladesh, identify the flaws of the existing statutory law and problems if pre-emption is applied, and propose a remedy.

Rights of Pre-emption in land law of Bangladesh:

Pre-emption is the right to acquire property before or in the presence of another. The term pre-emption was formed from the Latin words prae, which means “before,” and emptions, which means “purchasing.” According to Dr. A.R. Biswas’s Encyclopedic Law Dictionary, pre-emption is the legal right to purchase an item before anyone else.

Pre-emption-in-land-law-of-Bangladesh-best-land-law-firm-in-dhaka

In Arabic, preemption is referred to as shuf’a. “Shuf’a” means conjunction; in this context, it refers to the right of the owner of a property that is adjacent to another. Haq means accurate. Therefore, haq-shufa refers to the right to acquire a property adjacent to one’s own from a new buyer. In practice, it signifies the right to displace a new purchaser and assume his position in relation to an adjacent property. One has the right to prevent strangers from entering their neighborhood.

The right of pre-emption is not a right to repurchase, but rather a right of substitution, allowing the pre-emptor to step into the shoes of the buyer. In Bishan Singh v. Khazan Singh4, where Subba Rao, J., summarized the rules of pre-emption, the supreme court of India took this viewpoint:

(1) The pre-emption right is not a right to the item being sold, but rather a right to the offer of an item that is soon to be offered. This right is known as the fundamental or inherent right.
(2) The pre-emptor has a remedial or secondary right to follow the sold item.
(3) It is a right of substitution but not of repurchase, meaning that the pre-emptor assumes the obligations of the original purchaser.
(4) This is a right to acquire the entire property sold, not a fractional interest.

(5) As preference is the heart of the pre-emption right, the pre-right emptor’s must be superior to that of the vendee or substitute.
Pre-emption is the right of a co-owner or adjacent owner of an immovable property to acquire by purchase another immovable property that has been sold to a third party. The pre-emption statute dates back to Roman law. In a purchase agreement, the Romans utilized their pre-emption right. In the Indian subcontinent, it was originally implemented during the rule of the Mugals, whose origins can be traced to Islamic law.

Sources of preemption rights:

  • Muhammadan Law
  • Local Custom

Statutes regarding Bangladesh’s pre-emption law:

i) 1950 State Acquisition and Tenancy Act

ii) Non Agricultural Tenancy Act 1949

iv) Partition Act 1893

iv) The Land Reforms Act of 1984

v) Arpito Sampatti Prottarpan Ain (Vested Property Return Act)

How State Acquisition and Tenancy Act section 96 gave for the right of preemption:

(1) If a portion or share of a holding of a raiyat is transferred, one or more co-sharer tenants of the holding may, within four months of the service of the notice given under section 89, or, if no notice has been served under section 89, within four months of the date of knowledge of the transfer, apply to the Court for the portion or share to be transferred to him or them; and if a holding or a portion or a share of a holding is transferred,

Provided, however, that no co-sharer tenant owning land adjacent to the land transferred shall have the right to purchase under this section unless he is a person to whom transfer of the holding or portion or share thereof, as applicable, may be made pursuant to sections 88 and 90.

Pre-emption-in-land-law-of-Bangladesh-top-law-firm-in-bangladesh

(2) In an application made under subsection (1) by a co-sharer tenant or co-sharer tenants, all other co-sharer tenants of the holding and the transferee shall be made parties, and in an application made by a tenant holding land adjacent to the land transferred, all co-sharer tenants of the holding and all tenants holding lands adjacent to the land transferred shall be made parties.

(3)

(a) An application made under subsection (1) is dismissed unless the applicants, at the time of making the application, deposit with the Court the amount of the consideration money or the value of the transferred holding or portion or share of the holding as stated in the notice under section 89 or in the deed of transfer, as applicable, along with compensation at the rate of ten percent of such amount.

(b) Upon receipt of such application accompanied by such deposit, the Court shall give notice to the transferee and to the other persons made parties thereto under subsection (2) to appear within such period as it may fix and shall require such persons to state the consideration money actually paid for the transfer and shall also require the transferee to state what other sums he has paid in respect of rent since the date of transfer and what expenses he has incurred in a suit against the transferor.

The transferee shall not, under any circumstances, be entitled to claim consideration money in excess of the amount specified in the transfer deed.

(4) When an application under subsection (1) has been made, any of the remaining co-sharer tenants, including the transferee, if one of them, and the tenants holding lands contiguous to the land transferred may, within the period referred to in subsection (1) or within two months of the date of service of the notice of the application under clause (b) of subsection (3), whichever is earlier, apply to join in the said application; any co-sharer tenant or tenant holding lands contiguous to the land transferred

(5) (a) (a). If I a co-sharer tenant whose interest has accrued by inheritance, (ii) a co-sharer tenant whose interest has accrued by purchase, and (iii) a tenant holding land contiguous to the land transferred apply under this section and comply with the provisions herein contained, the applicant or applicants shall have the prior right to purchase under this section in the order specified above.

(b) If more than one tenant holding land next to the transferred land applies under this section, the court shall decide the order of priority among such tenants by considering:

(i) the total amount of land owned by each of the tenants applying;

(ii) if the tenant’s contiguous land is homestead land or another type of land;

(iii) amount of adjacentness;

(iv) the extent to which the petitioner must be in possession of the contiguous land; and

(v) the applicants’ easement rights, if applicable.

(6) (a) Upon expiration of the period within which a petition may be submitted pursuant to subsection (4), the Court shall, in accordance with the requirements of this section, determine which of the petitions filed pursuant to subsection (1) or subsection (4) shall be granted.

Pre-emption-in-land-law-of-Bangladesh-best-lawyers-in-dhaka

(b) If the Court finds that an order allowing the applications made under this section is to be made in favour of more than one applicant, the Court shall determine the amount to be paid by each of such applicants and, after apportioning the amount, shall order the applicant or applicants who joined in the original application under subsection (4) to deposit the amounts payable by him or them within such period as the Court deems reasonable; and if the deposit is not made within such period, the Court shall order the applicant or applicants to pay

(7) (a) On the expiry of the period within which a deposit, if any, is to be made in accordance with clause (b) of sub-section (6), the Court shall pass orders allowing the application or applications made by the applicant or applicants who are entitled to purchase under and have complied with the provisions of the section and, when such orders are passed in favour of more than one applicant, shall apportion the holding or the portion or share of the holding among them in such manner as the Court.

(b) The Court shall simultaneously pass an order directing that the transferee be paid out of the deposits made under subsection (3) the amount of consideration money paid by him for the transfer along with compensation at the rate of ten percent of such amount, the amount, if any, paid by him on account of rent of the holding, portion, or share transferred since the date of transfer, and the amount, if any, incurred by him in annulling encumbrances obstructing the transfer.

(8) A apportionment order issued pursuant to subsection (7) does not constitute a partition of the holding.

(9) Commencing on the date of issuance of the order under subsection (7) –

(a) the right, title, and interest in the holding or portion or share thereof accruing to the transferee from the transfer shall, subject to any orders passed under the said sub-section, be deemed to have vested free of all encumbrances created after the date of transfer in the co-sharer tenants or in the tenants holding lands contiguous to the land transferred, as the case may be, whose applications to purchase have been approved under sub-section (7);

(b) the transferee’s liability for the rent of the holding or portion or share from the date of the transfer shall cease; and the co-sharer tenants or tenants holding lands contiguous to the land transferred whose applications to purchase have been approved shall be liable for any such rent due from the transferee; and

c) Upon further application of such applicant or applicants, the Court may place him or them in possession of the property vested in him or them.

(10) This subsection does not apply to:

(a) a transfer to a co-tenant whose interest has accrued through means other than acquisition; or

b) a transfer through exchange or partition; or

(c) a transfer by bequest or gift (including Heba but excluding Heba-Bil-Ewaj for any pecuniary compensation) in favor of the husband or wife or the testator or donor, or any consanguineous connection within three degrees of the testator or donor; or

(d) a simple or complete usufructuary mortgage, or a mortgage by conditional sale, until a decree or order of absolute foreclosure is issued; or

e) a Waqf established in line with the Muhammadan Law; or

(f) a donation made for religious or philanthropic reasons without any monetary gain being reserved for an individual.

