Fish is one of the essential sources of protein for all people in the globe, regardless of their economic status. According to the Food and Agriculture Organization of the United Nations, around 820 million people worldwide derive income from marine and inland fishing. Bangladesh is one of the world’s leading producers of farmed fish due to its geographical location and other resources. According to the Department of Fisheries, Bangladesh, the fisheries sector contributed 3.57 percent to the national GDP, 25.30 percent to the agricultural GDP, and 1.5 percent to foreign exchange profits in 2017-18.
How to Establish a Fisheries business in Bangladesh
Fish and fisheries have a vital role in Bangladesh’s cultural heritage and economy. The sector is prominent in the country since it provides a significant source of foreign exchange earnings, generates employment opportunities, and contributes to economic growth.
According to a Food and Agriculture Organization assessment, Bangladesh has one of the most ideal zones for fisheries in the world, with the largest flooded wetland in the world and the third highest marine biodiversity among Asian countries (FAO). The availability of inexpensive labor, resources, and rising demand have made the fishing industry one of the most lucrative commercial sectors.
Bangladesh has numerous rules and regulations governing the fisheries industry and Fisheries business in Bangladesh. The Tanks Improvement Act of 1939, the Protection and Conservation of Fish Act of 1950, the Fish and Fish Products (inspection and quality control) Ordinance of 1983, the Fish and Fish Products (inspection and quality control) Rules of 1997, the Reservoir Protection Act of 2000, the Fish Feed and Animal Feed Act of 2010, the Fish Feed Rules of 2011, the Fish Hatchery Act of 2010, the Fish Hatchery Rules of 2011, and the Fisheries Quarantine Act of 2018 all play an important role In addition, The Marine Fisheries Ordinance of 1983 provides laws pertinent to the management, conservation, and development of Bangladesh’s marine fisheries. Other relevant regulations are the Fishery Policy of 1918, the Jal-Mahal Management Policy of 2009, the National Shrimp Policy of 2014, and the Establishment of Fishery in the Bhavadeh Area Policy of 2019.
Under the Ministry of Fisheries and Livestock, the Department of Fisheries (DoF) is the official department having administrative control over aquaculture in Bangladesh including the regulations of Fisheries business in Bangladesh. This department is led by the Director General and is comprised of two primary divisions: inland and maritime. It focuses on both regulatory and development activities by formulating schemes and coordinating national policy regarding fisheries, the prevention of fish illness, the conservation, management, and development of fisheries resources, the management of fish farms, and training.
This department’s efforts are backed by the Bangladesh Fisheries Research Institute (BFRI), which is responsible for performing fisheries research and training entrepreneurs and anyone interested in the fishing sector or Fisheries business in Bangladesh. Moreover, the Bangladesh Fisheries Development Corporation (BFDC) assists the Department of Fisheries (DoF) in advancing the fishing business. Establishing fishing units for the gathering, processing, distribution, and sale of fish and fisheries products is one of the functions of BFDC.
Process of Obtaining a License and Registering a Business In Bangladesh, Fisheries business in Bangladesh can be conducted in one of the following ways:
I. Single-Ownership;
II. Partnership;
III. Company.
I. Single-Ownership:
A sole proprietorship or sole trader is an unincorporated form of business in which one shareholder pays personal income tax on the business’s profits. It is the simplest form of business organization and is suitable only for small businesses operating in a limited geographical area. This business category is unavailable to foreign investors seeking to establish a company in Bangladesh.
The following actions must be taken to form a sole proprietorship for Fisheries business in Bangladesh:
First Step: A name must be selected for the business.
Second Step: rent or lease a commercial facility to conduct business operations.
Third Step: Submit the completed Trade License Application Form to the appropriate local government entity (i.e., City Corporation/Municipal Corporation/Union Parishad.
Fourth Step: Pay the required government fees.
Fifth Step: Acquire the License
Documents Required for Forming a Sole Proprietorship:
Copy of the rental or lease agreement.
b) Copy of the owner’s National ID card
b) A passport-sized image of the owner.
d) Receipt of the government fees’ payment.
II. Partnership for Fisheries business in Bangladesh:
In a partnership, two or more persons share ownership of the business. In this business structure, the Partners will have a legal agreement outlining the many rules governing the partnership operation. It is a common practice to launch a business with a limited number of shareholders. However, each partner is jointly and severally liable for any firm acts conducted while he is a partner, even if the incorrect act or omission was committed by another partner in the normal course of business.
The following procedures must be taken to establish a partnership business:
Second, rent or lease a commercial facility to conduct business operations.
Developing a Partnership Agreement containing all necessary terms and conditions.
Complete the Application Form
Submit Form I and supporting documentation to the Registrar’s Office.
Pay the required government fees.
Obtain the Certificate of Registration.
Required Documents for Forming a Business Partnership:
a) Name Approval for the Partnership Enterprise.
b) Form I Application Completely Filled Out
c) An appropriately notarized partnership agreement
c) Personal Information of the business’s Partners
e) The residences of the Partners.
f) Percentage of each partner’s profit share in the business.
g) A copy of the rental or lease agreement for the registered address of the partnership.
h) a copy of each partner’s government-issued identification card
I A passport-sized photo of each partner
j) Receipt of the government fees’ payment.
III. Business:
A Fisheries business in Bangladesh that is lawfully registered 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. In regards to Fisheries business in Bangladesh, 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 Fisheries business in Bangladesh:
The prospective company must get a Name Clearance from the Registrar of Joint Stock and Companies.
2. Creating and signing the following documents:
• The company’s Memorandum and Articles of Incorporation;
In addition, for Fisheries business in Bangladesh, it should be mentioned that in Bangladesh there is an abundance of tanks, ponds, and reservoirs, and interested parties can lease the needed tanks, ponds, and reservoirs by entering into a lease agreement with the owner.
Additional Licenses
The additional license required for each format of business has been listed below:
Sole Proprietorship
Partnership
Company
1. Personal TIN Certificate for the proprietor; 2. Import Registration Certificate (applicable for Import Business) 3. Export Registration Certificate (applicable for Export Business) 4. Warehouse setup license (applicable for fish storing business) 5. Supplier License (applicable for fish supplying business) 6. Fish Exporter Permit (applicable for exporting fish) 7. License for Conducting and Setting up Hatchery
1. Trade License 2. TIN Certificate 3. VAT Registration Certificate; 4. Membership Certificate; 5. Import Registration Certificate (applicable for Import Business) 6. Export Registration Certificate (applicable for Export Business) 7. Fish Processing Factory License (applicable for fish processing business) 8. Warehouse setup license (applicable for fish storing business) 9. Supplier License (applicable for fish supplying business) 10. Ice factory License (applicable for setting up ice factory) 11. Fish Exporter Permit (applicable for exporting fish)12. License for Conducting and Setting up Hatchery13. Environment Clearance Certificate
1. Trade License 2. TIN Certificate 3. VAT Registration Certificate 4. Membership Certificate; 5. Import Registration Certificate (applicable for Import Business) 6. Export Registration Certificate (applicable for Export Business) 7. Fish Processing Factory License (applicable for fish processing business) 8. Warehouse setup license (applicable for fish storing business) 9. Supplier License (applicable for fish supplying business) 10. Ice factory License (applicable for setting up ice factory) 11. Fish Exporter Permit (applicable for exporting fish) 12. License for Conducting and Setting up Hatchery 13. Environment Clearance Certificate
The procedure for acquiring extra licenses is outlined below:
Trade License for Fisheries business in Bangladesh:
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: 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. For Fisheries business in Bangladesh, to receive the TIN Certificate, one must submit an online application to the NBR.
VAT Certificate: 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.
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.
Import Registration Certificate and Export Registration Certificate The Office of the Chief Controller of Imports and Exports (CCI&E) provides applicants for Fisheries business in Bangladesh 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.
Fish Processing Factory License, Warehouse Establishment License, Supplier License, Ice Factory License, and Fish Exporter Permit.
The Department of Fisheries issues licenses for Fish Processing Factory License / Warehouse Setup License / Supplier License / Ice Factory License / Fish Exporter Permit. To receive the requisite license, a license application and supporting documentation must be submitted to the Deputy Director of Fish Inspection and Quality Control within the Department of Fisheries.
License for Operating and Establishing Hatchery for Fisheries business in Bangladesh
The term “hatchery” refers to a facility where fish fry and fingerlings suitable for stocking in growing ponds are produced artificially using the induced breeding method. In order to create a Hatchery, a request must be made to the appropriate District Fisheries Officer within the Department of Fisheries along with the required documentation.
Environment Clearance Certificate for Fisheries business 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.
Legal Issues in regards to Fisheries business in Bangladesh:
Foreign Investment Law: Under Bangladesh’s liberalized Industrial Policy and export-oriented, private sector-led economic plan, foreign entities and people who are interested in investing in Bangladesh have ample investment options. Except for a few regulated industries, Bangladesh welcomes private investment in all areas. The fishing industry is completely open to international 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.
Relevant Employment Law for Fisheries business 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.
Contract Law for Fisheries business in Bangladesh:
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 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 regards to Fisheries business in Bangladesh:
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.
Tahmidur Rahman Remura Wahid TRW Associates and Its Services Introduced
Tahmidur Rahman Remura Wahid TRW Associates (Tahmidur Rahman Remura Wahid TRW) is a full-service corporate law firm that attempts to provide customers with a wide range of legal services rather than specializing on a single field 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 TRW provides all services associated with Company Incorporation, Sole Proprietorship, Partnership, and Foreign Company Registration, among others. Tahmidur Rahman Remura Wahid TRW has legal specialists that can guarantee a smooth legal process and aid in getting Certificates or Permits required for establishing a business, such as a VAT Certificate, IRC/ERC, TIN, Trade License, and other licenses.
In order to establish a Fisheries business in Bangladesh, Tahmidur Rahman Remura Wahid TRW can give the following services:
The Tahmidur Rahman Remura Wahid TRW has an exceptional and capable workforce that can set up a fisheries business smoothly and efficiently. The legal counsel of Tahmidur Rahman Remura Wahid TRW can assist clients through consultations and meetings, as well as providing them with incorporation guidelines.
In order to incorporate any form of business, a number of deeds, contracts, and other documents must be created. The legal staff at Tahmidur Rahman Remura Wahid TRW can assist customers with the preparation and drafting of these documents.
Prior to establishing a Fish Hatchery or a business, it is necessary to find an appropriate piece of property. Tahmidur Rahman Remura Wahid TRW can give a service to the client by searching for an ideal location for the client’s business establishment. In addition, Tahmidur Rahman Remura Wahid TRW can assist with the preparation of lease agreements, the inspection of land by the appropriate land registry office, and the registration of lease or transfer of ownership paperwork, among other things.
Tahmidur Rahman Remura Wahid TRW can also assist with making payments of government fees to the proper authorities, such as BIDA or RJSC, and liaising with them to get incorporation documentation. Tahmidur Rahman Remura Wahid TRW, legal professionals have excellent working relationships with government authorities, making it simpler to obtain any certificate/license.
Tahmidur Rahman Remura Wahid TRW also offers services for getting or renewing any form of license; for doing fisheries-related business, many licenses are required. The legal staff at Tahmidur Rahman Remura Wahid TRW can help obtain these licenses and, if necessary, renew them on time.
Tahmidur Rahman Remura Wahid TRW provides clients with labor-related services, such as preparing employment agreements, resolving labor-related issues, and rendering legal opinions on labour legislation, etc.
Taxation for Fisheries business in Bangladesh
The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Locally formed limited liability companies are required to submit a number of reports to the National Board of Revenue (NBR), such as a Tax Identification Number (TIN) application, a monthly tax deduction statement, a half-yearly withholding tax statement, a yearly statement related to the tax return submission of its employees, and a yearly statement related to the salary paid by the company to its employees. Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc. 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.
In summary, the combination of export and robust domestic demand has enhanced the development and productivity of fishing activities. Bangladesh’s fishing industry has generated a substantial amount of foreign currency in recent decades. However, Bangladesh’s fisheries industry has considerable room for growth to bolster the country’s economy. Due to Bangladesh’s geographical location, climate, inexpensive labor force, and abundant resources, the fishing industry has a bright future as a developing industry.
Future of Fisheries business in Bangladesh
Bangladesh’s fish business is noteworthy because it provides a significant source of foreign currency earnings, generates employment opportunities, and contributes to the country’s economic progress. According to the statistics from the Department of Fisheries, Bangladesh’s total fish production in 2016-17 was 41.34 million metric tons, with 56.44 percent coming from aquaculture. The contribution of fisheries to the national GDP is 3.69 percent, whereas the contribution of agriculture to the GDP is 23.12 percent, making fisheries the second most significant crop in Bangladesh.
The Department of Fisheries is the only body within the Ministry of Fisheries and Livestock having administrative authority for aquaculture in Bangladesh. This department is led by the Director General and is comprised of two primary divisions: inland and maritime. The DOF is primarily responsible for planning, expansion, and training and development.
In order to do fisheries business in Bangladesh, approval from the relevant Department of Fisheries is required. In order to conduct fishing business in Bangladesh, a license is also required. A fishing enterprise could be operated as a sole proprietorship, a corporation, or a partnership. Prior to acquiring these licenses or certificates, however, registration is required for all business structures other than sole proprietorships, including partnerships and corporations. ERC, IRC, Trade License, VAT, License for Cured Fish Plant, Ice Plant, etc. are among the licenses needed to launch a fisheries business.
Employment legislation in Bangladesh The 2006 Labor Act and the 2015 Labor Rules govern the fishing industry. The Act of 2006 addresses employment of labor, employer-employee relations, minimum wage determination, payment of wages, etc.
In Bangladesh, the growth of the fishing industry can play a significant role in improving the country’s economy as a whole. In order to develop Fisheries businesses and industries, the Tahmidur Rahman Remura Wahid TRW legal team offers a variety of incorporation-related services. Tahmidur Rahman Remura Wahid TRW has an exceptional and professional team that can quickly establish a fisheries business in Bangladesh.
Due to border restrictions, travel prohibitions, restaurant closures, community quarantines, supply chain disruptions, and other factors, the recent covid 19 outbreak has slowed the growth of the fishing industry. Nonetheless, the Bangladeshi government has made steps to limit the economic impact of the coronavirus.
Due to Bangladesh’s geographical location, climate, inexpensive labor force, and abundant resources, the fishing industry has a bright future as a developing industry. To make fishing a more profitable business Concerned government departments, development partners, researchers, and non-government groups can play a significant role in advancing the fishing sectors and minimizing the economic impact of covid 19 through their efforts.
Are you planning to do Fisheries business in Bangladesh?
Fisheries business in Bangladesh with 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 forming and incorporating a Fisheries business in Bangladesh. For queries or legal assistance, please reach us at:
There are numerous investment opportunities in the restaurant sector, including sole proprietorship, partnership, and private limited liability company. Foreign investors are not eligible for the first two alternatives. In this post we will explain the procedure of Restaurant Business registration in Bangladesh.
SOLE PROPRIETARY RIGHTS
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 Restaurant Business registration in Bangladesh:
In order to establish a single proprietorship in Bangladesh, the following actions must be taken:
Step 1: Business name proposal.
Step 2: Obtaining a Business License
General Licenses
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.
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.
TIN Certificate ———- The application must be submitted using the National Board of Revenue’s online portal (NBR).
Trade License for Restaurant Business registration in Bangladesh –
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 Restaurant Business registration in Bangladesh:
It typically takes three to four weeks for RJSC to issue the certifications following the submission of the required documents in Step 5.
General Licenses:
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, along with the applicable government fees, must be sent to the relevant city corporation office, along with the company’s documentation and the lease/rent deed for its 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 after Restaurant Business registration in Bangladesh :
The application must be submitted via an online portal alongside Company documentation.
Certain licenses and/or approvals for Restaurant Business registration in Bangladesh:
The restaurants create commercial food goods and beverages that are offered to a large number of people; as a result, they must adhere to particular health standards and need special authorization and license from the Bangladeshi government in order to conduct business there.
Restaurant License for Restaurant Business registration in Bangladesh:
Step 1:
To operate a restaurant, an application with the required fee and procedure must be submitted to the appropriate registrar.
Step 2:
Upon receipt of the application, the registrar will examine the given information. If the registrar is satisfied, he will provide a certificate of registration to the applicant, specifying the time, procedure, and criteria on the application form.
Step 3:
Initiate the restaurant business and receive a license within one year of the date the registration certificate was issued.
Step 4:
The business owner must next submit an application to the respective controller with the necessary fee and paperwork to receive a license.
Step 5:
If the inspector is satisfied, the controller will issue the license.
After three years, the license will expire and be renewed.
Import Registration Certificate (IRC) for Restaurant Business registration in Bangladesh-
Entities who wish to import food or restaurant equipment are required to get the IRC.
The IRC application must be submitted to the Office of the Chief Controller of Imports along with the entity’s incorporation paperwork, TIN certificate, trade license, bank solvency certificate, chamber of commerce membership certificate, and applicable government fees. The certificate must be renewed each year.
Fire License for Restaurant Business registration in Bangladesh:
Buildings and commercial organizations are required to obtain a fire license in consideration of the surrounding environment and to protect the safety of the firm and its personnel. It is issued by the Fire Service and Civil Defense (FSCD) body functioning under Bangladesh’s Ministry of Interior.
The following documents must be provided in order to receive a fire license: –
7. Memorandum and Articles of Association; 8. Certificate of no objection from the local authority; 9. Certificate of clearance from the FSCD office; 10. Deposit slip/treasury challan.
Certification Mark from Bangladesh Standards and Testing Institution (BSTI) –
There are 71 Agricultural and Food Products under the mandatory Certification Marks (CM) scheme of BSTI, which means that the marketing of any of these items requires a Bangladesh Standard conformity certificate from the BSTI. There are 23 imported Food Products that require certification prior to customs clearance. If a restaurant uses a product from these two categories, it must ensure that the product bears the appropriate Certification Marks.
