চেক ডিসঅনার মামলা এবং প্রতিকার – চেক একটি হস্তান্তরযোগ্য দলিল। একটি হস্তান্তরযোগ্য দলিল হল একটি কাগজের টুকরো যা একজন ব্যক্তিকে একটি নির্দিষ্ট পরিমাণ অর্থ প্রদান করে এবং শুধুমাত্র অর্পণের মাধ্যমে ব্যক্তি থেকে ব্যক্তিতে স্থানান্তরিত হয়। এই পোস্টটিতে আমরা চেক ডিসঅনার অথবা বাউন্স করলে আপনারা কি করতে পারেন তা নিয়ে বিশদ পর্যালোচনা করব।
চেক ডিসঅনার কি? চেক ডিসঅনার মামলা
ঋণ বা বাধ্যবাধকতা নিষ্পত্তি করার জন্য দৈনন্দিন জীবনে চেক ব্যবহার করা হয়। তবে, অনেক ক্ষেত্রে, চেকের প্রাপককে চেক প্রদানকারী অর্থ প্রদান করতে অক্ষম হয় যদি চেকের উপর বর্ণিত পরিমাণ ইস্যুকারীর ( চেক প্রদানকারীর) অ্যাকাউন্টে না থাকে। অপর্যাপ্ত তহবিলের জন্য চেকটি ব্যাংক প্রত্যাখ্যান করে। এই ঘটনাটি চেক ডিজঅনার নামে পরিচিত।
কি কারনে চেক ডিসঅনার হাতে পারে
কখন এবং কি কারণে একটি চেক ডিসঅনার হাতে পারে পারে?
ব্যাংক হিসাবে আপনার যদি তহবিল বা অর্থের অভাব হয়। এবং যখন চেক এর উল্লিখিত অর্থ আপনার ব্যাংক এর বর্ণিত পরিমাণের চেয়ে কম।
যিনি চেক ইস্যু করেছেন তার স্বাক্ষর না মিললে ।
চেকে উল্লিখিত পরিমাণ এবং পরিমাণের মধ্যে পার্থক্য থাকলে।
কখন একটি চেক অসম্মানজনক অথবা ডিসঅনারড বলে বিবেচিত হয়?
যদি চেকটি ইস্যু তারিখের ৬ মাসের মধ্যে আনুষ্ঠানিকভাবে জমা করা হয় এবং ব্যাংকে চেকের সমপরিমাণ টাকা সেই একাউন্টে না থাকার কারণে ব্যাংক চেকটি প্রত্যাখ্যান করে, তবে চেকটি বিতরণযোগ্য হবে না। ব্যাঙ্ক একটি নথি জারি করবে যে আপনি কেন অসম্মান করেছেন।
এ ক্ষেত্রে আপনি যদি চেক ইস্যু করার তারিখের ৬ মাসের মধ্যে ব্যাঙ্কে যান এবং চেকটি রিডিম করেন, আপনি দেখতে পাবেন যে চেকটি অনার এর জন্য দেওয়া হয়নি কিন্তু ফেরত দেওয়া হয়েছে, এবং আপনার এই আইনের অধীনে আইনি পদক্ষেপ গ্রহণের অর্থাৎ চেক ডিসঅনার মামলা করার সুযোগ সৃষ্টি হবে।
অর্থাৎ, আপনার নির্দিষ্ট সময়ের মধ্যে, অর্থাৎ চেক ইস্যু করার তারিখ থেকে ৬ মাসের মধ্যে নগদীকরণের জন্য চেকগুলি অবশ্যই ব্যাঙ্কে জমা দিতে হবে।
পরবর্তীতে ব্যাঙ্ক অ্যাকাউন্টে অপর্যাপ্ত অর্থের কারণে, আপনাকে অবশ্যই চেকের অসম্মানের ৩০ দিনের মধ্যে অর্থ প্রদানের জন্য চেক প্রদানকারীকে আইনি নোটিশ দিতে হবে।
যদি চেক প্রদানকারী নোটিশ পাওয়ার ৩০ দিনের মধ্যে চেক প্রদানকারীকে চেকটিতে উল্লেখিত পরিমাণ অর্থ প্রদান না করে, তাহলে চেক প্রাপক একটি প্রক্রিয়া দায়ের করতে পারেন।
সংক্ষেপে প্রয়োজনীয় তিনটি ধাপ:
এই পদক্ষেপের ৩০ দিনের মধ্যে, আপনাকে অবশ্যই একটি নোটিশ সহ চেক প্রদানকারীকে অবহিত করতে হবে এবং অর্থপ্রদানের জন্য আহবান করতে হবে।
চেক দাতা সময়মতো চেকর অর্থ দেবে বা নোটিশ এর যথাযথ উত্তর আপনাকে জানাবেন।
যদি তিনি অর্থ প্রদান না করেন বা উনার অজুহাত আপনার কাছে উপযুক্ত মনে না হয়, তাহলে আপনি পরবর্তী ৩০ দিনের মধ্যে স্থানান্তরযোগ্য নথি আইন, 181 এর ধারা 138 এর অধীনে একটি মামলা করতে পারেন৷
চেক প্রতারনায় প্রতিকার ও চেক ডিসঅনার মামলা
নেগোশিয়েবল ইনস্ট্রুমেন্টস অ্যাক্ট (এনআই অ্যাক্ট) এর ধারা 138, 140 এবং 141 যদি একটি চেক প্রত্যাখ্যান করা হয় বা অপর্যাপ্ত তহবিলের কারণে অর্থ প্রদান না করা হয় তবে ক্ষতির বিরুদ্ধে সুরক্ষা অর্থাৎ চেক প্রতারনায় প্রতিকার প্রদান করে।
আপনার ব্যাঙ্ক অ্যাকাউন্টে পর্যাপ্ত টাকা না থাকলে এবং আপনার চেক অসম্মানজনক হলে, আপনাকে অবশ্যই চেক প্রদানকারীকে একটি বিধিবদ্ধ নোটিশ দিতে হবে এবং ৩০ দিনের মধ্যে অর্থ প্রদান করতে হবে।
লিগ্যাল নোটিশ তিন ভাবে দেওয়া যেতে পারে।
নোটিশ গ্রহিতার হাতে সরাসরি নোটিশ প্রদান করে।
ডাকযোগে চেক প্রদানকারীর ঠিকানায় এবং সর্বশেষ বসবাসের ঠিকানায় প্রাপ্তি স্বীকারপত্র সহ নোটিশ প্রদান করে।
সর্বশেষ কোনো জাতীয় বাংলা দৈনিকে নোটিশটি বিজ্ঞপ্তি আকারে প্রকাশ করে।এ তিন পদ্ধতির যে কোন একটা পদ্ধতি অনুসরণ করলে হবে।
একটি চেক ডিসঅনার মামলা দায়ের করতে আদালতে যে সকল কাগজ পত্র জমা দিতে হবে
চেক ইস্যুর তারিখ
ইস্যুকারির নাম ও তথ্য / কোন কোম্পানি হলে তার বিস্তারিত তথ্য
চেক ডিজঅনার হবার তারিখ
চেকের বিস্তারিত তথ্য [ব্যাংকের নাম, শাখা, হিসেব নম্বার, চেক নম্বর]
উল্লেখিত টাকার পরিমান
মূল চেক
ডিজঅনারের রসিদ
আইনি নোটিশ বা বিজ্ঞপ্তির কপি
পোস্টাল রসিদ – প্রাপ্তি রসিদ
চেক লেনদেন সম্পর্কিত তথ্য [যদিও সব সময় জরুরী নয়]
মনে রাখবেন, একবার চেক অসম্মান করা হলে, একটি অপরাধ সংঘটিত হয়। যদি, কোনো কারণে, আপনি প্রথম চেকটি পরিশোধ করতে অস্বীকার করার ৩০ দিনের মধ্যে নোটিশ পাঠাতে অক্ষম হন,তাহলে দ্বিতীয়বার চেকটি ডিজঅনার করাতে পারেন। এভাবে একাধিক বার ডিজঅনার করিয়ে নোটিশ পাঠাতে পারেন।
তবে একবার চেক ডিজঅনার হলে এবং নির্ধারিত সময়ের মধ্যে মামলা করা হলে এক অপরাধের জন্য বারবার মামলা করা যাবে না।
অভিযোগ বা নালিশি মোকাদ্দমা হিসেবে চীফ জুডিশিয়াল ম্যাজিস্ট্রেট আদালতে এবং যদি মেট্রোপলিটন এলাকার হয় তার জন্য চীফ মেট্রোপলিটন ম্যাজিস্ট্রেট আদালতে মামলা দায়ের করতে হবে। মামলা দায়ের করার সময় আদালতে মূল চেক, ডিজঅনারের রশিদ, লিগ্যাল নোটিশ, পোস্টাল রশিদ, প্রাপ্তি স্বীকার রশিদ আদালতে প্রদর্শন করতে হবে।
এসবের ফটোকপি ফিরিস্তি আকারে মামলার আরজীর সঙ্গে আদালতে জমা করতে হবে। আদালত মোকাদ্দমাটি গ্রহন করলে বিবাদীর নামে সমন অথবা ওয়ারেন্ট জারি করতে পারেন। ম্যাজিস্ট্রেট আদালত মামলা গ্রহন করলেও মামলাটি মূল বিচার করা হয় দায়রা আদালতে।
চেকডিজঅনারমামলা এঅপরাধেরশাস্তি :
চেক ডিজঅনার মামলা এ শাস্তি হচ্ছে, এক বছর মেয়াদ পর্যন্ত কারাদণ্ড অথবা চেকে বর্ণিত অর্থের তিন গুণ পরিমাণ অর্থদণ্ড অথবা উভয় দণ্ডে ও দণ্ডিত হতে পারে।
এখন প্রশ্ন হল চেক ডিস-অনারের শাস্তি যদি চেকে উল্লেখিত টাকার ৩ গুন জরিমানা হয়,তাহলে টাকাটা কে পাবে?
হস্তান্তরযোগ্য দলিল আইন,১৮৮১ এর ১৩৮(২) ধারার বলা হয়েছে,উপ-ধারা(১) মোতাবেক যেক্ষেত্রে অর্থদণ্ড আদায় হয় সেক্ষেত্রে আদায়কৃত অর্থদণ্ড হতে চেকে বর্ণিত টাকা যতদূর পর্যন্ত আদায়কৃত অর্থদণ্ড হতে প্রদান করা সম্ভব চেকের ধারককে প্রদান করতে হবে।
চেকের মামলা থেকে বাচতে চাইলে কি করতে হবে?
অনেক সময় যখন আমরা একটি অবাঞ্ছিত চেক ডিজঅনার মামলা তে জড়িয়ে পড়ি, তখন আমাদের নিজেদের রক্ষা করতে কঠিন সময় যায়।
সুতরাং এ বিষয়গুলো আমাদের খেয়াল রাখতে হবেঃ
এমনকি আপনি যদি খুব কাছের ব্যক্তি বা অফিস আপনার কাছে চান তবুও অন্যের কাজের জন্য চেক দেয়া যাবে না।
চেকবুকটি সাবধানে পাতা গুনে রাখতে হবে কোন বই বা পাতা হারারে সাথে সাথে ব্যাংকে জানাতে হবে এবং জিডি করতে হবে।
যেখানে সম্ভব, অ্যাকাউন্ট পেচেক ব্যবহার করা আবশ্যক, ব্যবসার ক্ষেত্রে ব্যবসা একাউন্ট ব্যবহার করতে হবে এবং ব্যবসায়ীক একাউন্টে লেনদেন করতে হবে।
চেকের তারিখটি খুব সচেতনভাবে দিতে হবে এবং সেই তারিখটি মাথায় রেখে হিসাব পরীক্ষা করতে হবে।
যেকোন লেনদেনের জন্য চালান রাখতে হবে।
যদি বিপদে পরেই যান তবে দ্রুত একজন যোগ্য উকিলের সাহায্য নিয়ে বিষয়টি সমাধান করতে হবে।
অন্নান্য আইনে চেক ডিসঅনারের মামলা
হস্তান্তরযোগ্য নথি আইন ১৮৮১ বলবৎ রয়েছে, তবে আইনি সীমাবদ্ধতার কারণে, আইনটি বিলুপ্ত করা হয়েছে এবং নতুন এবং যুগোপযোগী আইন প্রণয়ন করা হয়েছে।
যার নাম দেয়া হয়েছে বিনিময়যোগ্য দলিল আইন, ২০২০ (এখানে ক্লিক করে খসড়া আইনটি দেখে নিন) এবং এই আইনটির খসড়া গত ১৫ জানুয়ারি ২০২০ এ অর্থ মন্ত্রণালয় প্রকাশ করে। এই আইনে চেক ডিসঅনার হলে ৬ মাস থেকে ২ বছর পর্যন্ত কারাদণ্ড এবং সর্বোচ্চ ৪ গুন পর্যন্ত অর্থ দণ্ড দেওয়ার কথা বলা হয়েছে।
যখনি খসড়া আইনটি একটি পূর্ণাঙ্গ আইনের মর্যাদা পাবে, আমরা আপনাকে এই আইনের বিশদ বিবরণ প্রদান করব; ততক্ষণ পর্যন্ত আমাদের সাথে থাকুন.
ধরুন, কোনো কারণে এই আইনের অধীনে চেকের মামলাটি সঠিকভাবে প্রক্রিয়া করা সম্ভব হয়নি, বা ধরে নেওয়া হয়েছিল যে অর্থ উদ্ধার করা যাবে না। উদাহরণ স্বরূপ,
ক) ৬ মাসের মধ্যে মামলা না হওয়ায় এ আইনে মামলাটি গ্রহণ করা হয়নি। খ) এই আইনের অধীন কার্যধারা চলাকালে অভিযুক্তের/ বিবাদীর মৃত্যু হয়।
এই ধরনের পরিস্থিতিতে আরও দুটি বিকল্প খোলা আছে।
১) দন্ডবিধির অধীনে মামলা করা: দন্ডবিধি ৪০৬ ও ৪২০ ধারা (প্রতারণা) অনুসারে ফৌজদারি মামলা করা যায়। কিন্তু এসব মামলার ক্ষেত্রে টাকা ফেরত পাওয়ার সুযোগ নেই। দোষী সাব্যস্ত হলে সাত বছর পর্যন্ত কারাদন্ড ও জরিমানা হতে পারে। ২) দেওয়ানী মামলা করা: চেকের সম্পূর্ণ টাকা আদায় না হলে পরবর্তীতে এখতিয়ার সম্পন্ন আদালতে দেওয়ানী মামলা করা যাবে।বাংলাদেশ এ প্রাইভেট লিমিটেড কোম্পানি
কিভাবে বাংলাদেশ এ আপনি আপনার প্রাইভেট লিমিটেড কোম্পানি খুলবেন?
আপনারা যদি একটি কোম্পানি খুলতে চান তার বিশদ বিবরণ এই পোস্টটি তে আছে।
ব্যারিস্টার তাহমিদুর রহমান রিমুরা কর্তৃক চেক ডিসঅনার মামলা সম্পর্কিত আইনী সেবা:
ব্যারিস্টার তাহমিদুর রহমান: সিএলপি একটি সনামধন্য ‘ল’ চেম্বার যেখানে ব্যারিস্টারস এবং আইনজীবীদের মাধ্যমে চেক ডিসঅনারের মামলা সম্পর্কিত সকল প্রকার আইনগত সহায়তা, পরামর্শ প্রদান করে থাকে। কোন প্রশ্ন বা আইনী সহায়তার জন্য আমাদের সাথে যোগাযোগ করুনঃ-ই-মেইল: info@trfirm.com ফোন: +8801847220062 or +8801779127165 , ঠিকানা: রোড ২৯, হাউজঃ ৪১০, মহাখালী ডি ও এইচ এস, ঢাকা।
How to take foreign loans in Bangladesh in 2023 | Step by step process of getting loan from foreign entities
11 Jan 2023
Tahmidur Rahman, Director and Senior Associate
This post will explain in details about Overseas Financing & Foreign loans for Bangladeshi Companies- How to take foreign loans in Bangladesh in 2023 . Here in this post we explain the Procedure & Guidelines for the required approval of foreign loans by Bangladeshi Companies.
Table of Contents
Find the subsections below, If you want to jump through specific sections instead of reading the whole article.
Over the last decade, obtaining a foreign loan by Bangladeshi entities or companies, have increasingly become a routine occurrence. Bangladeshi companies choose international loans for a variety of reasons, including lower interest rates and the ability to borrow a big sum from a single lender.
The Government of Bangladesh has been enabling foreign borrowing legally approved by the Scrutiny Committee in order to attract foreign investment in the private sector through simpler long-term financing of industrial projects at lower cost of funds and to relieve strain on foreign currency reserves.
According to a notice released by the central bank’s Foreign Exchange Policy Department, foreign-owned service companies can now obtain short-term loans as working capital from their parent companies and shareholders for essential business needs (FEPD).
Previously, such loans were exclusively available to foreign-owned industrial businesses that participated in manufacturing. Such loans were not available to service or trading enterprises. However, service businesses can now take out such loans as well.
The central bank further stated that such a loan might be available in convertible foreign currencies for a maximum of six years from the start of manufacturing and/or service output operations, with the opportunity to renew or extend the term during that time. Borrowing businesses may pay interest at a maximum of 3% per year until additional instructions are issued, with all other relevant transaction directions remaining intact.
What are the usual requirements to borrow?
Though each foreign lender has its unique set of criteria, the following is a summary of some of the most frequent requirements that a company may be expected to meet before acquiring the foreign loan.
Borrower possesses the necessary licences and permits to operate its business.
The borrower’s business records are up to date.
Borrower is a firm that is conscious about the environment.
All industry standard certifications have been obtained by the borrower (e.g. ISO certification).
Borrower is a company that follows all labour laws.
The borrower or the project has proper insurance.
Step by Step requirements and all the possible documents that you may need
When the documents are issued, they will be thoroughly reviewed by the BIDA Inter-Ministerial Committee. When the committee is content with the verification then they may give the approval or can obtain additional documentation. Hence it is important to carefully prepare the papers.
The Company’s Board of Directors approval for the proposed foreign loan.
Copy of the most recent BIDA registration form, duly attested by a First Class Gazette officer;
Original copy of the parties’ Loan Agreement; (For the lender, a copy of the detailed repayment schedule; original copy of the grade period;)
CIB Inquiry Forms 1&2 duly completed, as well as an undertaking from its Sponsors or Directors;
Sponsors’ or directors’ credentials;
The company’s and its sponsors’ CIB certificates;
Record of previous foreign loans/deferred payments (if available);
Audited previous year’s balance sheet;
Utilization Certificate from nominated bank;
Latest company credit rating report;
Latest financial analysis
Updated feasibility report of the proposed project in detail;
Form-X, Form-XII and Form-XV from RJSC&F;
Certificate of Incorporation of commencement;
Memorandum & Articles of Association;
Proforma Invoice or Price Quotation (where applicable);
Original copy of the Bank Solvency Certificate;
Descriptive statement of the use of the loan;
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Foreign lenders typically conduct extensive due diligence on the borrower. Financial due diligence is typically performed by the lender; however, for technical, environmental, and legal due diligence, the lender may hire external consultants. The borrower will be responsible for the costs of these consultants.
The lender may require the borrower to appoint a process agent in the country of its choosing, an auditor affiliated with an international auditing firm; and a compliance manager. The auditor and compliance manager may require a timely report to be submitted directly to the lender following disbursement.
Other Relevant Criterias for Foreign Loans
i. Debt-to-equity ratio: The debt-to-equity ratio based on anticipated borrowing should be kept to a bearable level. While relatively higher debt levels may be warranted for long gestation infrastructure projects, total debt including the proposed borrowing should not breach 70:30 debt equity ratio even for these projects;
ii. Liabilities to the Government: There should be absolutely no liability to the government, either in Taka or in foreclosed property.
iii. Status of implementation and utilization report of authorized foreign borrowing: On a semi-annual basis, the borrowing firm must submit to the BOI the status of implementation and utilization report of the approved loan in the specified format.
iv) If capital machinery and equipment to be bought: Quality, price, and economic life; The capital machinery and equipment to be procured with the proposed borrowing should either be brand new or, if refurbished, have a sufficient useful life as specified by the Government’s Import Policy Order.
v) Validity of the approval: The Scrutiny Committee’s approval of foreign borrowing is valid for 6 (six) months from the date of the BOI’s permission letter.
Vi) Common Terms: a) The borrowing firm must follow Bangladesh Bank’s laws and regulations on the use and repayment of the loan, as well as the interest thereon.
What are the due dilligence you may expect from your foreign lenders?
Foreign lenders typically conduct extensive due diligence on the borrower. Financial due diligenceis typically performed by the lender; however, for technical, environmental, and legal due diligence, the lender may hire external consultants. The borrower will be responsible for the costs of these consultants.
The lender may require the borrower to appoint a process agent in the country of its choosing, an auditor affiliated with an international auditing firm; and a compliance manager. The auditor and compliance manager may require a timely report to be submitted directly to the lender following disbursement.
How to get the BIDA Clearance for Foreign Loan in Bangladesh
After obtaining the prescribed application from BIDA, the applicant must submit the aforementioned documents, along with the applicable licence fee, to the Security Committee of Bangladesh Bank for review. If the committee grants clearance after reviewing the submitted documents, BIDA will grant the loan in accordance with their recommendation.
The official time limit for such a process will be entirely dependent on the Borrower for document collection and, to a lesser extent, on the Scrutiny Committee to conduct the meeting, and the fee schedule for approval will be tentatively between BDT 5k and BDT 100k depending on the amount of lending.
How to get a Trade License in Bangladesh?
Click here and go to the post, Tahmidur Rahman speaks in details about Trade License in Bangladesh | Fees, Processing and Renewal!
Foreign loans with a term of less than a year require Bangladesh Bank’s prior authorization. The Board of Investment must authorize all other foreign loans (including supplier credits, financial loans from institutions or individuals, and debt issuance in international capital markets) (BOI).
It normally takes three to six months for the BOI to approve the application. The loan must be applied for using a stipulated application form, which, along with accompanying documentation, must clearly state the loan’s purpose and planned usage by the borrower, as well as the repayment schedule with dates and amounts, and interest payment dates and amounts.
The following documents must be supplied with the application as supporting documentation:
The term sheet, facility agreement, and security documents are all part of the loan documentation. These may be submitted in draft form:
The borrower’s corporate documents, such as the memorandum and articles of association; resolutions of the borrower’s Board of Directors approving the foreign loan on the terms and conditions reflected in the loan documentation and the application;
If the loan is to be used to import any equipment, a pro-forma invoice for that equipment;
Report covering key financial and commercial matters in in respect of the loan and related project.
Foreign loans from Multilateral Development Banks
Each of the major Multilateral Development Banks, including the Asian Development Bank and the World Bank, has a Commercial Liaison Office run by the Commercial Service.
These financial organizations lend billions of dollars to initiatives in developing nations like Bangladesh that aim to boost economic growth and social development by decreasing poverty and inequality, increasing health and education, and expanding infrastructure development.
The Commercial Liaison Offices assist American firms in learning how to participate in bank-financed projects and lobby on their behalf.
General Questions that people ask about Foreign Loans in Bangladesh
Is it possible to receive international venture capital funding to launch a business in Bangladesh?
IFC and IDLC funding helped Chaldaal, a food e-commerce firm, raise US$ 5.5 million. This is a positive indicator since if the business thrives, additional financial institutions may be willing to invest in it. Sindabad, a B2B e-commerce, received US$ 4.2 million from Aavishkaar, an Indian Impact Fund. Handy Mama, C-work, Gaze, and Beatles are among the four start-ups that BD Venture has invested in. They joined other Angel Investors in a second round investment in Esoshikhi, an educational technology. The government has set aside Tk 1 billion in the budget for new business ventures. However, the specifics of how that cash will be used have yet to be determined. The cabinet recently approved the ICT Ministry's initiative to establish a venture capital business.
Can I take loan from foreign bank in Bangladesh?
A company can obtain a soft loan in one of two ways: automatically or through the government: The automatic method allows a borrower to get a loan from a foreign firm without first obtaining clearance from Bangladesh's Central Bank. The loan arrangement must, however, be recorded with the BIDA in this case.
How to determine the existing indebtedness structure and creditworthiness of the borrowing company?
(a) CIB report: A CIB report will be needed for all proposals to be processed. The CIB report will be collected by BOI from Bangladesh Bank.
(a) Bank certificate: Existing indebtedness structure and creditworthiness of the sponsors involved, duly confirmed by their bankers, will be required for foreign borrowing permission. The chosen bank will submit to BOI the required inquiry papers as well as an undertaking from the borrowing company's Sponsor Directors.
What are the funding programs for Bangladeshi Entrepreneurs?
Robi, a mobile telecom business, has overhauled its Accelerator program. They broadened the scope by allowing applications from anybody in Robi payroll. They expanded its coverage to include all of Bangladesh. They got almost 2200 applications, of which 56 were chosen for pitching. Finally, eight funds and incubation facilities were given. These programs were aired on television in order to raise awareness and encourage people about the notion of entrepreneurship. Grameenphone has renamed its Accelerator program GP Accelerator 2.0, which is divided into two parts: Pre-Accelerator and Accelerator. Pre-Accelerator is an 8-week program that provides training and coaching to assist verify their concept and get it to market. The accelerator is a 4.5-month program for teams with a Minimum Viable Product (MVP).
How to determine the Quality & Commercial viability of the project for Foreign Loan?
The following financial analyses are necessary to verify the quality/commercial viability of the project feasibility study;
a) The project's internal rate of return (IRR) b) The payback period c) The break-even point at what capacity and what time of year d) A sensitivity analysis in terms of IRR
d) Ratio of Debt Service Coverage (DSCR)
What are the challenges regarding overseas financing in Bangladesh?
Globally, governments that backed startups saw an increase in their GDP. In the fourth industrial revolution period, creativity and technology assistance are critical for competing in global marketplaces. As a result, startups should be at the top of everyone's priority list. It is a priority for our government, but it should be represented at all levels of policy making. Our entrepreneurs have difficulties in obtaining trade licenses, intellectual property rights, and other business licenses and permissions. Foreign investors are hesitant to invest in a company that lacks all necessary legal documentation. Foreign investors are likewise unconvinced about the ease with which they might abandon their investments. Regional centers such as Singapore and China have vast amounts of money to invest, yet we are unable to entice them to engage in our enterprises.
Can an individual from Bangladesh take loan in foreign currency?
Provided, however, that for sufficient reasons, the Central Bank may permit a person resident in Bangladesh to borrow or lend in foreign exchange from or to a person resident in or outside Bangladesh, and/or permit a person resident in Bangladesh to borrow or lend in BDT from or to a person resident outside Bangladesh.
Can a foreign director give loan to Bangladeshi company?
Yes, it is permitted. But bear in mind, a company cannot lend to a director without paying taxes, while a director can lend to a company.
How do I record a loan repayment?
When your company records a loan payment, you debit the loan account to remove the liability from your books and credit the cash account. Repayments on an amortized loan are made over time to meet interest expenditures and principle reduction.
What are the 3 classification of loans in Bangladesh?
A loan is a sum of money borrowed from a lender by an individual or a business. It is divided into three types: unsecured and secured loans, conventional loans, and open-end and closed-end loans. Before any money crosses hands, the beneficiary and the lender must agree on the conditions of the loan. In some situations, the lender may compel the borrower to put up an asset as collateral, which will be specified in the loan agreement. Individuals, businesses, and governments can all get loans. The major reason for taking one out is to obtain funds to increase one's total money supply. The lender earns money by charging interest and fees.
Company Law practice in TR Barristers in Bangladesh
The Barristers, Advocates, and lawyers at TRW Law chamber in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients in dealing with and registering branch offices in Bangladesh. For queries or legal assistance to set up a branch office in Bangladesh, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165 or +8801708080817 House 410 Road 29 Mohakhali DOHS
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This post will explain in details about Trademark Registration in Bangladesh and The complete procedure, how to apply, cost and filling requirement in 2024 and everything about Trademark registraion and filing in Bangladesh that you need to know and be aware of.
What is a Trademark?
Usually, a trademark is a name, term, sentence, logo, emblem, style, illustration, or a combination of these elements. There are also a variety of non-conventional trademarks composed of trademarks, such as those based on colour, scent or sound, that do not fit within these traditional categories. In order to prevent the unauthorized use of that trademark, the owner of a registered trademark may initiate legal proceedings for trademark infringement.
Trademark Registration in Bangladesh, however, should not be deemed as absolutely necessary. A common law trademark owner can also file a lawsuit, but an unregistered trademark can only be protected in the geographical area for which it has been used or in the geographical areas to which it may fairly be assumed to extend.
The term trademark is also used informally to refer to any distinguishing attribute, such as the well-known features of celebrities, by which an individual is easily identified. If a trademark is used for services rather than goods, it may also be referred to as a service mark.
A trademark is a distinctive symbol or indicator used by a person, a commercial company or some other legal body to assist customers in the recognition of the origin of their goods or services for which the trademark occurs and to differentiate their goods or services from those of other individuals.
