Our advice is informed by decades of experience working alongside the leading industry players in energy, life sciences, technology, financial services, private capital and more.
Capital Market mostly refers to the country’s stock and share market. When the banking system cannot fully satisfy the market economy’s need for funds, the capital market steps in to complement it.
Through the capital market, corporations and governments can raise funding for long-term investments. Capital market consists of the stock market, bond market, and primary market.
The government monitors securities trading on organized capital markets; new issuance are approved by authorities of financial supervision and supervised by participating institutions. Thus, structured financial markets can guarantee investment opportunities that are sound.
Bangladesh’s capital market is among the smallest in Asia, but ranks third in South Asia. Capital Market in Bangladesh has two fully automated stock markets, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), as well as an over-the-counter exchange run by CSE.
Characteristics of the Capital Market in Bangladesh:
Link between Investors and Investment Opportunities: The capital market is an integral part of the saving and investing process. The capital market moves funds from savers to business borrowers.
The capital market offers funds for long-term and medium-term investments. It does not address saving for periods of less than one year.
Steps to an Initial Public Offering for Capital Market in Bangladesh:
Proposals:
Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms. Team. Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams. Documentation. The company’s information is prepared for mandatory IPO papers. The S-1 Registration Statement is the principal filing document for an initial public offering. There are two components: the prospectus and the private filing information.
The S-1 contains preliminary information regarding the anticipated filing date.
It will undergo several revisions during the pre-IPO process. The included prospectus is also regularly amended.
Marketing & Updates for Capital Market in Bangladesh:
The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations. Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.
Positives and Negatives of an IPO An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Intermediates:
The capital market utilizes many intermediaries, including brokers, underwriters, depositories, etc. These intermediaries serve as the capital market’s working organs and are vital components of the capital market. The operations of the capital market determine the capital formation rate in an economy.
The capital market offers appealing options to those with excess funds, encouraging them to participate more in the market and save more for profitable prospects.
Government Regulations and Statutes:
The capital market is unfettered but governed by government policy. These markets operate within the framework of government rules and regulations; for example, the stock exchange is governed by the government agency SEBI.
The (instruments) of Capital Market in Bangladesh include:
The capital market is the market for securities on which corporations and governments can raise long-term capital. The Capital Market is the portion of the financial system concerned with raising capital through the trading of stocks, bonds, and other long-term assets. Capital market is the market where investment products such as bonds, stocks, and mortgages are traded.
Steps to an Initial Public Offering in Bangladesh:
Proposals. Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms.
Team of TRW for Initial Public Offering in Bangladesh: Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams.
Documentation for a Capital Market in Bangladesh for Initial Public Offering in Bangladesh:
The company’s information is prepared for mandatory IPO papers.
Marketing & Updates. The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations:
Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.
Steps to an Initial Public Offering in Bangladesh:
Proposals. Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms. Team. Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams. Documentation. The company’s information is prepared for mandatory IPO papers. The S-1 Registration Statement is the principal filing document for an initial public offering.
There are two components: the prospectus and the private filing information.
The S-1 contains preliminary information regarding the anticipated filing date.
It will undergo several revisions during the pre-IPO process. The included prospectus is also regularly amended.
Marketing & Updates in Capital Market in Bangladesh:
The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations and Capital Market in Bangladesh:
Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.Capital Market in Bangladesh
An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Positives and Negatives of an IPO:
An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Pros
Can generate additional capital through secondary offerings in the future
Participation in liquid stock equity attracts and keeps superior management and qualified staff (e.g., ESOPs)
IPOs can provide a company with a cheaper cost of equity and debt funding.
Cons
Significant legal, accounting, and marketing costs arise, many of which are ongoing
Increased time, effort, and attention required of management for reporting
There is a loss of control and stronger agency problems
Capital Market Types in Bangladesh:
There are two different types of capital markets: primary and secondary. Primary Market: This is the market where shares, debentures, and other securities are sold for the first time in order to raise long-term capital. Consequently, the primary market is often referred to as the NEW ISSUE MARKET. Primary Market Characteristics: It Is Related To New Issues. It Has No Specific Location. It Has Various Methods Of Float Capital: The following are the basic market capital-raising techniques. i. Public Issue. ii. Offer for Sale.
Secondary Market in Bangladesh:
The secondary market is the market in which previously issued securities are purchased and sold. Transactions on the secondary market are often conducted via the stock exchange. The primary function of the secondary market is to provide liquidity for securities. It Generates Liquidity. It Follows the Primary Market. It Occupies A Specific Position. It Encourages New Investments.
Legal services for the capital market in Bangladesh
Tahmidur Rahman Remura Wahid TRW Associates, the Best Capital Market Law Firm in Bangladesh
It is typical for an attorney who engages in general practice to have a passing familiarity with everything that piques their interest. However, specializing in something related to finance makes a practice unquestionably tough and hence takes a great deal of skill.
Tahmidur Rahman Remura Wahid TRW Associates offers the most qualified Capital Market Attorneys in Bangladesh, as failure to do so may impair your future business opportunities. When obtaining a loan and analyzing the market in light of legal issues is necessary, the requirement for a skilled Capital Market attorney remains an open secret. Foreign investors that seek Capital Market attorneys in Bangladesh face an even greater challenge, as they are aware that a lawyer or firm without the required finance credentials could practice in this field of law.
What is an Initial Public Offering and Capital Market in Bangladesh?
IPO stands for “Initial Public Offering.” It refers to the first time a privately held corporation offers stock to the general public. It is a method by which a private firm can broaden its investor base by issuing public stock.
The ability to obtain more funds through an IPO makes an IPO a valuable growth tool for any private company. Moreover, it is a laudable purpose with numerous potential benefits, such as assisting companies considerably with fundraising, exposure, and the ability to utilize publicly traded stock as a payment method, among others.
Publicity is crucial for businesses since it increases their commercial opportunities. In addition, an IPO permits a company to engage in infrastructure growth and the purchase of new equipment, etc. Additionally, it might be a wonderful way to pay off any debts or past-due obligations.
How to Make an Offering to the Public in Bangladesh:
To make a public offering in Bangladesh, the Securities and Exchange Commission (Public Issue) Rules, 2001 and the Securities and Exchange Commission (Public Issue) Rules, 2006 must be followed. Additionally, there are other norms and regulations that must be followed and observed (on the basis of applicability). Companies Act 1994; Income Tax Ordinance, 1984; Income Tax Rules, 1984; Bangladesh Accounting Standards; and Bangladesh Financial Reporting Standards.
A Capital market, on the other hand, is a form of market where financial securities such as bonds, stocks, etc. are traded. Individuals and institutions participate in this type of commerce. The capital market serves as a conduit for transactions between investors and firms. In addition, the capital market is one of the best sources of capital formation in the economy and contributes to economic expansion.
The capital market facilitates the trade of securities, encourages a wide variety of productive asset ownership, and facilitates the settlement of transitions, among other things.
Highlights of the Capital Market in Bangladesh:
Bangladesh’s capital market is expanding, but at a slower rate than many would prefer, with market development still in its infancy. Since the Securities and Exchange Commission (SEC) was established in 1993, there have been numerous market developments.
After the burst of the bubble in 1996, the capital market has received a great deal more attention, significance, and awareness. In contrast, the DSE general index reached its greatest point in 2010. After reaching its peak, the index began to rapidly decline, shattering all previous records for a decline. After that, BSEC took steps to protect investors, resulting in the infrastructure that exists on the market today. The primary characteristics of the Bangladesh capital market are addressed in the following section: Number of Securities Listed
Compared to our surrounding countries, Bangladesh has a significantly smaller number of publicly traded enterprises. Only 572 firms are listed on DSE (as of January 2018). Numerous economically successful enterprises have been shown to be able to go public and reap the benefits of utilising float capital.
The Capital Market consists of two types of markets: primary and secondary. Primary markets deal with the trading of newly issued stocks and other securities, whilst Secondary markets deal with the exchange of existing or previously issued securities. In other words, whereas the Primary market focuses only on the trading of newly issued securities, the Secondary market focuses on the trading of previously issued securities. In addition, the capital market is divided into two significant segments: the stock market and the bond market.
Primary markets are advantageous for both investors and new businesses, since investors can invest their excess funds and new businesses can extend their operations by raising additional capital. There are various methods for raising capital; for instance, many companies solicit investors to invest in their business by providing a prospectus. Investors purchase and sell shares on the Secondary market. In contrast to the Primary market, the Secondary market contains no new shares.
There are two stock exchanges in Bangladesh: the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Dhaka Stock Exchange (previously known as the “East Pakistan Stock Exchange”) was launched on April 28, 1954, while Chittagong Stock Exchange was established in 1995.
Both stock exchanges aim to create a robust platform for entrepreneurs to raise funds, create investment opportunities, enhance market transparency, and invite foreign investors to participate in Bangladesh. The Securities and Exchange Commission (SEC) is the capital market regulator in Bangladesh. It administers rules and regulations and seeks to enhance the capital market. Central Depository Bangladesh Limited is the only central depository in Bangladesh (CDBL).
Tahmidur Rahman Remura Wahid TRW’s Capital Market Lawyers in Bangladesh are well-equipped to handle sophisticated capital market matters.
How to apply for an IPO in Capital Market in Bangladesh:
Collect IPO application form from DSE or its broker offices Bankers to the issue.