Legal Issues in regards Restaurant Business registration 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, filing taxes, updating annual filings at the RJSC for limited liability companies, and renewing branch office permission at BIDA when it expires.
Implications of Contract Law in Restaurant Business registration in Bangladesh –
The entities’ interaction with dealers/vendors who provide products or services to the business is an integral component. When selling items to dealers or receiving goods and/or services from vendors, there should be a dealership/vendor agreement in place.
Vendor Agreements can include a wide range of services, including software, professional services, office supplies, technical services, event organizing, marketing, and consultants.
In the event of a dispute, the agreement, in addition to the applicable laws, plays a crucial part in resolving the dispute; therefore, it is crucial to protect one’s interests when drafting agreements.
The franchise agreement is also an essential component of this industry, since numerous businesses 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 requirements. This will be useful when remitting royalties to the franchisor via banking channels. Foreign owners may also remit the dividend after deducting the applicable taxes, in addition to the royalty payment.
Requirements Labour regulations for Restaurant Business registration in Bangladesh-
Entities must guarantee that their relationships with employees comply with Bangladesh’s labour laws. Employees must have a letter of appointment that specifies their job title, job description, remuneration, benefits and welfare, applicable working hours and leaves, etc. It should be highlighted that an employer cannot, via contract or appointment letter, supply less than what the labor laws require. It is also the responsibility of the employer to ensure a safe and healthy work environment.
Certification Marks from BSTI There are food and agricultural goods from number (Number 1-71 in the product list of BSTI). BSTI also released a list of 55 Imported Products subject to required certification prior to customs clearance, 23 of which are food products (Number 1-23 in the list of imported products)
The Food (Special Courts) Act of 1956 and Restaurant Business registration in Bangladesh:.
The Food (Special Courts) Act of 1956 provides for the establishment of special courts for the rapid trial of food-related offenses. A Special Magistrate may accept jurisdiction over any crime punishable by this Act. If a person commits an offense punishable under this Act, he shall be punished with imprisonment for a term that may not exceed three years or with a fine, or with any one or both of these, and the Court of Special Magistrate trying such an offense may order that any foodstuffs in respect of which it is satisfied that a notified order has been violated shall be forfeited to the government.
1983 Fish and Fish Products (Inspection and Quality Control) Ordinance Application
The Fish and Fish Products (Inspection and Quality Control) Ordinance, 1983 governs fish and fish product inspection and quality control. Fish items that are decomposed, unfit for human consumption, or infected with pathogenic organisms should not be exported, marketed for export, or possessed for export. A person with leprosy, tuberculosis, or any other contagious disease that the government may specify by notification in the official Gazette may not catch, handle, transport, or process fish or fish products, or cause others to do so, nor may they work in fish processing and fish packing plants and establishments. The penalty for violating these laws is imprisonment for up to six months or a fine of up to five thousand Taka, or both.
Implementation of the 2013 Food Safety Act
The Food Safety Act of 2013 addresses a broad range of issues to guarantee the right to access safe food for the protection of human health and life. There are certain restrictions associated with Food Safety Management System.
Examples:
• Use of hazardous materials, substances, or ingredients, pesticides, or intoxicated food coloring or flavoring, or any other intoxicated additions or processing aids that may be harmful to human health;
• Excessive use of radioactive materials, heavy metals, etc., beyond allowable limits.
• Production of a contaminated food item or food additive, etc.
• Applications of food additives and processing aids
• The storage of spent industrial oil, industrial waste, adulterants, and other contaminants in food establishments.
• Expired food items or food ingredients
• The use of growth boosters, insecticides, herbicides, drug residues, microorganisms, etc.
• The sale of diseased or putrefied fish, meat, milk, eggs, etc., as well as any food products manufactured from such substances.
• Maintaining and displaying the name, address, and receipt or challan of the relevant parties.
If a person violates a law and is found guilty and fined by a Food Court, the complainant is entitled to receive 25% of the fine as an incentive: If the complainant is an officer or employee of the Authority, he is ineligible to receive such an incentive.
Application of the 2014 Hotel and Restaurant Ordinance of Bangladesh:
“Restaurant” refers to a business establishment where customers can purchase regular cuisine for a fee that meets the minimum set specifications and has seating for at least thirty people. This law prohibits the operation of a restaurant without a registration certificate and license. The restaurant’s owner may transfer ownership by notifying the controller.
The previous owner must return the registration certificate and license to the controller, and the new owner of the restaurant must complete the procedure and pay the costs to obtain a new license. If a person or owner violates any provision of this act, they shall face six months of simple imprisonment or a maximum fine of two lakhs of Bangladeshi taka, or both. If a firm violates the legislation under this act, the individual directly involved in the violation shall be held accountable.
Implementation of the Consumer Protection Act for Restaurant Business registration in Bangladesh:
The Consumers’ Right Protection Act, 2009 (Act No. 26 of 2009) [6 th April, 2009] regulates the provisions for the protection of the rights of consumers, the prevention of anti-consumer right practices, and things related thereto. If anyone violates any provision of this legislation, he will be punished.
• The penalty for failing to label goods with their weight, quantity, ingredients, instructions for use, maximum retail price, date of manufacturing, date of packaging, and date of expiration must be imprisonment for a term not exceeding one year or a fine not exceeding fifty thousand taka, or both.
• The penalty for failing to display a price list is imprisonment for a term not to exceed one year or a fine not to exceed fifty thousand taka, or both.
• The penalty for failing to maintain and show pricing lists for services is imprisonment for a term not exceeding one year or a fine not exceeding fifty thousand Taka, or both.
• Mixing forbidden substances into food that is harmful to human life or health is punishable by imprisonment for a term not to exceed three years, a fine not to exceed two lacs of Taka, or both.
• The penalty for misleading consumers by fraudulent advertising is imprisonment for a term not to exceed one year or a fine not to exceed two lacs of Taka, or both.
• The penalty for selling date-expired products is imprisonment for up to one year, a fine of up to fifty thousand taka, or both.
Application-based mobile food delivery service –
There is currently no specific legislation governing restaurants’ mobile application-based food delivery services. However, they shall be required to obtain a license from the licensing authority under the Ministry of Posts, Telecommunications and Information Technology in accordance with the Mailing Operator and Courier Service Rules, 2013 as they fall under the definition of courier services according to the aforementioned Rule and the Post Office Act, 1890.
Trademark after Restaurant Business registration in Bangladesh:
After the registration of the entity, it may apply to the Department of Patents, Designs, and Trademarks (DPDT) for registration of its trademarks and/or other Intellectual Property in order to protect trademarks and other IP-related matters. An applicant must submit a trademark registration application to the Trademark Registry Wing of the DPDT.
A trademark registration application must include the following elements:
• the Mark/Logo • the Applicant’s Name.
• The applicant’s complete address and nationality.
• The applicant’s status as merchandisers, manufacturers, or service providers
• Goods Specification and Classification.
• Date of use of the mark (whether the mark is in use or proposed to be used in Bangladesh).
• A general or particular power of attorney may be necessary.
• Fee for application
Acceptance or Denial of the Trademark:
Once the application has been filed and the documents have been examined and accepted by the Registrar, the application will be sent to the journal publication to determine whether there are any objections to the mark. In the event of an objection, the Registrar will decide the matter based on the documentation supplied by both parties.
If there is no opposition, however, DPDT will notify the applicant to pay certification fees and then issue the trademark registration certificate. It typically takes between three and five years to receive the final certificate of trademark registration. In the interim, the entity is permitted to begin using the mark. A registered trademark is valid for an initial period of seven (7) years from the date of filing, with subsequent renewals for ten (10) years.
Tahmidur Rahman Remura Wahid TRW law firm in Bangladesh AND ITS SERVICES regarding restaurant business in bangladesh:
According to the BBS survey, hotel and restaurant employment increased from 9 lakh in 2009-10 to 22.8 lakh in 2019-20.
The sector’s contribution to the gross domestic product has increased to 0.75 percent. In fiscal 2019-20, the value was Tk 87,926 billion, compared to Tk 11,986 billion in 2009-10.
As a full-service law practice, Tahmidur Rahman Remura Wahid TRW Associates provides all forms of legal and financial services through its knowledgeable and competent employees.
Tahmidur Rahman Remura Wahid TRW Associates 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: 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:
Tahmidur Rahman Remura Wahid TRW Associates 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 Associates 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 TRW Associates offers a formidable litigation team that assists and represents clients in defending/filing disputes before courts or tribunals for all sorts of litigation.
The entire scenario has a negative impact on the income of the majority of individuals. People already struggle to have consistent access to food. People who are still able to buy restaurant meals are concerned about their health, and they eat very little food prepared in restaurants’ kitchens.
Companies should plan for the pandemic and for situations in which the outbreak has a negative impact on business in general and on the fulfilment of commercial contracts in particular. Specifically, businesses should assess whether they are permitted to use force majeure under the terms of their contracts and defer the fulfillment of their contractual duties without incurring a penalty.
A force majeure clause does permit a party’s complete inability to execute, but only for the length of the force majeure occurrence. If properly prepared, the force majeure clause may indicate that if a force majeure event continues for longer than a specified period, either party may terminate the contract without incurring any financial liability.