Explanation: For the purposes of this provision, a son adopted under Hindu law shall be considered a consanguineous relation.

(11) Nothing in this section shall abrogate a person’s right of preemption under the Muhammadan Law.

(12) An application under this section must be filed with the court that would have jurisdiction to hear a suit for possession of the land in question.

(13) An order of a court issued pursuant to this section may be appealed to the regular Civil Appellate Court, and, notwithstanding anything to the contrary in any other legislation now in effect, there shall be no second appeal from an order of the first Appellate Court.

Partition Act 1893 in regards to Pre-emption in land law of Bangladesh:

Section 4 of the Partition Act grants the co-sharer of an intact family the right of pre-emption.Suit for partition by the transferee of a stake in a dwelling:

(1) Where a share of a dwelling-house belonging to an undivided family has been transferred to a person who is not a member of such family, and such transferee sues for partition, the court shall, if any member of the family being a shareholder undertakes to buy the share of such transferee, make a valuation of such share in the manner it deems appropriate, direct the sale of such share to such shareholder, and may give all necessary and proper direction in that behalf.

(2) If, in any situation specified in subsection (1), two or more family members, each of whom is a shareholder, promise to purchase such a share separately, the court shall follow the procedure outlined in subsection (2) of the preceding section.

(2) Section 3 stipulates that if two or more shareholders petition separately for permission to purchase, the court shall order the sale of the share or shares to the shareholder who proposes to pay the greatest price above the court’s value.

Certain conditions must be met prior to the application of Section 4: (1) the suit must relate to the dwelling house of an undivided family; (2) the dwelling house must have been transferred to a stranger; and (3) the stranger-transferee must have filed a suit for partition. [6] Once these conditions are met, a co-sharer may apply to the court. Section 4 of this statute grants a co-sharer the right of pre-emption over a stranger’s right.

Pre-emption-in-land-law-of-Bangladesh-law-firm-in-dhaka-tahmidur

Preemption under the SAT Act and the Partition Act:

Despite the fact that Section 4 of this Act does not contain the phrase “pre-emption,” it grants the power of pre-emption to a co-tenant. The SAT Act grants the right of pre-emption to a co-tenant and a tenant holding adjoining land, while the Partition Act guarantees this right to a co-tenant of a home.

A member of an undivided family may exercise their right of pre-emption in connection to a dwelling house under section 4 not only when a stranger-transferee is the plaintiff, but also when they are the defendant in a partition suit.

The purpose of section 96 of the SAT Act is to minimize the subdivision and fragmentation of agricultural estates, which were the primary causes of Bangladesh’s agricultural backwardness. The purpose of section 4 of the Partition Act is to prevent the intrusion of strangers into the dwelling-house in a partition suit: The right of pre-emption in relation to a dwelling-house under section 4 may be exercised by a member of an undivided family both when a stranger-transferee is a plaintiff and a defendant in a partition suit.

This purpose would be defeated if a stranger-purchaser is permitted to overcome a pre-emption claim under section 4 of the Act based on a literal and restrictive construction of the section. In a suit for partition, the parties are in the position of counter-claimants, and a defendant in a suit for partition may very well be presumed to be suing for partition.

The 1984 Land Reforms Ordinance and Pre-emption in land law of Bangladesh:

According to Section 13 of the Land Reform Ordinance, the Bargadar has the right of pre-emption over sold barga property.

Section 13.Boargadar’s right to acquire

(1) If the owner plans to sell barga land, he must ask the bargadar in writing if he is interested in purchasing the land.

1) This rule shall not apply if the owner sells the land to a co-owner, his parent, his wife, his son, his son’s son, or any other member of his family.

(2) Within fifteen days of receiving the offer, the bargadar must notify the owner in writing of his decision to purchase or not purchase the land.

(3) If the bargadar decides to purchase the land, he must negotiate the price of the land with the owner and purchase the land on the terms agreed upon by the two parties.

(4) If the owner does not receive notification from the bargadar regarding his decision to purchase or not purchase the land within the specified time period, or if the bargadar notifies the owner of his decision not to purchase the land, or if the bargadar does not agree to pay the price demanded by the owner, the owner may sell the land to whomever he deems appropriate:

The owner may not sell the property to such a person at a price lower than the price offered by the bargadar.

When barga land is purchased by a party other than the bargadar, the barga contract pertaining to the land is enforceable as if the purchaser were a party to the contract.

Pre-emption-in-land-law-of-Bangladesh-best-barristers-in-dhaja

Pre-emption in land law of Bangladesh under the SAT Act versus The Land Reforms Ordinance of 1984:

A co-tenant of a holding and a tenant owning land next to the holding may apply to exercise their pre-emption rights under SAT. According to section 13 of the LRO, a barga land owner must request the bargadar to purchase bargaland in writing if he wishes to sell the land. This indicates that the bargadar has pre-emption rights over bargaproperty.

With the pre-emption application, the consideration funds must be deposited with the court. Under the LRO, however, the bargadar is not required to make a cash deposit; rather, he must acquire the land through a legally sanctioned process.

If the co-sharer tenant of a contiguous land owner who has received notice under section 96(1) does not apply within four months, he forfeits his right of pre-emption. However, if the Bargadar do not notify the owner within 15 days of receiving a written request to purchase Bargaland, the owner may sell the land to anyone.

If a person becomes a co-shareholder through inheritance, he excludes the others from the pre-emption right, while a co-shareholder through purchase excludes adjacent landholders. However, if the owner sells Bargaland to his parent, wife, son, daughter, son’s son, or any other family member, the Bargadar forfeit their pre-emption rights.

There is a four-month time limit under the SAT Act for pre-emption, and a fifteen-day time limit for Bargadar. The SAT Act does not give the right to a second appeal, but there is no question of a second appeal in LRO or Bargadar because he can purchase the land under the general rules and procedures for purchasing land.

Restoration of Vested Properties Act of 2001: Arpita Sampatti Prattarpan Ain

Section 27 of the 2001 Restoration of Vested Properties Act grants two individuals the right of pre-emption. Under Section 27(1), only the two individuals listed below are permitted to pre-empt.

I Co-owner of an inherited property;

ii) If no such Co-sharer exists, the individual who has continuously leased the sold property for at least the last ten years.

If the sold property is agricultural land, then the pre-emption provisions of the Land Reform Ordinance of 1984 (X of 1984) will apply.

Pre-emption-in-land-law-of-Bangladesh-best-land-law-firm-in-dhaka-2

Comparative Analysis of Pre-emption in land law of Bangladesh under the SAT Act and the Restoration of Vested Property Act of 2001:

In accordance with Section 27 of the Restoration of Vested Properties Act of 2001, if the government wishes to sell or lease an immovable property that has no owner, the co-sharer by inheritance will be given preference. If there is no such Co-sharer, the person who has continuously leased the sold property for at least the previous ten years may pre-empt it. Section 96 of the SAT Act of 1950 establishes the pre-emption right. It grants the right of pre-emption to a co-tenant and a tenant who owns land next to the property.

The SAT Act does not name any other laws as supporting pre-emption laws. However, the Restoration of Vested Properties Statute makes reference to the LRO act for agricultural land. If the property in question is agricultural land, the Land Reform Ordinance of 1984 and its provisions will apply.

The Restoration of Vested Properties Act contains no provisions about the pre-emption procedure, simply the pre-emption privilege. However, the SAT Act contains provisions regarding the procedure for exercising the pre-emption power.

Section 96 of the SAT Act is a comprehensive section on the right of pre-emption, whereas section 27 simply mentions the right of pre-emption for two specific individuals.

International law firm in Bangladesh tahmidur rahman remrua

Muslim law introduced the concept of preemption to the Indian subcontinent. It is incorporated into the statutes. By applying the rules of pre-emption, a co-sharer prevents a stranger; he can extend his portion in the holding or land, but its sole purpose is to save co-sharers or neighbors from the annoyance and inconvenience of a stranger purchaser; it is not intended to increase the portion or share or property of other co-sharers of a holding or land. Consequently, it is significant, although in contemporary culture it has lost some of its significance.

Now that society is mobilized, people no longer reside in the same location forever. It does not matter to the members of a society who acquires adjacent land or a holding. Due to the mobilization of society, preemption of non-agricultural land or municipal land is now uncommon.
The significance of pre-emption in rural or agricultural areas cannot be disputed.

The inhabitants of a village dislike the intrusion of a foreigner into their domain, yet the villagers’ way of life is also evolving as a result. Consequently, the value of pre-emption decreases in the village region. In addition, the amended section 96 of the SAT Act restricts the extent of application of pre-emption in the case of agricultural land.

Only a co-sharer tenant by inheritance may seek for pre-emption; neither a co-sharer tenant by purchase nor a neighboring landowner may pre-empt. It must be brought as a civil matter and an ad valorem court fee must be paid, and the proof of pre-emption required under Muslim law is extremely difficult to establish. Notably, the provisions of statutory laws should not abrogate the power of pre-emption granted to any individual by Islamic law.

Are you planning to take legal action or a solution for your land problems in Bangladesh?

Land Lawyers at Tahmidur Rahman Remura:</u>

The legal team of Tahmidur Rahman Remura, TRW Law Firm in Bangladesh Remura Wahid are highly experienced in providing all kinds of services related land and property law 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

What is the difference between ‘shuf‘a’ and Pre emption in Bangladesh?

Preemption is known in Arabic as "shuf'a." Shuf'a, which means in conjunction or next to, refers to the right of the owner of a property that is next to or in conjunction with another property in this context. Haq is Arabic for "right." Haq-shufa, then, refers to the right to later purchase a property adjacent to one's own from a new buyer. In actuality, it refers to the ability to oust a new buyer and assume his position with regard to a neighboring property. Dislodging strangers from entering one's neighborhood is a right. 

Pre-emption is not a repurchase right; rather, it is a right of substitution that entitles the pre-emptor to take the place of the buyer. In Bishan Singh v. Khazan Singh, the Indian Supreme Court upheld this position. Subba Rao, J., summarized the pre-emption rules as follows: (1) The right of pre-emption is not a right to the thing sold, but a right to the offer of a thing about to be sold. The primary or inherent right is what is known as this. 

(2) The pre-emptor has a subsequent or remedial right to pursue the sale of the thing. 

(3) It is a right of substitution rather than repurchase, meaning that the pre-emptor accepts the full agreement and stands in for the original vendee. 

(4) Rather than a share of the sold property, it is a right to purchase the entire item. 

(5) Because the fundamental component of a right is preference, the pre-emptor must possess a superior right to that of the vendee or the replacement.

Who are entitled under pre-emption rights as per muslim law?

The goal of pre-emption under Mahomedan law is to avoid the inconvenience that may result from the introduction of a disagreeable stranger as a co-partner or a close neighbor. It is founded on the principle of convenience, and its goals are to avoid potential annoyances caused by a disagreeable neighbor. 

In Muslim law, three classes of people have the right to pre-empt others: 

(a) shafi-e sharik or a co-owner of the property, 

(b) shafi-e khalit or a participant in immunities and appendages 

(c) person who has the right of easement, and "No person is entitled to pre-empt unless he takes the proper steps at the proper time, and conforms strictly to the necessary formalities."

What are the three demands of Pre-emption rights in Bangladesh?

The three demands refer to these formalities or ceremonies. 

(i) Initial Demand (talab-e mowasibat): When notified of the sale, the pre-emptor must make a declaration known as talab-e mowsibat, stating his intention to exercise his right of pre-emption. This demand does not require witnesses or any specific language or format. It is sufficient to say, 'I have demanded or do demand pre-emption.' The pre-emptor cannot delay by claiming that he had reason to believe the true price should be much lower than that which was notified to him. 

(ii) The Second Demand (talab-e ishhad): The pre-emptor must make a second demand as soon as possible. He must I refer to his first demand; (ii) do so in the presence of the buyer or the purchaser, or on the premises subject to sale; and (iii) do so in the presence of two witnesses. This is referred to as talab-e ishhad. 

This is also known as talab-e taqrir, or the confirmation demand. A common form of demand is: "Such person has purchased such house of which I am the pre-emptor" (shafi). I have already asserted my right to pre-emption (shuf'a), and I assert it again: be ye witnesses thereof.' The pre-emptor must clearly specify the property. 

If the pre-emptor is far away and cannot be present in person, the second demand can be made through an agent or even through a letter. If there are multiple purchasers, the demand must be made to all of them, unless made on the premises or in the vendor's presence. If, on the other hand, the demand is made to only some of the purchasers, the pre-emptor may assert his right only against these purchasers and not against the others. 

(iii) The Third Requirement (talab-e tamlik): The third demand is not only a demand, but it also requires legal action, which is not always required; it is only when his claim is not conceded that the pre-emptor enforces his right by filing a suit. This type of action is known as talab-e tamlik or talab-e khusumat (the demand for possession or the demand in a dispute). If the property is corporeal, the suit must be filed within one year of the purchaser taking possession of it, or within one year of the registration of the instrument of sale if it is incorporeal. A suit or claim for pre-emption must claim the entire interest; a claim to a portion of the estate sold is insufficient. 

When a pre-emption claim is enforced, the pre-emptor stands in the shoes of the buyer and takes the property subject to prior equities. If the sale is already complete, the original buyer becomes the new vendor, and the pre-emptor becomes the new purchaser. Between the date of sale to himself and the date of transfer to the pre-emptor, the original buyer is entitled to receive or retain the rents and mesne profits.

What are the time limit for exercising pre-emption rights in Bangladesh?

Previously, an application for pre-emption could be brought within four months from the date of service of the notice or from the date of knowledge of the transfer, with no specific time limit, whereas the current section limits the time to two months, which can be exercised within three years from the date of registration of the sale deed. 
The right of pre-emption cannot be exercised after three years from the date of registration of the sale deed, whether the pre-emptor is aware of the sale or not; however, in the previous section, the pre-emptor could exercise his right at any time if he could prove that he was not aware of the transfer. 
Pre-emption, which was previously 10%, is now accompanied by a 25% compensation. There was no provision for simple interest with the application under the previous section. There is a provision in the new section for simple interest at the rate of 8% to be deposited with the application for pre-emption. 
If pre-emption is permitted, the purchaser may be directed to execute a registration deed under the new section; there is no such provision in the previous section.

What is the amended provision of Sec. 96 of the SAT Act and why it is so important?

A person could exercise the right of pre-emption at any time in practice under the previous section. Even a pre-emptor could exercise his right after ten years from the transfer if he could prove that he knew it within four months and had appeared in court by then. 

It was extremely difficult for the purchaser, who had improved the land for the previous ten years; in exchange, the compensation was insufficient. It can also be seen that the price of land has increased numerous times. The provisions in the preceding section were somewhat adaptable. 

To address these issues, a specific maximum time limit is imposed, and the amount of compensation is increased. Furthermore, as stated in the previous section, a co-sharer tenant and contiguous tenant could exercise the right of pre-emption, which was also a factor in the court hearing numerous applications for pre-emption. It was due to a court overload. 

This scope is now limited; only a co-sharer tenant may file a pre-emption application under Section 96 of the SAT Act. Section 96's current provisions are somewhat rigid; it appears that this section discourages bringing a pre-emption application where there is no strong necessity. There were drawbacks in the previous section that could cause harassment to the purchaser. It is now removed by inserting specific provisions regarding the maximum time limitation (3 years from the date of deed registration).

Call us!