Distributed to the public + under writers (If subscribed by less than 50%, return to the public)
Subscribed fully
Distribute as supply
Refund Warrant /Allotment of IPO:
If your lottery application is approved, the issuer will transfer your shares to the B/O account you specify.
If you do not win the lottery, your subscription fee will be refunded to you via check or warrant made payable to the applicant.
The refund warrant must then be deposited for clearance with your bank. You will thus receive a refund. Consequently, there is no loss in the IPO.
We offer the subsequent services in regards to Capital Market in Bangladesh:
– Assisting in the listing process with the DSE, CSE; – Issuing an Initial Public Offering (IPO); – Drafting a prospectus; – Ensuring compliance with the securities legislation governing the capital markets; – Ensuring that all corporate and regulatory permissions are received on time
– Attending AGM;
– Preparation of all transaction-related corporate documents and agreements;
TAHMIDUR RAHMAN Remura Wahid TRW lawyers provides the services of the entire IPO (initial public offering) process, beginning with the evaluation and assessment of the benefits of an IPO and including the investigation of every potential alternative. With an experienced and skilled team, the company’s management can focus on the crucial aspects of the IPO procedure where their knowledge is important.
Our team has traversed this path numerous times before and can assist you at each stage of the overall IPO Journey. It encompasses corporate back warning, review, exchange administrations, tax assessment, and various masters from around the organization. This enables us to provide superior assistance not only on technical and procedural difficulties, but also on the broader strategic and business considerations that any client would expect from a free financial lawyer. IPO services consist of:
IPO Assistance We function as a coordinated part of the group to offer the correct level of assistance to augment anyone’s current abilities and assets.
Evaluation and lawful reconstruction prior to IPO
International Financial Reporting Standards specificity and speedy close, to meet the requirements of the trade.
Providing pertinent and necessary corporate governance advice and risk management transparency.
Bangladesh’s capital market is one of the smallest in Asia and the third-largest in the region of south Asia. Together with the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
It also includes a separate regulator, the Securities and Exchange Commission (SEC), as it implements rules and regulations, monitors their ideas for effectiveness, and develops the capital market. TAHMIDUR RAHMAN Remura Wahid TRW’s professionals are well-versed in initial public offerings (IPOs) and relisting on both local and international securities exchanges.
TAHMIDUR RAHMAN Remura Wahid TRW Consulting International serves as detailed bookkeepers, conducting assessments of publishing associated budget summaries and advising on bookkeeping prescriptions and controllers’ remarks. As a significant component of pre-IPO administrations, our knowledge also facilitates the listing of any company. on a company’s posting arrangements, including its operational, financial, and management team.
Are you intending to do Initial Public Offering in Bangladesh within the Capital Market in Bangladesh?
Get your Initial Public Offering in Bangladesh sorted out with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in regards to Capital Market in Bangladesh. For queries or legal assistance, please reach us at:
In Bangladesh, Tahmidur Rahman Remura Wahid TRW Associates has a large practice and experience in tax and VAT related services. Tahmidur Rahman Remura Wahid TRW Associate, as a major law firm, has been named the best tax law firm of the year by Global Law Experts 2023 , in recognition of its top tax and VAT services in Bangladesh.
Tahmidur Rahman Remura Wahid TRW Associates provides the best Tax lawyers in Bangladesh who are experts in Tax Law, which is classified into two categories: Value Added Tax and Income Tax.
There are also various forms of taxes, such as customs duty, gift tax, supplemental duty, and so on. With us, you get a complete answer to your taxation issues. This may involve advising the tax implications of various transactions entered into by an organization, tax deducted at source from salaries, tax withheld from suppliers, quarterly withholding tax return, annual corporate tax return, or the s. 108 return to the tax authorities.
We also represent customers before the taxation authority to settle any disputes or before a tribunal or Court of law to settle or fight a tax appeal. It is critical that you realise the full value of tax-related services in Bangladesh, including the most up to date Tax rate in Bangladesh. Our financial team, in collaboration with our legal team, will ensure complete compliance with finance and law.
Here is a detailed table outlining the tax calculation process in Bangladesh:
Step
Description
1
Determine your tax residency status
2
Determine your taxable income
3
Calculate your tax liability using the tax rates and thresholds
4
Deduct any applicable tax credits or exemptions
5
Pay any taxes due to the National Board of Revenue (NBR)
Here is a more detailed explanation of each step:
Determine your tax residency status: In Bangladesh, tax residency is determined based on your physical presence in the country. If you are physically present in Bangladesh for 183 days or more in a tax year, you are considered a tax resident. If you are physically present in Bangladesh for less than 183 days in a tax year, you are considered a non-resident.
Determine your taxable income: Your taxable income includes all forms of income earned or received in Bangladesh, such as salary, rental income, and investment income. Certain types of income, such as agricultural income and certain types of foreign income, are exempt from taxation in Bangladesh.
Calculate your tax liability: Once you have determined your taxable income, you can calculate your tax liability using the tax rates and thresholds specified in the tax laws of Bangladesh. The tax rates vary depending on the type of income and the amount of income earned.
Deduct any applicable tax credits or exemptions: There are various tax credits and exemptions available in Bangladesh that can be claimed to reduce your tax liability. These include credits for charitable donations, home ownership, and child education, among others.
Pay any taxes due: Once you have calculated your tax liability, you must pay any taxes due to the NBR. Taxes can be paid online through the NBR’s e-payment portal or at a designated bank or financial institution.
Please note that this is just a general overview of the tax calculation process in Bangladesh. The specific tax laws and rules may vary and are subject to change. It is always best to consult with a tax professional or refer to the NBR’s website for the most accurate and up-to-date information.
Tahmidur Rahman Remura Wahid and its Tax litigation department:
We also provide clients with normal services for personal income tax matters, such as return preparation and submission, tax clearance certificate, and tax residence certificate. Tahmidur Rahman Remura Wahid TRW Associates also provides significant legal help in income tax reference matters before the Supreme Court of Bangladesh under Section 160 of the Income Tax Ordinance.
We are well-known for our honesty, efficiency, and high levels of partner involvement. Our reputation is built on the simple principle of providing personal, prompt service and business advice that is relevant to today’s needs and current Tax rate in Bangladesh. Your subscription to our service will connect you with a team of committed, highly vetted professional Lawyers, accountants, and tax advisors who will learn about your business practices and operations and begin delivering the best probable solutions.
We set and maintain the highest quality standards for ourselves. This is evident not just in our selection of partners and competent staff, but also in their ongoing training. Our Associates are regularly attending external continuing professional development seminars to further their specific knowledge in a variety of fields.
Minimum Tax Rate and Tax rate in Bangladesh
It is suggested to reduce the business turnover tax rate for individual taxpayers by 0.5 percentage points.
to 0.25%.
Reduction of the company’s tax rates
It is planned to cut the corporate tax rate from 25% to 22.5%. It is suggested to cut the tax rate for privately held corporations from 32.5% to 30%. The tax rate on artificial entities and other taxable entities besides corporations and partnerships has been set at 30%. It is recommended that private universities, medical institutions, and engineering colleges pay a 15% tax on their income. It is planned to align the tax rates of mobile financial service providers with those of publicly traded banks and insurers. b) One-Person Business (and PC) Tax Rate
The recommended tax rate for one-person corporations (OPC) is 25%.
Taxpaying Individual of Third Gender and their Tax rate in Bangladesh
It has been planned to increase the tax-free threshold for taxpayers of the third gender to TK 350,000. If a taxpayer employs 10% or more of the organization’s entire workforce or more than 100 employees of the third gender as the hiring authority, the taxpayer is eligible for the following tax relief: whichever is smaller, 5% of the tax due or 75% of the total compensation paid to third-gender employees.
Tax rate in Bangladesh for Individuals
Income Tax Rate for an individual:
a) Minimum Tax Rate: The business turnover tax rate for individual taxpayers is 0.25%.
b) Investment Credit: Investment credit will be allowed a flat 15% of the eligible amount. The ceiling for calculation of eligible amount for investment credit is 20% of total income. Moreover, the rate of investment credit will be 7.5% in case of failure in the submission of return.
c) Submission of Income Tax Return:
Date of Submission: One has to submit the 1st Income Tax Return on 30th June of the end of an income year.
Importance of submitting Income Tax Return: The Submission of Income Tax Return has been made mandatory for obtaining or maintaining a credit card as well as in respect of selling land situated in specific areas in which the deed value exceeds tk. 1,000,000 (Ten Lakhs only).
The Requirement of ETIN has been changed with proof of submission of return
d) Submission of IT-10B: One has to submit IT-10B (Asset & Liabilities Statement) for all local and global assets & liabilities.
Existing Tax Step
Existing Tax rate
Up to Tk. 3 Lac.
0
On next Tk. 1 Lac.
5%
On next Tk. 3 Lac
10%
The next Tk. 4 lac
15%
The next Tk. 5 lac
20%
The rest of the money
25%
Justifications for surcharges
It has been recommended in five steps as opposed to the current seven. The provision requiring the payment of surcharges on assets in the absence of income has been repealed. It has been proposed that the minimum search fee be eliminated.
Rationalisation of the rate of fishing income tax
Instead of the current three steps, four steps are proposed for the income Tax rate in Bangladesh: It is proposed to impose a 15% tax on income over Tk. 30 lacs, as opposed to the current 10% tax on income exceeding Tk. 20 lacs.
Amount of income
Tax Rate
On income up to the first Tk 10 lac.