How to Apply for a Trademark in Bangladesh
Any individual claiming to be the proprietor of a trade mark can apply for registration of the mark with the Registrar. Both natives and foreigners have equal rights in this respect, but a local agent must represent a foreign claimant.
Trademark application in Bangladesh can be filed in two categories:
(1) Ordinary Applications (2) Convention Application (claiming priority from a convention country)
Priority or conventional trademark applications in Bangladesh
Priority trademark applications in Bangladesh should be submitted within 6 months of the date on which the claim was made in the country of the convention.
Multi-class trademark application in Bangladesh
In Bangladesh, a trademark application can be filed in the manner prescribed for a single class only with the Registrar of Trademarks and with an application number. In Bangladesh, multi-class patent applications can not be submitted. Application for a Trademark or Preference Trademark A submission from a convention country requesting preference can also be lodged in Bangladesh within 6 months of the priority date.
How to file an application for a trademark in Bangladesh with simple 8 steps
The foregoing shall be used in an order to register a trademark;
1. Name and full address of the applicant:
If the applicant is a corporation, the name and title of the signatory (such as director, chairman) shall also be sought.
2. Applicant status
Applicant status whether the applicant is Merchandisers / Productors / Service Providers or both.
3. Mark / Logo / Device prints:
Mark / Logo / Device prints and describes whether it is a word mark or a device mark or a merged mark.
4. Goods / Services specification and class
5. Day of use of the symbol in Bangladesh (whether the symbol is in use or suggested in Bangladesh to be used).
6. POA (No original or notarization or legalization needed, only sufficient SCANNED copy)
7. Fee Prescribed
8. Priority Application
In Bangladesh, there is a provision for priority requests. In that regard, within 6 months of the date of that earlier filing, the claimant for registration of a trade mark seeking to take advantage of the priority of an earlier application lodged in a convention country shall add to his application a written statement stating the date and number of the earlier application.
If the priority document is in some language other than English, the English version of the priority document is verified / notarized.
Trademark searches in Bangladesh
Trademark search in Bangladesh:
may be for both word and device marks. In order to assess the availability of trademarks, the presence of prior identical / similar marks on the register, etc., it is advisable to perform a trademark check before filing a trademark application in order to prevent any objection or opposition with regard to the mark.
While a search is not necessary for the filing of an application, it is advisable, before filing an application, to conduct a preliminary search for the proposed trade mark in order to prevent any objection and opposition to the trade mark at a later date.
Trademark searches in Bangladesh can be performed for word marks, numerals, labels and system marks. Device mark searches can be carried out using the Vienna code.
Trademark searches can be categorized in the following categories: (a) Search through Word Mark b) Search through Device mark
Word Mark Search:
Trademark word search version of Bangladesh follows the Nice Classification and trademark applications can be filed for products in Classes 1-34 and services in Classes 35-45. Trademark searches in BANGLADESH CAN BE PERFORMED for the desired class and related classes.
It is advisable to conduct a thorough search for trade mark clearance in Bangladesh in order to ascertain the availability of the proposed trade mark and also to address any resistance and opposition to the trade mark at a later date.
In addition to looking for trademarks, it is also advisable to search the proposed trademark in BANGLADESH FOR A DETAILED COMPANY search and domain search.
Device Mark Search:
It is advisable to perform a systematic search for a figurative trademark. Device marks shall include individual marks such as stylized letters, numerals, shapes, plants, celestial beings, living creatures, etc. or a mixture of marks containing device marks.
The hunt for a SYSTEM MARK IN BANGLADESH can be carried out between the marks filed and registered in accordance with the Vienna Code Classification.
Trademark Application Filing categories in Bangladesh
Applications for trademarks in Bangladesh can be filed in two categories:
Ordinary Applications:
Ordinary trademark applications FILED IN BANGLADESH are non-priority applications. A trademark application is typically filed on the form TM-1. Applications for multi-class trademarks can not be filed in Bangladesh.
However, the Trademarks Act also lays down provisions concerning the filing of priority applications where the priority of the trade mark can be asserted in the said trade mark filed in the Convention country.
Trademark Applications (Priority Trademark Applications) A priority trade mark application should be filed in Bangladesh within 6 months of the date on which the application was made in the Convention country. A certified copy of the priority documents must be filed within 3 months of the date of the submission for the Convention in Bangladesh.
The Paris Convention for the Protection of Industrial Property, signed in Paris , France, on 20 March 1883, created the Union for the Protection of Industrial Property. It provides national treatment to the applicant residing in the Member State of the Union, national treatment is a very important concept and is necessary for the achievement of the fundamental objective of the Paris Convention.
The idea is to ensure fair treatment of applications from Member States in the Member State concerned and not to discriminate between nationals of Member States for grant purposes and protection of industrial property.
Priority applications may be LODGED IN BANGLADESH within six months of the date on which the request was made in the countries of the Convention. The trade mark, if licensed under the Act , shall be licensed as from the date on which the application was made in the Convention country and shall be considered to be the date of registration for the purposes of the Act.
Trademark classes in Bangladesh
In Bangladesh, a trade mark application can be filed in 45 classes: Classes 1 to 34 for goods and Classes 35 to 45 for service marks.
The Trademarks Rules of 1963 were published in the exercise of the powers conferred by section 84 of the Trademarks Act of 1940 and the Rules of Procedure came into force on 2 April 2004.
The Trademarks Act, 2009 has been amended and the Trademarks Register Wing, Bangladesh empty Notification S. R. O. No.211—Law/2008 dated 30 June 2008 has been notified by expanding the classification of products and services to 1 to 45. Service mark applications are also now being lodged and prosecuted in additional service grades, i.e. 43 to 45.
Trademark filing process in Bangladesh
An application for registration of a trade mark must be filed with the Department of Patents, Designs and Trademarks (DPDT), Dhaka, in the specified form, with payment of the necessary fees. Further information on the filing of trademark applications can be found on the Trademark Registry website, Bangladesh, under the following link: HTTP:/WWW.DPDT.GOV.BD/
Requirements for the submission of a trademark application in Bangladesh
Any individual who claims to be the owner of a trade mark can make an application for registration of the trade mark in respect of his goods / services. It should be filed with the trademark office, Dhaka.
After filing a trade mark application, the same shall be reviewed by the Trade Marks Registry, Dhaka, as to its inherent registrability and/or any similarities with existing marks. If an objection is raised, an official investigation report will be released by the Trademarks Registry.
Duration of Trademark registration in Bangladesh
If a trade mark is registered in Bangladesh, it shall be valid for a period of 7 years from the date of registration. The registration of a trade mark could then be extended for a further period of 10 years from the date of expiry of the registration or the last renewal of the registration.
Trademark prosecution in Bangldaesh
As we have explained earlier:
The process for filing a trade mark in Bangladesh is as follows:
Trademark filing in Bangladesh –
Trademark application in Bangladesh can be filed for a single class only. Applications for multi-class trademarks can not be filed in Bangladesh. Application for a trade mark or a priority trade mark Applications requesting priority from a convention country can also be filed in Bangladesh within 6 months of the priority date.
Official Review of a Trademark in Bangladesh / Issue of Office Action – Once an application has been filed, the Registrar shall investigate the distinctiveness, the potential for misleading and contradictory trademarks.
If an objection to registration is raised, the Registrar shall submit an official review report within 6 months to 1 year, depending on the backlog of the registry.
The Registrar can, subject to the provisions of the Ordinance, approve or deny an application. A trade mark application in Bangladesh may be refused / objected by the Registrar on the following grounds:
The mark is similar / identical to the earlier mark for the same or similar goods / services.
The trade mark is similar / identical to the earlier trade mark in respect of various goods / services.
The label is the widely used and accepted name of any specific chemical element or chemical compound. However, the above categories of trade marks may be registered if the owner of the earlier trade mark has consented to it or if there has been an honest parallel use of the later trade mark.
Trademark which can not be registered in Bangladesh
As we have explained earlier:
(a) consisting of, or consisting of, some scandalous or pornographic matter;
(b) the use of which will, for the time being, be contrary to any law; or (c) the use of which is likely to be misleading or confusing; or (d) which contains any matter likely to affect the religious sensitivities of any class of Bangladeshi citizens; (e) which is identical with, or imitates, or contains as an element, the armorial bearing, flag or other emblem, the name or abbreviation or initials of the name or official sign or symbol adopted by any State or international organization founded by an international convention, charter or other instrument, unless approved by the competent authority of that State or organization; (f) which would otherwise be dissented from defense in a court of law; (g) the request is made in bad intentions and in bad faith;
Furthermore, the objections raised by the Registrar with respect to the application are forwarded to the applicant and, within 90 days, the applicant must file an acceptable reply with the supporting documents to the official objections. The Registrar may consider the request on the basis of the reply and the documents submitted or may list the request for a hearing.
An appeal against the decision of the Registrar at or without the hearing can be lodged by the applicant within 1 month from the date of such notification to the Registrar, requiring him to state in writing the grounds and the materials used by the Registrar in arriving at his decision. When an application for registration of a trade mark is approved, the Registrar shall publish it in the Official Trade Marks Journal and shall make it available on the Registry ‘s website.
Publication / Publication of a Trademark in Bangladesh –
After review and approval of the reply by the Registrar, the application is ordered for publication / publication in the Trademarks Journal. An application is published in the Trademarks Journal in order to allow the public to file an objection to the registration of a trade mark.
Opposition to the published trade mark in Bangladesh –
Upon publication of the trade mark in the Trademarks Journal, any person may object to the registration of the said trade mark by filing a notice of opposition within a specified period of 2 months from the date on which the Trademarks Journal is made available to the public.
The time limit for filing a notice of opposition can be extended by a maximum duration of 3 months upon filing a stated request for an extension of time of three months for a period of one month each along with the prescribed fee.
Renewal of trademark in Bangladesh
The application shall continue to be registered if there is no opposition or if the opposition has been submitted and it has been determined in favor of the applicant. The mark shall then be registered for a period of 7 years from the date of filing of the application and the certificate of registration shall be issued.
The trade mark may be extended from time to time for an indefinite period by payment of renewal fees, failing which the trade mark may be withdrawn from the Register on account of non-renewal. Each renewal period shall be for a period of 10 years.
Filing and opposition of a trademark in Bangladesh
The trademark application can be challenged in Bangladesh on the grounds set out in Sections 8 , 9 and 10 of the Trademarks Act 2009.
Where an opposition is lodged against a trade mark in Bangladesh, a copy of the notice of opposition so lodged shall be served on the applicant by the Trade Marks Registry and the applicant shall be allowed to file a counter-statement within 2 months of receipt of the notice sent by the Registry, failing which the application shall be regarded as abandoned.
Subsequently, the Registrar shall request written documentation from all parties. If the dispute is not settled by the parties, the hearing shall be determined on the matter.
The Registrar shall decide the case in the opposition proceedings. In the absence of an opposition, a trade mark shall be registered and a certificate of registration shall be issued.
If, on grounds of non-renewal, a trade mark has been withdrawn from the Register, the same may be reinstated by filing an application in the specified form for the restoration of the trade mark within 1 year from the expiration of the last registration of the trade mark.
Ordinary trademark applications filed in Bangladesh are non-priority applications. A trademark application is typically filed on the form TM-1. Applications for multi-class trademarks can not be filed in Bangladesh. However, the Trademarks Act also lays down provisions concerning the filing of priority applications where the priority of the trade mark can be asserted in the said trade mark filed in the Convention country. – Trademark Registration in Bangladesh
Priority Trademark Application
A priority trade mark application / convention application for a trade mark should be filed in Bangladesh within 6 months of the date on which the application was made in the Convention country. A certified copy of the priority documents must be filed within 3 months of the date of the submission for the Convention in Bangladesh.- Trademark Registration in Bangladesh
Paris Convention
The Paris Convention for the Protection of Industrial Property, signed in Paris , France, on 20 March 1883, created the Union for the Protection of Industrial Property. It gives national care to the applicant residing in the member country of the union, in other words. National care is a very important concept and is necessary for effectively achieving the fundamental goal of the Paris Convention. The idea is to ensure fair treatment of applications from Member States in the Member State concerned and not to discriminate between nationals of Member States for grant purposes and protection of industrial property. Priority applications may be lodged in Bangladesh within six months of the date on which the request was made in the countries of the Convention. -Trademark Registration in Bangladesh
STEP 1:
FILING AN APPLICATION
Submission Reuirement
An application has to be submit along with few information and documents which are listed below:
Particulars of the mark/logo/device prints or representations
Name of the applicant, address and nationality
If the applicant is a firm then signatory’s name and position
Status of the application i.e. manufacturers/merchandisers/ service providers
Specification of goods/ service/class
Trademark date of user (whether the mark is in use or proposed to be used in Bangladesh)
Power of Attorney authorizing to the lawyer if it requires
The government fee for filing the application for registration is 3500 (three thousand and five hundred taka) or equivalent to USD. 42(Forty Two). You can get more information on GOVERNMENT FEE FOR REGISTRATION HERE.
The application needs to file at the Head office or any branch of the Trademark Registry having territorial jurisdiction over the principal place of business. Furthermore, If the person does not carry on business in Bangladesh, the application needs to file in the office having territorial JURISDICTION OVER THE PLACE MENTIONED IN THE ADDRESS FOR SERVICE IN BANGLADESH.
Substantive and Formalities Check of a trademark in Bangladesh
Acknowledgement of the Application
Upon receiving the application along with GOVERNMENT fee, the Registrar will issue an automatic generated receipt. The receipt includes information related to trademark filing, e.g. Application Number, application date, trademark, etc.
PROSECUTION OF OFFICE ACTION FOR A TRADEMARK IN BANGLADESH
After the application has been filed, the Registrar shall review the distinctiveness, the risk of fraud and the conflicting trademarks. If an objection to registration is raised, the Registrar shall submit an official review report within 6 months to 1 year, depending on the backlog of the registry. The Registrar can, subject to the provisions of the Ordinance, approve or deny an application.
After an application has been filed, the Registrar shall review the trademark for its distinctiveness, identicalness or resemblance to existing registered trademarks and general compliance with the provisions of the Statute. If the Registrar is pleased, he shall issue a letter of approval for the trade mark to be published in the Trademarks Journal for opposition purposes (smooth case). Otherwise, the Registry raised the objection / refusal notice (OFFICE ACTION) and demanded a written reply on the objection or refusal notice (non-smooth case).
The Official fee of the publication cost would be around VAT: BDT 1150 or USD 20 + Law Firms fee and the TIMELINE would be 8 to 12 months from the date of the publication fee deposited.
Thereafter, if anyone has any dispute as to the proposed trademark, he can raise it within 2 (two) months from the date of publication. The reason behind the journal publication is to invite the public for filing opposition against the registration of a mark.
If there is no office action or notice after review, if the Examiner is satisfied as mentioned above (in stage 2), the Registrar shall approve the trade mark for advertising in the Trademarks Journal for opposition purposes.
Opposition Proceedings of a Trademark in Bangladesh
Government Fee for opposition
If there is no office action or note After review, if the Examiner is satisfied as mentioned above (in stage 2), the Registrar shall approve the trade mark for advertising in the Trademarks Journal for opposition purposes.
The Registrar having received the notice of Opposition, SENDS A COPY OF THE NOTICE of Opposition to the Applicant. Thereafter, the Applicant will get an opportunity file a Counter-Statement with in 2 (two) months of receiving the notice. The Counter-Statement should contain the grounds in supporting the claim. The government fee for filing counter-statement is 1500 (one thousand and five hundred taka).
Upon receipt of the Counter-Statement, the Registrar shall forward a copy to the Opponent. The Registrar shall then rule on the contested matter at the hearing of both parties. However, an appeal can be brought before the High Court against the decision of the Registrar. However, the opposition proceedings should be filed within 120 (one hundred and twenty) working days of receipt of the order.
Final Registration Proceedings of a Trademark in Bangladesh
Certificate of Registration
Above, if there is no conflict against the publication of a trade mark, the Registrar shall, after the expiry of the term of 2 ( two) months, notify the Registrar of the payment of the charge. After collecting the fee, the Registrar shall issue a Certificate of Registration for the trade mark. The licensed trade mark shall be valid for a term of 7 years from the date of registration.
A Trademark can be renewed in Bangladesh from time to time for an indefinite duration upon payment of renewal fees. Failure to renew could, however, result in the removal from the Registry of registered trademarks. The renewal period could be for a period of 10 years. Please bear in mind that an application for the renewal of a trade mark should be made no more than six (6) months before the expiry of the last renewal.
The registration timeline would be 6 to 8 months from the date of publication if there is no opposition and the cost would be with an offical fee with VAT+Disbrusment: BDT 17250 or USD 220 +Law Firm’s fee.
This post in details will explain in details about the process of opening a liaison office in Bangladesh, the process of getting permission from BIDA, time period of the validity of the license, Bank Account opening, Bangladesh bank approval and everything in regards to registering a Liaison office in Bangladesh with infographics and diagrams.
Liaison office and Branch office are almost similar. But a liaison office in Bangladesh can not perform any business or income-earning activities.
But a Branch Office can do so with proper authorization. If you would like to know how to set up a branch please click here. On the other hand, in Bangladesh, a limited company or a subsidiary can do full-fledged business through proper incorporation.
If you want to know everything about Branch office registration in Bangladesh!
Basic requirement of registering a Liaison office in Bangladesh?
Companies wishing to set up a Liaison Office must fulfill the following basic requirements:
It’s a foreign company registered outside Bangladesh that wants to set up Liaison Office.
The name of the Liaison Office shall correspond to the name of the international company.
Shareholders, the structure of the corporation and its operations shall be regulated by the Memorandum and Articles of Association of the international company. For the Liaison Office, there is no separate Agreement and Articles of Association.
The Liaison Office must have an email address in Bangladesh.
The Liaison Office would not have a local source of income in Bangladesh.
Establishment and maintenance expenses shall be met by the parent company abroad.
Branch which carries out commercial activities shall pay corporate income tax and comply with sales VAT.
Other tax and VAT (GST) laws, such as withholding like tax & VAT, return submission etc., must be complied with, irrespective of the activities of the Branch.
How to register a Liaison Office in Bangladesh – Step by Step process
On the basis of funding, we can further extend the scope of NGOs, such as locally sponsored, government-funded, foreign The information provided below offers a comprehensive step-by – step method for setting up a branch or liaison office in Bangladesh.
Step one: Obtaining Permission from BIDA for setting up a Liaison office in Bangladesh
Permission from the Bangladesh Investment Development Authority (BIDA) is required to set up a Liaison Office. Now, what needs to be done to get permission from BIDA?
A fee of BDT 25,000 (Twenty-five thousand) is expected to be paid by bank payment order and the original copy of the payment order must be sent to BIDA to get the permission for opening the Liaison office in Bangladesh.
Registration procedure and approval timeline for the Liaison office
All records should be sent to BIDA on a physical basis. You can also apply online via the BIDA website. After careful examination of all records, the BIDA officials shall send the application and records to the Inter-Ministerial Committee.
The Committee may review the documentation and can request further documentation or a physical presentation. If the committee is pleased, the approval will be given for the Liaison office in Bangladesh. The Inter-Ministerial Committee normally sits twice a month. Usually the duration is one month or less.
Usually, permission is given to the opening of a branch or liaison office initially for a term of 3 ( three) years, which can be extended later.
Step two: Opening a Bank account for the liaison office in Bangladesh
In regards to opening a Liaison office in Bangladesh, A bank account must be opened at any bank in Bangladesh after obtaining the approval from BIDA.
The bank account is required at this stage because a sum of foreign exchange equal to US$ 50,000 (fifty thousand dollars or more) must be transferred to Bangladesh as an inward remittance. This must be achieved within 2 ( two) months from the date of the issuing of the BIDA authorization.
Step three: Obtaining the approval from the Bangladesh Bank (Central Bank)
The Foreign Exchange Regulations Act 1947 has recently been (2015) amended by the Bangladesh parliament. Bangladesh Bank’scriteria for 18B Approval was withdrawn.
In addition to that since the amendment, the government or the Bangladesh Bank will be able to request that any individual residing in Bangladesh return their holdings of foreign exchange, foreign securities, any immovable property or industrial or commercial undertaking or company held, operated, founded or managed by that individual outside Bangladesh.
If you want to know how to open a company in Bangladesh or about company formation click here!
Certified copy of the company memorandum and articles of associations, or other statutory records.
Complete address of the company’s registered office or principal office.
A list of the company’s directors, and secretary, if any.
The name and address or the names and addresses of one or more persons residing in Bangladesh, allowed to accept company service of process on behalf of the company and any notices or other documents necessary to be served on the company.
The full address of the company’s office, which is to be considered as the main place of its business in Bangladesh.
What is the scope of a Liaison office in Bangladesh
A Liaison Office in Bangladesh would only be allowed a very small operation to be carried out, as the Liaison Office it will have the right to carry out feasibility studies, market analysis to determine the quality of the targeted product , customer service and to supervise the activities of local agents. They may also provide customer service and supervise the activities of local officers.
In most situations, the Liaison Office serves as a liaison between the main office and any other company located in Bangladeshthat it plans to negotiate with when the time comes.
Since a Liaison Office in Bangladesh is not legally a corporate organization, it is not authorized to carry out any profit-making operations. Examples of such activities include entering into a strictly binding contract, leasing space for other businesses , providing technical services, issuing receipts, and even ship / store goods without a local agent in Bangladesh.
“In most situations, the Liaison Office serves as a liaison between the main office and any other company located in Bangladesh that it plans to negotiate with when the time comes.”
Frequently Asked Questions about Liaison office in bangladesh
In regards to Liaison in bangladesh people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.
The legal team of Tahmidur Rahman, TR Barristers in Bangladesh TRW are highly experienced at dealing with company matters along Liaison office set up process, and branch office registration in Bangladesh . For queries or legal assistance, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165
Address:
FAQ
What is a liaison office in Bangladesh?
The liaison office of a foreign company is permitted to function in Bangladesh only on a limited basis, provided that none of the operations is profit-making.
In other words, a liaison office will perform market analysis and representation activities only. Click to see the List of Approved Activities for the Bangladesh Branch Office.
What are the permitted activities for a Liaison office in Bangladesh of a foreign entity?
The liaison office of a foreign company is permitted to function in Bangladesh only on a limited basis, provided that none of the operations is profit-making.
In other words, a liaison office will perform market analysis and representation activities only. Click to see the List of Approved Activities for the Bangladesh Branch Office.
What is Income Tax rate for a Liaison office of a Foreign Company?
The Liaison Office of a foreign parent company shall not be regarded as a separate and independent body in Bangladesh and, for all tax purposes, the Government of Bangladesh shall tax the income of such entities at higher rates.
What are the conditions of opening a Liaison office in Bangladesh?
Liaison or representative office of a foreign company can be opened if the applicant foreign corporation has had a record of profit generation for the past 3 years and is financially sound.
When we say that a foreign company is financially sound in the sense of a representative or liaison office in Bangladesh, we mean a net worth of USD 50,000 or its equivalent. The financial statement properly certified by the statutory auditor of the parent company is required.
What are the additional incorporation requirements for opening a Liaison office in Bangladesh?
A certified copy of the charter,
laws or memorandum and articles of the corporation or other instrument constituting or specifying the company’s constitution and,
if the instrument is not in the English language, a certified translation thereof into the English language;
the full address of the company’s registered office or head office;
the list of directors and secretary of the company’s contents;
The full address of the company’s office in Bangladesh, which is considered to be its principal place of business in Bangladesh;
Specifics of opening and closing a business premises in India on earlier occasions or occasions;
a declaration that none of the company’s directors or the approved representative in Bangladesh has ever been convicted or removed from the creation of companies and management
and any other information as may be prescribed.
Can a liaison office or a branch office be considered a legal entity?
The Branch or Liaison Office is a legal body that has been registered with the BIDA in Bangladesh. It is called a multinational business extension, and not a separate legal entity.
Unlike a subsidiary of Bangladesh, the parent company of the Branch or Liaison Office is indirectly responsible for all debts and liabilities of the Branch or Liaison Office.
Procedure of Foreign Investment in Bangladesh 2020| Law, Policy, Direct, Angel, Rules, Policy- Everything you need to know about Foreign Investment in 21st century Bangladesh
Tahmidur Rahman Director and Senior Associate, TR Barristers in Bangladesh
17 Jan 2020
Procedure of foreign investment in Bangladesh: Leading up to initiating a major investment , investors needs to navigate the basic legal policies on investment law in Bangladesh. Bangladesh is one of the easiest countries in the world to do business with straightforward regulation, a well-respected legal system and low entry barriers. Entrepreneurship is also massively respected and encouraged in the country.
Despite this welcoming atmosphere and a lack of red tape, difficult choices and decisions need to be taken at an early stage, and this article describes everything you need to know about the Procedure of foreign investment in Bangladesh.
[lwptoc]
Foreign Investment Policy in Bangladesh & Procedure of foreign investment in Bangladesh
The Government of Bangladesh has put in place a wide range of policies aimed at bringing substantial socio-economic changes to the citizens of Bangladesh and, eventually, self-reliance to the country, which would in turn pave the way for seamless procedure of foreign investment in Bangladesh.
In recognition of the capacity of the private sector to contribute to the achievement of these objectives, the government has recently initiated a number of major policy reforms, which are planned to create a more transparent and competitive environment for foreign investment in Bangladesh.
In order to achieve the goal of accelerating industrial growth and increasing the share of industry in the Gross Domestic Product ( GDP) and to make industrial policy sensitive to changes in the global economy, the current government announced an Industrial Policy in 1999.
The core characteristics of the 1999 industrial strategy are as follows:
To draw foreign direct investment in Bangladesh, both export and domestic market-oriented industries to compensate for the lack of domestic investment opportunities and to acquire emerging technology and to gain access to export markets, so that the Procedure of foreign investment in Bangladesh bangladesh gets even easier.
To ensure the sustainable growth of industrial jobs by promoting investment in labour-intensive manufacturing sectors, including investment in productive small and cottage sectors.
Diversifying and increasingly increasing the production of manufacturing.
Coordinate economic and fiscal policies to inspire a growth in foreign investment in Bangladesh.
Promote the competitive strength of import substituting industries for catering to a rising domestic market.
To increase the production base of the economy by increasing the pace of industrial investment to ease the procedure of foreign investment in Bangladesh .
Promote the private sector to drive the development of industrial production and investment and making the Procedure of foreign investment in Bangladesh way easier.
Emphasis on the role of the government as a facilitator in creating an enabling environment for the expansion of private investment and the procedure of foreign investment in Bangladesh.
Investment Structures in Bangladesh and Procedure of foreign investment in Bangladesh
Bangladesh offers generous opportunities for investment under its relaxed Industrial Policy and export-oriented, private sector-led growth strategy. Except for the previously stated reserved sectors, foreign investors are free to make investments in Bangladesh in industrial enterprises.
FDI (foreign direct investment in Bangladesh) in industrial or construction projects must be registered with the Bangladesh Investment Development Authority (BIDA).
BIDA, formerly known as the Investment Board, was formed by the Bangladesh Investment Development Authority Act 2016 to deal with issues related to FDI and to promote investment in Bangladesh.
The foreign direct investment (FDI) inflow at the end of June 2018 amounted to USD 2.58 billion (foreign investment in Bangladesh stats, Bangladesh bank).
The Bangladesh Investment Development Authority (BIDA) announced an impressive 13.34% rise in FDI in the third quarter of 2018, receiving proposals worth USD 3.23 billion over the same period, suggesting strong interest on the part of foreign investors.
The key objective of BIDA is to encourage domestic and foreign investment as well as improve Bangladesh’s international competitiveness. BIDA also provides the necessary facilities and assistance for the establishment of industries.
In regards to the Procedure of foreign investment in Bangladesh, determining the route of investment usually depends on the specific sector and the policy of the FDI adopted by the Government in regards to foreign investment in Bangladesh.
Foreign entities can acquire an existing Bangladeshi company or incorporate a new company that complies with the requirements of the Registrar of Joint Stock Companies and Firms (RJSC). Subsidiaries are entitled to remit dividends reported on income after tax.
3. Joint Ventures in Bangladesh (Foreign Investment in Bangladesh)
As with wholly-owned subsidiaries, international companies can have joint venture companies with Bangladeshi partners. The equity ownership of a foreign corporation would depend on the sector in which it is invested.
If you want to know everything about Branch office registration in Bangladesh!
4. Setting up a Branch or Liasion offices in Bangladesh for foreign investors
International companies can also create a presence in Bangladesh through a representative office, liaison office or branch office for the purpose of foreign investment in Bangladesh.
Typically foreign companies that do not have local earnings in Bangladesh may choose to set up representative offices, liaison offices or branches.
The operations of these organizations are limited to those set out in their BIDA approvals and are subject to strict compliance with the foreign exchange regulations.
Generally, no outward remittance of any kind from Bangladesh is allowed unless expressly approved by the Foreign Exchange Regulations or the Bangladesh Bank.
fSuch offices are expected to pay inward remittances of at least USD 50,000 within two months from the date of establishment as a cost of establishment.
One of the requisite approvals for the establishment is that security clearance must be obtained from the Ministry of Home Affairs of the Government of Bangladesh. (foreign investment in Bangladesh)
5. Option of Participating in an existing Bangladeshi company by purchasing shares (procedure of foreign investment in Bangladesh.)
Right to Issue and Transfer Shares in Bangladesh – Procedure of foreign investment in Bangladesh.
There is no need for permission from the Bank of Bangladesh to set up such ventures if the entrepreneurs use their own funds. Prior approval of the Central Bank is not necessary for the issuance of shares in favor of non-residents against foreign investment in BD.
Shares may be issues relating to freely convertible foreign exchange brought in from abroad via the banking channel or to the importation of capital machinery or the combination of both.
Foreign exchange thus entered must be paid out in taka before the issuance of shares, except in the case of Type A (full foreign owned) and Type B (joint venture) units of EPZ and EZ, where FC ‘s foreign bright equity of be held in the FC accounts of the units concerned.
Transferring shares and securities in Bangladesh from one shareholder to another shareholder regardless of their nationality / residence does not require approval from Bangladesh Bank.
In the event of a transfer of private / public (non-listed) shares between resident-non-residents or vice versa, a general intimation to Bangladesh Bank is required by the Approved Bank within 14 days of such a transaction.
As there is no established marketplace for such investment in Bangladesh, Bangladesh Bank will accept fair value of the shares as on the date of sale based on a reasonable combination of three valuation approaches (NAV; Tahmidur Rahman RemuraV and DCF), depending on the nature of the company in regards to the Procedure of foreign investment in Bangladesh.
If you want to know everything about Share Transfer process in Bangladesh!
Full Repatriation of Dividend, Investment and Income for foreign investors in Bangladesh.
It will enable complete repatriation of the capital invested from free sources in regards to the Procedure of foreign investment in Bangladesh. Profits and dividends accruing to foreign investment can likewise be transferred in full (Procedure of foreign investment in Bangladesh).
Those would be considered as new investment if foreign investors reinvest their reparable dividends and/or retained earnings. Foreigners living in Bangladesh have the right to remit up to 50 percent of their income and can enjoy facilities for complete repatriation of their savings and pension benefits. (Procedure of foreign investment in Bangladesh.)
Laws for the Protection of Foreign Investment in Bangladesh
For a seamless procedure of foreign investment in Bangladesh, the government guarantees immunity from nationalisation and expropriation through the 1980 Foreign Private Investment Act that involves repatriation of capital and dividend for foreign investors.
In addition, to facilitate the Procedure of foreign investment in Bangladesh, Bangladesh has made ample legal provisions to secure intellectual property rights. In addition to the 1980 Foreign Private Investment Act , the government has developed an FDI Policy (Foreign Direct Investment Policy for the Procedure of foreign investment in Bangladesh), which supports easy but efficient investment mechanisms in Bangladesh.
The policy encourages the establishment of enterprises by simplifying the leasing and purchasing process of private property, forming an agency, enabling corporate tax holidays for 7 years (15 years in the power sector) and in some respects introducing an exemption of foreign employees’ income tax for up to 3 years.
Disputes Settlement in regards to the procedure of Foreign Investment in Bangladesh
The new law also provides for the implementation without much hindrance of international arbitral awards. Although venturing in a company may be overwhelming, Bangladesh offers investors a safe and resourceful environment suitable for establishing or expanding any company, and it can be said that Bangladesh is in fact a “dream investment destination,” after much consideration.
Visa, Work Permit, Citizenship in Bangladesh (Procedure of foreign investment in Bangladesh)
For periods ranging from one month to five years prospective foreign investors may apply for visas. Foreign workers must get BIDA / BEZA / BEPZA work permit.
In an industrial organization the number of expatriate workers can not exceed the ratio of 1:20 (foreign: local) for industrial settings and 1:5 (foreign: local) for commercial establishments.
Citizenship in a scheduled bank may be subject to investment of USD 1 million or a fixed deposit of USD 2 million. Investors can also get ‘NO Visa Requirement’ exemption for investment of more than USD 10 million.
If you want to know more in details about Visa obtaining process in Bangladesh
“Tahmidur Rahman Remura Wahid Parnters is Considered as one of the leading Investment Law Firms in Dhaka, Bangladesh”
Carpe Noctem Bangladesh
Incentives offered to Foreign Investors in Bangladesh
Bangladesh is keen to boost the economy in a short time and turn the poverty-stricken economy into a developed one. Government investment strategy provides competitive stimulus packages to attract foreign investment. These incentives are updated annually and new incentives are announced, too.
International investors are eligible to engage in Initial Public Offerings ( IPOs) without regulatory restrictions. In addition , capital gains from listed securities are tax-exempt for private investors and lower tax rates apply to corporations and other organizations.
Import Duty exemption in Bangladesh (Procedure of foreign investment in Bangladesh)
No import duties are applicable for export-oriented sectors. There are duty exemptions also for some preferred sectors. General exemption of import duties is also available in respect of import of specific Plant & Machinery and spares.
If you want to know everything about Immigration and Citizenship in Bangladesh read this articl
Tax holiday facility in Bangladesh (THF) for seamless procedure of foreign investment in Bangladesh
Tax holidays are granted to industries subject to the relevant rules and procedures laid down by the National Revenue Board of Bangladesh (NBR). This may vary from 3 to 7 years depending on the location of the establishment. For example, industries located in the Dhaka and Chittagong Divisions (excluding three Hill Tract districts of the Chittagong Division) are exempted for a period of five years.
This tax holiday scheme, which was scheduled to end in 2015, was extended until June 2019 to create an investor-friendly atmosphere in Bangladesh. Tax holiday facilities are also available to manufacturing units and economic zone developers for a period of 10 years and 12 years respectively, and once again it makes it more seamless, the procedure of foreign investment in Bangladesh.
Special Tax Exemption for the foreign investors in Bangladesh
Tax exemptions are commonly permitted in the following cases:
There will be scope of tax exemption on royalties, technical know-how fees earned by any international partner, business, company and expert;
Reasonable income tax-upto-threeyearsforeign technicians working in industries as defined in the respective schedule of income tax regulations;
Relevant revenue of a private corporation conducting public infrastructure projects;
In regards to capital gains from the sale of shares of limited public company listed on the stock exchange;
NGO reported with the NGO Affairs Bureau;
Reasonable profits of companies and other sectors defined in the income tax Ordinance
Depreciation allowance in regards to Tax (Procedure of foreign investment in Bangladesh)
Depreciation allowance shall be allowed in respect of any house, equipment, factory, furniture, bridge, road or overhead used in any company or industrial undertaking in the measurement of income or gains.
The plan also sets out the overview of the usual rate of depreciation allowance, the original rate of depreciation allowance and the accelerated rate of depreciation allowance for various asset groups.
If you want to know more in details about tax submission in Bangladesh click here!
Avoidance of Double Taxation for Foreign Investors
Double taxation for international investors can be avoided on the basis of the Bilateral Double Taxation Avoidance Treaties (DTTs). NBR is responsible for negotiating Double Taxation Agreements (DTAs) with foreign countries to facilitate FDI in Bangladesh.
The DTA is an arrangement between two countries that aims to prevent double taxation by specifying the taxing rights of each country with respect to cross-border income flows and providing for tax credits or exemptions to remove double taxation for the ease of the Procedure of foreign investment in Bangladesh.
It also allows for the exchange of information between treaty partners on tax evasion. For instance, Bangladesh has double taxation treaties with Denmark, France, Germany, Belgium, Canada, China, India, Italy, Japan, Poland, Romania, Singapore, South Korea, Sri Lanka, Sweden, Thailand, The Netherlands, The United Kingdom and other countries.
Remittance of profits for foreign investors in Bangladesh
Remittance of income of subsidiaries of foreign companies / companies, dividends / capital gains, wages and savings of expatriates, royalties and technical fees, training and consulting fees, receivables obtained by shipping companies and airlines for freight and transit can be made by approved dealers without the prior approval of the Bangladesh Bank.
In addition to that the Procedure of foreign investment in Bangladesh are placed in such a way that global entrepreneurs are also entitled to the same facilities as domestic entrepreneurs with regard to tax holidays, dividends, technological know-how fees, etc.
Business profits and tax exemption for foreign investors in Bangladesh
The income of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein.
If the enterprise carries on business as mentioned above, the benefit of the enterprise may be taxed in the other Contracting State, but only in so many cases as is due to that permanent establishment. (Article 7 of the Double Taxation Agreement).
Dividends and tax exemption for foreign investors in Bangladesh
Dividends paid by a company resident in a Contracting State to a resident in the other Contracting State may be taxed in the other State.
However, such dividends may also be taxed in the Contracting State in which the corporation paying the dividends is resident and in compliance with the laws of that State, but where the beneficiary is the beneficial owner of the dividend, the tax paid shall not exceed 10% of the gross sum of such dividends (Article 10 of the Double Taxation Agreement).
Interest arising from contract state for investors
Interest occurring in a Contracting State and charged to a citizen of the other Contracting State may be taxed in another State.
However, such interest may also be taxed in the Contracting State in which it exists and in compliance with the laws of that State, however if the beneficiary is the beneficial owner of the interest, the tax so paid shall not exceed 10% of the gross sum of the interest.(Article 11 of the Double Taxation Agreement).
Capital gain derived by a foregin resident in Bangladesh
Gains obtained by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other Contracting State. (Article 13 to prevent a double taxation agreement, Procedure of foreign investment in Bangladesh)
Repatriation of investment in Bangladesh – Foreign Investment Law in Bangladesh
Full restitution of the capital accumulated from foreign sources is permitted. Likewise, the gains and dividends accrued on foreign investment can be transferred in full.
In order to allow full repatriation of the capital invested, benefit and dividend, foreign investors will have to apply for repatriation approval from the Bangladesh Bank through an approved bank.
Foreign Private Investment (Promotion and Protection) Act, 1980, section 8 also states:
(1) In respect of foreign private investment, the transfer of capital and the returns from it and, in the event of liquidation of industrial undertaking having such investment, of the proceeds from such liquidation is guaranteed.
(2) The guarantee under sub-section (1) shall be subject to the right which, in circumstances of exceptional financial and economic difficulties, the Government may exercise in accordance with the applicable laws and regulations in such circumstances.
List of online portals for potential investors in Bangladesh (Procedure of foreign investment in Bangladesh)
However, the amount of the credit shall not exceed the amount of Chinese tax on that income determined in accordance with China’s tax laws and regulations.
(b) where the revenue received from Bangladesh is a dividend paid by a company resident in Bangladesh to a company resident in China and holding not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the tax paid to Bangladesh by the company paying the dividend for its revenue.
Bilateral Investment treaties in Bangladesh
Bangladesh has with many nations, including China, signed Bilateral Investment Treaties (BIT) and Trade Agreements (TA). Typical provisions contained in BITs are clauses on foreign investment protection and treatment standards which usually address issues such as fair and equal treatment, full protection and security.
Provisions on reimbursement for damages suffered by foreign investors as a result of expropriation or as a result of war and dispute are typically a central part of such agreements as well. Most IIAs also control the moving of funds across borders in connection with the Procedure of foreign investment in Bangladesh.
The BITs also contain a clause on dispute resolution between investor and state. Usually this allows investors the right to bring a lawsuit to an international arbitral tribunal if a dispute occurs with the host country (Procedure of foreign investment in Bangladesh).
The International Center for Settlement of Investment Disputes (ICSID), the United Nations Commission on International Trade Law ( UNCITRAL) and the International Chamber of Commerce (ICC) are common places in which arbitration is sought.
Funding options for foreign investors in Bangladesh
Foreign entities can conveniently access funding for short- and long-term investments from local financial institutions, including working capital loans, syndication, and trade finance. In addition, some of the Foreign Institutions (FIs) at home and abroad have access to on-shore and off-shore funding.
There are currently 58 planned commercial banks in the financial sector, as well as a host of Non-Bank Financial Institutions (NBFIs) and specialized financial institutions. In addition to raising debt-based funding, investors may also consider securing equity-based capital-market financing from the country.
Raising Capital from the Equity market in regards to the Procedure of foreign investment in Bangladesh
International companies can start raising capital from the stock market, subject to fulfillment of certain terms and conditions. The government is keen to increase the number of companies listed on the local stock exchange, and offers regulatory incentives to attract profitable businesses and facilitate the Procedure of foreign investment in Bangladesh.
Listed firms pay 25 per cent corporate taxes on non-listed entities, excluding those markets, compared with 35 per cent tax limit. Formal approval from the Bangladesh Securities and Exchange Commission (BSEC) is required for the fundraising process. Companies may use either the fixed price, or the option of constructing books.
The appointed merchant bank and auditor help prepare a prospectus under the fixed-price process, valuing the business based on current assets and prospects for future growth. The indicative stock price is determined and has to be certified by the regulator.
The method of book building involves a designated merchant bank to prepare an indicatively priced prospectus. The contending business then holds a series of road shows in which institutional investors are invited to bid on their stocks. IPO share price is dependent on input from other institutional investors and their interests.
The DSEX listing process has the mandatory requirement that an Issue Manager be employed or named (approved by the DSEX). The way IPOs are determined needs support from the approved Issue Manager.
The draft prospectus shall be prepared in compliance with the Regulations of an Issue Manager and the Securities and Exchange Commission (Public Issue for the Procedure of foreign investment in Bangladesh ), 2015. IPOs can be issued by either book building or fixed-price system.
Debt capital from local commercial Banks in Bangladesh
International investors have access to financing for the local debt. Trade finance, term loans, and working capital are readily accessible to large foreign investors, in particular.
Interest rates are low for such loans and between 9-16 per cent. Bangladesh has a very large number of State and commercial banks (as stated in the preceding section), and bank loans can be obtained against collateral secured in regards to the Procedure of foreign investment in Bangladesh.
Private Foreign Commercial borrowing in Bangladesh
To secure long-term foreign currency loans, a request must be sent to BIDA, which will then be forwarded to the Central Bank for further review. To secure the loans, a business case supporting the loan condition must be included in the application. The proposal, along with the business case, is submitted for evaluation and decision by a committee chaired by the Bangladesh Bank Governor including members from BIDA, PMO Ministry of Finance.
Regulatory institutions facilitating investment in Bangladesh
The investment route depends on the business sector and on the FDI policy introduced by the Government of Bangladesh. The following government and trade agencies would oversee and encourage investment in most sectors;
The Bangladesh Investment Development Authority (BIDA), Formerly known as the Investment Board (BOI), has been set up to deal with local and foreign investment issues. All incoming investments must be pre-approved by BIDA.
Bangladesh Bank ( BB) is the central bank of the country. The central bank must be officially informed of any foreign transactions, including equity investments made on the stock market. All incoming investments shall be reported to BB via commercial banks.
Relevant trade bodies and chambers in Bangladesh
The Dhaka Chamber of Commerce and Industry (DCCI) is a non-profit, service-oriented chamber serving as the first point of contact for small and medium-sized enterprises. DCCI offers market-oriented inputs to imports , exports and investments throughout the government’s policy formulation period for the Procedure of foreign investment in Bangladesh.
The Chamber periodically publishes guidebooks to promote trade and investment. DCCI also has its own training facility to facilitate the growth of capability of professionals associated with member organizations.
The International Investment Chamber of Commerce and Industries (FICCI), founded in 1963, is made up of 188 members across the mining, service and manufacturing sectors. Classified as Class ‘A’ Chamber of Commerce, FCCI is affiliated with the FBCCI, the International Trade Center (Geneva) and the World Trade Organization (Paris).
The Metropolitan Chamber of Commerce and Industry (MCCI) is a leading chamber body made up of representatives of major local and multinational corporations. The MCCI maintains frequent ties with major international trade organizations and global private sector organizations. (procedure of foreign investment in Bangladesh)
Exit policy for foreign investors in Bangladesh
An investor can terminate an investment either by a decision of an annual or an extraordinary general meeting. Once a foreign investor has completed the formalities to leave the country, he or she can repatriate the net proceeds after obtaining proper authorisation from the central bank (Bangladesh Bank, Procedure of foreign investment in Bangladesh).
Frequently Asked Questions about Foreign Investment in Bangladesh
In regards to Foreign Investment in bangladesh people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.
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FAQ
Which Countries invest the most in Bangladesh?
The country's major investors are China, South Korea , India, Egypt, the United Kingdom , the United Arab Emirates and Malaysia. According to the most recent data available from Bangladesh Bank, FDI flows increased by 5.36% to USD 1.65 billion in July-October 2019 per year. -Procedure of foreign investment in Bangladesh
How is the Investment Scenario in Bangladesh in 2020?
Bangladesh is already recognized as a thriving investment hub, reflected in influxes of foreign direct investment ( FDI) from the region. Bangladesh 's FDI amounted to USD 2.58 billion at the end of June 2018.
According to the Bangladesh Investment Development Authority (BIDA), there was a 13.34% rise in FDI in the third quarter of 2018, with proposals worth USD 3.23 billion in the basket. Mega-projects by the government is seen as the primary explanation for significant FDI investments in Transportation, transportation , and communications. Exports from the country are also growing amid domestic consumption.
What is an example of Foreign Direct Investment in Bangladesh?
Examples of foreign direct investment in Bangladesh include, but are not limited to, mergers, acquisitions, retail, utilities, logistics, and development. Foreign direct investment and the laws that regulate it can be critical to the growth strategy of a business.
What are the types of foreign Investment?
Examples of foreign direct investment in Bangladesh include, but are not limited to, mergers, acquisitions, retail, utilities, logistics, and development. Foreign direct investment and the laws that regulate it can be critical to the growth strategy of a business.
What is the current trend of foreign investment in Bangladesh?
35.4 per cent of the FDI came from the manufacturing industry in 2016-17. The country witnessed phenomenal Y-o - Y growth of 11 per cent 2017 In this area. Experts in industry are optimistic this development will be maintained in the years to come. The sectors of transport , storage and communications ranked second with FDI inflows of 25 per cent.
This may be due to the mega projects being initiated and executed by the government at the present time. Over the time, electricity, accompanied by gas and petroleum, attracted FDI of 19 per cent. Over the years, the power sector has steadily drawn foreign investments due to the Government 's attractive tax incentives. (Procedure of foreign investment in Bangladesh)
How Foreign investors can enter into Bangladeshi Market?
Foreign investors may either form a wholly / partially owned subsidiary, or set up a branch or liaison office for Bangladesh operations. The type of organization that was created will rely on the medium- and long-term strategy of the investor for market penetration. Hence the three conventional ways of entering the Market in Bangladesh:
Wholly owned subsidiaries
Limited liability by purchasing shares in an existing Bangladeshi company
Joint ventures
How to get work permit and visa as a foreign investor in Bangladesh?
For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.
Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.
How to get work permit and visa as a foreign investor in Bangladesh?
For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.
Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.
How to get work permit and visa as a foreign investor in Bangladesh?
For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.
Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.
What is EPZ or Export Processing Zone in Bangladesh?
Export Processing Zone is ideal for wholly owned export-oriented companies, if it is a Joint Venture, etc. 08 (eight) EPZs are geographically diversified in various locations within Bangladesh.
Depending on the nature of the company, availability of utilities, rental rates, transportation, availability of qualified man power, etc. Customer may choose acceptable EPZ to invest.