Since the theory of force majeure has no clear legislative basis in Bangladeshi law, its reliance is essentially based on the parties’ agreement and the respective conditions of the contract entered into between the contracting parties.
The Contract Act of 1872 (the “Act of 1872”), which is governed by Bangladeshi law, governs all contracts. The idea of frustration is codified in Section 56 of the Act of 1872, which states that a contract is null and void if its performance becomes impracticable or if, as a result of some occurrence, it becomes illegal after it has been entered into.
Therefore, if the contract becomes difficult to perform due to Corona, it shall be considered null and void under Bangladeshi law, provided that the defaulting party did not know or could not have reasonably known that the contract would become impossible to perform. A null contract has the effect that it cannot be enforced by law and the parties are released from their respective duties.
To use the doctrine of frustration, the fulfilment of the contract must become totally impossible due to the occurrence of an unanticipated catastrophe, such as a pandemic of the Corona virus.
In the absence of an appropriately worded force majeure clause in a contract, the parties in Bangladesh may be able to rely on existing provisions of Bangladeshi law, specifically Section 56 of the Act of 1872, to excuse themselves from timely performance of their respective obligations under the contract.
In addition, the government of Bangladesh has offered a package worth BDT 500,000,000,000 in an effort to stimulate the economy should a recession result from the pandemic’s effects. The business entities are optimistic that if this sector contributes its due share to the aforesaid package, it would be able to stimulate the local economy and help end the recession.
Taxation after Restaurant Business registration in Bangladesh:
The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Locally formed limited liability companies are required to submit a number of reports to the National Board of Revenue (NBR), such as a Tax Identification Number (TIN) application, a monthly tax deduction statement, a half-yearly withholding tax statement, a yearly statement related to the tax return submission of its employees, and a yearly statement related to the salary paid by the company to its employees. Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc.
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 Bangladeshi restaurant business is expanding exponentially. The business environment is becoming more competitive, and everyone is developing new strategies to remain in this field. The demand from customers is still on the rise, although it has not yet peaked. This rising demand necessitates more investors to be met by the market.
Top Factors that Make Customers Return to a Restaurant in 2023
Quality of food
50%
Attention to cleanliness and safety
43%
Value
31%
Menu options
27%
Desire to support local business
22%
Staff friendliness
21%
Proximity
19%
Order ahead
17%
Delivery speed
16%
Discounts and offers
15%
Presence on delivery apps
12%
Social media or email marketing
10%
Loyalty program
9%
Events
8%
Business Potential Restaurant Business registration in Bangladesh:
Bangladesh’s restaurant business has a tremendous amount of untapped potential, as local demand continues to rise. The constant desire to try new cuisines is raising the demand for eateries.
Investors have the option of forming a Sole Proprietorship, Partnership Business, or Private Limited Company in order to participate in the restaurant industry. 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.
As a full-service law practice, Tahmidur Rahman Remura Wahid TRW Associates provides all types of legal and financial help, beginning with entity registration and ending with annual compliance 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.
In spite of this, it is anticipated that as soon as the pandemic begins to decline, business will return and develop steadily.
Are you planning to do Restaurant Business registration in Bangladesh?
Restaurant Business registration in Bangladesh with 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 forming and incorporating a Restaurant Business registration in Bangladesh. For queries or legal assistance, please reach us at:
Incorporation of energy companies in Bangladesh: Bangladesh’s energy sector is overseen by the Ministry of Power, Energy, and Mineral Resources. The Energy and Mineral Resources Division, the Power Division, the Sustainable and Renewable Energy Development Authority (SREDA), the Power Cell, and the Bangladesh Energy Regulatory Commission (BERC) are some of the organs that regulate the energy sector. The most important Acts, Rules, and Regulations include the Electricity Act of 2018, the Bangladesh Energy Regulatory Commission Act of 2003, the SREDA Act of 2012, the Gas Cylinder Rules of 1991, and the Bangladesh Gas Act of 2010.
LICENSING PROCESS for Energy company incorporation in bangladesh in 2023
In Bangladesh, the automobile industry can be conducted through the formation of a company:
8. Obtain the certificate of registration from the RJSC.
Required Company Formation Documents:
a) A copy of the company’s Valid Name Clearance;
b) An executed copy of the company’s memorandum and articles of incorporation.
c) Copy of Form I: Declaration On Registration Of Company, duly signed;
d) Copy of Form VI: Notice Of Situation Of Registered Office, duly executed;
e) Copy of Form IX: Consent of director to act, duly executed;
f) Copy of the executed Form X: List of Individuals Consenting to Serve as Directors;
g) Copy of Form XII: Particulars of the directors, manager, and managing agents, duly signed and dated;
h) Copies of shareholder and director identification cards (for Bangladeshi nationals);
I Copies of Shareholder Identification Number (TIN) Certificates (for Bangladeshi Nationals);
j) Copies of shareholders’ and directors’ passports (for foreign nationals);
k) Photos of shareholders and directors in passport format;
l) Bank Encashment Certificate for each international shareholder;
m) Receipt of the government fees’ payment.
A 100% foreign-owned company can also register as a Branch Office to engage in energy business, in addition to the above-mentioned relevant formats. 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 Energy company incorporation in bangladesh
The following are the additional licenses required to develop an energy industry:
I. Trade License;
II. TIN Certificate;
III. VAT Registration Certificate;
iv. Registration of Projects for Industrial Investment;
V. Factory Layout Authorization;
vi. License of the Factory;
vii.Membership Certification:
viii. Certificate of Import Registration (applicable to Import Businesses);
IX. Certificate of Export Registration (applicable to Export Businesses);
X. Environment Clearance Certificate;
XI. Fire License;
x. Registration of the Trademark;
xi. License for captive power plants (CPP).
The procedure for acquiring extra licenses is outlined below:
VAT Certificate for Energy company incorporation in bangladesh:
Every business is needed to have a Taxpayer Identification Number in order to conduct business (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 Project for Industrial Investment:
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 Acceptance for Energy company incorporation in bangladesh::
The Department of Inspection for Factories and Establishments (DIFE) must grant written permission prior to the use, modification, or enlargement of any dwelling, building, or premises as a factory. The DIFE must receive an application accompanied by the required documentation in order to grant approval for the proposed layout.
License of Manufacturer for Energy company incorporation in bangladesh::
The entrepreneur must become a member of a local Chamber of Commerce and Industry or appropriate Trade Association after establishing the respective business. 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:
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.
Environment Clearance Certificate for Energy company incorporation 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 Energy company incorporation 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.
License for Captive Power Plants (CPP)
To get a license for a Captive Power Plant of a certain MW, an application must be submitted to the Secretary of the Bangladesh Energy Regulatory Commission (BERC).
Required Documents for Energy company incorporation in bangladesh::
Demand draft or money order for the Application fee;
Single-line diagram of power plant, substation, busbar, and grid connection;
mechanism for grounding generators;
Generator safeguarding system (s).
Legal Issues:
Foreign Investment Legislation in regards to Energy company incorporation 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 energy sector 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.
Employment Law concerns for Energy company incorporation 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.
Force Majure
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 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.
Description of the Tahmidur Rahman Remura Wahid TRW and its services
Tahmidur Rahman Remura Wahid TRW may provide the following services for the establishment of Energy Business in Bangladesh:
Tahmidur Rahman Remura Wahid TRW offers an outstanding and capable team that can set up an energy business smoothly and quickly. Tahmidur Rahman Remura Wahid TRW’s legal counsel can assist clients through consultations and meetings and offer them with incorporation rules for any sort of business.
In order to incorporate any form of business, a number of deeds, contracts, and other documents must be created. The legal staff at Tahmidur Rahman Remura Wahid TRW can assist customers with the preparation and drafting of these documents.
Before establishing a business, it is necessary to find an appropriate piece of land. Tahmidur Rahman Remura Wahid TRW can give a service to the client by searching for an ideal location for the client’s business establishment. In addition, Tahmidur Rahman Remura Wahid TRW can assist with the drafting of lease agreements, the inspection of land by the appropriate land registry office, and the preparation for the acquisition of land, including registration.
Tahmidur Rahman Remura Wahid TRW can also assist with making payments of government fees to the proper authorities, such as BIDA or RJSC, and liaising with them to get incorporation documentation. Tahmidur Rahman Remura Wahid TRW, legal professionals have excellent working relationships with government authorities, making it simpler to obtain any certificate or license.
Trademark registration after Energy company incorporation in bangladesh:
Trademark/Copyright/Patent registration is sometimes required to incorporate a business in order to obtain protection against infringement, to add value to the organization, and to increase legal protection. Tahmidur Rahman Remura Wahid TRW aids its clients in getting Trademark/Copyright/Patent registration from the Department of Patents, Designs, and Trademarks (DPDT), so ensuring the company’s legal protection.
Tahmidur Rahman Remura Wahid TRW also offers services for obtaining or renewing any form of license; in order to undertake energy-related business, many licenses must be obtained. The legal staff at Tahmidur Rahman Remura Wahid TRW can help obtain these licenses and, if necessary, renew them on time.
Tahmidur Rahman Remura Wahid TRW provides clients with labor-related services, such as preparing employment agreements, resolving labor-related issues, and rendering legal opinions on labour legislation, among others.
Tahmidur Rahman Remura Wahid TRW is able to provide guidance and assistance in meeting routine legal requirements in order to facilitate the smooth operation of a firm.
Taxation after Energy company incorporation 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 TRW may provide guidance and assistance to ensure that all regulatory compliances are met, allowing the business to operate without difficulty.
Commercial License for Energy company incorporation in bangladesh:
Bangladesh’s energy sector is the mother of all sectors. The vast majority of the nation’s economic activity depend on the availability of electricity or gas. In order to establish a Captive Power Plant or LPG Cylinder Gas manufacturing in Bangladesh, a number of steps must be taken. The procedures and their required documentation have been thoroughly discussed. It has been demonstrated that business registration must be conducted with earth BIDA or the RJSC. Additionally, a commercial license must be secured. The DIFE is the only entity with the capacity to grant manufacturers and establishments license to conduct business, provided certain conditions are met. The other applicable licenses and laws are mentioned.
In Bangladesh, the energy industry is thriving. In recent years, the demand for renewable energy such as solar electricity and LPG gas cylinders has expanded significantly. To start a factory, a number of procedures must be followed. First, a branch office or company must be created, followed by the acquisition of general licenses such as TIN, VAT, and Trade License.
The next step is to acquire the factory establishment license from DIFE. The approval of the building layout designs must be secured first, followed by the factory license. For the import of any production materials, an import license must be obtained from the relevant Ministry.
The office of the CCI&E must be contacted for an Import Registration Certificate and an Export Registration Certificate. Additional permissions, including an Environment Clearance Certificate, Fire License, and Trademark, are required.
The firm’s seasoned business attorneys provide comprehensive services to their clients. The service includes incorporation of a Branch Office, drafting of the Memorandum of Association and Articles of Association for the proposed company, drafting of Forms IX and XII, registration and obtaining TIN certificate, VAT registration certificate, IRC & ERC, Trade License, Work Permit, Factory license, ECC, Fire license, Trade Mark etc. In addition, the services include the execution of various forms of contractual agreements (Power Purchase Agreement, Partnership Agreement, Lease Deed, etc.), as well as legal advice on a variety of matters (such as labour).
Are you planning to do Energy company incorporation in bangladesh?
Energy company incorporation in bangladesh with 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 forming and incorporating a Energy company incorporation in bangladesh. For queries or legal assistance, please reach us at:
This document discusses how to incorporate or register a business in Bangladesh. In accordance with the Companies Legislation of 1994, business incorporation in Bangladesh takes a variety of forms and procedures; under the act, company registration procedures in Bangladesh vary based on the type of company registration one may choose in Bangladesh.
To comprehend how to incorporate or register a company in Bangladesh, we must first comprehend the type of company you wish to incorporate or register. If one is unaware of the correct and relevant company establishment procedure in Bangladesh, the process could be difficult.
Steps of founding a Electronics industry in Bangladesh:
Step
Description
Elaboration and Legal Information
1
Conduct market research and analysis
This step involves analyzing the market demand for electronic products in Bangladesh, as well as researching the competition and potential barriers to entry. This can be done through a variety of methods, such as surveys, focus groups, and online research.
2
Develop a business plan
A business plan is a document that outlines the goals, target market, and financial projections of the company. It should include details such as the products or services offered, the marketing and sales strategy, and the management and operational structure of the business.
3
Choose a business name and register it
The business name should be unique and distinguishable from other companies. It can be registered with the Bangladesh Investment Development Authority (BIDA) or the Office of the Registrar of Joint Stock Companies and Firms (RJSC).
4
Obtain necessary licenses and permits
Electronics companies in Bangladesh may need to obtain various licenses and permits, such as a Trade License, VAT Registration Certificate, and Environmental Clearance Certificate. The specific requirements will depend on the nature and scale of the business.
5
Find a suitable location for the company
The location should be easily accessible to customers and suppliers, and should have adequate facilities and infrastructure. It may be necessary to lease or purchase the property, and to obtain any necessary zoning approvals.
6
Acquire necessary equipment and supplies
This step involves purchasing or leasing the equipment and supplies needed to produce and sell the electronic products. This may include production machinery, packaging materials, and inventory management software.
7
Hire employees
The company will need to recruit and hire employees with the necessary skills and experience to carry out the various tasks involved in running the business. This may include production workers, sales staff, and administrative personnel.
8
Set up a system for bookkeeping and financial management
It is important to establish a system for tracking the financial performance of the business, including revenues, expenses, and profits. This may involve setting up a system for accounting, budgeting, and financial reporting.
9
Establish relationships with suppliers and distributors
The company will need to establish relationships with suppliers of raw materials and components, as well as distributors to sell the finished products. It may be necessary to negotiate contracts and pricing agreements with these partners.
10
Launch the business and begin operations
Once all the necessary preparations have been made, the company can officially launch and begin conducting business. This may involve marketing and promoting the products, processing orders and shipments, and providing customer service.
Some common questions from our clients about electronics industry formation in Bangladesh:
What are the requirements for starting an electronics company in Bangladesh?
To start an electronics company in Bangladesh, you will need to conduct market research and analysis, develop a business plan, choose a business name and register it, obtain necessary licenses and permits, find a suitable location for the company, acquire necessary equipment and supplies, hire employees, set up a system for bookkeeping and financial management, and establish relationships with suppliers and distributors.
Can foreign investors own and operate an electronics company in Bangladesh?
Yes, foreign investors are allowed to own and operate electronics companies in Bangladesh. However, they will need to follow the same steps and requirements as domestic investors, including obtaining necessary licenses and permits, and complying with local laws and regulations.
Is it necessary to have a local partner to operate an electronics company in Bangladesh?
It is not necessarily required to have a local partner to operate an electronics company in Bangladesh. However, having a local partner can be beneficial in terms of navigating the local business environment, establishing relationships with suppliers and distributors, and complying with local laws and regulations.
What are the tax implications for electronics companies in Bangladesh?
Electronics companies in Bangladesh are subject to various taxes, including corporate income tax, value-added tax (VAT), and customs duties on imported goods. The specific tax rates and obligations will depend on the nature and scale of the business.
Electronics companies in Bangladesh are subject to various employment laws and regulations, including those related to minimum wage, working hours, leaves of absence, and health and safety. It is important to familiarize yourself with these laws and ensure that the company is in compliance.
What are the intellectual property rights protections available to electronics companies in Bangladesh?
Electronics companies in Bangladesh are entitled to protection of their intellectual property rights, including patents, trademarks, and copyrights. It is important to register any relevant IP assets to secure legal protection and prevent others from infringing on them.
Can electronics companies in Bangladesh export their products?
Yes, electronics companies in Bangladesh are allowed to export their products to other countries. However, they will need to comply with any relevant export regulations and requirements, such as obtaining necessary licenses and certificates, and paying applicable duties and taxes.
What are the regulations on advertising and marketing for electronics companies in Bangladesh?
Electronics companies in Bangladesh are subject to various regulations on advertising and marketing, including those related to truth in advertising, consumer protection, and data privacy. It is important to familiarize yourself with these regulations and ensure that the company is in compliance.
Are there any environmental regulations that apply to electronics companies in Bangladesh?
Yes, electronics companies in Bangladesh are subject to various environmental regulations, including those related to pollution, waste management, and natural resource conservation. It is important to familiarize yourself with these regulations and ensure that the company is in compliance.
Can electronics companies in Bangladesh participate in government procurement?
Yes, electronics companies in Bangladesh can participate in government procurement. The procurement process and requirements are regulated by Public Procurement Act 2006 (PPA) and Public Procurement Rules 2008 (PPR). These rules are set up to ensure transparency, fairness, and competition in government procurement, and companies must follow these regulations to participate in the bidding process.
The labor laws and workers rights in the electronics industry in Bangladesh are regulated by the Bangladesh Labor Law 2006. This law provides protections for workers such as, fair wages, safe working conditions, prohibition of child labor, and the right to form trade unions. Companies operating in the electronics industry in Bangladesh must abide by these regulations and ensure that their workers have access to these rights and protections.
Therefore, this tutorial will assist in comprehending the step-by-step company incorporation process in Bangladesh. In Bangladesh, the procedure for incorporating a company is governed by numerous statutes and regulations. RJSCin Bangladesh, also known as the Registrar of Joint Stock Companies (RJSC), is the regulatory agency in charge of Company registration in Bangladesh. Following will provide an idea of the process and requirements for incorporating/registering a company in Bangladesh.
Create and establish your new business.
Provide our office as the registered office for your company.
Monitor changes in corporate legislation and maintain compliance.
Maintain all required registers and send all paperwork to Companies House.
Complete all transfer forms and certificates
File your Annual Return
Advise on general company law and minority interest protection.
You have a ready-made corporation with all forms filed and organized properly.
You remain in complete compliance with all statutory company law laws. You escape any penalties and fines.
You save work and time
S.L.
Category
Site Clearance
Environmental Clearance
Supporting documents
1.
Green
N/A
15 Days
Application submitted on form-3 specified by Environment Conservation Rules 1997 Fees outlined in Schedule 13 of the Environment Conservation Rules 1997 (Amended 2002) General information about the industrial unit or project; Exact description of the raw materials and the finished product; and No objection certificate (Prescribed Form) obtained from the local government.
2.
Orange-A
30 Days
15 Days
Application using form-3 stipulated by Environment Conservation Rules 1997 Fees outlined in Schedule 13 of the Environment Conservation Rules 1997 (Amended 2002) General information regarding the industrial unit or project; Precise description of the raw materials and the manufactured product; No objection certificate (Prescribed Form) obtained from 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 pertinent information.
3.
Orange-B
60 Days
30 Days
Application on prescribed form-3 under Environment Conservation Rules 1997 Prescribed costs under Environment Conservation Rules 1997 schedule-13 (Amended 2002) Report on the industrial unit or project’s feasibility (applied only 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 Effluent Treatment Plant (ETP) of the unit or project (applies only to proposed industrial units or projects);
Report on the Environmental Management Plan (EMP) for the industrial unit or project, as well as the Process Flow Diagram, Layout Plan (showing location of Effluent Treatment Plant), design of the Effluent Treatment Plant, and information about the efficacy of the ETP of the unit or project (these are only applicable for an existing industrial unit or project);
Certificate of no objection (Prescribed Form) from the local authority; Emergency plan relating adverse environmental impact and strategy for mitigating the effect of pollution; Outline of the relocation, rehabilitation plan (where applicable); Other essential information (where applicable).
4.
Red
60 Days
30 Days
Application on prescribed form-3 under Environment Conservation Rules 1997 Prescribed costs under Environment Conservation Rules 1997 schedule-13 (Amended 2002) Report on the industrial unit or project’s feasibility (applied only to proposed industrial units or projects); Report on the Initial Environmental Examination (IEE) pertaining to the industrial unit or project, as well as the terms of reference (ToR) for the Environmental Impact Assessment (EIA) of the industrial 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 Layout Plan (showing location of Report on the Environmental Management Plan (EMP) for the industrial unit or project, as well as the Process Flow Diagram, Layout Plan (showing location of Effluent Treatment Plant), design, and information about the efficacy of the unit or project’s Effluent Treatment Plan (applicable only to existing industrial units or projects);
Certificate of no objection (Prescribed Form) from the local authority: Emergency plan relating to adverse environmental impact and plan to reduce the effects of pollution; Relocation and rehabilitation plan outline (if relevant); Other pertinent information (if applicable);
Fire License for Electronics company formation in Bangladesh –
Buildings and commercial organizations are required to obtain a fire license in respect of the environment and to protect the safety of the facility and its employees. It is issued by the Fire Service and Civil Defense (FSCD) authority under the Ministry of Home Affairs, Bangladesh.
The documents which are required to be submitted to obtain a fire license are as follows :-
1. Prescribed application form;
2. Layout of the establishment;
3. Annual valuation certificates;
4. Deed of agreement;
5. Memorandum and Articles of Association, in case of company;
6. Registration certificate;
7. Trade license;
8. No objection certificate;
9. Clearance certificate from the FSCD office;
10. Deposit slip/treasury challan.
BIDA Registration (Local and Foreign Investment Projects) for Electronics company formation in Bangladesh:
Certification Mark from BSTI – There are 27 electronic products that fall under the mandatory Certification Marks (CM) scheme of BSTI, which means that the marketing of any of these items requires a conformity certificate of Bangladesh Standard from BSTI, and there are 10 electronic products that must be certified prior to customs clearance if they are imported.
Certification mark for Electronics company formation in Bangladesh:
The documents required to obtain Certification Mark as follows:
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 – The entities’ interaction with dealers/vendors who provide products or services to the business is an integral component. When selling items to dealers or receiving goods and/or services from vendors, there should be a dealership/vendor agreement in place.
Vendor Agreements can include a wide range of services, including software, professional services, office supplies, technical services, event organizing, marketing, and consultants. In the event of a dispute, the agreement, in addition to the applicable laws, plays a crucial part in resolving the dispute; therefore, it is crucial to protect one’s interests when drafting agreements.
The franchise agreement is also an essential component of this industry, since numerous businesses 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 requirements. This will be useful when remitting royalties to the franchisor via banking channels. Foreign owners may also remit the dividend after deducting the applicable taxes, in addition to the royalty payment.
Requirements Labour laws for Electronics company formation in Bangladesh:
The entities must ensure that their relationships with their employees comply with Bangladesh’s labor regulations. Employees must have a letter of appointment that specifies their job title, job description, remuneration, benefits and welfare, applicable working hours and leaves, etc. It should be highlighted that an employer cannot, via contract or appointment letter, supply less than what the labor laws require. It is also the responsibility of the employer to ensure a safe and healthy work environment.
Foreign Exchange regulations– Entities with foreign investors must ensure that the initial investment is made through proper banking channels, e.g., at the time of company incorporation or buying shares of an existing company, the foreign investors should be remitting the share capital amount from their foreign bank account Company’s bank account with a note reading “investment in the share capital of (Name of Company)”. 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.
Certification Marks from BSTI – Standards Catalogue 2018 includes a list of 166 items subject to BSTI’s mandatory Certification Marks (CM) scheme.
In other words, the marketing of any of these things requires a Bangladesh Standard conformity certificate from the BSTI. There are 27 electrical and electronic products among these things (Number 140-166 in the product list of BSTI). BSTI also released a list of 55 imported products subject to obligatory certification prior to customs clearance, 10 of which are electrical and electronic devices.
Clearance from Customs – Entities importing electrical products must obtain clearance from Customs. The following documents must accompany the declaration for all types of imports: Letter of Credit (L/C), Invoice, Bill of Lading/AWB/Truck Receipt/Railway Receipt, Packing List, “Country of Origin” Certificate, Insurance Policy/Cover Note, and VAT/BIN Certificate (Bangladesh Customs 2017). The importer (or his C&F agent) is responsible for paying duties and taxes once they have been assessed by Customs. Customs issues a clearing release order upon payment of assessed duties and taxes. Upon completion of port procedures, items are then cleared.
Trademark Laws for Electronics company formation in Bangladesh
After the registration of the entity, it may apply to the Department of Patents, Designs, and Trademarks (DPDT) for registration of its trademarks and/or other Intellectual Property in order to protect trademarks and other IP-related matters. A trademark registration application must be submitted to the Trademark Registry Wing of the DPDT.
An application for the registration of a trademark must consist of the following-
• the Mark /Logo
• Name of the Applicant.
• Detailed Address of the Applicant
• Nationality of the Applicant.
• Status of the applicant i.e. Manufacturers /Service Providers/Merchandisers /
• Specification of Goods
• Specification of Class.
• Whether the mark is in use or proposed to be used in Bangladesh – User date of the mark
• The requirement of general/specific power of attorney
• Application fee
Acceptance or Rejection of Trademark:
Once the application is made and the documents are verified and accepted by the Registrar, the same shall be provided to the journal publication to find out whether there is any objection against such mark. If there is an objection, the same shall be decided by the Registrar, based on the documents submitted by both the parties.
However, if there is no opposition, DPDT will inform the applicant to pay certification fees and subsequently provide the registration certificate of the trade mark. It usually takes 3 to 5 years to obtain the final trademark registration certificate. In the meantime, the entity can start using the mark. Generally, starting from the date of filing, a registered trademark is valid for an initial period of seven (7) years. Thereafter, renewable for successive periods of Ten (10) years.
INTRODUCTION OF Tahmidur Rahman Remura Wahid TRW AND ITS SERVICES:
Tahmidur Rahman Remura Wahid TRW Associates, a full-service law practice, providing all forms of legal and financial services through its trained and experienced personnel. Registration and licensing of entities: Tahmidur Rahman Remura Wahid TRW Associates offers services for establishing entities in Bangladesh, such as sole proprietorships, partnerships, and/or limited liability companies, as well as obtaining the necessary permits from the appropriate government agency. 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 Electronics company formation in Bangladesh :
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:
Tahmidur Rahman Remura Wahid TRW Associates gives legal opinion to clients in connection to the implication of laws and its impact on various matters, enabling them to make informed business decisions by taking the legal element into account. In addition, Tahmidur Rahman Remura Wahid TRW Associates provides interested clients with a due diligence report for their entities that identifies all legal criteria that must be met and any non-compliances that must be addressed. Case management services: Tahmidur Rahman Remura Wahid TRW Associates has a formidable litigation team that assists and represents clients in all sorts of litigation before courts and tribunals.
Companies should plan for the pandemic and for situations in which the outbreak has a negative impact on business in general and on the fulfilment of commercial contracts in particular. Specifically, businesses should analyze their contractual right to use force majeure and defer fulfillment of their obligations without incurring a penalty.
A force majeure event is an unforeseen occurrence or circumstance that is beyond the parties’ control. These occurrences include acts of God (such as natural disasters) and war, strike, riots, etc. If a force majeure provision can be successfully used, the parties are often released from their respective contractual obligations and/or responsibilities. A force majeure clause does permit a party’s complete failure to perform, but only for the length of the force majeure occurrence. If properly prepared, the force majeure clause may indicate that if a force majeure situation continues for longer than a specified period, either party may terminate the contract without incurring any financial penalties.
The idea of force majeure has no formal statutory basis under Bangladeshi law. All contracts are governed by the Contract Act 1872 (the “Act of 1872”). The doctrine of frustration is protected by Section 56 of the Act of 1872, which states that a contract is void if its performance becomes impracticable or if, for some reason, it becomes unlawful after it has been entered into.
Therefore, if the contract becomes difficult to execute due to Corona, and the defaulting party did not know, or with reasonable diligence could not have known, that the contract would become impossible to perform, the contract will be considered void under Bangladeshi law. A null contract has the effect that it cannot be enforced by law and the parties are released from their respective duties.
In the absence of an appropriately worded force majeure clause, parties in Bangladesh may be able to rely on the existing provisions of Bangladeshi law – specifically Section 56 of the Act of 1872 – in order to excuse themselves from the timely performance of their respective obligations under the contract.
In addition, the government of Bangladesh has announced a package worth BDT 500,000,000,000 to avert a possible recession resulting from the pandemic. The business entities are optimistic that if this sector contributes its due share to the aforesaid package, it would be able to stimulate the local economy and help end the recession.
Taxation for Electronics company formation in Bangladesh:
The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Locally formed limited liability companies are required to submit a number of reports to the National Board of Revenue (NBR), such as a Tax Identification Number (TIN) application, a monthly tax deduction statement, a half-yearly withholding tax statement, a yearly statement related to the tax return submission of its employees, and a yearly statement related to the salary paid by the company to its employees.
Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc. Tahmidur Rahman Remura Wahid TRW is able to provide guidance and assistance to ensure that all regulatory compliances are met, so allowing the business to operate without difficulty.
The Electronics and Accessories Business in Bangladesh is a thriving industry with constant demand. As the local demand for electronic goods continues to rise, there is a great deal of opportunity in the manufacturing sector. It has become exceedingly difficult for domestic investors in the manufacturing sector to meet demand, thus there is an opportunity for international investors to invest in this industry.
EXECUTIVE SUMMARY for Electronics industry formation in Bangladesh:
As demand on the local market continues to expand, the Electronics and Accessories market in Bangladesh has a tremendous amount of potential. Despite the fact that a significant amount of the existing local market is dependent on importing products and/or raw materials from other countries, a surge in both domestic and foreign investment has enabled Bangladesh to manufacture a variety of items domestically.
Investors may choose from Sole Proprietorship, Partnership Business, Branch Office, or Private Limited Company in order to participate in the Electrical business. To establish a business-friendly climate, BIDA has opened a one-stop services center for investors, where all services, from entity incorporation to post-incorporation licensing, are available.
Tahmidur Rahman Remura Wahid TRW Associates is a full-service law office that offers all types of legal and financial services, such as registering organizations, getting appropriate licenses, creating agreements and notices, and providing annual compliances and litigation services. Tahmidur Rahman Remura Wahid TRW Associates is comprised of competent Barristers and Advocates with competence in several legal fields, enabling them to provide the required services to a high degree, and allowing clients to acquire all essential and supplementary legal services under one roof.
Due to Corona Virus As a result of the closure of all borders and the reliance of our economy on the import-export sector, the global electronic industry is facing grave challenges. Due to the Covid-19 epidemic, there is an increase in demand in the Medical electronic sector. However, commerce has ground to a halt and factories have shuttered as a result of the closure of many key countries that export product components.
Nonetheless, it is anticipated that once the epidemic begins to subside, business will resume, and with the backing of the government-declared financial aid, this sector will quickly resume its steady expansion.
In recent years, the hotel industry has been at the center of Bangladesh’s economic growth, providing 9.3% of the country’s overall GDP. As a result of the government’s measures to facilitate travel to the country’s most popular tourist destinations, such as the Dhaka-Chattogram Highway, Padma breeze, etc., internal travel and foreign tourist arrivals in Bangladesh have increased significantly. As a result, hotel construction has increased in the key tourist destinations to accommodate the rising demand. In addition, the proliferation of affordable and opulent resorts has provided the much-needed boost to the national economy in order to meet the target of middle-income status by 2021.
How to Establish a Hotel and Tourism Enterprise in Bangladesh:
As we can see in the example of Thailand and Nepal in South-East Asia, tourism may be a significant, if not the largest, sector that drives economic growth. Tourism led to the creation of 319 million employment, or one in ten of all occupations globally, and has been responsible for one in five of all new jobs in the world over the past five years, according to a research published by The World Travel and Tourism Council in 2019. The Sundarban, the world’s largest mangrove forest in the south of the country, and the world’s longest natural beach at Cox,s Bazaar are just a couple of the numerous noteworthy tourist attractions in Bangladesh. Additionally, the northeastern region of the country contains Sylhet with its tea plantations atop hills.
Travelling and tourism sites are the most popular tourist destinations in the north of the country. Foreign investments in the hotel include the international hotel chains Marriott, Hilton, Novotel, Sheraton, InterContinental Holiday Inn, Marriott Courtyard, Radisson Blue, and Westin. Local investors, such as DuSai Resort & Spa in Maulvi Bazar, The Peninsula Chittagong, Hotel Valley Garden and Nazimgarh Garden Resort in Sylhet, Long Beach Suites Dhaka, Six Seasons Hotel in Dhaka, Long Beach Hotel at Cox Bazar, and Grand Sultan Tea Resort & Golf in Maulvi Bazar, also play a significant role. Bangladesh is becoming a hospitality industry success story.
The Government thinks that the implementation of hassle-free on-arrival visa services will simplify the visa system for foreign citizens, particularly those of Bangladeshi descent, and thereby contribute to the sector’s growth. As international investments and donations stream into Bangladesh’s economy, MNC and NGO executives are more likely to travel there. Recent growth in the number of resorts such as Bhawal Resort, Sara Resort, and The Base Camp is in high demand amongst people who like to travel just outside of Dhaka, to places such as Gazipur, Sylhet, etc., and the quality of the service provided in these places is quite high, but is likely to take a toll on the wallets of the tourists. Nonetheless, these accommodations are booked solid for the majority of the year, indicating that the discretionary income of the general population is on the rise. (Hotel and Tourism Business in Bangladesh)
The travel agency’s role in tourism is essentially that of a “nation’s image manufacturer,” as it is the travel agency’s credit that reveals the attractions and marvels of a country to travelers in a profitable manner. Typically, a travel agency operates as an agent and offers travel-related items and services on behalf of the service provider, such as airlines and hotels. Travel agents create international and domestic travel packages to the demands of their clients so they can go on their tourist experience. They offer a vast array of travel destination alternatives, including tour bookings, flight reservations, airline tickets, cruise line service, railway service, lodging bookings, vehicle rental, visa processing services, and bespoke vacation packages for small groups or couples, etc (for Hotel and Tourism Business in Bangladesh).
Procedures for Obtaining a License and Registering for Hotel and Tourism Business in Bangladesh
The hospitality industry and tourism sector are linked; the growth of the hospitality industry is based on travel and tourism, and the success of the tourism sector depends on customer satisfaction, recreational amenities, and the quality of service offered by the hospitality industry. All of these amenities are provided in the hospitality industry, which caters to tourists’ needs for lodging, food and beverages, and entertainment facilities, etc. As a result, several tourism businesses began collaborating with the hospitality industry in order to include hospitality services in their tour packages. Whoever wishes to enter the hospitality and tourism industries must meet registration and licensing requirements specific to each sector. The registration and licensing procedures for each industry will be covered briefly. In accordance with Bangladeshi law, the first stage in launching a business is to establish a legal corporation for doing business in the hotel or tourism industries. The available alternatives are limited liability company, sole proprietorship, and partnership, but only limited liability company allows for foreign investment.
Hotel and Tourism Business in Bangladesh and incorporation in Bangladesh:
The process of incorporating a company begins with the acquisition of a Name Clearance certificate from the Company House, Registrar of Joint Stock and Companies (RJSC), as well as the compilation of the Articles and Memorandum of Association of the company, as well as Forms XII and IX. For Hotel and Tourism Business in Bangladesh, The executed MOA and AOA, along with the aforementioned paperwork and costs, must be delivered to the RJSC. The RJSC will provide a certificate of incorporation, together with RJSC-certified memorandum and articles of association, confirming that the business has been lawfully incorporated, providing all documents are correct and authentic. If a foreign shareholder is involved, a bank account must be formed to receive the foreign shareholder’s capital investment prior to submitting the documentation to the RJSC.
Partnership and Hotel and Tourism Business in Bangladesh:
By executing a partnership deed and registering the partnership with the Registrar of Joint Stock Companies and Firms, a partnership firm can be formed (RJSC).
Single Ownership for Hotel and Tourism Business in Bangladesh –
This sort of company is formed by a single individual and has no partners. To conduct business through such an entity, one must get a business license from the applicable city corporation. A foreigner is unable to operate a sole proprietorship.