0
On income up to the next Tk 10 lac
5%
On income up to the next Tk 10 lac
10%
On the remaining income
15%
Deduction at Source and Tax rate in Bangladesh:
Tax Rate in Bangladesh for Corporations:
Publicly Traded Companies may be categorized as follows:
The tax rate for publicly traded companies (those that have issued at least 10% of their stock through an IPO) is 20%. In the event of a violation, the Tax rate may be increased to a maximum of 22.5%.
a) The tax rate for a publicly traded company (with less than 10% of its shares issued through an IPO) is 22.5%. In the event of a violation, the Tax rate may be increased by up to 25%.
b) Non-listed Public and Private Companies are subject to a 27.5% tax rate. In the event of a violation, the Tax rate may be increased up to 30%.
c) The tax rate on artificial entities and other taxable entities outside corporations and partnerships has been set at 27.5%. In the event of a violation, the Tax rate may be increased up to 30%.
d) A 15% tax will be placed on the income of private universities, private medical colleges, private dental schools, private engineering colleges, and private colleges entirely devoted to providing ICT education.
e) The Tax Rate for Individual Associations is 27.5%. In the event of a violation, the Tax rate may be increased up to 30%.
f) The One Person Company (OPC) tax rate is 22.5%. In the event of a violation, however, the Tax rate may be increased to a maximum of 25%.
Please remember that all income and receipts must be processed through bank transfer. In addition, all expenditures and investments above Tk. 12, 00,000 (Twelve Lakhs) annually must be transferred via bank.
Tax Rate on Banks and Financial Institutions:
37.5 percent for publicly traded banks, insurance companies, and financial institutions (except merchant banks). On the other side, a 40% Tax will be placed on non-publicly traded banks, insurance companies, and financial institutions. In addition, a 37.5% Tax Rate will be applied on Merchant Bank.
Tax Rate on Tobacco-Producing Corporations:
A tax of 45% plus 2.5% (surcharge) will be levied on corporations that manufacture cigarettes, bidis, chewing tobacco, and gul.
Tax Rate for Publicly Traded Mobile Operators:
40% Taxes will be levied on publicly traded mobile operator companies. In contrast, the tax rate levied on privately held mobile operator companies is 45%.
vi) Taxpayer belonging to the Third Gender
a) The present tax-free threshold for taxpayers of third gender is up to TK 350,000.
b) If a taxpayer employs 10% of the organization’s entire workforce or 25 individuals from the physically challenged or third gender group, the business is eligible for:
5% of tax payable or ; 75% of the wage paid to these individuals or 5% of tax payable, whichever is lower vii) Tax on information and communication technology (ICT) (Start-up Business): For the purpose of supporting ICT-related startup firms, all other types of reporting are exempted, although a tax return must be filed. In addition, the rate of turnover tax has been set at 0.10 percent.
Tax on the Textile Industry:
The present Textile Sector tax rate is 15%. This structure will be accessible until June 30, 2025.
It has been proposed not to deduct income tax at the source from Workers Participation Fund or Workers’ Participatory Fund payments up to TK 25,000.
Rationalisation of general source tax rates
In the case of the public auction sale or lease of any commodity property or rights, it is suggested to collect advance tax at source at the rate of 10% instead of the current 5% from the auction buyer. Under the 2013 Overseas Employment and Immigration Act, it is recommended that TK 50,000 be collected at the point of renewal. It has been recommended to introduce a mechanism for deduction at source when paying bills as opposed to renting electricity from all types of power-generating enterprises.
Reduction of the advance tax on aged vessels:
The advance tax per passenger for vessels older than ten years has decreased from Tk.125 to Tk.100.
The Digital Transformation of Bangladesh
In addition to the 22 existing tax-free industries in Bangladesh’s digital transformation, the following six sectors have been declared tax-free.
a) Cloud-Based Service
c.) System Integration
c.) online education platform
d.) electronic book editions
f.) Mobile applications development service and
f.) Freelancing in IT
An incentive for “Made in Bangladesh” mega-industrial production:
In order to propel Bangladesh forward in the mega-industry, an automotive (three-wheelers and four-wheelers) manufacturing company with an investment of at least Tk. 100 billion or more should be exempt from taxation for twenty years. In addition, revenue made in foreign currency by ocean-going vessels flying the Bangladeshi flag is exempt from taxation until 2030, so long as it is delivered to Bangladesh via a banking channel.
Regarding this, a 12% tax rate will be applied on all other sectors exporting goods and services, while a 10% tax rate will be imposed on all other industries exporting green goods and services.
Incentives for the production of home appliances in Bangladesh:
The industries of washing machines, blenders, microwave ovens, electric sewing machines, induction cookers, kitchen hoods, and kitchen knives & kitchen equipment will be exempt from taxation for ten years. The existing exemption facility has been enlarged to include the importation of raw materials utilized by these industries.
Agricultural product industrialization:
a) Examples of value addition to agricultural products manufactured in Bangladesh as a result of industrialization include:
Fruit processing
Vegetable processing
Producers of dairy and dairy products as well as baby food
The business owner has been granted a 10-year tax exemption.
b) Manufacturers of agricultural machinery have been granted a 10-year tax exemption.
National employment and skills development incentives:
Institutions providing education and training in the following fields to generate trained human resources appropriate for industrialization shall receive a 10-year tax exemption.
i. Diplomas, degrees, and vocational training in all disciplines of agriculture, fisheries, science, and information technology;
Automobiles, Aircraft, Food Preservation Foot over, Glass Mining Mechanical, Shipbuilding, Leather, Refrigeration, Ceramics, Mechanist, Garments, provide professional training on Design, and Pattern Making, Pharmacy, Nursing, Integrated Medical, Radiology & Imaging, Ultrasound, Dental, Clothing & Garment Finishing, Poultry Farming.
Which types of products comprise the light engineering industry:
a) Will only be utilized in industrial factories
b) There will be no entire instrument components available.
Entrepreneurs in the manufacturing sector have been granted a 10-year tax exemption.
Incentives for entrepreneurship and employment in the IT hardware sector:
Income from hospital operations will be exempt from taxation for ten years if:
I Hospital must be located beyond the districts of Dhaka, Narayanganj, Gazipur, and Chittagong;
ii) There should be a hospital with at least 250 beds or a specialist hospital with 200 beds.
Help with microcredit collection:
In order to facilitate access to microcredit, the Micro Credit Regulatory Authority has exempted the income from organization licensing from taxation.
Stamp Duties for Deeds:
The Finance Act, 2023 , has been amended with respect to Stamp Duties; the amount of Stamp Duties is mentioned below:
a) Declaration: BDT 300
b) Deed of Sale (Saf kabala): 1.5% of the subject property’s appraised value, not to exceed BDT 2,000,000)
c) Certified copies of legal documents: BDT 100
d) Declaration of Divorce: BDT 2000
e) Heba Declaration Document: BDT 1,000
f) Lease Agreement: The following stamp duties shall be applied to the Lease Agreement:
Leases between 5 and 25 years in duration shall include stamp duties of 0.2% of the subject property’s valuation, not to exceed BDT 1,000,000.
Leases with a duration of more than 25 years and a permanent nature will incur stamp taxes of 0.3%, not to exceed BDT 2,000,000.
In all other instances, a 0.3% stamp tax (not exceeding BDT 3,00,000,000 g) will be applied. Partnership Firm: If the Capital is BDT100,000, a Stamp Duty of BDT2,000 is applicable; otherwise, a Stamp Duty of BDT4,000 is applicable.
Durable Power of Attorney in Bangladesh:
$1,500 is the cost of the General Power of Attorney The Special Power of Attorney costs BDT 800. BDT 2000 is the cost of a Power of Attorney (Bank & Financial Institution) Section 44(4)(b) of ITO, 1984 gives the government the authority to exempt any income, or a portion thereof, from Tax Liability as required by law. Consequently, the government has lately authorized various exclusions outside of the ITO, 1984, via the Official Gazette. Consequently, the relevant revisions are briefly outlined below:
a) Tax Rate on Export Income (SRO-158- Aain/Aikor/2023 , effective 1 June 2023 ):
The government has exempted the following from Tax on Export Income from 01 July 2023 to 30 June 2025:
• Tax exemption of 50% on the export income of individuals, firms, and Hindu undivided firms.
• There will be a 12% tax exemption on the export earnings of others
• Other than Individual, Firm, and Hindu Undivided Firm, any revenue derived from exporting items manufactured in Leadership in Energy and Environmental Design (LEED) Certified Factories would be exempt from tax by 10%.
• This SRO-158-Aain/Aikor/2023 does not apply to any Transportation Service, Mobile Telecommunication Service, Internet, or Internet-Related Service.
b) Yarn production and dyeing (SRO- 159- Aain/Aikor/2023 , dated 1 June 2023 ): The Government has imposed a 15% tax rate on the profits of businesses related to Yarn Production, dyeing, finishing, printing, and other businesses similar to these. The duration of this exemption is from 1 July 2023 to 30 June 2025.
Growth of the tax base and Tax rate in Bangladesh
a) It is recommended to mandate the acceptance of TINs in the following fields.
Purchase of savings bonds exceeding Tk 2 lacs.
Postal savings deposit exceeds Tk 2 lacs.
Home design approval.
Enrollment of Cooperative Societies
b) It is recommended to enable e-commerce platforms to qualify as tax-deductible sources.
Tax rate in Bangladesh and Automated Invoice Tax Payment
Taxes up to TK 5 Lac can be paid through an automated portal.
5.) The Digital Transformation of Bangladesh
In addition to the 22 existing tax-free industries in Bangladesh’s digital transformation, the following six sectors have also been designated tax-free.
a) Cloud-Based Service
c.) System Integration
c.) online education platform
d.) electronic book editions
f.) Mobile applications development service and
f.) Freelancing in IT
Encouraging “Made in Bangladesh” in big industrial production.
To advance Bangladesh in the mega-industry, a business that manufactures automobiles (three- and four-wheeled vehicles) and invests at least 100 billion taka would be exempt from taxes for 20 years.
Incentives for the manufacture of home appliances in Bangladesh and Tax rate in Bangladesh:
The industries of washing machines, blenders, microwave ovens, electric sewing machines, induction cookers, kitchen hoods, and kitchen knives & kitchen equipment will be exempt from taxation for ten years.
8.) Agricultural products industrialization
i.) Examples of value addition to agricultural products manufactured in Bangladesh as a result of industrialization include:
a.) Fruit preparation
b.) Vegetable processing
b.) Milk and dairy product production and
d.) Baby food manufacturers.
Entrepreneurial tax exemption for 10 years has been granted.
ii) Entrepreneurs who manufacture agricultural machinery have been granted a 10-year tax exemption.
9.) National incentives for skill development and employment
Institutions involved in providing education and training in the following fields for the purpose of developing trained human resources suited for industrialization shall receive a 10-year tax exemption.
Diploma Degree and Vocational Education in all fields of Agricultural Fisheries Science and Information Technology and Automobiles, Aircraft, Food Preservation Foot over, Glass Mining Mechanical, Shipbuilding, Leather, Refrigeration, Ceramics, Mechanist, Garments, provide professional training on Design, and Pattern Making, Pharmacy, Nursing, Integrated Medical, Radiology & Imaging, Ultrasound, Dental, Clothing & Garment Finishing, Poultry Farming. 10.) Encouragement of light engineering entrepreneurship and employment
Which types of products comprise the light engineering industry:
i.)Will only be used in industrial plants and
ii)There will be no entire instrument components.
Entrepreneurs in the manufacturing sector received a 10-year tax exemptions.
Incentives for entrepreneurship and employment in the IT hardware industry
Bangladesh is dependent on imports for self-sufficiency in creating businesses and enterprises and as an employment stimulant in the IT sector. A 10-year tax break has been granted to manufacturers of CCTV equipment and flash drives.
ensuring cost-effective and decentralized medical care
It is recommended that hospital operation income be exempt from taxation for a period of ten years if:
Hospital must be located outside of the districts of Dhaka, Narayanganj, Gazipur, and Chittagong, and there must be at least 250 beds or 200 specialized beds.
Encouragements for Female Entrepreneurs
If the yearly revenue of a woman-owned SME sector is less than TK 70 lacs, the income of the company is excluded from income tax.
Contribution to the development of the bond market for long-term capital collecting
In order to develop a market for the easy circulation of Sukuk bonds for long-term capital mobilization, it is proposed that the tax applicable to the retransfer of property from the trust or SPV to the parent company be waived.
Reduction of depreciation rate for building & structure:
Tax rate in Bangladesh for building & structure–
Existing rates
Recommended rate
General building
10%
5%
Factory building
20%
10%
Tax rate in Bangladesh and Formalisation of the system:
It is proposed that the following expenses must be paid by bank transfer and mobile financial services or MFS.
a.)Salary benefits exceeding Tk 15,000
b)Any rental sum and
b.) If the total of all other expenditures reaches TK.50,000
ii) It is recommended to deduct an additional fifty percent of the existing source tax rate if the supply and contracting invoice is not paid via banking or mobile financial services (MFS).
Contribution to microcredit collection
In order to facilitate access to microcredit, it is proposed that Micro Credit Regulatory Authority license fees be free from taxation.
Services for Tax Litigation in Dhaka and Chittagong, Bangladesh by Tahmidur Rahman Remura Wahid TRW (Tax rate in Bangladesh):
There are various orders of tax authorities that might be appealed by an assessee. The aggrieved assessee may file an appeal with the relevant appeal forum. In such situations, the aggrieved tax authority may also submit an appeal. Appeals can be lodged with many bodies, including the Taxes Appellate Tribunal. Appeals can also be filed at the Supreme Court’s High Court Division. The above-mentioned appeal facilities are termed as Tax Litigation in the Income Tax Ordinance of 1984.
Orders that irritate an Assessee include:
a) Income Assessment
b) Tax Liability or Refund Calculation
c) Loss set-off and carry-forward d) Imposition of any penalty or interest e) Charge and computation of surcharge or any other sum
d) Tax Deduction
e) Payment of Refunds
Bangladesh’s Tax Appellate Authorities and Tax rate in Bangladesh:
1) Appeal to IJCT against TRO order: Any person aggrieved by a TRO order under section 139 may, within 30 days after the date of service of the order, appeal to the IJCT to whom the TRO is subordinate, and the IJCT’s decision on such appeal shall be final.
2) Appeal to Additional/Joint Commissioner of Taxes or Commissioner of Taxes against Deputy Commissioner of Taxes Order: Any aggrieved assessee other than a company must file an appeal with the Additional/Joint Commissioner of Taxes, and any aggrieved assessee who is a company must file an appeal with the Commissioner of Taxes within 45 days of receiving the concerned order.
3) Appeal to the Commissioner of Taxes against the order of the Additional/Inspecting Joint Commissioner of Taxes: Any aggrieved assessee may file an appeal with the Commissioner of Taxes against the order of the Additional/Inspecting Joint Commissioner of Taxes within 45 days of receiving the relevant order.
4) Appeal to the Taxes Appellate Tribunal against the order of the Additional/Inspecting Joint Commissioner of Taxes or the Commissioner of Taxes against: The Taxes Appellate Tribunal hears appeals against the order of the AJCT or the Commissioner of Taxes, as the case may be. An assessee must file an appeal within 60 days after receiving the appeal order.
5) Appeal to the Supreme Court’s High Court Division against the Taxes Appellate Tribunal’s Order: The assessee or the Commissioner may refer to the Supreme Court’s High Court Division within 90 days of receiving the Taxes Appellate Tribunal’s order.
6) Any dispute between an assessee and any income tax authority, Tax Appellate Tribunal, or the Supreme Court may be handled throughTahmidur Rahman Remura Wahid TRW Tax Litigation Services’ Alternative Dispute Resolution (ADR).
The Tax Expert provides legal logic in accordance with the Income Tax Ordinance and Rules addressing the grounds of disputes in order to protect the taxpayer’s interests.
To carry out the aforementioned role, Tahmidur Rahman Remura Wahid TRW employs professionally qualified individuals and tax specialists who can deal with NBR in a manner that protects the tax payer’s interests.
Recent modifications to the Income Tax Ordinance, 1984 (ITO, 1984) in 2023:
In 2023, modifications were made to the Income Tax Ordinance (ITO) of 1984. The modifications are briefly described below:
xxii) Special Tax: Sections 19AAAA (relating to Special Tax Treatment for Undisclosed Property, Cash, etc.) and 19AAAAA (relating to Special Tax Treatment for Investment in the New Industrial Enterprise) have been deleted. However, Section 19AAAAAA has recently been inserted regarding Special Tax Treatment for investments in new industrial undertakings, stating that no authority shall question the source of income if any amount of money (along with 10% tax on the invested amount) is invested in a new industrial undertaking between 1.07.2023 and 30.06.2023 (both dates inclusive) The above-mentioned Tax shall be payable via pay order or electronic challan.
xxiv) Excess perquisites limit: Section 30(e) of the ITO has been revised. Now, an employer will enjoy the benefits of section 30 of the ITO if his expenditure on perquisites under section 2(45) for any employee exceeds BDT 1,000,000 (ten lakhs), as opposed to the previous limit of tk. 5,50,000 (five lakhs and fifty thousand only).
xxv) Reckoned income: debt cancellation: Section 19 (11) is changed. The provision of Section 19 (11) shall not apply to the Individual. Therefore, a loan or interest waived by a commercial bank, Bangladesh Krishi Bank, Rajshahi Krishi Bank, or any leasing firm will not be considered income for a person.
xxvi) Deemed income (Receipt of loan or gift): Deposits received by a bank, financial institution, or organization registered with the Micro Credit Regulatory Authority or the NGO Affairs Bureau must not be deemed to be income under section 19 of the Income Tax Act (21). In addition, any loan or gift received from the Assessee’s spouse or parents (or sons or daughters) that is processed through a banking channel or formal channel shall not be considered income under the aforementioned clause.
xxvii) 5% special reserve: Since Section 29(1)(v) has been repealed, 5% special reserve established by a Financial Institution is now permissible.
xxviii) Tax implications of the Amalgamation scheme: Section 32 (5A) has been added. No tax is imposed on any capital gain resulting from the transfer of a capital asset in a merger or consolidation. Nonetheless, any consideration received by the shareholders of the merging companies in a form other than shares of the resulting company shall be liable to tax. In addition, the section 32(7) tax exemption for capital gains from government securities is no longer in effect.
xxix) Requirement of submitting an audit report for Tax rate in Bangladesh: Section 35 has been somewhat altered; formerly, this requirement applied to all firms incorporated by the Companies Act of 1913 or the Companies Act of 1994, as amended by “Company” in section 2(20) of the ITO. Consequently, section 20(2) of the ITO requires the “Company” to submit the audit report with the income tax return.
xxx) Business loss & Unabsorbed Depreciation for the amalgamated company: Subsection 8 of Section 42 of the ITO has been added to allow the amalgamated company to carry forward the accumulated loss and unabsorbed depreciation of the ambulating company.
xxxi) New Requirements for Exemption/Reduced-Rate Facilities: New conditions have been introduced to Section 44(5). (a). The new requirements are:
a) All receipts from exempted sources of income or income subject to a reduced tax rate must be received via bank transfer.
b) In the event of failure to comply with the provisions of chapter VII, exemption under section 44 of the ITO, 1984 may be denied.
c) The aforementioned provision regarding obtaining revenues via bank transfer applies to an individual assessee whose gross receipts do not exceed Tk 1,000,000 (one Crore) and to agricultural or farming income (Tax rate in Bangladesh).
xxxii) Failure to file a return under Chapter VII: Section 52(a) has been modified. According to the amended rule, if the payee does not produce proof of return submission at the time of payment, or if the payee does not receive payment by bank transfer, the payee will be subject to a penalty. In such instances, the TDS rate shall be increased by fifty percent (50%) over the standard TDS rate.
xxxiii) New Deducting Authorities: Hotels, resorts, community centers, and transport agencies with an annual turnover in excess of One BDT Crore have been added to Section 52 of the ITO as Deducting Authorities.
xxxIV) Tax on certain services The following modifications have been made to Section 52 AA:
a) The higher rate applicable to bases exceeding 25 million rupees has been excluded.
b) Rate changes for media buying agencies, indenting commissions, mobile networks, auto repair shops, etc.
b) 10% TDS on Internet service is recently implemented
d) The TDS rate shall be increased by fifty percent (50%) if the payee fails to present proof of submission of return at the time the payment is made, or if the payee does not receive payment by bank transfer.
xxxv) The TDS on the export of commodities has been modified per Section 53BB. According to the new amendment and Tax rate in Bangladesh, 1% TDS will apply to all export items, whereas 0.05% TDS previously applied to certain export commodities. In addition, section 53BBBB is eliminated.
xxxvi) TDS on savings/fixed deposit interest: The amendments to section 53 F pertaining to TDS on savings/fixed deposit interest are as follows:
a) If Company is the recipient, the new TDS rate will be 20%
b) The TDS rate will be increased by 50 percent if proof of submission of return is not provided at the time of payment.
c) A parent’s proof of submission of return shall be accepted as a minor’s proof of submission of return.
xxxvii) TDS on property leases: Section 53 HH has been replaced. The provision currently states, “Any registering officer responsible for registering any document relating to any lease of immovable property for at least 10 years shall not register until the tax of 4% of the lease amount is paid by the lessor.”
Deduction from the income of non-residents: Section 56 has been modified somewhat. First, 10% TDS is now added to Bandwith payments. Second, TDS on all other payments has been reduced to 20% from 30%.
xxxix) Consequences of failing to deduct: Section 57 has been changed and new penalties-related sections have been added:
a) Whoever fails to comply with the TDS chapter of the ITO will be fined BDT 1,000,000 (ten lakhs only).
b) New measures for imposing penalties on people and entities responsible for deducting or collecting tax are added.
xxxx) Return of Income: The list of “submission not mandatory” has been updated in accordance with section 75 of the ITO; the following are no longer required to file a return of income:
a) A non-resident without a permanent base in Bangladesh; or
b) Any category of individuals whom the Board may, by decision published in the official gazette, exempt from filing the return.
b) All Funds with the exception of Approved Provident/Gratuity/Pension/Superannuation Funds
d) Monthly Payment Order (MPO) schools that have implemented an English version in their school.
e) A publicly funded university.
Spot Evaluation: Section 82 D has been replaced. The provision of spot assessments at all levels in accordance with Section 82D of the ITO has been expanded outside the growth centers. In addition, the following modifications are made to section 82D:
a) If the assessment of an assessee who has income from a trade or profession is done under this section at the ordinary rate and the assessee pays tax appropriately, no inquiry shall be undertaken into whether the initial capital exceeds five times the assessed income for Tax rate in Bangladesh.
b) The Board (National Board of Revenue) shall issue guidelines for the way in which this section’s assessment is to be made.
xxxxii) Assessment question bar: Section 94B is added. This addition provides that, with the exception of the “Income Tax Authorities” listed in section 3 of the ITO and the courts and authorities listed in Chapter XIX, no one shall have the ability to contest a Chapter-IX assessment.
xxxxiii) Start up Stand Box: The addition of Section 111A. The following are some of the most significant details of this newly introduced provision:
a) A startup is a company with an annual sales of less than Tk 1 billion and that is neither a subsidiary nor a merged entity.
b) The provisions of Sections 30 and 30B do not apply to growth years.
c) If, during a growth year, a startup registered under this section incurs a loss that cannot be fully set off, the amount of the loss that has not been set off shall be carried forward to the following assessment year and so on for a maximum of nine (nine) consecutive assessment years.
d) The minimum rate of turnover tax has been reduced from 0.6% to 0.1%.
e) Obtaining registration under NBR is subject to a number of restrictions.
xxxxiv) Disconnection of utility service connections: a new subsection 143(2)(c) has been added. In the event that the undisputed tax liabilities are not paid within 21 (twenty-one) days of receiving the notice, the utility service connections, such as gas, electricity, water, etc., will be terminated. In this connection, any aggrieved party may seek resolution of the dispute through ADR under section 152I, which has also been changed.
Proof of Return Submission:
The Proof of Return Submission shall be considered as confirmation of return receipt. In the event that PSR is not collected, the individual will be declared a defaulting assessee and subject to a penalty not to exceed Tk. 10,000,000. (Ten Lakhs only). In accordance with section 184A, this submission must be made in the specified sectors, some of which are listed below:
becoming a corporate director or sponsor shareholder;
Requesting a loan from a bank or financial institution in excess of five million Taka:
Obtaining or continuing to hold an import registration certificate or export registration certificate, or a trade license in the area of a city corporation or paurashava; or s license or enlistment as a surveyor of general insurance; or license as a Nikah Registrar under the Muslim Marriages (Registration) Act. 1974 (LII of 1974); obtaining registration of co-operative society; obtaining registration, by a resident, of the deed of transfer, baynanama
obtaining or maintaining a credit card; obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession; obtaining the admission of a child or a dependent in an English medium school providing education under the international curriculum or the English version of the national curriculum, located in any city corporation, district headquarters, or municipality; obtaining or continuing the membership of the professional body as a chartered accountant, cost and management
receiving any payment which is an income of the payee classifiable under the head “Salaries” by a person employed in the management or administrative function or in a supervisory position in the production function; or receiving any payment which is an income of the payee classifiable under the head “Salaries” by an employee of the government or an authority, corporation, body or units of the government formed by any law, order or instrument in force, if the emloyee is
Receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service; Releasing overseas grants to a non-government organization registered with NGO Affairs Bureau or to a Micro Credit Organisation with a license from the Micro Credit Regulatory Authority; Selling any goods or services by any digital platforms to consumers in Bangladesh.
submitting application for the membership of a club registered under , ( ) and Societies Registration Act, 1860 (Act No. XXI of 1860); submitting tender documents by a resident for the supply of goods, execution of a contract, or rendering of a service; submitting a bill of entry for import into or export from Bangladesh; submitting a plan for construction of the building for the purpose of obtaining approval from Rajdhani The 184 C section has been modified. Now, a person with business income must show this proof of return in a conspicuous location on the assessee’s business premises; a penalty will be applied for failure to comply.
Income Tax Fees:
A new amendment has been made to section 16 of the ITO. Capital gains, dividends, and winnings are taxed at the rates outlined in Chapter VII and the Second Schedule.
Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?
Get your tax and vat sorted out (a/c current Tax rate in Bangladesh) with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in doing taxes as per the current Tax rate in Bangladesh. For queries or legal assistance, please reach us at:
Definitive guide on offshore business formation in Bangladesh:
Tahmidur Rahman Remura Wahid TRW Consultants has supported numerous clients in establishing offshore companies around the globe including Offshore company from Bangladesh. In recent years, it has been more difficult to establish an optimal offshore structure due to the introduction of additional economic substances and higher onboarding criteria from international banks.
Despite the misconception that offshore firms are exclusively used for money laundering and tax fraud, many multinational corporations continue to establish offshore companies in order to gain the numerous benefits offered.
A properly organized offshore company is the optimal corporate structure for many multinational corporations. Tahmidur Rahman Remura Wahid TRW Consultants is committed to assisting all of our clients in selecting the offshore company structure with the finest banking facilities, while ensuring that the firms remain compliant with international tax legislation.
What is an offshore company?
An offshore company is a legal entity that is registered outside of the nation in which your primary commercial operations are carried out.
For instance, if you reside in the United States and register a corporation in Singapore, this company is an offshore company. Numerous multinational corporations, like Google, Apple, and Starbucks, have created multiple offshore firms to promote worldwide trade and lower their tax liabilities.
Amazon is one of the most popular case studies in 2018. The corporation paid no federal taxes while earning $11.2 billion in profits in 2018.
Popular offshore company types that Offshore company from Bangladesh chooses:
There are three main types of offshore companies: traditional tax havens, legally tax-exempt jurisdictions and zero-tax Jurisdictions.
These three forms of offshore businesses allow you to conduct business legally while paying minimal taxes. In most instances, the time required for business creation is brief, and company numbers can typically be obtained within one week.
Typical fiscal haven for your Offshore company from Bangladesh :
International Business Companies (IBC) in the Cayman Islands, British Virgin Islands, Seychelles, and Belize remain popular despite their reputation as tax havens. This is because these countries exempt your enterprises from paying corporate income taxes.
Numerous businessmen have resorted to these tax havens throughout the years to suit their offshore needs.
In addition, corporations in the majority of these nations are not required to produce annual reports or reveal their directors and stockholders in a public register.
Despite possessing all of the qualities necessary to be the ideal offshore solution, the industry has observed a decline in the number of tax havens incorporating. By having no corporation tax rates and zero annual reporting obligations, these classic tax havens are unattractive to global banks.
For instance, it is now nearly impossible to have a BVI business with a bank account in Singapore. You will be unable to open accounts with reputed banks in Singapore, Hong Kong, or Switzerland due to stricter onboarding procedures, and your assets may be frozen.
In addition to the difficulty of creating business bank accounts, many conventional tax havens are now subject to new regulations for economic substance. They are now expected to enact legislative revisions to ensure that the necessary procedures to avoid tax abuse are in place. Failure to comply will result in an international blacklist or sanctions.
For instance, the EU announced the addition of the Cayman Islands and three additional jurisdictions to its list of non-cooperative tax jurisdictions. After being placed on the EU’s blacklist, Cayman Islands corporations will be subjected to a number of restrictions that will preclude them from accessing EU funds from the European Fund for Sustainable Development and the European Fund for Strategic Investments.
Tahmidur Rahman Remura Wahid TRW Consultants recommends that you explore these unfavorable trade-offs and alternative offshore alternatives, such as legally tax-exempt locations or zero-tax jurisdictions, before deciding where to register your next offshore company. Traditional tax havens are being regulated to prevent tax exploitation on the long term.
There has long been discussion as to whether Singapore or Hong Kong is the superior location for offshore company registration. In truth, both options are outstanding and offer numerous benefits, such as attractive tax advantages, world-class banking facilities, and a stable business environment. In both jurisdictions, there are no minimum share capital requirements.
A Singapore or Hong Kong offshore corporation will be legally exempt from taxes if it is constituted properly. A Singapore offshore corporation is exempt from corporate tax if it is controlled overseas, does not maintain a corporate bank account in Singapore, and only conducts business abroad. Learn more about company registration in Singapore.
A Hong Kong offshore corporation, on the other hand, is exempt from corporate tax so long as its operations are done outside. Learn more about company registration in Hong Kong.
Although these jurisdictions have no corporate tax, they are not considered tax havens since companies are subject to a high level of responsibility, due diligence, and reporting obligations. As a result, respectable global banks are unquestionably eager to conduct business in terms of opening corporate bank accounts and extending bank loans. In these jurisdictions, establishing offshore businesses is simple, and Tahmidur Rahman Remura Wahid TRW Consultants may register your legally tax-exempt firms within two working days.
Zero-tax jurisdictions for Offshore company from Bangladesh:
The United Arab Emirates is one of the most favored tax-free jurisdictions in the world (UAE). By establishing a Dubai offshore business, you will be exempt from paying corporation taxes, as there are no corporate taxes in Dubai. Consequently, you are permitted by law to avoid paying corporation taxes for your Dubai offshore company.
In addition, Dubai is not seen as a typical tax haven, and banks, customers, suppliers, and investors welcome the city.
Note, however, that Dubai offshore businesses are not permitted to conduct business within the UAE, nor are they permitted to have local staff or office space.
The trade-off for establishing a business in a tax-free country is higher company formation costs. In addition, your business activity will determine the share capital requirements that must be met. Tahmidur Rahman Remura Wahid TRW Consultants will recommend that you form a Dubai offshore company if the majority of your clients or suppliers are located in the Middle East or Africa. Otherwise, we will advise you to examine the tax-exempt alternatives stated previously.
How do offshore firms function for various kinds of businesses?
An offshore company solution should be adapted to each business’s unique requirements and long-term objectives. The most critical factor to examine for this offshore firm is its intended business activity. Tahmidur Rahman Remura Wahid TRW Consultants has selected the most common offshore business setup categories.
Importation and exportation for Offshore company from Bangladesh :
Import-export trading enterprises can register an offshore corporation in a separate jurisdiction to generate additional income. For instance, you can send invoices to clients and pay suppliers through the offshore firm. The supplier will ship the goods straight to the clients in exchange.
Thus, you will be able to minimize your engagement in the job process while reducing your company tax liabilities.
If your company imports and exports on a global scale, Tahmidur Rahman Remura Wahid TRW Consultants would advise you to explore establishing offshore firms in tax-free nations.
Investment opportunities for Offshore company from Bangladesh:
If you intend to invest in many countries, you may wish to register an offshore corporation. In some nations, the Central Bank and local government agencies enforce stringent foreign exchange controls. Before investors can transfer a limited amount of money out of the country, they must undergo various time-consuming procedures and documentation.
For many investors, the key to making a lucrative investment is the freedom to easily transfer funds. By establishing an offshore corporation and opening an offshore bank account, these investors, whose funds were previously locked and restricted, are now able to freely shift monies into and out of various assets in different nations.
As is common knowledge, investors make money through capital gains, which are subject to capital gains tax. In some jurisdictions, offshore corporations are exempt from capital gains tax, allowing investors to realize greater profits.
The term offshore holding company should be recognizable to the management of the majority of enterprises. A holding company is utilized to manage subsidiaries that are often located in multiple nations.
By establishing the holding company in an offshore jurisdiction, enterprises can take advantage of favorable tax treatment when transferring funds from a subsidiary to the holding company.
By selecting the most advantageous offshore business structure, the holding company is able to accumulate funds and reinvest them in additional subsidiaries without incurring any withholding taxes, corporate taxes, or capital gains taxes.
Individual holding company as a Offshore company from Bangladesh:
Individuals with a high net worth may establish a personal offshore holding corporation to hold their assets in many jurisdictions.
You will only need to hire a legal team and accounting team for this personal holding company, as opposed to hiring one in each country. As a result, you will be able to take advantage of reduced administrative fees.
In addition, the majority of offshore jurisdictions do not reveal shareholder and ultimate beneficial owner information. This helps the wealthy folks to conceal their wealth from the general public.
Property management firm:
Numerous investors register their assets with offshore corporations. This will allow you to reduce inheritance tax and capital gains. This is due to the fact that the property is owned by the firm, and if you desire to sell it, you can do so by transferring company shares.
How to establish an Offshore company from Bangladesh?
Our team of specialists will recommend the jurisdiction that best fits your long-term business objectives and operations. Incorporating a Hong Kong offshore company is the most typical option for a trading or holding company. Hong Kong business formation has minimum criteria and can be done in less than one week. You may also choose to consider Singapore or the United Kingdom.
Tahmidur Rahman Remura Wahid TRW Consultants will suggest the most effective business entity based on your organization’s structure. For example, you will form a non-resident limited liability corporation in Singapore. In contrast, you will register an International Business Company in Seychelles (IBC).
After a successful incorporation, the next step is to establish a corporate bank account. Tahmidur Rahman Remura Wahid TRW Consultants will recommend the best banks eager to work with your company. Banks will assess the location of your clients and suppliers, the nationalities of directors and shareholders, and the nature of your business activity, among other criteria. Some banks do not accept offshore holding corporations, while others do not accept offshore firms in general. Tahmidur Rahman Remura Wahid TRW Consultants has experience opening corporate bank accounts and will do so within five weeks.
The most crucial part of offshore business formation is maintaining compliance and conducting business legally. Tahmidur Rahman Remura Wahid TRW Consultants will remind you of annual reporting requirements and help you complete them in a timely manner.
Advantages of establishing an Offshore company from Bangladesh:
Fiscal optimisation:
The primary benefit of an offshore corporation is tax optimization. In some nations, individual and corporate income tax rates can be exceptionally high. As a result, businesspeople seek practical solutions to minimize their tax responsibilities rather than pay taxes equal to fifty percent of firm income.
Despite the media’s portrayal of offshore businesses as multi-layered structures used to fraudulently avoid taxes and launder money, this is not the case. An offshore company is a simple and practical way for businesses to legally decrease their domestic and international tax obligations. This will enable the corporation to reinvest additional capital and create greater earnings.
Tahmidur Rahman Remura Wahid TRW Consultants will assist you in structuring your offshore firm in accordance with your organization’s demands and long-term objectives, while adhering to international tax legislation.
International growth of business:
In certain nations, the company formation procedure is intricate and time-consuming. By establishing an offshore corporation and obtaining an offshore bank account, you will be able to conduct business worldwide. This is particularly applicable to internet enterprises, which have no need to store inventory or supplies in a warehouse. Moreover, creating an offshore business is quick and does not necessitate the fulfillment of numerous conditions.
For instance, it is difficult to move money out of Cambodia. A Cambodian entrepreneur may decide to form an offshore company in Singapore, open a corporate bank account in Hong Kong to pay Asian suppliers, and a second corporate bank account in Germany to accept payments from European clients. This permits his business to expand without being constrained by intricate domestic regulations.
Asset security:
In the unfortunate event that you are involved in a litigation or divorce, your fortune will be protected by an offshore holding company. The law will evaluate the offshore company’s assets independently. In the majority of litigation and divorces, you will be held personally accountable. By shifting these assets to the offshore holding company, they will become secure and inaccessible. Moreover, the majority of offshore jurisdictions let firm owners to remain anonymous and unsearchable in the public registry.
Individuals residing in politically insecure nations may decide to consider establishing an offshore holding company to safeguard their possessions. The economic markets are dynamic and rapidly fluctuating. By establishing a business in a separate jurisdiction that is subject to distinct market forces and regulations, you diversify your risk against rapid inflation, economic collapse, and political instability.
Reduce business expenses:
In most offshore jurisdictions, conducting business will result in cheaper operational expenses. Typically, the company registration package includes company registration, company secretary, registered address, and opening a corporate bank account. In certain instances, you may need nominee director or nominee shareholder services in addition to mail forwarding. Typically, these services are reasonably priced and can be offered by a single consulting firm, such as Tahmidur Rahman Remura Wahid TRW Consultants.
In contrast, highly regulated nations such as Indonesia and Thailand need the appointment of local directors and shareholders in addition to foreign investment licenses that may take months to approve. Therefore, establishing an offshore corporation for your foreign company establishment is unquestionably cost-effective.
Consider opening a merchant account for your offshore business to accept credit card payments from international customers for online businesses. In some nations, local banks may be incapable of providing this service.
You will also be able to open worldwide brokerage accounts to trade assets on international stock markets. This service may not be provided by all domestic banks. Negative aspects of establishing an offshore firm
Reputation for Offshore company from Bangladesh:
It is more difficult for traditional tax havens to open corporate bank accounts. The compliance staff of banks typically conducts increased due diligence inspections on businesses, delaying the account opening procedure. In addition, clients and suppliers are less inclined to collaborate with Belize International Business Companies (IBC) than a Singapore offshore business.
New standards for economic substance for offshore enterprises To prevent tax exploitation, global tax authorities are cracking down on traditional tax havens. Consequently, numerous offshore jurisdictions must incorporate extra economic substance.
For instance, as of January 1, 2020, all British Virgin Islands (BVI) corporations engaged in “relevant operations” must designate local active directors, rent local physical offices, and make yearly reports to the government. This is applicable to holding businesses, trading companies, investment management firms, shipping firms, and banking/insurance firms. Tahmidur Rahman Remura Wahid TRW Consultants advocates establishing offshore firms in more respectable jurisdictions, such as Singapore, Hong Kong, the United Kingdom, Ireland, Liechtenstein, or the United Arab Emirates.
FAQ for Offshore company from Bangladesh:
Can I establish an Offshore company from Bangladesh?
Yes, offshore corporations have grown in popularity during the past few years. This is because of the numerous benefits, including tax optimization, asset protection, worldwide business expansion, and access to international banking. Offshore corporations are appropriate for both individuals and enterprises.
How do Offshore company from Bangladesh operate?
A firm is considered offshore if it has minimal economic substance in the country in which it was formed. For instance, a Singapore limited liability corporation that conducts legitimate business operations outside of Singapore is termed offshore. If they limit their commerce to outside the borders of the jurisdiction in which they are incorporated, businessmen may be eligible for tax exemptions by registering offshore businesses.
Is it unlawful to maintain Offshore company from Bangladesh?
No, it is not prohibited to form an offshore corporation. According to media reports, several offshore firms are utilized for tax evasion, tax avoidance, and tax fraud. Tahmidur Rahman Remura Wahid TRW Consultants will advise all of our clients on their personal and business tax issues. This is to ensure compliance with your international tax obligations. Where is the greatest location for establishing an offshore company?
This ultimately depends on your company’s long-term commercial objectives. Our primary recommendation for the majority of business types has always been a Singapore or Hong Kong offshore corporation. By paying a little amount of corporate or withholding taxes, you can have access to superior banking services. If you are a tiny business with minimal money, a classic tax haven may be a better fit for you because there are no accounting, tax, or share capital requirements.
Contact us for more information about structuring your offshore corporation. Our team of specialists will respond within the next twenty-four hours.
Are you intending to set up a Offshore company from Bangladesh?
Get your Offshore company from Bangladesh set up with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to acquiring a Offshore company from Bangladesh. For queries or legal assistance, please reach us at:
How to get Factory Establishment License in Bangladesh
how to acquire factory establishment License In Bangladesh?
In this article, we will outline the process for obtaining factory and establishment licenses in Bangladesh, as well as the required documentation necessary for Factory Establishment License In Bangladesh.
Procedures for Factory Establishment License In Bangladesh:
According to the Factories Act and Rules, all factories and businesses must be registered with the government in Bangladesh. Factory Establishment Licenses are necessary for all factories in Bangladesh. Office districts of the Department of Inspection for Factory and Establishments (DIFE) are responsible for licensing, constructing, and expanding factories. It is an impartial government body tasked with evaluating the safety and welfare of factories and businesses in Bangladesh.
Additionally, the book provides factory-specific information and training about the integrity of representatives and Bangladeshi labor law standards. The government allows businesses to apply for licenses online. Labor Inspection Management Application (LIMA) enables the Department of Inspection of Factory Establishment License application process to be streamlined. Currently, candidates can easily apply for, monitor, and review licenses via the LIMA gateway.
The District offices of the Department of Inspection for factories and Establishments (DIFE) are responsible for the building, establishment, or extension of a factory, as well as the issuance or renewal of its license. It is an independent government agency responsible for health and safety inspections in Bangladeshi factories and businesses. In addition, it offers factories with information and training about the health of workers and the enforcement of labor laws in Bangladesh.
Application to Labor Inspection Management Application (LIMA) for Factory Establishment License In Bangladesh:
The government has implemented an online application tool for getting a business license. The Labor Inspection Management Application (LIMA) is a Department of Inspection of Factories and Establishments portal that greatly simplifies the application procedure. Applicants can now apply, administer, and monitor licenses using the LIMA portal.
At First, Visit the Labour Inspection Management Application website. From the primary menu, click “Forms” and then “Form 77.” (License Application)
Create an Account Username and Password
Then automatically log in to Lima Portal using the new user ID and password
Complete the application by providing the required information.
Include all essential attachments
Save or complete the application draft
Send in Your Application
The DIFE Licensing Authority then evaluates the application.
Depending on the industry type, the application is subsequently forwarded to DIG/IG.
DIG/IG will evaluate the submission and provide feedback
If necessary, the factory or establishment must be inspected and provide an inspection report.
If the Licensing Authority/DIG is satisfied after all evaluations and checks, a factory license will be issued.
After submitting an application, its status can be viewed at any time by logging into the User Account. The applicant receives an email as soon as the application is approved.
Prior to December 31 of each year, the manufacturing license must be renewed by paying the annual renewal cost. If an application for a factory building, extension, registration, or license is denied for any reason, the applicant has the right to appeal to the government within thirty days.
Methods for acquiring factory permits in Bangladesh:
Obtaining factory establishment licenses is not a simple process. If you wish to obtain our factory establishment license, you must adhere to the following steps:
Visit the Labor Inspection Management Application website initially.
Continue with “Structures” and then select “Structure 77” from the main menu (License Application)
Establish a Username and Password
Auto Login/Login to Lima Portal thereafter by providing the new User ID and Password
Top off the application framework with the presentation of vital data.
Install the required connectors
Save the draft or complete the application.
Display the Application
The application is thereafter examined by the DIFE Licensing Authority.
Depending on the industry, the application is then transmitted. DIG/IG DIG/IG will review and comment on the application.
If appropriate, Establishment will be investigated and provide an evaluation report on an assessment.
Under the assumption that the Licensing Authority/DIG has been satisfied, a factory license will be issued following all evaluations and checks.
Obtain a Factory License
Logging in to your User Account at any time following the submission of a use will allow you to view its progress. When the application is approved, the candidate receives an email. The manufacturing license must be reinstated by paying the annual recharging fee by December 31 of each year. In the event that an application for a factory building, expansion, registration, or license is denied, the applicant reserves the right to petition the government within 30 days after the denial. Contact us for assistance with industrial establishment licenses.
To obtain a factory establishment license,Tahmidur Rahman Remura Wahid TRW can provide the following services:
Different supporting documentation may be required based on the kind of Factory Establishment License In Bangladesh. The Tahmidur Rahman Remura Wahid TRW legal staff supports with the collection of supporting application documents, such as the NOC, Trade License/Incorporation Certificate, etc., and then prepares an application for a Factory License.
Legal professionals from Tahmidur Rahman Remura Wahid TRW can assist with drafting, gathering, and compiling the supporting documentation. Tahmidur Rahman Remura Wahid TRW also pays applicable government fees to the appropriate authority. Once the application has been submitted, the status of the application may be tracked, and if the Licensing authority requests additional evidence, the Tahmidur Rahman Remura Wahid TRW team can comply.
Factory Establishment License Acquisition with the help of Tahmidur Rahman Remura Wahid TRW Associates:
Factory establishment licensing support team may provide the following to obtain a factory establishment license:
Tahmidur Rahman Remura Wahid TRW has an outstanding and competent workforce that can continue gaining a factory establishment license. To apply for a manufacturing license, it is necessary to create an account on the LIMA website from the outset. Legal professionals can initiate the application process by creating an account on the LIMA online site. Supporting archives may be distinct depending on the type of Factory/Establishment.
Tahmidur Rahman Remrua TRW’s authorized group aids in assembling the application’s supporting documents, such as the NOC, Trade License/Incorporation Certificate, etc., and then prepares an application for a Factory License.
Tahmidur Rahman Remura Wahid TRW experts in genuine factory establishment licenses may assist with drafting, collecting, and organizing the supporting documentation. Tahmidur Rahman Remura Wahid TRW also makes required payments of government fees to the relevant authority. When the application is presented, the status of the application may be screened, and if the Licensing authority requests additional documents, the Tahmidur Rahman Remura Wahid TRW team can proceed with that as well. Conclusions Regarding the Bangladesh Tahmidur Rahman Remura TRW Factory Setup Service:
The expertise of the Tahmidur Rahman Remura TRW Corporate and Commercial Transaction practice team range from regular corporate matters to complicated and sophisticated business structuring and transactions.
Our clientele consists of both huge multinational corporations and small, privately held businesses. The firm serves clients in numerous industries and business divisions, such as energy, banking, health care, retail, solid waste, information services, food services and distribution, real estate, and non-profit organizations.
We manage factory establishment licenses, contracts, strategic partnerships and alliances, mergers and acquisitions, dispositions, restructurings, and turnarounds, among other business and commercial transactions. Special purpose entities, Real estate, Leasing of real estate and equipment, Licensing, and Corporate reporting.
Are you intending to get a Factory Establishment License In Bangladesh?
Get your Factory Establishment License 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 acquiring a Factory Establishment License In Bangladesh. For queries or legal assistance, please reach us at:
How to Obtain Licenses for Environmental Clearance in Bangladesh (Updated in 2025):
How to obtain an environment license in Bangladesh, the necessary paperwork, the time frame, and the cost are frequently asked by various entities and individuals. In accordance with the Bangladesh Environment Conservation Act of 1995 (as revised in 2010), no industrial organization may be established without a certificate of environmental clearance from the Department of Environment (DoE).
This article will discuss how to obtain an environmental license, the whole licensing application procedure, the required paperwork, and the time and expense involved.
To comprehend how to receive environmental clearance certifications in Bangladesh, one must follow to the Bangladesh Environmental Conservation Act of 1995. In this article, we will discuss the Bangladeshi legislation pertaining to environmental clearance certifications and outline the step-by-step process for acquiring such certificates.
As stipulated by the Bangladesh Environmental Conservation Act of 1995, for Environment Clearance License in Bangladesh, environmental approval is required for all forms of industries and projects.
No industrial enterprise may be established without a Department of the Environmental Clearance Certificate (ECC) (DOE). Regarding air, noise, water, odor, and other environmental quality criteria, the industry or project must meet all of the requirements stated by the government of Bangladesh.
Such regulations are in addition to those outlined in the Factories Act of 1965, which regulates the interior atmosphere of factories and enterprises.
For the purpose of the issuance of the Environmental Clearance Certificate in Bangladesh, industrial units and projects shall be listed in the following four categories or types, taking into account their location and environmental impact one need to find out as to how to obtain the environment clearance certificate, the following category shall shed lights on it.
GREEN
ORANGE A
ORANGE B
RED
Time Frame for the relevant categories:
S.L
Category
Site Clearance
Environmental Clearance
01.
Green
N/A
15 days
02.
Orange-A
30 days
15 days
03.
Orange-B
60 days
30 days
04.
Red
60 days
30 days
The Green group consists of projects and industries that have no negative impact on the environment. For this type of project, neither an Initial Environmental Evaluation (IEE) nor an Environmental Impact Assessment (EIA) is required.
The following documents are required for Green Category:
General details regarding the industrial unit or project. Detailed explanation of both the basic components and the final result. No objection certificate (NOC) issued by the local government.
ORANGE A CATEGORY
This category includes initiatives that generate trash that may have minor or severe environmental implications, but could be easily mitigated by taking the necessary steps.
Orange A, Category of Industrial Units Required Documents are as follows:
General details regarding the industrial unit or project.
Detailed explanation of both the basic components and the final result.
No objection certificate (NOC) issued by the local government.
A Process Flow chart
A Design Plan (location of Effluent Treatment Plant).
Effluent disposal system.
Other essential details (if required).
This category of projects and industries are ones that are anticipated to have negative environmental impacts that are not judged too severe and can be addressed without lingering negative effects. Mineral water, soft drinks, fish processing, etc. are examples.
The following documents are required for Orange B, Category of Industrial Units:
A report on the planned industrial unit or project’s feasibility study.
Environmental Impact Assessment (EIA) for the planned industrial unit or project.
the process flow diagram, the layout plan (indicating the location of the Effluent Treatment Plant), and the design.
A report on the environmental management plan (EMP) for the existing industrial facility or project.
No objection certificate (NOC) issued by the local government.
Relocation and rehabilitation plan outline.
A contingency plan for pollution reduction and negative environmental impact.
Other essential details (if required).
In the Red Category
This category includes initiatives and industries that have the potential to have a large negative impact on the environment and must be properly managed or monitored.
The following documents are required for the Red Category of Industrial Units:
A report on the planned industrial unit or project’s feasibility study.
Environmental Impact Assessment (EIA) for the planned industrial unit or project.
Design of the process flow diagram and layout plan (indicating the location of the Effluent Treatment Plant).
A report on the environmental management plan (EMP) for the existing industrial facility or project.
A report on the environmental impact of the planned industrial unit or project.
No objection certificate (NOC) issued by the local government.
Relocation and rehabilitation plan outline.
A contingency plan for pollution reduction and negative environmental impact.
Procedure for obtaining environment clearance certificate:
Step 1 | Complete the Prescribed Form for Environment Clearance License in Bangladesh
Different industries and manufacturers must determine which category they come under in order to determine which form must be filled out.
Step 2 | Organize the Files
The forms that correspond to your category will include a list of the papers that must be submitted with the application. It is preferable to retain a company attorney in Bangladesh who is up-to-date on the ever-changing document arrangement hierarchy.
Step 3 | Submit application and supplemental materials to the Department of the Environment (DOE).
The application can be submitted upon payment of the registration costs listed below.
Step 4 | Department of Energy Verification of Application and Supporting Documents
Upon submission of the Documents, the DOE must verify them; this may take some time; at this stage of the process, it is essential to maintain communication with the Department of Environment.
Step 5 | After verifying all documentation, an Inspection Officer from the department will conduct additional inspections.
Environmental Clearance Committee will hold a meeting at this stage (only for Orange-B and Red Category).
Step 7 | The authority will make a decision at the meeting.
Step 8 | If DOE is satisfied after completing the preceding stages, it will issue an environmental clearance certificate.
Government Fees for Obtaining a Certificate of Environmental Clearance
Government fees are calculated in accordance with the total project investment. For example, if the project costs between BDT 1 and BDT 50 billion, the projected charge will range between BDT 1,500 and BDT 50,000. If it exceeds 50 billion, the anticipated fee will be BDT 100,000.
Following submission, the average processing period for the issuance of an environmental clearance license is between one and five months.
Renewal of Environment Clearance License in Bangladesh:
The validity time for Green Category Environmental Clearance Certificates shall be three years from the date of issuance, whereas the validity period for Orange A, Orange B, and Red certificates shall be one year. Each Environmental Clearance Certificate must be renewed at least 30 days prior to its expiration date.
To comprehend how to receive environmental clearance certifications in Bangladesh, one must follow to the Bangladesh Environmental Conservation Act of 1995. In this article, we will discuss the Bangladeshi legislation pertaining to environmental clearance certifications and outline the step-by-step process for acquiring such certificates.
Government Fee Schedule for Environment Clearance License in Bangladesh:
The Government fee for filling an application for Environment clearance certificate and its renewal under these Rules shall be deposited with the Bangladesh Bank or a Government Treasury by a Treasury Chalan. Furthermore, Treasury Chalan shall be deposited in favour of the Director General of Department of Environment account being No. 1 – 4541 – 0000 – 2681.
Fee Schedule
S.L
Investment Amount (BDT.)
Environment Clearance Fee.
Renewal Fee.
01.
01 (One) Lac to 5 (Five) Lac
1500
¼ of the Environment Clearance Fee.
02.
5 (Five) Lac to 10 (Ten) Lac
3,000
¼ of the Environment Clearance Fee.
03.
10 (Ten) Lac to 50 (Fifty) Lac
5,000
¼ of the Environment Clearance Fee.
04.
50 (Fifty) Lac to 01 (One)Crore
10,000
¼ of the Environment Clearance Fee.
05.
01 (One) Crore to 05 (Five) Crore
20,000
¼ of the Environment Clearance Fee.
06.
05 (Five) Crore to 20 (Twenty) Crore
40,000
¼ of the Environment Clearance Fee.
07.
20 (Twenty) Crore to 50 (Fifty) Crore
80,000
¼ of the Environment Clearance Fee.
08.
50 (Fifty) Crore to 100 (One Hundred) Crore
1,20,000
¼ of the Environment Clearance Fee.
09.
100 (One Hundred) Crore to 200 (Two Hundred) Crore
2,00,000
¼ of the Environment Clearance Fee.
10.
200 (Two Hundred) Crore to 500 (Five Hundred) Crore
3,00,000
¼ of the Environment Clearance Fee.
11.
500 (Five Hundred) Crore to 1000 (One Thousand) Crore
4,00,000
¼ of the Environment Clearance Fee.
12.
1000 (One Thousand) Crore to Above
5,00,000
¼ of the Environment Clearance Fee.
Government Fee Schedule for Environment Clearance License in Bangladesh:
Are you intending to get a Environment Clearance License in Bangladesh?
Get your Environment Clearance License 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 acquiring a Environment Clearance License in Bangladesh. For queries or legal assistance, please reach us at:
