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Warisan and Succession Certificate in Bangladesh is a vital document used to identify the heirs or successors of a deceased person. The Warisan Certificate is issued by the Ward Councilor’s Office in the City Corporation area, the Ward Commission’s Office in the Pourashava area, or the Union Parishad Chairman’s Office in the Union Parishad area.
The Succession Certificate, on the other hand, can only be granted by the Court under Section 371 of the Succession Act, 1925. In this article, we will look at how to obtain a Warisan Certificate and a Succession Certificate from the appropriate authorities in Bangladesh.
Before we get into the details, here is a table outlining the steps involved in obtaining a Warisan (inheritance) and Succession Certificate in Bangladesh:
Step
Description
1
Obtain copies of the death certificate of the deceased person and the national identification card (NID) of the deceased.
2
Gather the necessary documents, including any relevant deeds, wills, or other documents related to the deceased’s property.
3
Obtain an affidavit from the appropriate authority, stating that the deceased did not leave any will or any other legal document regarding the distribution of their property.
4
File a petition for the issuance of a Warisan and Succession Certificate with the appropriate court.
5
Provide all necessary documents and information to the court, including the death certificate, NID, affidavit, and any other relevant documents.
6
Attend any hearings or provide any additional information that may be required by the court.
7
Once the court has reviewed all necessary documents and information, it will issue a Warisan and Succession Certificate.
Please note that this is a general overview of the process and may vary depending on the specific circumstances of your case. It is advisable to seek legal and professional guidance to ensure that all necessary steps are taken and all necessary documents are properly completed and filed.
WHO CAN MAKE A CLAIM?
Anyone among the heirs can file an inheritance right appeal with the court using a lawyer. The District Judge Court or someone nominated by the District Judge Court exempts a succession case.
The Third Joint District Judge Court in Dhaka has been given jurisdiction over succession certificate matters. As a result, if the property is located within Dhaka, a succession certificate case must be filed in the Third Joint District Judge Court.
The application must be accompanied by an affidavit stating:
Relationship with the deceased:
Confirmation that the deceased’s money was not donated or bequeathed to anyone; confirmation that no probate or letter of administration was filed for the will; and confirmation that he was given the authority to withdraw money by other heirs. A detailed accounting of the deceased person’s assets should also be provided.
After filing an application with the court, the court will take the applicant’s statement at the appointed time and verify the veracity of all the information. At this point, the court sends a notice to the deceased’s relatives to see if they have any claims or objections. If anyone has an objection, it must be submitted at this time. If no objections are raised, the court issues a certificate of success on the applicant’s behalf.
There is no court fee if the amount claimed is less than Tk 20,000. However, from Tk 20,000 to Tk 1,00,000, a 1% court fee is required. A 2% court fee, on the other hand, must be paid on any amount greater than Tk 1,00,001. The certificate is issued by the court within the time frame specified after the court fee is paid.
WHAT EXACTLY IS A WARISAN CERTIFICATE?
It is a certificate that contains the list of heirs of a deceased person and is printed on the letterhead pad of the Ward Councilor’s Office in the City Corporation area, the Ward Commission’s Office in the Pourashava area, or the Union Parishad Chairman’s Office in the Union Parishad area. Unless cancelled by the proper authority, this certificate is evidence of the deceased person’s heirs.
WHAT EXACTLY IS A SUCCESSION CERTIFICATE?
It is a certificate that confirms the proportion of the share of property, specifically deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, and so on, and it must be granted by the appropriate court.
According to Section 371 of the Succession Act 1925, the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if he had no fixed place of residence at the time of his death, the District Judge within whose jurisdiction any part of the deceased’s property may be found, may grant a certificate.
WHY IS A WARISAN CERTIFICATE REQUIRED?
It is required for the division and distribution of immovable property among the deceased person’s heirs. Furthermore, this document is required for a variety of purposes and government offices, such as the AC Land and Sub-Registry Office for the completion of land mutation and transfer.
WHY IS A SUCCESS CERTIFICATE REQUIRED?
It is necessary, where the deceased person has left some immovable property, such as deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, etc., for the court to issue an order under Section 372 of the Succession Act, 1925 to establish the ownership of the deceased person’s legal heirs.
The bank and other government offices require this certificate in order to transfer ownership of these immovable properties.
WHERE CAN I GET A WARISAN CERTIFICATE?
Step 1- Required documents:
Photographs (passport size) of the applicant and heirs, NIDs of the applicant and heirs, Applicant’s parents’ names, Applicant’s current address, Applicant’s permanent address, NID of the deceased person, and Death Certificate of the deceased person.
Step 2: Complete the application form.
If the deceased person ordinarily resided within the city corporation area at the time of his death, the application form can be found in the Ward Councilor’s Office. This form is also available online for Dhaka North City Corporation (click here) and Dhaka South City Corporation (click here).
If the deceased person ordinarily resided in the Pourashava area at the time of his death, the application form can be found in the Ward Commission’s Office.
If the deceased person ordinarily resided within the Union Parishad area at the time of his death, the application form can be found in the Union Parishad Chairman’s Office.
It is worth noting that this Warisan Certificate is now available through a full-fledged online process by clicking here. The online process for obtaining the Warisan Certificate is simple and quick, with no unnecessary complications.
This online process, however, is not available to all city corporations, Pourashava, or Union Parishad, and this information can also be found by clicking the above-mentioned link.
Step 3: Application Submission
The completed application form, as well as the above-mentioned documents, must be submitted to the appropriate authority.
Requisition of security from grantee of certificate
(1) The District Judge shall in any case in which he proposes to proceed under sub-section (3) or sub-section (4) of section 373, and may, in any other case, require, as a condition precedent to the granting of a certificate, that the person to whom he proposes to make the grant shall give to the Judge a bond with one or more surety or sureties, or other sufficient security, for rendering an account of debts and securities received by him and for indemnity of person who may be entitled to the whole or any part of those debts and securities.
(2) The Judge may, on application made by petition and on cause shown to his satisfaction, and upon such terms as to security, or providing that the money received be paid into Court, or otherwise, as he thinks fit, assign the bond or other security to some proper person, and that person shall thereupon be entitled to sue thereon in his own name as if it had been originally given to him instead of to the Judge of the Court, and to recover, as trustee for all persons interested, such amount as may be recoverable thereunder.
Extension of certificate
(1) A District Judge may, on the application of the holder of a certificate under this Part, extend the certificate to any debt or security not originally specified therein, and every such extension shall have the same effect as if the debt or security to which the certificate is extended had been originally specified therein.
Certificates shall be granted and extensions of certificates shall be made, as nearly as circumstances admit, in the forms set forth in Schedule VIII.
Amendment of certificate in respect of powers as to securities
378. Where a District Judge has not conferred on the holder of a certificate any power with respect to a security specified in the certificate, or has only empowered him to receive interest or dividends on, or to negotiate or transfer, the security, the Judge may, on application made by petition and on cause shown to his satisfaction, amend the certificate by conferring any of the powers mentioned in section 374 or by substituting any one for any other of those powers.
HOW TO OBTAIN A SUCCESS CERTIFICATE:
Step 1- Documents required:
Photographs (passport size) of the applicant and heirs, NIDs of the applicant and heirs, Warisan Certificate, and Death Certificate of the deceased person
Step 2- Application Preparation:
According to Section 372 of the Succession Act of 1925, the applicant will prepare an application, verify and sign it, and submit it to the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if he had no fixed place of residence at the time of his death, the District Judge within whose jurisdiction any part of the deceased’s property may be found after paying the appropriate court fees.
Step 3: Court Proceedings:
The appropriate Court will begin the proceedings by holding a preliminary hearing on the application and determining whether or not the application is admissible.
Following the preliminary hearing, the Judge will set a date for the final hearing and send notice of the hearing to whomever the Judge deems appropriate.
After the final hearing, if the Judge determines that the applicant has the right to the certificate, the Judge shall issue an order granting the certificate to the applicant.
If the Judge cannot decide the right to the certificate without deciding questions of law or fact that appear to be too intricate and difficult to resolve in a summary proceeding, he may still grant a certificate to the applicant if he appears to be the person with the best prima facie title to it.
Step 4: Certificate Contents:
When the District Judge grants a certificate, he must specify the debts and securities specified in the application for the certificate, and may thus empower the person to whom the certificate is granted to (a) receive interest or dividends on, (b) negotiate or transfer, or (c) both receive interest or dividends on and negotiate or transfer the securities or any of them.
Time Period:
Warisan Certificate:
Around 15 days to 30 days are required for the issuance of the Warisan Certificate.
Succession Certificate:
Firstly, a newspaper notice for a span of 45 days is issued by the court. If any individuals have any kind of objections towards the particular advertisement then they have a chance to file an opposition in the court. When the objections are received by the court it might take time for the issuance of the succession certificate till all of them are cleared.
If the court doesn’t receive any kind of objections from anyone ten the succession certificate is issued immediately.
Here are five frequently asked questions about Warisan (inheritance) and Succession Certificates in Bangladesh:
What is a Warisan and Succession Certificate?
A Warisan and Succession Certificate is a legal document issued by a court in Bangladesh that establishes the legal heirs of a deceased person and their rights to the deceased’s property.
Who is eligible to apply for a Warisan and Succession Certificate?
Any legal heirs of the deceased person, including their spouse, children, and parents, may apply for a Warisan and Succession Certificate.
What documents are required to apply for a Warisan and Succession Certificate?
To apply for a Warisan and Succession Certificate, you will need to provide copies of the death certificate of the deceased person, the national identification card (NID) of the deceased, and any relevant deeds, wills, or other documents related to the deceased’s property. You may also need to obtain an affidavit stating that the deceased did not leave any will or any other legal document regarding the distribution of their property.
How do I apply for a Warisan and Succession Certificate?
To apply for a Warisan and Succession Certificate, you will need to file a petition with the appropriate court and provide all necessary documents and information, including the death certificate, NID, affidavit, and any other relevant documents. You may also need to attend any hearings or provide any additional information that may be required by the court.
What happens if there is a dispute over the Warisan and Succession Certificate?
If there is a dispute over the Warisan and Succession Certificate, the court will resolve the dispute based on the evidence and arguments presented by the parties involved. It is advisable to seek legal and professional guidance if you are involved in a dispute over a Warisan and Succession Certificate.
Are you intending to get a Warisan and Succession Certificate in Bangladesh?
Get yourWarisan and Succession Certificate in Bangladesh with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to Warisan and Succession Certificate in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165 or +8801708080817
• In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA.
• BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA.
• VoAs may be converted to E2, E3, and PI visa types upon submission of all necessary documentation. E2, E3, and PI visa eligibility under the revised VISA Policy 2019 (effective July 2021):
PI (private investor) VISA: for foreign investors investing in industrial/commercial establishments under 100 percent foreign ownership or joint venture in the private sector.
E2 VISA:
for I expatriates working in national/international/ government/ semi-government/ autonomous/ private industrial/ commercial organizations/ branch/liaison/ representative office and ii) expatriates working under contractor including EPC contractor/ sub-contract or in projects of the government/ semi-government/ autonomous bodies of Bangladesh.
E3 VISA:
for foreign nationals engaged in machinery and software installation, maintenance supervision, or project inspection.
Conducting Investment / business / Commercial organization.
Essential Documents to issue
All documents for Tourist Visa.
Recommendation of Bangladesh Investment Development Authority (BIDA)/Bangladesh Export Processing Zone Authority (BEPZA) declaring that the applicant is a genuine investor.
Essential Documents to extend
Security clearance; request from concerned organization/ institution and recommendation of BIDA/BEPZA declaring that investment of the relevant applicant is existing on.
Include authorization letter for liaison office;
Provide MoA and AoA as well as incorporation Copies of Private Limited (LLC) or Joint Venture firms;
Provide a consent letter from the board of directors that includes compensation and title on the letterhead.
Send passports and photographs of the directors in color;
Do not forget to attach the employee’s service contract or engagement letter;
All academic certificate and experience letter copies must also be attached;
A wholly-owned limited liability company or a joint venture must advertise in the newspaper in order to hire personnel.
Do not forget to provide a copy of business activities that is written on letterhead and signed by the country manager.
Personnel listing with organogram (hierarchy) on letterhead;
There is no place for newspaper advertisements in the liaison office;
Application must be accompanied by a Trade License, VAT, Export and Import letter (if applicable), and an encashment certificate for fifty thousand (fifty thousand) US dollars;
Ensure that all newsprint and copies are attested by the company’s owner (director) or chief executive officer;
A branch, representative, or liaison office is not required to provide a trade license, export and import documents, or a VAT certificate;
Contact BOI (Old), BIDA, or our law firm to collaborate;
Collect form from BOI (Old), BIDA, or our office; attach it to a cover letter addressed to the chairman or director of BOI (OLD) or BIDA.
General Requirements for all Categories:
1. Filled-in online application Form
2. Photographs (Size 45x35mm and recent one); 02 copies (Photo is mandatory with white background )
3. Valid Passport
4. Payment receipt of Visa fee (No fee is required for Indian citizen). For countries (other than India) Visa fee is applicable.
5. Old Passport required if any
While filling in online, we suggest that you have the following information on hand-
1. Valid Passport
2. 45x35mm digital photo in jpeg format, maximum size is 300kb
3. Address in Bangladesh (should consist details of Village, Post Office, Police Station, District, Pincode, City and Country)
4. Email Address
PI-visa recommendation:
Documents needed
Mode
Fee
Time
1.Memorandum & Articles of Association and Certificate of Incorporation duly signed by shareholders
2. Board resolution for engaging foreign national(s) in Bangladesh mentioning the name, nationality & passport number. Specifying the sector where the investor actually invests.
3. Photograph of the investor
4. Copy of passport of the investor with all arrival stamp & departure seals
5. The specific activity of the company
6. Statement of all existing local & foreign manpower with designation, salary, allowance(s) & bonus(s), nationality and date of the first appointment
7. Encashment certificate of inward remittance of minimum USD 50,000 as initial establishment cost for locally incorporated joint-venture and 100% foreign ownership companies
8. Up-to-date income tax clearance certificate of the organization
9. Letter of authorization signed by Management of the company for submitting the application.
10. Additional information with proper documents (if any)
11. Documents regarding the regarding the engagement of the expatriate.
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to PI Visa for foreign investor in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165 or +8801708080817
Bangladesh is the seventh largest consumer of goods and services in the world. In Bangladesh, franchising is an established method for launching a business. The industries of transportation, beauty, fast food, education, wellness, mail delivery, clothing, and health care are among the most popular for franchise startups.
The franchise business is one of the options that brands have adopted for expansion in Bangladesh. Bangladesh offers a variety of inexpensive franchise opportunities. This article discusses Franchise Business Registration in Bangladesh, as well as “What is a Franchise Business?” and the documents required for Franchise Business registration.
What is a franchise business in Bangladesh?
It is one of the primary means by which foreign companies and brands have strengthened their presence on the Bangladeshi market. A franchisor (franchise brand) is involved and provides the franchisee (owner of the franchise outlet) with conceptual, structural, legal, and training support in exchange for an upfront start-up fee and ongoing royalties.
Both the franchisor and franchisee profit from franchise ownership and operation. After the franchisee has access to the brand’s devoted customer base, legal counsel, creative support, and training support, the franchisor can further expand the business into untapped markets, thereby increasing market share and revenues. Franchising is the most valuable and practical type of business opportunity.
A franchised business consists of a franchisor and a franchisee. Although the former refers to an entity that lends its brand, trade name, or any other form of intellectual property laws along with the value chain, the latter describes a person who, in exchange for a royalty and an initial fee, conducts the business of the former under the mark or name of the franchisor.
Franchise agreement:
Good international business policy may be sold under certain conditions.
As part of its global trade policy, a reputable company may open franchises in any nation.
The parent company may charge franchise owners royalty fees.
Legal formalities require the aforementioned information. In Bangladesh, starting a business as a foreign investor is somewhat difficult. Numerous other licenses are needed to establish a Manufacturing Company. However, after completing the necessary legal procedures and obtaining the necessary licenses, you are permitted to start a business in Bangladesh.
In Bangladesh, franchise agreements are governed by a variety of pertinent laws rather than a single type of legislation. Several examples include the Bangladeshi Contract Act of 1872, the Consumer Protection Act, the Patents Act, the Trade Marks Act, the Copyright Act, the Specific Relief Act, the Design Act, and the Transfer of Property Act of 1882.
Franchise Business Formation in Bangladesh:
Before agreeing for such a reason, Bangladeshi law does not require the franchisor to be licensed by any governing body. However, the Trademark Act of Bangladesh makes it simpler to register as a trademark account holder.
Disclosure Regulations Disclosure regulations exist in some nations, requiring franchisors to disclose pertinent information to franchisees prior to contract signing. The franchise agreement determines the validity of post responsibilities in Bangladesh by incorporating all applicable disclosure laws. In this instance, the Contract Act of 1872 definition of “consensus ad idem” is applicable.
The franchise agreement also specifies how this obligation applies to sub-franchisees. It is important to note that common law principles govern the proposed contractual relationships. In the absence of disclosure laws, there are no established formats or obligations for ongoing disclosures. Associational Participation A franchise is not required to be a member of a national franchise association, but doing so could help protect franchise owners’ interests.
Franchise Contract in Bangladesh
In addition to the obvious requirements of capital, facilities, and other essentials, a franchise is founded upon a franchise agreement. The type of agreement utilized for this purpose varies based on variables such as format, control, franchisor type, etc.
The Bangladeshi Contract Act of 1872 stipulates that franchise agreements must adhere to its provisions. If this condition is met, franchisees are permitted to include disclosure laws in their contracts. In this scenario, the franchisor’s deceit permits the franchisee to file civil lawsuits for damages and criminal lawsuits for fact manipulation and criminal breach of trust.
Legal framework for Registration of Franchise Businesses in Bangladesh:
• Franchise Enrollment:
The franchisor is not required by Bangladeshi law to be registered with any professional or regulatory body prior to entering into this agreement. On the other hand, the trademark act makes it simpler to record the registered user of a Trademark.
• Franchise Agreement for Business in Bangladesh:
Except for the obviously necessary elements of financing, infrastructure, and other necessities, a franchise is founded on a franchise agreement. The type of agreement used for this purpose varies based on a variety of factors, such as the format, level of control, and type of franchisor, among others.
Franchise agreements must comply with the provisions of the Bangladeshi Contract Act of 1872. Subject to this provision, franchisees may include disclosure requirements in the franchise agreement. In this instance, the franchisor’s misrepresentation makes it easier for the franchisee to file both a civil lawsuit for damages and a criminal complaint for false statements of fact and criminal breach of trust.
• Discloser Standards:
Certain nations’ disclosure regulations require franchisors to provide franchisees with the necessary information prior to contract signing. The application of pre-disclosure responsibilities in Bangladesh is determined on the basis of the aforementioned franchise agreement, which contains specific disclosure requirements. The “consensus ad idem” clauses of the Contract Act of 1857, which apply in this instance, may be noted by the reader.
The franchise agreement is also used to determine whether sub-franchisees are subject to this requirement. It is essential to note that the proposed contractual connections are governed by common law in this instance.
In the absence of disclosure requirements, there are no particular formats or responsibilities associated with continued disclosures.
Establishing a Franchise Enterprise in Bangladesh:
Before deciding to start a business in Bangladesh, it is advisable to acquire a basic understanding of the country. Human behavior, required business licenses, the cost of establishing a business, the political environment, population density,
investment sectors, the likelihood of investment return, the income tax rate, the value-added tax, and the market are just a few of the variables that influence the profitability of an investment.
Name Clearance (NC) is a prerequisite for new entity registration (other than Foreign Company and Partnership Firm). Before submitting an application for registration, the promoters of a new entity must apply for and obtain name clearance.
Currently, NC can be obtained online through the joint stock website at roc.gov.bd, which is a relatively straightforward procedure.
The name clearance is valid for a period of ninety (90) days from the date of issuance.
[ADDITIONAL STEPS FOR A FOREIGN INVESTED COMPANY: OPENING A BANK ACCOUNT, TRANSFERRING MONEY, AND GETTING AN ENCASHMENT CERTIFICATE]
REGISTRATION
The promoters of a new entity (with name clearance) must apply for registration with the appropriate documents, forms, schedules, stamps, and fees, depending on the entity type.
a. prepare Memorandum/Articles of Association, forms & schedules, etc., based on entity type. b. Pay Stamp Duty (online) c. submit the application for registration online. d. pay the enrollment fees (online)
e. Memorandum and Articles of Incorporation. f. Completed Form I: Declaration on Company Registration [Section 25]. g. Form VI: Notice of Situation and Change of Registered Office [Section 77] duly completed. h. Form IX: Consent of Director to Act [Section 92] has been completed. e. Form X: List of Individuals Consenting to Serve as Directors [Section 92] i. Form XII: Particulars of the Directors, Manager, and Managing Agents, as well as any alterations [Section 115] Evidence of Clearance of Name
CERTIFICATE OF COMPANY INCORPORATION
Following review of the online application by the concerned dealing officer and deputy registrar, company registration may be approved, and the certificate, Form XII, and MOA AOA will be emailed to the applicant.
LICENSES for Franchise Business Registration in Bangladesh
Request and acquire a Tax Identification Number (online)
Any additional licenses required based on the nature of the business
• While local shareholders and directors are not required to register a new business, registration is required for foreign shareholders and directors. • Very few consultants, attorneys, and consulting firms are aware of the procedure for registering a new business with foreign directors. • Registration of a business with foreign directors differs from that of a business with domestic directors. enlistment of branch office In Bangladesh, the branch office registration authorities are BOI and BEPZA. • Branch office is exempt from income tax because it is not permitted to engage in direct business. • The branch office is unable to receive customer payments into its bank account, but it may incur expenses using capital transferred from the parent company. • Click here for information on how to open a branch office. Authorization of the project office • BOI has the authority to authorize the opening of a project office in Bangladesh. • Project office is NOT exempt from income tax. • Knowledge personnel are exempt from taxation under certain conditions. • Foreign personnel can be hired through the project office.
Market Identification for Franchise Business Registration in Bangladesh:
Identification of a market niche is essential for any aspiring entrepreneur seeking to enter the business world. When you finally decide to launch your franchise, choose a market that will be beneficial to you in terms of profitability and long-term viability.
To make an informed decision, it is recommended to conduct a comprehensive market and city-specific analysis. Keep in mind that popular niches are more prone to fierce competition.
Managing the Legal Aspects after Franchise Business Registration:
As soon as you sign the franchise agreement with the relevant business, you must obtain legal authorization from the Ministry of Corporate Affairs once you have chosen your area of expertise. If the franchise is located outside of Bangladeshi Territory, choose a reputable company that can assist you in resolving issues promptly.
Assume possession once the aforementioned conditions have been satisfied. To avoid future legal disputes with the franchisor, it is advisable to secure a credible witness while legal proceedings are ongoing.
• Essential Business Licensing for Franchise Business Registration:
Now presented is the most important factor for establishing a franchise in Bangladesh. To comply with the law, you would need a license and registration of your own. Without exception, if your company owns a restaurant chain, you must obtain an FSSAI License.
• Tax Obligations of a Business for Franchise Business Registration:
Every business owner must comprehend the tax ramifications. Therefore, we request that you emphasize the same and comprehend the various tax regimes that apply to your business.
Bangladesh has a variety of taxes, ranging from customs duties to the Goods and Services Tax (GST), so it is essential to comprehend the tiers and be adequately prepared. You can determine the best way to minimize your tax burden at this time.
Human capital
Additionally, the franchise’s human resources in Bangladesh are indispensable to its business operations. Consequently, you must be aware of the number of employees required to support the operation. To ensure a smooth hiring process, you, as the owner, must familiarize yourself with the responsibilities of the staff.
Subsidiary Company Registration
SUBSIDIARY COMPANY
SHARE HOLDING
NOMINEE DIRECTOR
PARENT COMPANY (FOREIGN)
MAJORITY UP TO 100%
2 DIRECTORS
LLC
FOREIGN: 99%, LOCAL: 1% ( RECOMMEND )
1 DIRECTOR FROM PARENT AND 1 DIRECTOR FROM LOCAL COMPANY
Are you intending to do Franchise Business Registration in Bangladesh?
Get your Franchise Business Registration in Bangladesh done with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to Franchise Business Registration in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165 or +8801708080817
How to form an Association in Bangladesh abd Section 28 of the 1994 Companies Act:
Under section 28 of the Companies Act, a nonprofit organization may incorporate as a corporation. This Association will enjoy all the advantages of a limited liability company, but it is not required to include the word “limited” in its name.
However, prior to the formation of such companies, permission from the government is required, which can be a time-consuming and complicated process. Before granting such permission, the government is also authorized to insert additional clauses and conditions into the Association’s Memorandum and Articles of Association and to impose restrictions on the same.
Non-Governmental Organizations (NGO) and International Non-Governmental Organizations (INGO) are typically non-profit organizations and sometimes international organizations that are autonomous and independent of governments and are active in humanitarian, educational, health care, public policy, social, human rights, environmental, and other areas to effect change in accordance with their objectives
Comparative Analysis of Entities Under Sections 29 and 28 of the 1994 Companies Act:
The “non-profit association” or Club may be registered under the Companies Act of 1994. Both types of companies (i.e. “association not-for-profit”) shall enjoy all of the advantages of a limited liability company and be subject to all of its obligations. Both types of businesses are registered as Limited by Guarantee Companies. Company Limited by Guarantee refers to a company that may not have a share capital and whose members promise to pay the company’s debts up to a predetermined limit in the event of liquidation.
The primary distinction between an entity under section 29 of the Companies Act of 1994 and an entity under section 28 of the Companies Act of 1994 is that the former is a profitable organization while the latter is a non-profit organization. As the promoters of the entity chose according to their convenience, i.e. whether they wished to form a profitable or non-profit entity, there is no general advantage or disadvantage associated with their registration.
Comparing entities under Section 29 of the Companies Act of 1994 and Societies Registration Act of 1860:
Entities governed by the Societies Registration Act of 1860. Can only be Charitable societies, societies established for the promotion of science, literature, or the fine arts, the foundation or maintenance of libraries, etc., i.e. charitable in nature, as per section 20 of the Act, whereas the entity under section 29 of the Companies Act 1994 can engage in any type of business as defined in the object clause of the entity and is profitable in nature.
On the basis of their formation, neither type of entity is eligible for specific tax benefits; however, if an entity formed under the Societies Registration Act, 1860 is formed solely for religious or charitable purposes, it may be eligible for tax exemption under certain heads under the Income Tax Ordinance, 1984.
i. Converting an entity from Section 29
The option and possibilities of converting an entity from Section 29 of the Companies Act 1994 to Section 28 of the Companies Act 1994 or to an entity under the Societies Registration Act, 1860 are discussed below:
ii. Convert to a “non-profit association” under Section 28 of the Companies Act:
There are no explicit rules and regulations governing the conversion of a section 29 company to a section 28 company.
In practice, however, the Registrar of the Joint Stock for Companies & Firms has the discretion to convert the exiting entity, i.e. an entity under section 29 of the Act, into an association under section 28 of the Act, if the Registrar is satisfied that the conversion is to be made for promoting commerce, art, science, religion, charity, or any other useful object, and that the entity intends to use its profits or other income to promote these objects.
In addition, the Registrar will decide on the conversion request after receiving the clearance report from the security agencies. Nonetheless, it should be noted that the section 28 procedure for the dissolution of a corporation is entirely bureaucratic, time-consuming, and uncertain.
iii. Become a society under the Societies Registration Act of 1860:
A Company formed under section 29 of the Companies Act 1994 cannot be converted into a society.
By passing a special resolution and appointing a liquidator, a section 29-registered entity can dissolve voluntarily from its current registration format. The applicant may then submit an application to form a society under the Societies Registration Act of 1860.
The procedure for registering a non-profit organization is identical to that of a public limited company. This association is governed by Section 28 of the Companies Act of 1994, as detailed in the following section.
Authority to Waive Limited In the name of nonprofit and other organizations:
(1) Where it is proved to the satisfaction of the Government that an association capable of being formed as a limited company has been or is about to be formed for the purpose of promoting commerce, art, science, religion, charity, or any other useful object, and applies or intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members, the Government may, by license with the approval of one of its Secretaries, direct the association to apply its profits.
(2) A license granted by the government under this section may be subject to such conditions and restrictions as the government deems appropriate. These conditions and restrictions are binding on the association and, if directed by the government, must be included in the association’s memorandum and articles or one of those documents.
(3) Upon registration, the association shall enjoy all the privileges and be subject to all the obligations of a limited company, with the exception of using the word “Limited” as part of its name, publishing its name, and sending member lists to the Registrar.
(4) A license issued pursuant to this section may be revoked at any time by the Government. Upon revocation, the Registrar shall add the word “Limited” to the end of the association’s name on the register, and the association shall no longer enjoy the exemptions and privileges granted by this section.
Before a license is revoked, the government must notify the association in writing of its intention and the reasons for the revocation, and the association must be given the opportunity to submit an objection to the cancellation.”
To learn more about the timeline and registration process for your Non-Profit Organization, please visit our page on registering a Public Limited Company.
Registration of companies in Bangladesh:
This guide provides a comprehensive overview of the requirements, process, and timeline for registering a limited liability company in Bangladesh. Bangladesh, like most other jurisdictions, has a set of initial and ongoing regulatory compliance requirements for the establishment and operation of businesses.
Note that there is a provision for One-Person Companies (OPC in short). Due to certain restrictions, we do not recommend that our clients form an OPC. In Bangladesh, a private limited company is a separate legal entity, and shareholders’ liability for the company’s debts is limited to the amount of capital they have contributed. According to the Companies Act of 1994, any individual over the age of 18 may register a company in Bangladesh, regardless of nationality.
If you are an international investor, you should read our article on international investment. It will assist you in comprehending the legal framework governing foreign investment in Bangladesh.
Directors. Minimum of two directors are required. Directors can be either domestic or international. Directors must be at least 18 years old and cannot have been declared bankrupt or convicted of misconduct in the past. The law stipulates that a director must hold the qualifying shares specified in the Articles of Association. A shareholder that is not a natural person (i.e., a corporation) may nominate a director.
Shareholders:
A Bangladeshi limited liability company can have between two and fifty shareholders. A director and shareholder may or may not be the same individual. A shareholder may be a person or another legal entity, such as a corporation. In most industries, 100% foreign or domestic ownership is permissible. After the Bangladeshi company has completed the incorporation process, new shares may be issued or existing shares may be transferred to another party at any time.
Authorized Funds. The authorized capital must be stated in the Memorandum of Association and Articles of Association. It is the maximum amount of authorized share capital that can be issued (allocated) to shareholders. A portion of the authorized capital may be held in reserve. In Bangladesh, there is no minimum or maximum limit on authorized capital.
Paid-up Capital. The minimum paid-up capital required to register a Bangladeshi company is 1 Taka. Paid-up capital (also known as share capital) can be increased at any time following a company’s incorporation.
Registered Location. To register a company in Bangladesh, you must provide a local address for the company’s registered office. The registered address must be a physical address (residential or commercial) and cannot be a Post Office Box.
Constitution and Articles of Incorporation. The corporation-to-be must draft a memorandum of association (MoA) and articles of incorporation (AoA).
CONSIDERATIONS FOR FOREIGNERS:
Foreigners who wish to establish a business in Bangladesh must consider the following points.
You must open a bank account in the name of the proposed company after obtaining name clearance from the Registrar of Joint Stock Companies and Firms (RJSC), also known as the registrar of companies, and deposit the initial paid-up capital. This is required for Bangladeshi company incorporation.
All company incorporation procedures can be completed without your presence in Bangladesh. The only possible exception is opening a bank account, depending on the bank chosen. All directors and shareholders may be foreign nationals.
If you only wish to incorporate a limited liability company in Bangladesh and have no intention of relocating there, you are not required to obtain a special visa. You are free to operate your business from abroad and to visit Bangladesh on a business visa whenever necessary to attend to company-related matters. If you intend to establish a business in Bangladesh, you are required to obtain a work permit.
REQUIRED DOCUMENTS
The company registrar requires the following information for the incorporation of a company in Bangladesh:
Company Title A name clearance is necessary.
Articles of Association and Memorandum of Association. RJSC stipulates that the MoA’s object clause must not exceed 400 words and seven clauses.
Shareholder Information (National ID if the shareholder is a Bangladeshi)
Director Specifics (including Tax Identification Number)
Address provided on Form IX and Subscriber Page. A scanned copy in pdf format must be provided.
For foreigners: Copy of shareholder and director’s passports
There are three distinct steps involved in establishing a company in Bangladesh: a) Name Clearance; ii) Opening a bank account and depositing paid-up capital; and b) Company Registration. Step ii is applicable only if the proposed company has a foreign shareholder.
STEP1 : NAME CLEARANCE
To establish a company in Bangladesh, you must first obtain name approval for the proposed company name. You must first visit www.roc.gov.bd and generate a username.
Then you can submit an application for name clearance. After submitting the name clearance application, you will receive a bank payment slip and be required to pay Taka 600 to the designated bank. After making the payment, you must log in to your account on the RJSC’s website to receive the name clearance.
The RJSC has prepared this guide for name clearance.
Internet Explorer and Mozilla Firefox are recommended web browsers for use on the RJSC website. Other browsers may not function properly.
Improve your chances of name approval by ensuring that the name:
is not identical or too similar to any existing local business names; does not violate any trademarks; is not obscene or vulgar; and is not reserved.
A name that has been approved will be reserved for six months after the date of clearance. You can extend the name by filing a request for extension just prior to the expiration date.
STEP 2: opening a bank account and depositing the initial capital.
This step is applicable only if the proposed company has foreign ownership.
Next, you must open a bank account in the proposed company name with any Bangladeshi scheduled bank. After opening the account, you will be required to deposit funds equal to the number of shares the foreign shareholder from outside Bangladesh will hold. The Bank will issue an Encashment Certificate, which RJSC will need in order to incorporate.
STEP 3: REGISTER BUSINESS
The final step is to submit all of the necessary information on the RJSC website. Additionally, you must upload Form IX and Subscriber Page. After completing all of the necessary steps, you will receive a bank payment slip for paying the registration fees and stamp duty.
You can review this RJSC-created guide for submitting all information to the RJSC website.
After completing the transaction at the bank, you are finished. You must now follow up with the RJSC in order to obtain the incorporation certificate. Officials from the RJSC will review the documents and information. If they are satisfied, they will issue the digitally signed Certificate of Incorporation, Memorandum of Association and Articles of Association, and Form XII. These documents will be sent to your RJSC account’s associated email address.
In extremely rare instances, the incorporation process may be delayed if the shareholders or directors are of a particular nationality. In such situations, authorities may request additional information.
FAQ regards to Association Formation in Bangladesh:
FAQ
Answers
What is the difference between an association and a society in Bangladesh?
An association is a group of people who come together for a common purpose, while a society is a group of people who come together for a common purpose and are registered under the Societies Registration Act 1860.
What are the minimum requirements for forming an association in Bangladesh?
To form an association in Bangladesh, you must have a minimum of seven members and a constitution that complies with the Associations Registration Act 1920.
What are the minimum requirements for forming a society in Bangladesh?
To form a society in Bangladesh, you must have a minimum of seven members and a constitution that complies with the Societies Registration Act 1860.
What is the role of the Registrar of Joint Stock Companies and Firms (RJSC) in association and society formation in Bangladesh?
The RJSC is responsible for registering associations and societies in Bangladesh and issuing registration certificates, which serve as proof of the organization’s legal status.
Can an association or society be formed for any purpose in Bangladesh?
No, an association or society can only be formed for lawful purposes and must comply with all relevant laws and regulations.
What documents are required for registering an association or society in Bangladesh?
To register an association or society in Bangladesh, you must submit the organization’s constitution, bylaws, and a list of the executive committee members to the RJSC.
Is it necessary to hire a lawyer for forming an association or society in Bangladesh?
While it is not necessary to hire a lawyer, it is always recommended to seek guidance from a legal expert to ensure compliance with all relevant laws and regulations.
Can an association or society be dissolved in Bangladesh?
Yes, an association or society can be dissolved in Bangladesh for various reasons, including failure to comply with relevant laws and regulations, or by a resolution passed by the members.
What are the post registration compliance for an association or society in Bangladesh?
Once registered, an association or society must comply with all relevant laws and regulations, including the Societies Registration Act 1860 and the Associations Registration Act 1920, and keep accurate records of its activities and finances.
POST-REGISTRATION FORMALITIES
DOCUMENTS ISSUED BY RJSC:
Certificate of Incorporation: The RJSC will issue the company’s Certificate of Incorporation. The certificate will include the company’s registration number, name, and incorporation date.
Form XII: Form XII includes the list of directors for a corporation.
Official copies of the MoA and AoA.
You will almost certainly also need the following items to register your Bangladeshi company:
Certificates of ownership for each shareholder.
Register investors, stocks, directors, etc.
Company seal for the organization
A rubber stamp for the organization APPLYING FOR TRADE LICENSE, TAX ID, AND OTHER LICENSES.
After incorporating, you should purchase or rent a commercial space in any commercial area.
Annual Return: An Annual General Meeting must be held each year. The annual meeting must be held within 18 months of the company’s incorporation, and no more than 15 months may pass between AGMs.
In the event of a change in the board of directors, the shareholding structure, or any other change, a return must be filed with the RJSC within a specified time frame.
tabular format.
Steps
Description
Relevant Bangladeshi Legal Acts
1
Choose a name for the association and ensure that it is not already in use by another organization.
N/A
2
Prepare the association’s constitution and bylaws, which must be in compliance with the laws and regulations of Bangladesh
Form a committee of at least seven members who will serve as the association’s founding members.
N/A
4
Hold a meeting of the founding members to adopt the constitution and bylaws and to elect the association’s first executive committee.
N/A
5
Submit the association’s constitution, bylaws, and a list of the executive committee members to the Registrar of Joint Stock Companies and Firms (RJSC) for registration.
Traffic and Road laws in Bangladesh – Updated in 2024
The administration of traffic and enforcement of traffic laws in Bangladesh have always been a mess. Our nation’s road construction has never been able to keep up with the rapid increase of vehicles. In recent years, however, the situation has deteriorated as a result of the lax laws and high demand for drivers, as a result of which many new drivers did not even apply for driver training and learned to drive “on the job.”
As of February 2017, the Bangladesh Road Transport Authority (BRTA) reported that the country had over 2.9 million registered vehicles, but only 1.9 million drivers’ licenses. Lacking any knowledge of traffic laws or safe driving, these one million “ghost” drivers have taken a bloody toll on the roads. According to Bangladesh Jatri Kalyan Samity, a forum for passenger welfare, there have been at least 224 fatalities and 866 injuries in 203 road accidents in the first 12 days of August 2019 alone.
A traffic law reform was long overdue, but it was repeatedly delayed due to the opposition of transport workers. A catalyst was necessary to rally public support for reform, which occurred in 2018 at the tragic cost of two lives. Two Shaheed Romijuddin Cantonment College students were killed on July 29, 2018, when a speeding bus crashed into a bus stop on Airport Road. Consequently, the inaction of authorities and the callousness of the transport and shipping ministers at the time sparked a nationwide student protest demanding better traffic laws and road safety.
To begin with, each license now carries 12 points. A point is assigned to a driver’s license for nine types of traffic violations, such as speeding and excessive horn use. When a driver’s license reaches 12 points, it is revoked. When asked for comment, a senior-level Bangladesh Road Transport Authority (BRTA) official requested anonymity and stated that it is currently impossible to enforce this measure because the majority of drivers do not have digital driving licenses. As the BRTA is currently experiencing difficulty issuing new driver’s licenses due to card shortages, proper implementation will also take considerable time.
Second, the introduction of an academic requirement stipulates that the applicant must have completed at least eighth grade before applying for a license. Although this is unquestionably an improvement, it does not change the fact that a person without even a High School Diploma can drive a vehicle. As surprising as it may seem, academic credentials were not required to apply for a license in the past.
Inflated fees
The updated fines were another alteration that drew everyone’s immediate attention. The fines now have a significant number of additional zeros.
Previously, driving without a license resulted in a fine of only 500 TK. With the new law, the fine has increased to TK 25,000. Using a fake license to drive? Also used to be 500 tk, but is now between 1 and 5 million tk. Driving without a fitness certificate is now punishable by a fine of TK 25,000, while jaywalking, driving without a seatbelt, and illegal parking, previously punishable by a fine of TK 200, are now all punishable by a fine of TK 5,000. The maximum fine for driving on the wrong side of the road, speeding, disobeying traffic signals, and riding a motorcycle without a helmet is TK 10,000.
While these updates are understandable and expected, they have the unintended consequence of transforming what was previously a minor inconvenience for most into something that has the potential to financially devastate a middle-income family for several months. Car owners must be much more cautious with their vehicle and, more importantly, their hired driver, whose license may or may not be authentic.
The modification to the “alteration to motor vehicles” section will undoubtedly be detrimental to all car owners. The previous Section 42 was left ambiguous and the fine was only TK 5,000. In the new act, Section 40 replaces Section 42 and adds 18 classifications in which modifying a motor vehicle is punishable by a fine of up to TK 3 lakh. These classifications include both front and rear overhangs (the basic dimensions of the car), which technically makes the addition of steel bumpers to the majority of automobiles a violation of this law. In addition, aftermarket exhausts, larger wheels, modified horns, indicators, and brakes fall under the category of “illegal modification.”
Mishaps and the death penalty
In 1983, the maximum sentence for causing death through reckless and negligent driving was seven years in prison. In response to protests by truckers in 1985, the Ershad government amended the Penal Code to reduce the maximum sentence to three years.
Section 105 of the eleventh chapter of the new act states that if anyone is seriously injured or killed in an accident involving a motor vehicle, it will be considered an offense under the relevant sections of the Indian Penal Code, 1860. This ranges from Section 302 to 304B, with the death penalty as the maximum sanction. The offenses covered by section 105 of the act do not qualify for bail.
The reception of these changes has been, to say the least, contentious.
This opinion is shared by many car owners who, while agreeing with the act as a whole, consider this price increase to be excessive.
Some car owners believe that the time has come to eliminate the annual AIT fees for cars or to implement a flat rate so that everyone can update their documents without difficulty.
Recently, the government of Bangladesh enacted New Traffic Rules. The issue of traffic is one that everyone faces on a daily basis. The safety of road travelers and pedestrians is a pressing issue in Bangladesh at present. Traffic congestion varies throughout the day, necessitating planning and longer trips; this has a negative impact on productivity, regardless of socioeconomic status.
Transport planning disregards the needs of pedestrians, despite the fact that walking is a significant mode of transportation for the majority of low-income individuals. New Traffic Rules are implemented to decrease the number of accidents on the roads. Nearly eighty percent of Dhaka’s traffic victims are pedestrians struck by a fuel-powered vehicle. Let’s examine the new Bangladesh traffic rules for 2023 .
The government’s new road and highway regulations were perceived to be lenient towards drivers and pedestrians. Not all of the busy intersections and roundabouts had police officers present. The head of the transportation industry, BRTA, issued a directive to support the implementation of the new law. The majority of incompetent drivers disobey traffic laws, resulting in chaos and fatal accidents.
Bangladesh’s traffic cannot be managed in the absence of a proper and foolproof guideline. In addition, the authorities lack the necessary technical support to track random dope tests on drivers. To enforce traffic regulations, the Dhaka Metropolitan Police (DMP) drew up a chart of fines for all types of vehicles. The Dhaka Metropolitan Police (DMP) has created a chart to aid in the implementation of the new law.
Fine List BD
According to the old rule, the maximum penalty for violating a traffic law was two years in prison, while the minimum was one month. The maximum fine is 5,000 Taka and the minimum is 100 Taka. Under the Road Transport Act of 2023 , however, the maximum fine is up to 5 lakh Taka and the minimum is 5,000 Taka. If the number of traffic rule violations remains unchanged, the new fine chart will result in a substantial increase in the amount of fines collected.
New Laws
Existing laws
Offence
Punishment
Punishment
Driving without license
6 months jail with Tk. 25000 fine
4 months jail with Tk.400 fine
Vehicle without registration
6 months jail or Tk. 50,000 fine or both
3 months jail or Tk. 2,000 fine or both 9 (for first time)/ 6 months jail or Tk. 5,000 fine or both (for second time)
Unfit Vehicles
6 months jail or Tk. 25,000 fine or both
3 months jail or Tk. 2,000 fine or both 9 (for first time)/ 6 months jail or Tk. 5,000 fine or both (for second time)
Vehicles without route permit
6 months jail or Tk. 25,000 fine or both
3 months jail or Tk. 2,000 fine or both
Meter tempering
6 months jail or Tk. 50,000 fine or both
None
Body Modification
3 years jail or Tk. 300,000 fine or both
2 years jail or Tk. 5,000 fine or both
Over speeding
3 months jail or Tk. 10,000 fine or both
3 months jail or Tk 5000 fine or both
Honking banned horns
3 months jail or Tk. 15,000 fine or both
Tk 200 fine
Using wrong route
3 months jail or Tk. 10,000 fine or both
Tk 200 fine
Violating traffic signals
3 months jail or Tk. 10,000 fine or both
1 months jail or Tk. 500 fine or both
Fines for Violating Traffic regulations
According to the New Traffic Rules 2023 , a large number of individuals are still unaware of the new fine and punishment amounts. For your convenience, a complete table is provided below:
This new traffic rule 2023 went into effect on November 1, 2023 . Aside from a few exceptional cases, the majority of people have a favorable attitude toward the new law.
New Bangladesh Traffic Rules for 2023 (BRTA Act 2023 update)
As Bangladesh’s long-awaited Road Transport Act, 2023 went into effect on Friday, enforcement was lax on the first day in Dhaka. On the streets, members of the Traffic Division of the Dhaka Metropolitan Police (DMP) were observed to be lenient with commuters and pedestrians. Sergeants were present, but not at all, of the busy intersections and roundabouts.
Infractions to the 2018 Road Transport Act in Bangladesh:
This new law shall be known as the 2018 Road Transport Act. In addition, this law became effective on November 1, 2019. In Bangladesh, traffic has been a significant issue for everyone. The new law is intended to reduce the number of accidents on the road, but it cannot be enforced without clear guidelines. In this new law, fines have also been increased. In addition, the legislature has added a few requirements to obtain a driver’s license.
To meet the requirements, a minimum 8th-grade passing grade is necessary. It is a violation of Section 4 of the 2018 Road Transport Act to operate a motor vehicle on public roads without a valid license.
Section 4 of the 2018 Road Transport Act prohibits anyone with an expired driver’s license from operating a motor vehicle on a public road. The holder of a license for a particular category of vehicle may only operate vehicles in that category. Additionally, there are certain requirements to operate vehicles in other categories, and those vehicles will be selected according to Section 4. (c).
Everyone who wishes to operate public transportation must obtain authorization from the proper authorities. Under section 5 (b) of the Road Transport Act of 2018, a driver’s license, permission paper from the authority, etc., will be verified for public transportation vehicles.
To obtain a driver’s license, the following papers and documents must be submitted to the authority:
• Certified copy of the national identification card • Payment of the required fees • Minimum graduate of Class Eight or above, or its equivalent, and a minimum age of 18 years • Must be mentally and physically capable Must have passed the driver’s examination
Foreigners are permitted to possess a valid driver’s license. However, they must adhere to the aforementioned regulations and submit to authority. Section 9 of the Road Transport Act 2018 stipulates that if the foreigner violates the new traffic laws of Bangladesh, his license will be revoked and he/she will be prohibited from operating any vehicle on public roads.
Vehicle Registration:
Every vehicle must be registered before it can be driven on the road. Section 16 requires that each individual submit the document for registration in written form. To operate a motor vehicle on a public road, you must also display your license plate. Without a license plate, driving on an open road is illegal.
Also, under section 16 clause 7, all foreign vehicles must be re-registered in Bangladesh.
No one other than the vehicle’s owner is authorized to make changes to the registration certificate. Moreover, he lacks the authority to utilize a fraudulent registration certificate.
Vehicle condition:
The eligibility of a vehicle must be verified prior to its registration. In addition, it is illegal and hazardous to operate a vehicle in poor condition. Not only are unqualified vehicles harmful to the environment, but they are also hazardous to operate on public roads. Consequently, the vehicle must pass the safety inspection. It is illegal to operate a motor vehicle on a public road with a forged or expired certificate of roadworthiness.
Under section 25 of the Road Transport Act of 2018, he will be prosecuted if he issues a certificate to a vehicle that is unfit for operation.
According to section 26, every owner of a motor vehicle is required to pay the government a tax. In addition, it is a provision of the Motor Vehicles Tax Act of 1932.
Route permit:
The route authorization will be granted by the transportation committee. Unless authorized by the transportation committee, the vehicle owner is prohibited from driving on public roads or allowing others to do so. If the route permit is not properly explained, section 28 stipulates the following conditions.
Commercial vehicle usage:
Vehicles lacking route permits are ineligible; these types of vehicles are not permitted for business use. In certain exceptional circumstances, these vehicles may be operated without route authorization if they possess an authorization.
These vehicles may not be used for business purposes if they are not authorized by the government and they are not permitted to be used for business purposes. In addition, the authority to use the vehicle for business purposes is not granted under section 31 of the Road Transport Act of 2018.
Elimination of Unauthorized Structures Near Highways:
Alongside the roads of Bangladesh, illegal stalls selling tea, plastic toys, inexpensive clothing, etc. are commonplace. These stalls must maintain a distance of at least 10 meters from the slopes of the roads. The police or road safety authority will take action to demolish these illegal structures in order to construct safe roads.
Utilization of traffic signals and signs on public roads:
Every motorist must obey traffic laws and signals. The traffic rule authority can remove the illegally parked vehicle at any time. Additionally, traffic officers should measure the speed of moving vehicles.
Speeding is prohibited for everyone. There is a maximum speed limit for all vehicles. Each and every vehicle and driver is prohibited from driving recklessly, exceeding the speed limit, or passing another vehicle. The police have the authority to stop recklessly driving vehicles on public roads. These regulations are contained in sections 42 and 44 of the 2018 Road Transport Act.
Restitution to the Victim or His or Her Family
A person is entitled to compensation under Section 53 of the Road Transport Act 2018 if he is injured, his property is damaged, or he dies unnaturally as a result of a motor vehicle.
In addition, if a person violates sections 3 and 4, he will be punished according to section 66. He will be punished by imprisonment for up to six months or a fine of up to twenty-five thousand taka, or both.
Under the 2018 Road Transport Act, the standard of traffic law has been significantly enhanced. In addition, the application of the law and the severity of punishment have become much more firm and stringent. Each and every one of us must obey the traffic regulations. With this new law, we can aid the government in ensuring road safety.
Penalties Under Motor Vehicle Ordinance
ধারা
বিবরণ
ধার্যকৃত জরিমানা ১ম বার
ধার্যকৃত জরিমানা ২য় বার
১৩৭
অপরাধের শাস্তি প্রদানের সাধারণ বিধান
২০০/-
৪০০/-
১৩৯
নিষিদ্ধ হর্ণ কিংবা শব্দ উৎপাদনকারী যন্ত্র লাগানো ও ব্যবহার
১০০/-
—
১৪০ (১)
আদেশ অমান্য, বাঁধা সৃষ্টি ও তথ্য প্রদানে অস্বীকৃতি
৪০০/-
—
১৪০ (২)
ওয়ানওয়ে সড়কে বিপরীত দিকে গাড়ি চালনা
২০০/-
—
১৪২
নির্ধারিত গতির চেয়ে দ্রুত গতিতে গাড়ি চালাইলে
৩০০/-
৫০০/-
১৪৬
দূর্ঘটনা সংক্রান্ত অপরাধের
৫০০/-
১,০০০/-
১৪৯
নিরাপত্তাবিহীন অবস্থায় গাড়ি ব্যবহার
২৫০/- (এইরূপ পরিস্থিতে যদি দৈহিক জখম বা সম্পত্তি ক্ষতি হইলে ১,০০০/-
—
১৫০
ধুয়া বাহির হওয়া মটরযান
২০০/-
—
১৫১
সঙ্গতিবিহীন অবস্থায় গাড়ি বিক্রয় অথাব গাড়ির পরিবর্তন সাধন
২,০০০/-
—
১৫২
রেজিস্ট্রেশন, ফিটনেস সার্টিফিকেট অথবা পারমিট ব্যতীত মোটরগাড়ি ব্যবহার
১৫০০/-
২৫০০/-
১৫৩
অনুমোদিত এজেন্ট ও ক্যানভাসার
৫০০/-
১০০০/-
১৫৪
অনুমোদিত ওজন অতিক্রমপূর্বক গাড়ি চালনা
১,০০০/-
২০০০/-
১৫৫
অ-বীমাকৃত মোটরযান চালনা
৭৫০/-
—
১৫৬
অনুমতি ব্যতীত গাড়ি চালনা
৭৫০/-
—
১৫৭
প্রকাশ্য সড়কে অথবা প্রকাশ্য স্থানে প্রতিবন্ধতা সৃষ্টি
৫০০/-
—
১৫৮
মোটরযান অনুমোদিত হস্তক্ষেপ
৫০০/-
—
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Tahmidur Rahman Remura Wahid TRW is a full-service law firm that has been dealing with arbitration consisting of a wide range of topics at both international and local level. We have barristers that have specialised in international commercial arbitration from the United Kingdom and accredited civil-commercial mediators.
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