After forming the organization, the next step would be to get the different operational licenses required by the hotel industry and the travel agency. If an entrepreneur wishes to establish any Hotels of three, four and five-star categories, then he shall need to apply for a hotel license from Ministry of Civil Aviation and Tourism (MoCAT) or if he wishes to set up any Hotels of one and two-star categories, then shall have to apply for a hotel license from District Commissioner (DC) with the relevant documents and processing fees.
Alternatively, if an entrepreneur wishes to incorporate a travel agency, he or she must obtain a license to operate a travel agent business from the Ministry of Civil Aviation and Tourism for Hotel and Tourism Business in Bangladesh. The other licenses required, even though not mandatory, for obtaining for business would be Association of Travel Agents of Bangladesh (ATAB) license and Association of International Travel Agents (IATA) license.
The other perquisite licenses which needs to be obtained for both the Hospitality Industry and the Travel Agency shall be TIN certificate and the Value Added Tax (VAT) Certificate which needs to be attained from the online portal of the National Board of Revenue (NBR) and the trade license which needs to be obtained from the respective city corporation/local government office (Hotel and Tourism Business in Bangladesh).
LEGAL ISSUES for Hotel and Tourism Business in Bangladesh
The entire process of incorporation of an entity for a hotel industry or a travel agency gives rises to a lot of legal issues which needs to be carefully addressed in order to avoid legal implications. While incorporating a company/sole proprietorship or partnership, it is essential that all the original signed documents along the relevant forms are to be submitted at the relevant government authority or else the application for incorporation of the entity shall fail without a doubt. The annual filing requirements, are declared mandate for the entities such has renewing the trade license at the respective city corporation.
Essentially, hospitality and tourism even though interlinked are diverse from each other in terms of regulatory governance. Any entrepreneur willing to invest and run a hotel business must comply with the Bangladesh Hotel and Restaurant Act of 2014 and the Bangladesh Hotel and Restaurant Rules 2016.
Legal issues also arise upon application of the hospitality laws on the hotel owners of Bangladesh. Hotel owner must ensure that he chooses a commercial establishment rather than a residential establishment for the setup of the hotel which must consist of at least 10 bed rooms for the guest to stay there with or without food and other services in exchange of money and irrespective of the fact that the name of the entity, such as motel, guest house, resort etc. It is obligatory on the hotel owner to attain a registration certificate and license in order to run the hotel business and a license should be obtained as soon as possible within the first 2 years from the date of issue of the registration certificate. A register inclusive of all the necessary information of a guest must be maintained by every hotel in Bangladesh as mandatory compliance requirement imposed by the the Bangladesh Hotel and Restaurant Rules 2016. The register shall comprise the following information of the guest which includes time of arrival and departure of the guest, phone number, current and permanent address, National Id or passport number or any other identification car number. In case of foreign guest, the hotel shall keep a copy of the passport pages where the name, address and visa of such guest is present.
Travel agency owners for Hotel and Tourism Business in Bangladesh:
Also, travel agencies owners must ensure adherence to a Bangladesh Travel Agency (Registration and Control) Act, 2013 Bangladesh Travel Agency (Registration and Control) Rules, 2014 while conducting travel agent’s business in Bangladesh. Obviously, the license must be obtained from the registration authority, the Ministry of Civil Aviation and Tourism and it is an obligatory requirement for the travel agency to retain the travel agency licensing certificate safely and conspicuously at the business premises or office of the travel agent. Additionally, legal compliances in relation to promptly providing information in regards to the business affairs of the travel agency is mandatory on the travel agent upon instruction of the government or the registration authority. Non-compliance with any of the laws and rules related to Travel Agency shall adversely affect the owner and he has to face serious legal implications amounting to not more than 6 months imprisonment or fine not exceeding BDT 50,000.
Evidently, both the hospitality industry as well as the tourism industry is labour intensive and huge amount of skilled and unskilled labours are being employed in these industries and as such quite naturally it involves legal issues related to the working hours, overtime pay, leaves and termination benefits of employees. Other than that, every employee employed at these industries regardless of their nationality must have an appointment letter executed with the entity. Many foreign employees are employed at the hotel industry eg consultants, chefs, waiters, bar tenders and in such cases they must be employed as per the labour and the Immigration laws of Bangladesh.
The entities in this sector shall also have to be very compliant with the Consumer Rights Protection Act 2009 as any valid complain brings strict consequences as per the said Act. The purpose of the Act is to protect the consumers from any violation of their rights and to monitor the standard of the goods and services which are to be provided. As this is an important industry for the local economy, any valid complaint from the respective consumers are dealt diligently and if proven strict measures are taken by the authority as per the applicable laws.
Furthermore, as per the Bangladesh Standards and Testing Institution (BSTI) regulations there are 71 Agricultural and Food Products which are under the compulsory Certification Marks (CM) scheme of BSTI which in other words means that marketing of any of these items needs conformity certificate of Bangladesh Standard from the BSTI. There are imported 23 Food Products required mandatory certification before customs clearance. If any hotels serve any of the products from these two lists, to its customers, it must check whether the products have the Certification Marks on it.
INTRODUCTION OF Tahmidur Rahman Remura Wahid TRW AND ITS SERVICES
Tahmidur Rahman Remura Wahid TRW, since its inception has created a trustworthy relationship with each and every one of its clients. To provide quality legal services to the Clients is the motto of the firm. Tahmidur Rahman Remura Wahid TRW has assisted Hotel owners as well as Travel Agency owners in the entire procedure of the incorporation of the entity, obtaining the relevant licenses and approvals on behalf of the client from the relevant government authorities. Many a times, anomalies are found in contracts/service contracts executed between the hotel industries and the travel agencies regarding the referral services to be provided by the travel agencies to the hotels in exchange of commission. Tahmidur Rahman Remura Wahid TRW supports entities in reviewing and drafting these contracts/service agreements according to the needs of the clients (Hotel and Tourism Business in Bangladesh).
In relation to the immigration services required for foreign employees employed by the entities, Tahmidur Rahman Remura Wahid TRW’s immigration law team can assist the entity to obtain the E-visa (employment visa) recommendation letter and work permit on behalf of the foreign employee and can also assist to obtain the extension of the work permit and the E visa for the foreign employee. The service shall include drafting all the necessary application and documents and collecting the relevant documents from the foreign employee and the entity; and submitting the same to the relevant government authorities and also liaise with them to obtain the necessary work permit and visa extension. The legal team of Tahmidur Rahman Remura Wahid TRW, due to their years of experience in employment law, has attained proficiency in drafting and reviewing employment agreements/appointment letters of employees for such entities. Their experience in labour matters is exceptional. They have assisted clients via legal opinion on the available termination options, resignation procedure and dismissal procedure etc .
Tahmidur Rahman Remura Wahid TRW also provides legal opinion to the clients, in relation to implication of laws and its impact in various matters which enables them to take informative business steps by considering the legal aspect. Additionally, Tahmidur Rahman Remura Wahid TRW Associates also provides due diligence report to the interested clients for their entities which flags out all the legal requirements which are required to be followed and also non – compliances, if any, which needs to be fixed.
Furthermore, Tahmidur Rahman Remura Wahid TRW Associates has a very strong litigation team which assist and represent the clients to defend/file disputes at court or tribunals in relation to all types of litigation.
Taxation for Hotel and Tourism Business in Bangladesh
General rate of tax is 32.5% currently in the laws of Bangladesh. Several exemptions are in place for constructing a physical undertaking of a tourist industry. Nominal requirements for a limited company formed locally includes a number of reporting to be done to NBR, such as: 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, Yearly Tax return submission, attending appeal/hearing session as required on behalf of the company, Monthly VAT return etc. Tahmidur Rahman Remura Wahid TRW can advise and assist to satisfy all regulatory compliances to enable the company to run smooth and hassle free.
Infrastructure of Hotel and Tourism Business in Bangladesh:
As we continue to improve infrastructure services, bring down the expensive hotel rates and increase availability of healthy and affordable food at the tourist hubs of the country like Cox’s Bazar, St. Martin Island, ancient Buddhist temples in the north while focusing on sufficient marketing policies are in place – the next 5 to 10 years holds huge prospects for this sector. Yet there is still scope for accommodation facilities to improve in all the above stated places and even more. Currently there are no standard educational institutions involved in the training of management personnel for all the tourist attractions and hotel all over the country – a sector which can use an injection of institutions which would be able to do so.
The Hotel and Tourism industry in Bangladesh has a huge potential as the demand of the local market is continuously growing. The continuous urge to experiment with different cuisines increasing the demand of restaurants. To become a part of this industry there are various options of entities, Sole Proprietorship, Partnership Business and Private Limited Company are available for investors. To create a business-friendly environment, BIDA has now open up a one stop services center for investors where all the services from incorporation of entities to post incorporation licenses are available
Are you planning to do Hotel and Tourism Business in Bangladesh?
Hotel and Tourism Business in Bangladesh with 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 forming and incorporating a Hotel and Tourism Business in Bangladesh. For queries or legal assistance, please reach us at:
