Holding and Subsidiary Companies in Bangladesh in 2023 – Everything you need to know

Holding and Subsidiary Companies in Bangladesh in 2023 – Everything you need to know

Holding and Subsidiary Companies in Bangladesh – Everything you need to know in 2023

Barrister Tahmidur Rahman
Director, The Law Firm in Bangladesh

24 Jan 2022

This article will explain in details about Holding and Subsidiary Companies in Bangladesh and how can you start your business in Bangladesh.

 

Types of Companies in Bangladesh

There are six ways of doing business in Bangladesh:

In general, these are the six types of business entities can be found in Bangladesh

In simplest way: How you can incorporate Holding and Subsidiary Companies in Bangladesh

Holding and Subsidiary Companies in Bangladesh

When a company has control over another company and it holds the majority of the shares of another company, it is known as a holding company. And the company which is controlled by the first mentioned the company is known as a subsidiary company. Under the provision of Companies Act, 1994,

“a company shall be deemed to be the holding company of another if and only if that other is its subsidiary.”

So, the following characteristics of a holding company may be found-

  • It has the controlling power over another company;
  • It holds more than 50% shares of that other company;
  • It has more than 50% voting power;
  • The holding company is directly of indirectly empowered to
  • appoint directors of that other company.

Subsidiary company:

On satisfying any or more of the following conditions, a company shall be deemed to be a subsidiary company:

(1) Controlling the composition of board of directors:

If the composition of board of directors of a company is controlled byanother company, then the company whose board of directors is controlledshall be deemed to be a subsidiary company. [sec. 2 (2) (a)]

The composition of board of directors is said to be controlled when any director of the subsidiary company is removed or appointed by the parent company without the consent of any other person of the said subsidiary Company.

Holding And Subsidiary Companies In Bangladesh_Best Law Firm In Bangladesh

(2) Controlling voting securities:

A company shall be a subsidiary of another company if more than 50% of the voting securities are directly or in directly controlled, held or owned or managed in any other ways by another (holding) company.

(3) Subsidiary of another subsidiary company:

A company shall also be deemed to be a subsidiary of another company if it is a subsidiary of any company which is that other company’s subsidiary.

For Example: Company B is a subsidiary of company A, and company C is a subsidiary of company B. So, company C is a subsidiary of company ‘A’ also. If company ‘D’ is a subsidiary, then ‘D’ will be regarded as subsidiary of company ‘B’ also, and consequently of company ‘A’ also.

Other Companies alongside Holding and Subsidiary Companies in Bangladesh in Bangladesh:

(a) Existing Company:

Existing company indicates the company formed and registered at or before the commencement of the Companies Act, 1994. Before passing this Act, the companies were regulated under the Companies Act, 1913 .

However, under the provision of present Companies Act, 1994 “Existing Company” means a company formed and registered under any law relating to companies in force at any time before the commencement of this Act, and is in operation after commencement of this Act. 

(b) Foreign Company:

Generally, a foreign company is a company which is incorporated outside Bangladesh. But under section 378, a foreign company may include company incorporated outside Bangladesh, but has an established place of business in Bangladesh.

Holding And Subsidiary Companies In Bangladesh_Best Law Firm In Bd

Setting up a Subsidiary Company in Bangladesh

 

In the event that you go it alone and establish a Bangladesh subsidiary, you’ll need to think carefully about the best organizational structure and geographical location for your business. Private Limited Company is the most common business structure because it shields the parent company from legal responsibility for the actions of its subsidiaries.

Once a building type has been selected, a site must be selected. Countries, states, or even counties can have their own sets of rules and norms by which they conduct business. Consider these criteria as you make your final decision on a suitable location for your company.

The following are the stages of establishing a Holding and Subsidiary Companies in Bangladesh:

  • The Registrar of Joint Stock Companies and Firms website allows you to check your name and print a clearance certificate.
  • Getting Your Company’s Articles of Incorporation and Memorandum of Incorporation
  • To obtain encashment certificates and finalize your registration, you must first open a bank account in Bangladesh.
  • Since the banking system in Bangladesh wasn’t built to handle international business transactions, companies there often face difficulties when trying to do business there. Acquiring encashment certificates is a necessary step in the registration process because they serve as evidence that foreign currency was converted to Bangladeshi Taka. In a stroke of good fortune for expanding businesses, Bangladesh is currently modernizing its banking systems.
Partnership Business In Bangladesh_Best Law Firm In Bangladesh_Barrister Tahmidur Rahman

If you want to open a liaison office in Bangladesh or about branch formation click here!

“Tahmidur Rahman – The Law Firm in Bangladesh is considered as one of the leading corporate firms in Dhaka, Bangladesh”

BDLaw Firms Bangladesh

What are some alternative ways to set up a company in Bangladesh?

Branch Office:

A branch  is not a separate incorporated entity, but rather an extension of its parent company. In other words, the parent company is liable for the liabilities of its branches. 

With Bangladesh Investment Development Authority’s (BIDA) approval, a branch can engage in commercial activities. The Exchange Control Guidelines, on the other hand, strictly monitor its operation.
In Bangladesh, the average time to open a branch officis 45- 60 days.

Liason Office:

A liaison, also known as a representative office, is subject to BIDA approval  similarly as a branch.

It must have an overseas parent company, and its activities are limited because it only serves as a communication or coordination instrument for Bangladesh’s business resources.

Also, keep in mind that a liaison office in Bangladesh cannot earn any local income. Through remittance, the parent company bears all of its expenses and operational cost. It also adheres to the general business registration procedure in Bangladesh.

 

Foreign Investment In Bangladedsh

“To start a private limited company in Bangladesh, you will need to open a temporary bank account in the proposed company name with any scheduled bank in Bangladesh.

 This stage is solely applicable if the proposed company has foreign shareholding.”

 -Meheruba Mahbub

Are you planning to register a private limited company in Bangladesh?

Company formation and registration at Tahmidur Rahman Remura: TLS: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh Remura: TLS, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company in Bangladesh . For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

 

FAQ

How much money is required for company registration in Bangladesh?

The governmental fees for registering a company are determined by the amount of authorized capital. Government fees for the issuance of an Incorporation Certificate shall be BDT 1000.

How long does it take to register a company in Bangladesh?

Once the aforementioned formalities have been completed, RJSC will usually issue the certificate of incorporation (Company registration certificate) within 6-8 working days.

It usually takes 2-3 weeks from the date of submission of all documents to RJSC to register a company.

What is BIDA?

Bangladesh Investment Development Authority (BIDA) is in charge of facilitating foreign investments in the country.

BIDA's responsibilities include issuing work permits for foreign employees, visas for foreign investors, processing loans from foreign sources, approving remittance of royalties and technical fees, assisting in the acquisition of industrial plots, facilitating utility connections, approving foreign loans, suppliers credit, and providing assistance and advice on a variety of investment-related issues.

Foreign investors with industrial projects are strongly advised to register with BIDA after forming their limited company. However, there is no requirement for a commercial or trading company to register with BIDA. The average time frame for obtaining registration is 7-10 working days.

What documents are needed to set up a private limited company in Bangladesh?

1. Memorandum of Association
2. Article of Association
3. Certificate of Incorporation
4. Trade License
5. TIN
6. VAT Registration Certificate
7. Name Clearance
8. Environmental Clearance Certificate
9. Fire Certificate

What is the minimum capital required for a private limited company in Bangladesh?

In Bangladesh, there is no minimum or maximum authorised capital for a local company.

However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50,000/- must be invested in the Company.

Can a single person start a company in Bangladesh?

 Bangladesh does not allow a single person to open a private limited company or One Person Company (OPC).

A private limited company must have at least two shareholders. In the case of a public limited company, however, the total number of shareholders required is seven.

Can a private limited company have one director in Bangladesh?

A private limited company must have at least two directors. Local or foreign nationals may serve as directors.

Directors must be at least 18 years old and have never been bankrupt or convicted of a crime. A director is required by law to own the qualification shares specified in the Articles of Association.

What is the difference between authorised capital and paid-up capital?

- Authorised capital: The amount of authorised capital must be specified in the Memorandum of Association and Articles of Association. It is the maximum amount of share capital that a company may allocate to shareholders.  

In Bangladesh, there is no minimum or maximum authorised capital for a local company. However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50000/- must be invested in the Company.

-Paid-Up Capital : The minimum paid-up capital for registering a Bangladeshi company is Taka 1 (for local companies) and USD 50000 (for foreign companies).

Infographics
How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
Video Tutorial
Author’s Bio
About Meheruba Mahbub | One of the most innovative young lawyers in Bangladesh

Meheruba Mahbub is a finance partner and one of the Bangladesh's market leading international lawyers. She is head of the firm's Mergers and Acquisitions practice, which advises corporates and financial institutions on outbound and inbound investments, projects and financings.

Meheruba has a diverse finance practice , representing large banks, financial sponsors, and corporations. She specializes in acquisition and structured financings, loan portfolio purchase and financing, real estate financings, and inbound and outbound transactions. She has extensive expertise in the energy and infrastructure industries.
Work highlights

Meheruba has acted on many high-profile Finance and Commercial deals in Bangladesh and India. These include advising:

⦾ Standard Chartered Bank on the sale of a portfolio of loans in Bangladesh, the first in a series of similar deals in Bangladesh as part of the government’s directive to banks to focus on the robustness of their balance sheets.

⦾ the lending and underwriting banks on the refinancing of US$6.9bn worth of debt uninsured by the Summit Group

⦾ Brookfield Property Partners on the acquisition and financing of Unitech’s real estate portfolio

⦾ Enron on the US$3bn Dhabol power project (since renamed Ratnagiri Gas and Power), the first ever inward investment into the power sector

⦾ the sponsor and borrowers on the Sakhalin LNG project, the world’s largest integrated oil and gas project and the largest LNG financing in Russia

Email: [email protected]

Address: 2 Turner Street, Canning Town, E16 1FH, United Kingdom

Gender: Female

Job Title: Barrister and Senior Associate

Have a Different Question?

Email us anytime : [email protected]

Or call — +8801847220062 or +8801779127165

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Proprietorship Business in Bangladesh

Proprietorship Business in Bangladesh

Proprietorship business in Bangladesh in 2023- Everything you need to know

Barrister Remura Mahbub
Director, The Law Firm in Bangladesh

24 Jan 2022

This article will explain in details about Proprietorship Business in Bangladesh and how can you start your business in Bangladesh.

 

Types of Companies in Bangladesh

There are five ways of doing business in Bangladesh:

In general, these five types of business entities can be found in Bangladesh. Around 65 percent of businesses are run on a sole proprietorship basis. A proprietorship business can be started by a single entrepreneur. Small and medium-sized businesses typically opt for sole proprietorship.

    In simplest way: How you can incorporate a Proprietorship in Bangladesh

    In short for you: The following steps outline how to start a sole proprietorship business:

    1. First, you have to select a name for Your Business in Bangladesh
    2. You have to rent a commercial space to begin your business.
    3. Fill out an application for a trade license from your local city corporation/union, etc.
    4. Apply for and obtain a business license
    5. Complete an application for an e-tin certificate
    6. Open a bank account in the company’s name.

    That’s all you need! Once you are done with these simple formalities, you will have a legal Proprietorship business under your ownership.

    You can still stick around here for more information on this matter! We are glad you are doing so!

    Now some key facts about Sole Proprietorship

     

    • In Bangladesh, a sole proprietorship does not constitute a separate legal entity and thus is not distinct from the owner/ proprietor.
    • The owner of the business is personally liable for all liabilities incurred during the course of the business.
    • A sole proprietorship is open to any Bangladeshi citizen over the age of 18.
    • As the sole proprietorship’s business address, a local commercial address must be provided.
    • Profits from a sole proprietorship are treated as income of the individual who owns the entity, and thus are taxed at the same rate as personal income.
    • Because a sole proprietorship in Bangladesh is not a legal entity, it cannot register another business firm.
    • Sole proprietorships are exempt from auditing their accounts because any profits are taxed as personal income.
    • The most basic requirement for a proprietorship is a trade license.
      The Trade License must be renewed annually.

     

    Proprietorship Business In Bangladesh_Best Law Firm In Bangladesh_Tahmidur Rahman Best Law Firm In Dhaka

    CONSIDERATIONS FOR FOREIGNERS in regards to

    Proprietorship Business in Bangladesh:

    Practically speaking, a sole proprietorship is unavailable to foreigners. Foreign business professionals should instead create a limited liability firm. Consult the company registration in Bangladesh guide for more information on limited liability firms.

    Sole Proprietorship Business in Bangladesh

    If you are thinking of having a proprietorship business in Bangladesh, you are not the only one.

    The easiest and quickest way to start a one-owner firm is through a sole proprietorship. When you begin performing business, sole proprietorship commences.

    It does not need the filing of government or state forms and imposes little regulatory requirements, making it a perfect starting point for self-employed individuals.

    The absence of a separate legal entity distinguishes a sole proprietorship from a company, be it public or private. The owner of a sole proprietorship is therefore not free from liabilities incurred by the business.

    For instance, the debts of a sole proprietorship are also the owner’s debts. However, the gains of a sole proprietorship are also the owner’s profits, as all profits pass directly to the sole proprietor.

    Approximately 65 percent of enterprises are operated as sole proprietorships. A sole owner can establish a sole proprietorship. Small and medium-sized businesses typically operate as sole proprietorships.

    First get a trade license to start your proprietorship Business

    A Trades License must be obtained from the local authority, which could be the City Corporation Office, Municipality Office, Upozila council and Union Council, or the respective Govt. authority, if a proprietorship business is to be established.

    To receive a Trade License, one must choose a suitable name for their Proprietorship business, submit the required paperwork, and pay the applicable government fees (for the type of business) to the Trade License granting authorities.

    A Trade License is issued by the authority following a review of all applicable documentation and a mandatory field inquiry.

    Following issues are considered by the authority:

    • The proprietorship’s name – Name of the proprietor
    • Such enterprises like Export, Import, Supplier, etc.
    • Business Address
    • Address, Date of Birth, and Name of Parents
    • Owner’s Identification Cards copy
    • Photograph of the owner Registered business address VAT chalan copy of the company license Office rental deed
    • Fill up Trade license form with the Owner’s signature

     

    Proprietorship Business In Bangladesh_Best Law Firm In Dhaka

    Liability of a Proprietorship Business in Bangladesh:

    A sole proprietorship is not a separate legal entity. The owner is responsible for all business outcomes.

    Taxation in Proprietorship Business in Bangladesh:

    The proprietor will be required to pay the tax on his personal income from the business.

    Maintenance & Operation in Proprietorship Business in Bangladesh:

    • The running expenses of a proprietorship are quite cheap.
    • Annual preparation of a profit & loss statement and audit report is not necessary.
    • The only individual who makes business decisions is the owner.

    Additional necessary approvals and documents for Proprietorship Business in Bangladesh:

    After obtaining a Trade License for a sole proprietorship, a Taxpayer Identification Number (TIN) certificate is required to create a bank account (business account) in order to conduct commercial transactions.

    Currently, most businesses incorporate VAT (Value Added Tax). To deduct VAT, a VAT Registration Certificate must be collected. To operate a business and deduct AIT (Advance Income Tax) at the source, a TIN is required.

    If a proprietor desires to engage in international or multinational company, he or she must possess an Export Registration Certificate or an Import Registration Certificate. Bangladesh is now one of the world’s largest exporters of ready-made clothes, jute, frozen foods, leather goods, and potatoes.

    In Bangladesh, a significant number of proprietorships, partnerships, and limited liability companies are interested in engaging in international commerce or export and import operations. In Bangladesh, when two or more entrepreneurs wish to start a firm, they must either form a Limited Company or a Partnership Firm.

    Proprietorship Business In Bangladesh_Top Law Firm In Dhaka_Tahmidur Rahman Remura

    Proprietorship Business in Bangladesh and its benefits:

    • It is the most convenient and inexpensive business structure to establish.
    • As a sole owner, you have complete authority over all aspects of the firm, including decision-making.
    • There is no profit sharing: All income earned by the business is accounted for.
    • The termination of a single proprietorship is simpler, quicker, and less expensive than that of other company structures.
    • Least compliance requirements: You are exempt from filing annual tax returns and are simply required to renew your membership annually.

    SOLE PROPRIETORSHIP BUSINESS IN BANGLADESH’s DISADVANTAGES:

    • No independent legal entity: You cannot exist without your business. This renders you financially and legally accountable for all corporate obligations and legal proceedings.
    • Creditors may sue you for debts committed and may also get a court order to seize your personal assets, such as your property.
    • No tax benefits or incentives for corporations: Taxes are assessed based on your personal income tax rate, and you do not receive the particular tax benefits provided to a limited liability business.
    • Your personal finances and the business’s income are the only sources of capital.
    • Thus, corporate expansion is restricted and challenging.
    • There is no perpetual succession, as you and your business are one and the same. However, after the death of the proprietor, the successor is permitted to continue the firm under the same name.
    • Nobody would be prepared to lend you huge sums of money due to this entity’s poor public impression, which makes it the least desirable for serious businesses.
    • It is also challenging to attract high-caliber staff or senior-level executives, who typically want a more advanced business structure, such as a limited liability corporation.
    • Sale or transfer of all or part of a business: You can only transfer a business by selling its assets.
    How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Dhaka

    If you want to open a liaison office in Bangladesh or about branch formation click here!

    “Tahmidur Rahman – The Law Firm in Bangladesh is considered as one of the leading corporate firms in Dhaka, Bangladesh”

    BDLaw Firms Bangladesh

    What are some alternative ways to set up a company in Bangladesh?

    Branch Office:

    A branch  is not a separate incorporated entity, but rather an extension of its parent company. In other words, the parent company is liable for the liabilities of its branches. 

    With Bangladesh Investment Development Authority’s (BIDA) approval, a branch can engage in commercial activities. The Exchange Control Guidelines, on the other hand, strictly monitor its operation.
    In Bangladesh, the average time to open a branch officis 45- 60 days.

    Liason Office:

    A liaison, also known as a representative office, is subject to BIDA approval  similarly as a branch.

    It must have an overseas parent company, and its activities are limited because it only serves as a communication or coordination instrument for Bangladesh’s business resources.

    Also, keep in mind that a liaison office in Bangladesh cannot earn any local income. Through remittance, the parent company bears all of its expenses and operational cost. It also adheres to the general business registration procedure in Bangladesh.

     

    How To Register A Private Limited Company In Bangladesh Infographics Remura: Tls: Tls Mahbub

    “To start a private limited company in Bangladesh, you will need to open a temporary bank account in the proposed company name with any scheduled bank in Bangladesh.

     This stage is solely applicable if the proposed company has foreign shareholding.”

     -Meheruba Mahbub

    Are you planning to register a private limited company in Bangladesh?

    Company formation and registration at Tahmidur Rahman Remura: TLS: The Law Firm in Bangladesh:

    The legal team of Tahmidur Rahman, The Law Firm in Bangladesh Remura: TLS The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company in Bangladesh . For queries or legal assistance, please reach us at:

    E-mail: [email protected]
    Phone: +8801847220062 or +8801779127165

    Address: House 410, Road 29, Mohakhali DOHS

     

    FAQ

    How much money is required for company registration in Bangladesh?

    The governmental fees for registering a company are determined by the amount of authorized capital. Government fees for the issuance of an Incorporation Certificate shall be BDT 1000.

    How long does it take to register a company in Bangladesh?

    Once the aforementioned formalities have been completed, RJSC will usually issue the certificate of incorporation (Company registration certificate) within 6-8 working days.

    It usually takes 2-3 weeks from the date of submission of all documents to RJSC to register a company.

    What is BIDA?

    Bangladesh Investment Development Authority (BIDA) is in charge of facilitating foreign investments in the country.

    BIDA's responsibilities include issuing work permits for foreign employees, visas for foreign investors, processing loans from foreign sources, approving remittance of royalties and technical fees, assisting in the acquisition of industrial plots, facilitating utility connections, approving foreign loans, suppliers credit, and providing assistance and advice on a variety of investment-related issues.

    Foreign investors with industrial projects are strongly advised to register with BIDA after forming their limited company. However, there is no requirement for a commercial or trading company to register with BIDA. The average time frame for obtaining registration is 7-10 working days.

    What documents are needed to set up a private limited company in Bangladesh?

    1. Memorandum of Association
    2. Article of Association
    3. Certificate of Incorporation
    4. Trade License
    5. TIN
    6. VAT Registration Certificate
    7. Name Clearance
    8. Environmental Clearance Certificate
    9. Fire Certificate

    What is the minimum capital required for a private limited company in Bangladesh?

    In Bangladesh, there is no minimum or maximum authorised capital for a local company.

    However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50,000/- must be invested in the Company.

    Can a single person start a company in Bangladesh?

     Bangladesh does not allow a single person to open a private limited company or One Person Company (OPC).

    A private limited company must have at least two shareholders. In the case of a public limited company, however, the total number of shareholders required is seven.

    Can a private limited company have one director in Bangladesh?

    A private limited company must have at least two directors. Local or foreign nationals may serve as directors.

    Directors must be at least 18 years old and have never been bankrupt or convicted of a crime. A director is required by law to own the qualification shares specified in the Articles of Association.

    What is the difference between authorised capital and paid-up capital?

    - Authorised capital: The amount of authorised capital must be specified in the Memorandum of Association and Articles of Association. It is the maximum amount of share capital that a company may allocate to shareholders.  

    In Bangladesh, there is no minimum or maximum authorised capital for a local company. However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50000/- must be invested in the Company.

    -Paid-Up Capital : The minimum paid-up capital for registering a Bangladeshi company is Taka 1 (for local companies) and USD 50000 (for foreign companies).

    Infographics
    How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
    Video Tutorial
    Author’s Bio
    About Meheruba Mahbub | One of the most innovative young lawyers in Bangladesh

    Meheruba Mahbub is a finance partner and one of the Bangladesh's market leading international lawyers. She is head of the firm's Mergers and Acquisitions practice, which advises corporates and financial institutions on outbound and inbound investments, projects and financings.

    Meheruba has a diverse finance practice , representing large banks, financial sponsors, and corporations. She specializes in acquisition and structured financings, loan portfolio purchase and financing, real estate financings, and inbound and outbound transactions. She has extensive expertise in the energy and infrastructure industries.
    Work highlights

    Meheruba has acted on many high-profile Finance and Commercial deals in Bangladesh and India. These include advising:

    ⦾ Standard Chartered Bank on the sale of a portfolio of loans in Bangladesh, the first in a series of similar deals in Bangladesh as part of the government’s directive to banks to focus on the robustness of their balance sheets.

    ⦾ the lending and underwriting banks on the refinancing of US$6.9bn worth of debt uninsured by the Summit Group

    ⦾ Brookfield Property Partners on the acquisition and financing of Unitech’s real estate portfolio

    ⦾ Enron on the US$3bn Dhabol power project (since renamed Ratnagiri Gas and Power), the first ever inward investment into the power sector

    ⦾ the sponsor and borrowers on the Sakhalin LNG project, the world’s largest integrated oil and gas project and the largest LNG financing in Russia

    Email: [email protected]

    Address: 2 Turner Street, Canning Town, E16 1FH, United Kingdom

    Gender: Female

    Job Title: Barrister and Senior Associate

    Have a Different Question?

    Email us anytime : [email protected]

    Or call — +8801847220062 or +8801779127165

    Pi Visa For Foreign Investor In Bangladesh

    PI Visa for foreign investor in Bangladesh

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    How To Form An Association In Bangladesh

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    F-1 Student Visa From Bangladesh

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    Company Share in Bangladesh- Everything you need to know in 2023

    Company Share in Bangladesh- Everything you need to know in 2023

    TR Law Firm in Bangladesh

    Company Share in Bangladesh

    Barrister Tahmidur Rahman Lawfirm

    24 Jan 2022

    This article will explain in details about company shares in Bangladesh, Share capital, Share issued in discount and everything you need to know about shares of a comapny in Bangladesh.

    Shares of Company in Bangladesh

    Before we talk about shares of a company in Bangladesh. There are five ways of doing business in Bangladesh:

     

    A company share in Bangladesh is a movable property transferable as per provisions of the articles. There is no exhaustive definition of a share in the Act.’ A share is the interest of a shareholder in the company measured by a sum of money, for the purpose of liability in the first place, and of interest in the second, but also consisting of a series of mutual covenants entered into by all the shareholders inter se in accordance with section.

     

    A company share in Bangladesh is a type of contractual claim against a company. It is an example of intangible property called a ‘chose in action’ or “Thing in action’. Professor R Pennington discusses the difficulty of defining shares and concludes that they are a species of intangible movable property which comprises a collection of rights and obligations relating to an interest in a company of an economic and proprietary character, but not constituting a debt.

      Legal and Equitable Actions in company share in Bangladesh

      In English law there are two kinds of chose in action; (i) legal choses in action (being claims enforceable at common law) and (ii) equitable choses in action (Being claims enforceable in equity). Because a company share in Bangladesh is a creature of statute, it is a legal rather than an equitable chose in action.  In that respect it differs from a share in a partnership, which is an equitable chose in action because, historically, the interest of a partner has been enforceable in equity and not at law.

       

      A share in a company also differs from a share in a partnership in terms of transferability of membership. In companies listed on the Stock Exchange a share can be freely sold and transferred. In unlisted companies there can be restrictions on transfer. The transferee becomes a member of the company in substitution of the transferor. A person who buys the share of a partner, however, acquires an interest but does not become a partner; the vendor becomes a trustee for him of the interest agreed to be sold.

       

      A transfer of a share as a legal chose in action differs from transfer of a debt as a legal chose in action. A creditor can transfer the legal ownership of a debt by a two sided written assignment between a transferor and transferee with written notice to the debtor, but without needing his consent. Of course, the debtor cannot transfer the liability without the consent of the creditor. 

      But to transfer the legal ownership of a company share in Bangladesh, a change in the company’s share register is needed. That means there is a three-sided novation (the substitution of a new contract in place of an old one) rather than a two-sided assignment. Hence, liability attached to a partly paid-up share can be transferred although the transferor can remain liable if the company commences to wind up within one year from the transfer.

       

      The rights making up a share are not separate pieces of property. If a company share in Bangladesh had carried only financial rights it might have been considered divisible; but a share carries rights of membership and the whole scheme of the company law does not admit of membership referable to a fraction of a share. Hence, a company cannot allot fractional shares.

       

      Nor can a shareholder divide an allotted share so as to assign only some of the set of rights, such as the right to be paid dividends. If a member wishes to dispose of only part of the benefits of a share, that can be done behind the screen of a trust.

       

      The member could create a trust of the share so that the trustee would be bound to account to one beneficiary for, say, dividends only and to account to another beneficiary for other benefits. A share as an item of property differs from physical subjects of ownership such as land in that its characteristics are fixed, not by nature, but by whatever is put into the contract between company and shareholder.

       

      In a company, the rights attached to company share in Bangladesh may be so framed that the shareholder is restricted (for example, as to transfer of the shares) and those restrictions will apply to anybody who becomes owner of the shares. In other words, in a share the restrictions can go to defining the property itself instead of being something external that is imposed in respect of a pre-existing item of property.

      Company Share In Bangladesh_ Top Law Firm In Bangladesh_Barrister Tahmidur Rahman Remura 2022

      If you want to know about Share Transfer Process in Bangladesh

      • Step by Step Process of transferring shar in Bangladesh

      Share Capital or Authorised Capital in Bangladesh

      The word “capital” used in connection with a company has several different meanings. It may mean the nominal or authorised share capital, the issued share capital, or the paid-up share capital of the company.

       

      The nominal or authorised capital is merely the amount of share capital which the company is authorised to issue. In the case of a limited company the amount of potential share capital with which it proposes to be registered, and the division thereof into shares of a fixed amount, must be set out in the memorandum of association. This as well as the paid-up amount may be increased or reduced.

       

      The amount of the company’s nominal capital depends on its business requirements, actual or potential. At the time of registration of the company the promoters will have to pay fees and stamp based on the amount of the nominal capital.

       

      The issued or allotted capital is that part of the company’s nominal capital which has been issued to the shareholders. The company is not bound to issue all its capital at once.

      Further issues of capital are made as they are needed (please find the details in section 155 of the Act).

      The paid-up capital is that part of the issued capital which has been paid-up by the shareholders. The company may, for example, have a nominal capital of Tk 500,000 divided into 500,000 shares of Tk One each, of which Tk 400,000 is issued, i.e., 400,000 of the shares have been issued and only Tk 100,000 is paid-up, i.e., the company has so far required only 25p. to be paid-up on each share. The uncalled capital is the remainder of the issued capital and can be called up at any time by the company from the shareholders in accordance with the provisions of the articles.  

      The paid-up capital of the company includes the value of the shares paid-up and any premium on such shares although the share premium will be shown as share premium account in the balance sheet.

      The Securities and Exchange Commission has to be satisfied before company share in Bangladesh can be issued at a premium as to the justification for it.

      Company Share In Bangladesh_ Best Corporate Law Firm In Bangladesh_Barrister Tahmidur Rahman Remura 2022

      Shared Issued at discount in Bangladesh

      The issued share capital of a company is the fund to which creditors of the company can look for payment of their debts, and so, to protect the creditors, shares can be treated as paid-up only to the extent of the amount actually received by the company. Section 152 and 153 of the Company Act impose restrictions on issue of shares and debentures at a commission or discount.

      A commission may be paid only if its payment and rate are approved by the articles and is mentioned in the prospectus where such a prospectus is issued and, in a statement, in lieu of prospectus where such a prospectus is not issued. 

      Shares may be issued at a discount if such issue is authorised by resolution of the company in general meeting and sanctioned by the Court.

      The resolution must specify the maximum rate of discount not exceeding ten percent at which shares are to be issued and not less than one year has elapsed since the date on which the company was entitled to commence business and the shares to be issued at discount are done so within six months after the date on which the company was entitled to commence business.

      Every prospectus and balance sheet issued after the company share  discount must contain particulars of the discount allowed on the issue of shares.

      Redeemable Preference Shares in Bangladeshi Companies (company share in Bangladesh)

      Redeemable Preference Shares can be issued if so authorised by the articles. Section 154 of the Companies Act however provides that no such share shall be redeemed except out of profits of the company which would be otherwise available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption or out of sale proceeds of any of the profits of the company.

      No such share shall be redeemed unless they are fully paid-up and where any such shares are redeemed otherwise, than out of the proceeds of a fresh issue, there shall out of profits which would otherwise have been available for dividend, be transferred to a reserve fund to be called the capital reserve fund.

      A sum equal to the amount applied in redeeming the shares, and the provisions of the Act relating to the reduction of the share capital of a company shall apply as if the capital redemption reserve fund were paid-up share capital of the company.  

      Where any such shares are redeemed out of the fresh issue, the premium, if any, payable on redemption must have been provided for out of the profits of the company before the shares are redeemed.

      There shall be included in every balance sheet of a company which has issued redeemable preference shares a statement specifying what part of the issued capital of the company consists of such shares and the date when the shares are liable to be redeemed and where no such date is fixed the period of notice that is to be given for redemption.

      Company Share In Bangladesh_ Best Commercial Law Firm In Bangladesh_Barrister Tahmidur Rahman Remura 2022

      If you want to open a liaison office in Bangladesh or about branch formation click here!

      Essential Information for Foreign Investors

      Foreign investors need to keep the following things in mind when they plan to form a private limited company in Bangladesh:

      • The costs of registering a company are primarily determined by the company’s authorized capital. The average cost is between USD 1800.
      • Shelf companies are not permitted and must have a physical place of business in Bangladesh.
      • Bangladesh Forex Regulations allow for the full repatriation of profits and investments.
      • Foreign nationals may be employed at a 20:1 (local: expat) ratio, subject to obtaining the necessary work permit.
      • Except in a few restricted areas, 100 percent FDI investment is permitted.
      • Directors can be either foreign or domestic nationals.
      • The typical corporate income tax rate ranges from 25% to 45 percent, depending on the sector and nature of the company.

        However, tax exemptions are available for selected sectors and areas for 5-7 years.

      • There are also additional tax exemptions  for investing in Special Economic Zones.

       

      Corporate Associates

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      Team up with the best law firm in Bangladesh to help you through the process.

      “Tahmidur Rahman – The Law Firm in Bangladesh is considered as one of the leading corporate firms in Dhaka, Bangladesh”

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      What are some alternative ways to set up a company in Bangladesh?

      Branch Office:

      A branch  is not a separate incorporated entity, but rather an extension of its parent company. In other words, the parent company is liable for the liabilities of its branches. 

      With Bangladesh Investment Development Authority’s (BIDA) approval, a branch can engage in commercial activities. The Exchange Control Guidelines, on the other hand, strictly monitor its operation.
      In Bangladesh, the average time to open a branch officis 45- 60 days.

      Liason Office:

      A liaison, also known as a representative office, is subject to BIDA approval  similarly as a branch.

      It must have an overseas parent company, and its activities are limited because it only serves as a communication or coordination instrument for Bangladesh’s business resources.

      Also, keep in mind that a liaison office in Bangladesh cannot earn any local income. Through remittance, the parent company bears all of its expenses and operational cost. It also adheres to the general business registration procedure in Bangladesh.

       

      How To Register A Private Limited Company In Bangladesh Infographics Remura Mahbub

      “To start a private limited company in Bangladesh, you will need to open a temporary bank account in the proposed company name with any scheduled bank in Bangladesh.

       This stage is solely applicable if the proposed company has foreign shareholding.”

      – Barrister Remura Mahbub

      Are you planning to register a private limited company in Bangladesh?

      Company formation and registration at Tahmidur Rahman TLS:

      The legal team of Tahmidur Rahman, The Law Firm in Bangladesh TLS are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company, Branch office Registration, Share Transfer Process in Bangladesh . For queries or legal assistance, please reach us at:

      E-mail: [email protected]
      Phone: +8801847220062 or +8801779127165

      Address: House 410, Road 29, Mohakhali DOHS, Dhaka 1212

       

      FAQ

      What is the basic of issuing Shares of a company in Bangladesh?

      The procedure through which companies distribute additional shares to shareholders is known as an issue of shares. There are two types of shareholders: individuals and corporations. When issuing shares, the corporation complies with the regulations set forth under the Companies Act of 1994.

      What are the nature and classes of shares in Bangladesh?

      One of the components into which a company's capital is divided is a share. Therefore, if a firm has BDT 5 lakh in total capital and divides that capital into 5000 units of BDT 100 each, each unit of BDT 100 is equivalent to one share of the company.

      As a result, ownership of the company is based on shares. A shareholder is a person who owns such shares and is hence a member of the business.

      The fundamental information about shares and share capital, such as the kinds of shares that must be mandated, will now be found in the articles of association. According to the Companies Act of 1994, a corporation may only issue two different kinds of shares. They differ in nature and in their rights and responsibilities. 

      What is the preference share of a company?

      A share that has two exclusive preferential rights over the other form of shares, namely equity shares, is referred to as a preference share. These two preference share specific requirements are

      a preferred position in relation to a company's declared dividends. They may get such dividends at a predetermined rate based on the nominal value of the shares they own. Preference shareholders receive the dividend before equity stockholders as a result.
      preferential treatment when it comes to capital repayment in the event of a corporate liquidation. This indicates that preference shareholders receive their payouts before equity shareholders do.
      Preference shares are comparable to equity shares aside from these two rights. Preference share holders have the opportunity to vote on any issues that directly affect their rights or duties.

      Actually, there are numerous forms of preference shares. They may be exchangeable or not. They can either participate (share in additional income after a dividend is paid out) or not. Additionally, they could be non-cumulative or cumulative (demand arrears will accumulate).

      What is the Equity Share of a company in Bangladesh?

      A share that isn't a preference share is an equity share. Shares without any preferential rights are therefore considered equity shares. They are only given equity, or ownership, in the business.

      Dividends paid to equity stockholders are not set in stone. Depending on the company's financial performance, the Board of Directors makes the decision. Additionally, the stockholders forfeit the dividend for that year if it cannot be declared; the dividend does not accumulate in such cases.

      Additionally, equity shareholders have proportional voting rights based on the company's paid-up capital. In essence, it is a system of "one share, one vote." A business cannot publish non-voting

      What is the procedure of Issuing Shares in Bangladesh?

      1] Issue of Prospectus
      The prospectus is released first, then the shares. The prospectus functions as a kind of solicitation to the general public to subscribe for company shares. A prospectus includes all of the company's information, including its financial breakdown, profit and loss accounts from the prior year, and balance sheets.

      Additionally, it describes how the funds raised will be used. A corporation must publish a prospectus or a document in its place when soliciting deposits from the general public.

      2) Receiving Applications
      Prospective investors may now submit applications for shares after the prospectus is released. The prospectus specifies the schedule bank where the required application funds must be deposited along with the completed application. The duration of the application period is 120 days at most. If the required minimum subscription amount is not met in these 120 days, the share issuance will be canceled. Within 130 days of the prospectus's release, the application funds must be returned to the investors.

      3] Share Allocation
      The shares may be distributed after the required minimum subscription amount has been met. Shares are typically oversubscribed, hence the allocation is made on a pro rata basis. Those whose shares have been allocated get Letters of Allotment in the mail. As a result, a legal contract is formed between the applicant and the business, who is now a shareholder.

      Letters of regret are provided to the applicants in the event that their application was refused. Following the allotment, the firm is free to pay the share capital in full or in installments as it pleases.

      What is a minimum subscription of share in Bangladesh?

      When the shares are made available to the general public as part of the share issuance, this is the minimum amount that must be raised. The Board of Directors typically determines this minimum subscription, however it cannot be less than 90% of the issued capital. As a result, for the offer to be considered successful, at least 90% of the issued capital must be subscribed for. In this scenario, the application money that has already been received must be refunded within the established time frame.

      What are the shares Issued at Par - Share Capital Account?

      Share allocation is not assured by applying for shares. A few applications will be turned down. In this case, we do not credit the share capital account when the application money is received. We create a new account—a sharing application account—for convenience's sake.

      According to the Companies Act, the funds obtained from the application must be placed in the bank account at a Schedule Bank. This account has been set up specifically to handle the application fee. The following is the journal record for this transaction in the business's books:

      What are the Shares issued at premium?

      We refer to shares issued at a premium as when the corporation chooses to issue shares at a price greater than the nominal value or face value. It is a fairly typical practice, particularly when the business has a solid track record, strong financial results, and a solid reputation. Let's say a share has a face value of BDT. 100 and is issued by the corporation at BDT. 110. It is said that the share was issued at a 10% premium. The premium will be shown in a separate account called the Securities Premium Account rather than becoming a part of the Share Capital account. The corporation can now call up this premium amount whenever it wants, i.e. with any call. The premium is often collected using allocation or application money, and rarely with call money. The Securities Premium Account has been credited with the premium sum that we previously specified. On the liabilities side of the balance sheet, under the heading Reserves and Surplus, is where you'll find this account.

      Infographics
      How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
      Video Tutorial
      Author’s Bio
      About Meheruba Mahbub | One of the most innovative young lawyers in Bangladesh

      Meheruba Mahbub is a finance partner and one of the Bangladesh's market leading international lawyers. She is head of the firm's Mergers and Acquisitions practice, which advises corporates and financial institutions on outbound and inbound investments, projects and financings.

      Meheruba has a diverse finance practice , representing large banks, financial sponsors, and corporations. She specializes in acquisition and structured financings, loan portfolio purchase and financing, real estate financings, and inbound and outbound transactions. She has extensive expertise in the energy and infrastructure industries.
      Work highlights

      Meheruba has acted on many high-profile Finance and Commercial deals in Bangladesh and India. These include advising:

      ⦾ Standard Chartered Bank on the sale of a portfolio of loans in Bangladesh, the first in a series of similar deals in Bangladesh as part of the government’s directive to banks to focus on the robustness of their balance sheets.

      ⦾ the lending and underwriting banks on the refinancing of US$6.9bn worth of debt uninsured by the Summit Group

      ⦾ Brookfield Property Partners on the acquisition and financing of Unitech’s real estate portfolio

      ⦾ Enron on the US$3bn Dhabol power project (since renamed Ratnagiri Gas and Power), the first ever inward investment into the power sector

      ⦾ the sponsor and borrowers on the Sakhalin LNG project, the world’s largest integrated oil and gas project and the largest LNG financing in Russia

      Email: [email protected]

      Address: 2 Turner Street, Canning Town, E16 1FH, United Kingdom

      Gender: Female

      Job Title: Barrister and Senior Associate

      Have a Different Question?

      Email us anytime : [email protected]

      Or call — +8801847220062 or +8801779127165

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      চেক ডিসঅনার মামলা | কিভাবে চেক প্রতারনায় প্রতিকার পাবেন ২০২২ এ | Effective Solutions to Cheque Dishonour in 2022

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      তাহমিদুর রহমান, Director and Senior Associate

      চেক ডিসঅনার মামলা এবং প্রতিকার – চেক একটি হস্তান্তরযোগ্য দলিল। একটি হস্তান্তরযোগ্য দলিল হল একটি কাগজের টুকরো যা একজন ব্যক্তিকে একটি নির্দিষ্ট পরিমাণ অর্থ প্রদান করে এবং শুধুমাত্র অর্পণের মাধ্যমে ব্যক্তি থেকে ব্যক্তিতে স্থানান্তরিত হয়। এই পোস্টটিতে আমরা চেক ডিসঅনার অথবা বাউন্স করলে আপনারা কি করতে পারেন তা নিয়ে বিশদ পর্যালোচনা করব। 

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      Find the subsections below, If you want to jump through specific sections instead of reading the whole article.

      চেক-ডিসঅনার-মামলা-_-Best-Company-Law-Firm-In-Bangladesh-2

      চেক ডিসঅনার কি? চেক ডিসঅনার মামলা 

      ঋণ বা বাধ্যবাধকতা নিষ্পত্তি করার জন্য দৈনন্দিন জীবনে চেক ব্যবহার করা হয়। তবে, অনেক ক্ষেত্রে, চেকের প্রাপককে চেক প্রদানকারী অর্থ প্রদান করতে অক্ষম হয় যদি চেকের উপর বর্ণিত পরিমাণ ইস্যুকারীর ( চেক প্রদানকারীর) অ্যাকাউন্টে না থাকে। অপর্যাপ্ত তহবিলের জন্য চেকটি ব্যাংক প্রত্যাখ্যান করে। এই ঘটনাটি চেক ডিজঅনার নামে পরিচিত।

      কি কারনে চেক ডিসঅনার হাতে পারে

      কখন এবং কি কারণে একটি চেক ডিসঅনার হাতে পারে পারে?

      • ব্যাংক হিসাবে আপনার যদি তহবিল বা অর্থের অভাব হয়। এবং যখন চেক এর উল্লিখিত অর্থ আপনার ব্যাংক এর বর্ণিত পরিমাণের চেয়ে কম।
      • যিনি চেক ইস্যু করেছেন তার স্বাক্ষর না মিললে ।
      • চেকে উল্লিখিত পরিমাণ এবং পরিমাণের মধ্যে পার্থক্য থাকলে।
      • চেকের মেয়াদ শেষ হয়ে গেলে।
      • চেক সঠিকভাবে সম্পন্ন না হলে।
      • চেকে ঘষামাজা করলে অথবা চেক পরিবর্তন করলে।

       

      চেক ডিসঅনার মামলা | কিভাবে চেক প্রতারনায় প্রতিকার পাবেন ২০২২ এ | Effective Solutions To Cheque Dishonour In 2022

      কখন একটি চেক অসম্মানজনক অথবা ডিসঅনারড বলে বিবেচিত হয়?

       

      যদি চেকটি ইস্যু তারিখের ৬ মাসের মধ্যে আনুষ্ঠানিকভাবে জমা করা হয় এবং ব্যাংকে চেকের সমপরিমাণ টাকা সেই একাউন্টে না থাকার কারণে ব্যাংক চেকটি প্রত্যাখ্যান করে, তবে চেকটি বিতরণযোগ্য হবে না। ব্যাঙ্ক একটি নথি জারি করবে যে আপনি কেন অসম্মান করেছেন।

      এ ক্ষেত্রে আপনি যদি চেক ইস্যু করার তারিখের ৬ মাসের মধ্যে ব্যাঙ্কে যান এবং চেকটি রিডিম করেন, আপনি দেখতে পাবেন যে চেকটি অনার এর জন্য দেওয়া হয়নি কিন্তু ফেরত দেওয়া হয়েছে, এবং আপনার এই আইনের অধীনে আইনি পদক্ষেপ গ্রহণের অর্থাৎ চেক ডিসঅনার মামলা করার সুযোগ সৃষ্টি হবে।

      অর্থাৎ, আপনার নির্দিষ্ট সময়ের মধ্যে, অর্থাৎ চেক ইস্যু করার তারিখ থেকে ৬ মাসের মধ্যে নগদীকরণের জন্য চেকগুলি অবশ্যই ব্যাঙ্কে জমা দিতে হবে।

      পরবর্তীতে ব্যাঙ্ক অ্যাকাউন্টে অপর্যাপ্ত অর্থের কারণে, আপনাকে অবশ্যই চেকের অসম্মানের ৩০ দিনের মধ্যে অর্থ প্রদানের জন্য চেক প্রদানকারীকে আইনি নোটিশ দিতে হবে।

      যদি চেক প্রদানকারী নোটিশ পাওয়ার ৩০ দিনের মধ্যে চেক প্রদানকারীকে চেকটিতে উল্লেখিত পরিমাণ অর্থ প্রদান না করে, তাহলে চেক প্রাপক একটি প্রক্রিয়া দায়ের করতে পারেন।

      সংক্ষেপে প্রয়োজনীয় তিনটি ধাপ:

      • এই পদক্ষেপের ৩০ দিনের মধ্যে, আপনাকে অবশ্যই একটি নোটিশ সহ চেক প্রদানকারীকে অবহিত করতে হবে এবং অর্থপ্রদানের জন্য আহবান করতে হবে।
      • চেক দাতা সময়মতো চেকর অর্থ দেবে বা নোটিশ এর যথাযথ উত্তর আপনাকে জানাবেন।
      • যদি তিনি অর্থ প্রদান না করেন বা উনার অজুহাত আপনার কাছে উপযুক্ত মনে না হয়, তাহলে আপনি পরবর্তী ৩০ দিনের মধ্যে স্থানান্তরযোগ্য নথি আইন, 181 এর ধারা 138 এর অধীনে একটি মামলা করতে পারেন৷
      চেক-ডিসঅনার-মামলা-_-Cheque-Bounce-Law-Firm-In-Bangladesh-2

      চেক প্রতারনায় প্রতিকার ও চেক ডিসঅনার মামলা 

      নেগোশিয়েবল ইনস্ট্রুমেন্টস অ্যাক্ট (এনআই অ্যাক্ট) এর ধারা 138, 140 এবং 141 যদি একটি চেক প্রত্যাখ্যান করা হয় বা অপর্যাপ্ত তহবিলের কারণে অর্থ প্রদান না করা হয় তবে ক্ষতির বিরুদ্ধে সুরক্ষা অর্থাৎ চেক প্রতারনায় প্রতিকার প্রদান করে।

      কিভাবে নোটিশ দেবেন?

      আপনার ব্যাঙ্ক অ্যাকাউন্টে পর্যাপ্ত টাকা না থাকলে এবং আপনার চেক অসম্মানজনক হলে, আপনাকে অবশ্যই চেক প্রদানকারীকে একটি বিধিবদ্ধ নোটিশ দিতে হবে এবং ৩০ দিনের মধ্যে অর্থ প্রদান করতে হবে।

      লিগ্যাল নোটিশ তিন ভাবে দেওয়া যেতে পারে।

      • নোটিশ গ্রহিতার হাতে সরাসরি নোটিশ প্রদান করে।
      • ডাকযোগে চেক প্রদানকারীর ঠিকানায় এবং সর্বশেষ বসবাসের ঠিকানায় প্রাপ্তি স্বীকারপত্র সহ নোটিশ প্রদান করে।
      • সর্বশেষ কোনো জাতীয় বাংলা দৈনিকে নোটিশটি বিজ্ঞপ্তি আকারে প্রকাশ করে।এ তিন পদ্ধতির যে কোন একটা পদ্ধতি অনুসরণ করলে হবে।

       

      একটি চেক ডিসঅনার মামলা দায়ের করতে আদালতে যে সকল কাগজ পত্র জমা দিতে হবে

      • চেক ইস্যুর তারিখ
      • ইস্যুকারির নাম ও তথ্য / কোন কোম্পানি হলে তার বিস্তারিত তথ্য
      • চেক ডিজঅনার হবার তারিখ
      • চেকের বিস্তারিত তথ্য [ব্যাংকের নাম, শাখা, হিসেব নম্বার, চেক নম্বর]
      • উল্লেখিত টাকার পরিমান
      • মূল চেক
      • ডিজঅনারের রসিদ
      • আইনি নোটিশ বা বিজ্ঞপ্তির কপি
      • পোস্টাল রসিদ – প্রাপ্তি রসিদ
      • চেক লেনদেন সম্পর্কিত তথ্য [যদিও সব সময় জরুরী নয়]
      চেক ডিসঅনার মামলা |বাংলাদেশ এ আপনি আপনার প্রাইভেট লিমিটেড কোম্পানি

      মনে রাখবেন, একবার চেক অসম্মান করা হলে, একটি অপরাধ সংঘটিত হয়। যদি, কোনো কারণে, আপনি প্রথম চেকটি পরিশোধ করতে অস্বীকার করার ৩০ দিনের মধ্যে নোটিশ পাঠাতে অক্ষম হন,তাহলে দ্বিতীয়বার চেকটি ডিজঅনার করাতে পারেন। এভাবে একাধিক বার ডিজঅনার করিয়ে নোটিশ পাঠাতে পারেন।

      তবে একবার চেক ডিজঅনার হলে এবং নির্ধারিত সময়ের মধ্যে মামলা করা হলে এক অপরাধের জন্য বারবার মামলা করা যাবে না।

      মনে রাখবেন যে আপনাকে অবশ্যই একটি সময়মত এবং উপযুক্ত পদ্ধতিতে আইনি নোটিশ পাঠাতে হবে। এটি করার জন্য, আপনার একজন অভিজ্ঞ আইনজীবীর প্রয়োজন হবে, প্রয়োজনে আপনি আমাদের পেশাদার পরিষেবাগুলি গ্রহণ করতে পারেন৷ মনে রাখবেন, আপনাকে দ্রুত এবং সঠিকভাবে আইনি নোটিশ পাঠাতে হবে৷

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      চেক ডিজঅনার হলে কোথায় মামলা করবেন :

      অভিযোগ বা নালিশি মোকাদ্দমা  হিসেবে চীফ জুডিশিয়াল ম্যাজিস্ট্রেট আদালতে এবং যদি মেট্রোপলিটন এলাকার  হয় তার জন্য চীফ মেট্রোপলিটন ম্যাজিস্ট্রেট আদালতে মামলা দায়ের করতে হবে। মামলা দায়ের করার সময় আদালতে মূল চেক, ডিজঅনারের রশিদ, লিগ্যাল নোটিশ, পোস্টাল রশিদ, প্রাপ্তি স্বীকার রশিদ আদালতে প্রদর্শন করতে হবে।

       

      এসবের ফটোকপি ফিরিস্তি আকারে মামলার আরজীর সঙ্গে আদালতে জমা করতে হবে। আদালত মোকাদ্দমাটি গ্রহন করলে বিবাদীর নামে সমন অথবা ওয়ারেন্ট জারি করতে পারেন। ম্যাজিস্ট্রেট আদালত মামলা গ্রহন করলেও মামলাটি মূল বিচার করা হয় দায়রা আদালতে।

       

      চেক ডিজঅনার মামলা এ অপরাধের শাস্তি :

      চেক ডিজঅনার মামলা এ শাস্তি হচ্ছে, এক বছর মেয়াদ পর্যন্ত কারাদণ্ড অথবা চেকে বর্ণিত অর্থের তিন গুণ পরিমাণ অর্থদণ্ড অথবা উভয় দণ্ডে ও দণ্ডিত হতে পারে।

      এখন প্রশ্ন হল চেক ডিস-অনারের শাস্তি যদি চেকে উল্লেখিত টাকার ৩ গুন জরিমানা হয়,তাহলে টাকাটা কে পাবে?

      হস্তান্তরযোগ্য দলিল আইন,১৮৮১ এর ১৩৮(২) ধারার বলা হয়েছে,উপ-ধারা(১) মোতাবেক যেক্ষেত্রে অর্থদণ্ড আদায় হয় সেক্ষেত্রে আদায়কৃত অর্থদণ্ড হতে চেকে বর্ণিত টাকা যতদূর পর্যন্ত আদায়কৃত অর্থদণ্ড হতে প্রদান করা সম্ভব চেকের ধারককে প্রদান করতে হবে।

       

      চেক-ডিসঅনার-মামলা-_-কিভাবে-চেক-প্রতারনায়-প্রতিকার-পাবেন-২০২২-এ-2

      চেকের মামলা থেকে বাচতে চাইলে কি করতে হবে?

      অনেক সময় যখন আমরা একটি অবাঞ্ছিত চেক ডিজঅনার মামলা তে জড়িয়ে পড়ি, তখন আমাদের নিজেদের রক্ষা করতে কঠিন সময় যায়।

      সুতরাং এ বিষয়গুলো আমাদের খেয়াল রাখতে হবেঃ

       

      • এমনকি আপনি যদি খুব কাছের ব্যক্তি বা অফিস আপনার কাছে চান তবুও অন্যের কাজের জন্য চেক দেয়া যাবে না।
      • চেকবুকটি সাবধানে পাতা গুনে রাখতে হবে কোন বই বা পাতা হারারে সাথে সাথে ব্যাংকে জানাতে হবে এবং জিডি করতে হবে। 
      • যেখানে সম্ভব, অ্যাকাউন্ট পেচেক ব্যবহার করা আবশ্যক, ব্যবসার ক্ষেত্রে ব্যবসা একাউন্ট ব্যবহার করতে হবে এবং ব্যবসায়ীক একাউন্টে লেনদেন করতে হবে।
      • চেকের তারিখটি খুব সচেতনভাবে দিতে হবে এবং সেই তারিখটি মাথায় রেখে হিসাব পরীক্ষা করতে হবে।
      • যেকোন লেনদেনের জন্য চালান রাখতে হবে।
      • যদি বিপদে পরেই যান তবে দ্রুত একজন যোগ্য উকিলের সাহায্য নিয়ে বিষয়টি সমাধান করতে হবে।

      অন্নান্য আইনে চেক ডিসঅনারের মামলা

      হস্তান্তরযোগ্য নথি আইন ১৮৮১ বলবৎ রয়েছে, তবে আইনি সীমাবদ্ধতার কারণে, আইনটি বিলুপ্ত করা হয়েছে এবং নতুন এবং যুগোপযোগী আইন প্রণয়ন করা হয়েছে।

      যার নাম দেয়া হয়েছে বিনিময়যোগ্য দলিল আইন, ২০২০ (এখানে ক্লিক করে খসড়া আইনটি দেখে নিন) এবং এই আইনটির খসড়া গত ১৫ জানুয়ারি ২০২০ এ অর্থ মন্ত্রণালয় প্রকাশ করে। এই আইনে চেক ডিসঅনার হলে ৬ মাস থেকে ২ বছর পর্যন্ত কারাদণ্ড এবং সর্বোচ্চ ৪ গুন পর্যন্ত অর্থ দণ্ড দেওয়ার কথা বলা হয়েছে।

      যখনি খসড়া আইনটি একটি পূর্ণাঙ্গ আইনের মর্যাদা পাবে, আমরা আপনাকে এই আইনের বিশদ বিবরণ প্রদান করব; ততক্ষণ পর্যন্ত আমাদের সাথে থাকুন.

      ধরুন, কোনো কারণে এই আইনের অধীনে চেকের মামলাটি সঠিকভাবে প্রক্রিয়া করা সম্ভব হয়নি, বা ধরে নেওয়া হয়েছিল যে অর্থ উদ্ধার করা যাবে না। উদাহরণ স্বরূপ,

      ক) ৬ মাসের মধ্যে মামলা না হওয়ায় এ আইনে মামলাটি গ্রহণ করা হয়নি।
      খ) এই আইনের অধীন কার্যধারা চলাকালে অভিযুক্তের/ বিবাদীর মৃত্যু হয়।

      এই ধরনের পরিস্থিতিতে আরও দুটি বিকল্প খোলা আছে।

      ১) দন্ডবিধির অধীনে মামলা করা: দন্ডবিধি ৪০৬ ও ৪২০ ধারা  (প্রতারণা) অনুসারে ফৌজদারি মামলা করা যায়। কিন্তু এসব মামলার ক্ষেত্রে টাকা ফেরত পাওয়ার সুযোগ নেই। দোষী সাব্যস্ত হলে সাত বছর পর্যন্ত কারাদন্ড ও জরিমানা হতে পারে।
      ২) দেওয়ানী মামলা করা: চেকের সম্পূর্ণ টাকা আদায় না হলে পরবর্তীতে এখতিয়ার সম্পন্ন আদালতে দেওয়ানী মামলা করা যাবে।

       

      বাংলাদেশ এ প্রাইভেট লিমিটেড কোম্পানি

      কিভাবে বাংলাদেশ এ আপনি আপনার প্রাইভেট লিমিটেড কোম্পানি খুলবেন?

      আপনারা যদি একটি কোম্পানি খুলতে চান তার বিশদ বিবরণ এই পোস্টটি তে আছে।

      ব্যারিস্টার তাহমিদুর রহমান রিমুরা কর্তৃক চেক ডিসঅনার মামলা সম্পর্কিত আইনী সেবা:

      ব্যারিস্টার তাহমিদুর রহমান: সিএলপি একটি সনামধন্য ‘ল’ চেম্বার যেখানে ব্যারিস্টারস এবং আইনজীবীদের মাধ্যমে চেক ডিসঅনারের মামলা সম্পর্কিত সকল প্রকার আইনগত সহায়তা, পরামর্শ প্রদান করে থাকে। কোন প্রশ্ন বা আইনী সহায়তার জন্য আমাদের সাথে যোগাযোগ করুনঃ-ই-মেইল: [email protected] ফোন: +8801847220062 or +8801779127165 , ঠিকানা: রোড ২৯, হাউজঃ ৪১০, মহাখালী ডি ও এইচ এস, ঢাকা। 

      চেক ডিসঅনার মামলা | কিভাবে চেক প্রতারনায় প্রতিকার পাবেন ২০২২ এ | Effective Solutions To

      চেক ডিজঅনার মামলা সম্পর্কিত প্রশ্ন 

      চেকের মামলায় রায় পেতে কত সময় লাগে?

      চেক দিসঅনার এর মামলার রায় পেতে সাধারণত বছর খানেক সময় লাগতে পারে বা বেশীও সময় লাগতে পারে, অন্য দিকে রাজধানী ঢাকায় মামলার চাপ থাকায় স্বাভাবিক ভাবেই আরও বেশি সময় লাগে। কিন্তু এর মামলার উকিল এর যোগ্যতা অনুযায়ী মামলার সময় কমে আসতে পারে।

      আগাম চেক দিয়ে তারপর জিডি করলে কি হবে?

      আমাদের দেশে আগাম চেক দিয়ে অর্থের নিরাপত্তা নিশ্চিত করার একটি প্রবণতা আছে কিন্তু বিষয়টি আইন সিদ্ধ নয়। কেউ চেক দিয়ে তারপর প্রতারণা করার জন্য বলে যে চেক হারিয়ে গিয়েছিল তবে তা গ্রহণযোগ্য হবে না। কিন্তু যেই ব্যক্তি চেক গ্রহীতা তিনি যদি যথাযথ ভাবে প্রমাণ না করতে পারেন যে বৈধ কোন কাজে চেকটা তিনি পেয়েছেন তবে রায় তার বিপক্ষে যেতে পারে।

      ভুয়া চেক দিলে কি হবে?

      ভুয়া চেক দিলে জাল-জালিয়াতি এবং প্রতারণার মামলা করা যায়।

      চেক ডিজঅনারের মামলা করতে হলে কি চুক্তি থাকতে হবে?

      না, আলাদা চুক্তি থাকার প্রয়োজন নেই।

      চেক হারিয়ে গেলে কি করবেন?

      চেক হারিয়ে গেলে যত দ্রুত সম্ভব আপনার নিকটস্থ থানায় গিয়ে একটি সাধারন ডাইরী (জিডি) করবেন। অথবা আপনার চেক যে স্থানে হারিয়ে গিয়েছে তার নিকটস্থ থানায় গিয়ে একটি সাধারন ডাইরী (জিডি) করতে পারেন।

      জিডির সত্যায়িত কপি হিসাবধারী ব্যক্তিগতভাবে ব্যাংক এর সংশ্লিষ্ট শাখায় উপস্থিত হয়ে জিডির কপিটি জমা দেবেন। এক্ষত্রে আপনার হারিয়ে যাওয়া চেক দিয়ে কেও আপনার ব্যাংক একাউন্ট থেকে টাকা উত্তোলন করতে পারবে না।

      আর আপনি যদি চেক ডিসঅনারের মামলা দায়ের করার পর মূল চেক, ডিজঅনারের রশিদ, পোস্টাল রশিদ, প্রাপ্তি স্বীকার রশিদ হারিয়ে ফেলেন তাহলে যে স্থানে হারিয়ে গিয়েছে তার নিকটস্থ থানায় গিয়ে একটি সাধারন ডাইরী (জিডি) করতে পারেন হবে। আপনার মামলার সাক্ষ্য গ্রহন সহ অনেক ক্ষেত্রে জিডির সত্যায়িত কপি প্রয়োজন হবে।

      আবার চেক ডিসঅনার হয়ার পর ডিসঅনার স্লিপ সহ চেক হারিয়ে গেলে এ বিষয়ে থানায় জিডি করে ১৩৮ ধারায় মামলা করা হয় তাহলে মামলার বাদীকে সাক্ষ্যকে সমর্থন করে সংশ্লিষ্ট ব্যাংক কর্মকর্তা সাক্ষ্য দিলে ধরে নেয়া হয় যে বাদী তার মামলায় উক্ত বিষয়ে প্রমানে সক্ষম হয়েছেন।

      চেক ডিজঅনারের মামলায় বাদী/আসামী মৃত্যু হলে চেকের কি হবে?

      চেক ডিজঅনারের মামলায় বাদী/আসামী কোন এক পক্ষ মারা গেলে মামলাটি শেষ হয়ে যায় অনেকে মনে করেন। ১৩৮ ধারায় চেক ডিজঅনারের মামলায় এমনটি ঠিক নয়। চেক ডিজঅনারের মামলা অন্য সকল ফৌজদারী মামলা থেকে একটু আলাদা এবং এটি কিছুটা দেওয়ানী প্রকৃ্তির হওয়ায় বাদী অথবা আসামীর মৃত্যুর কারনে মামলা শেষ হয়ে যায় না। বাদীর মৃত্যুর পর তার বৈধ প্রতিনিধি মালার বাদী প্রক্ষভুক্ত হয়ে মামলা পরিচালনা করতে পারবে। মামলা চলমান থাকা অবস্থায় আসামীর মৃত্যু হলে মামলার আরজী সংশোধন করে মামলা চলানো যায়। মামলা চলমান অথবা মামলা করার পূর্বে আসামীর মৃত্যু হলে বাদীর একমাত্র প্রতিকার হলো আসামীর বৈধ প্রতিনিধি বিরুদ্ধে দেওয়ানী আদালতে টাকা আদায়ের মামলা করে টাকা আদায়ের ব্যবস্থা করা।

      চেক ডিজঅনারের মামলায় অপরাধের শাস্তি কি হতে পারে?

      সকল সাক্ষ্য প্রমান, জেরা, যুক্তিতর্কের পর আদালত রায় প্রদান করবেন। অপরাধ প্রমান হলে আইন অনুসারে শাস্তি হিসেবে এক বছর কারাদন্ড অথবা চেকে উল্লেখিত অর্থের তিনগুণ পর্যন্ত অর্থদন্ড অথবা উভয় দন্ডে দন্ডিত করতে পারেন।

      চেক ডিজঅনারের মামলায় আপিল কিভাবে করতে হবে?

      আদালতের রায়ের পরে আপিল করার সুযোগ রয়েছে। ১৩৮ ধারায় চেক ডিজঅনার মামলায় প্রদও দন্ডাদেশের বিরুদ্ধে আপীল করা যাবে। দায়রা জজ অথবা অতিরিক্ত দায়রা জজের দন্ডাদেশের বিরুদ্ধে হাইকোর্ট বিভাগে আপীল দায়ের করতে হবে এবং যুগ্ম দায়রা জজের দণ্ডাদেশের বিরুদ্ধে দায়রা জজের নিকট আপীল করা যাবে।

      চেক ডিজঅনারের মামলায় আপীল করার পূর্বশর্ত কি কি?

      ১৩৮ ধারায় চেক ডিজঅনার মামলায় প্রদও দন্ডাদেশের বিরুদ্ধে আপীল করা্র আগে দন্ডাদেশের উল্লেখিত অর্থের ৫০% আদালতে জমা দিয়ে আপীল করতে হবে। ৫০% টাকা বিচারিক আদালতে জমা দিতে হবে অর্থাৎ যে আদালত শাস্তি প্রদান করেছেন সে আদালতে টাকা জমা দিতে হবে।

      চেক ডিজঅনার মামলার করার জন্য কি কি কাগজ প্রত্র আদালতে দাখিল করতে হবে?

      ১। মামলার আরজী/ দরখাস্ত।

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      ৩। লিগ্যাল নোটিশ প্রেরনের ডাক রশিদ এবং এ.ডি এর ফটোকপি।

      ৪। মূল চেকের ফটোকপি।

      ৫। ডিসঅনার স্লিপ এর ফটোকপি।

      ৬। অন্যান্য প্রয়োজনীয় কাগজ পত্র।

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      Registration of a Private Limited Company in Bangladesh in 2022 | 5 Simple Steps

      Registration of a Private Limited Company in Bangladesh in 2022 | 5 Simple Steps

      Registration of a Private Limited Company in Bangladesh in 2022

      Meheruba Mahbub

      Meheruba Mahbub
       Senior Associate, The Law Firm in Bangladesh

      24 Jan 2022

      This article will explain in details about formation and registration of a Private Limited Company in Bangladesh.

      It will focus on five easy steps: business name clearance, drafting required documents, opening a bank account, company registration with the RJSC, and post registration formalities.

      Moreover, it will outline essential points for foreign investors and alternative ways to set up a company in Bangladesh.

      , Private Limited Company in Bangladesh

      There are five ways of doing business in Bangladesh:

      • It restricts the ability to transfer shares [section 2(q)]
      • The minimum number of members is 2 (two) [s. 5]; the maximum number of members is 50 (fifty), excluding employees of the Company [s. 2(q)].
      • It must have at least two directors [s. 90 (2)]
      • It prohibits any public invitation to subscribe for the Company’s shares or debentures [s. 2(q)].

      After completion of Registration of a Private Limited Company in Bangladesh, it can begin operations as soon as it is registered with  The Registrar of Joint Stock Companies (RJSC), subject to obtaining the other licenses listed below in the post-registration section of this Report.

        Procedure for Registration of a Private Limited Company in Bangladesh

        The 5 steps listed below correctly outlines the procedure for the registration of a Private Limited Company in Bangladesh.

        Step 1: Business Name Clearance 

        The first step in forming a private limited company in Bangladesh is to fix a desired name for the company.  Following the selection of a name, the applicant must apply for name clearance in order to obtain the name approval certificate RJSC.

        The certificate is usually delivered within 1 to 2 days. Investors are required to pay RJSC the necessary fees for name clearance and verification.The government fee for name clearance is currently 230 BDT or  around 3 USD.

        Step 2: Drafting Required Documents

        In order to form a Private Limited company in Bangladesh, a Memorandum of Association (MoA) and Articles of association (AoA) must be prepared by the company.

        Drafting Memorandum of Association (MoA):

        A limited company’s Memorandum of Association (MOA) states the company’s objectives, company’s authorized capital, and list of the shareholders along with their respective shareholdings.

        However, it should be noted that in order to begin a banking, finance, school, or hospital business, prior approval from the relevant authority is required.

        Drafting Articles of Association (AoA):

        The AoA outlines all of the regulations that govern how a limited company operates. The AoA should include the number and list of directors, the board’s power, the Managing Director’s power, the meeting process, quorum, notice procedure, and the appointment of auditors.

        It also specifies how the company’s bank account will be managed.

         

         

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        Step 3: Opening a Bank Account

        To start a private limited company in Bangladesh, you will need to open a temporary bank account in the proposed company name with any scheduled bank in Bangladesh.  

        This stage is solely applicable if the proposed company has foreign shareholding. The following documents need to be filed to the respective banks in order to open the bank account:

        • Name Clearance
        • Draft copy of your MoA and AoA
        • Board Resolutions of the foreign company
        • Passports copies of the representative shareholders
        • bank account opening forms.

        Foreign investors wanting to form a private limited company in Bangladesh must deposit the requisite paid-up capital into the company’s bank account.

        The remitted funds will be held by the bank. The bank will produce an Encashment Certificate, which will be required by RJSC in order for the company to be incorporated.

        This certificate states that the appropriate capital contribution has been duly deposited in the proposed company’s temporary bank account.

         

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        Step 4: Company Registration with the RJSC

        In order to register the private limited company in Bangladesh, all the required information and documents must be submitted to the RJSC. They are as follows:

        • Details of Directors (name, parents name, passport number, email ID, mobile number)
        • National Identification Number (if Bangladeshi national)
        • Tax Identification Number (if Bangladeshi national)
        • Limit of paid up capital and authorized capital
        • Photo of all shareholders (1 copy)
        • Address of the company
        • Signatories of the bank account

        The registration fee and stamp duty must be paid in the RJSC’s designated bank.
        The government fee will be calculated depending on the proposed company’s approved share capital.
        A certificate of incorporation must be obtained from the RJSC after all processes have been completed successfully in order to register a private limited company in Bangladesh.

        Step 5: Post-registration Formalities

        After successful company formation, the last step in order to form a private limited company in Bangladesh is to acquire the following certificates/licenses:

        (a) Trade License 

        The companies must obtain a trade license from the local authorities. The proposed Company must submit an application to the local City Corporation, together with all essential paperwork and payments.

        The cost of getting a trade license is around USD 200, and it can be renewed annually. Three to four working days are typically required to receive it.

        b) TIN (Tax Identification Number)

        A private limited company in Bangladesh must obtain an E-TIN from the National Board of Revenue‘s (NBR) website, which can be done free of cost.

        c) VAT Registration Certificate

        The newly formed company must also obtain a VAT registration Certificate from the National Board of Revenue. This should take about 5-7 working days.

        d) Fire Certificate

        Bangladesh Fire Service and Civil Defense Authority will need to issue a fire certificate to the private limited company.

        e) Environmental Clearance Certificate

        A private limited company in Bangladesh must collect an environment clearance certificate from the Department of Environment if it intends to be involved in industrial activity.

        Furthermore, each year, the company must submit to the RJSC the following documents:

        • Schedule X which is a list of shareholders and an annual summary of share capital.
        • Balance Sheet within 30 days of Annual General Meeting (AGM).
        • Profit and Loss Account within 30 days of AGM.
          Form 23B which is a letter of approval from the auditor that must be provided within 30 days of the appointment date.
        How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Dhaka

        If you want to open a liaison office in Bangladesh or about branch formation click here!

        Essential Information for Foreign Investors

        Foreign investors need to keep the following things in mind when they plan to form a private limited company in Bangladesh:

        • The costs of registering a company are primarily determined by the company’s authorized capital. The average cost is between USD 1800.
        • Shelf companies are not permitted and must have a physical place of business in Bangladesh.
        • Bangladesh Forex Regulations allow for the full repatriation of profits and investments.
        • Foreign nationals may be employed at a 20:1 (local: expat) ratio, subject to obtaining the necessary work permit.
        • Except in a few restricted areas, 100 percent FDI investment is permitted.
        • Directors can be either foreign or domestic nationals.
        • The typical corporate income tax rate ranges from 25% to 45 percent, depending on the sector and nature of the company.

          However, tax exemptions are available for selected sectors and areas for 5-7 years.

        • There are also additional tax exemptions  for investing in Special Economic Zones.

         

        “Tahmidur Rahman – The Law Firm in Bangladesh is considered as one of the leading corporate firms in Dhaka, Bangladesh”

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        What are some alternative ways to set up a company in Bangladesh?

        Branch Office:

        A branch  is not a separate incorporated entity, but rather an extension of its parent company. In other words, the parent company is liable for the liabilities of its branches. 

        With Bangladesh Investment Development Authority’s (BIDA) approval, a branch can engage in commercial activities. The Exchange Control Guidelines, on the other hand, strictly monitor its operation.
        In Bangladesh, the average time to open a branch officis 45- 60 days.

        Liason Office:

        A liaison, also known as a representative office, is subject to BIDA approval  similarly as a branch.

        It must have an overseas parent company, and its activities are limited because it only serves as a communication or coordination instrument for Bangladesh’s business resources.

        Also, keep in mind that a liaison office in Bangladesh cannot earn any local income. Through remittance, the parent company bears all of its expenses and operational cost. It also adheres to the general business registration procedure in Bangladesh.

         

        How To Register A Private Limited Company In Bangladesh Infographics Remura Mahbub

        “To start a private limited company in Bangladesh, you will need to open a temporary bank account in the proposed company name with any scheduled bank in Bangladesh.

         This stage is solely applicable if the proposed company has foreign shareholding.”

         -Meheruba Mahbub

        Are you planning to register a private limited company in Bangladesh?

        Company formation and registration at Tahmidur Rahman Remura: The Law Firm in Bangladesh:

        The legal team of Tahmidur Rahman, The Law Firm in Bangladesh Remura: The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company in Bangladesh . For queries or legal assistance, please reach us at:

        E-mail: [email protected]
        Phone: +8801847220062 or +8801779127165

        Address: House 410, Road 29, Mohakhali DOHS

         

        FAQ

        How much money is required for company registration in Bangladesh?

        The governmental fees for registering a company are determined by the amount of authorized capital. Government fees for the issuance of an Incorporation Certificate shall be BDT 1000.

        How long does it take to register a company in Bangladesh?

        Once the aforementioned formalities have been completed, RJSC will usually issue the certificate of incorporation (Company registration certificate) within 6-8 working days.

        It usually takes 2-3 weeks from the date of submission of all documents to RJSC to register a company.

        What is BIDA?

        Bangladesh Investment Development Authority (BIDA) is in charge of facilitating foreign investments in the country.

        BIDA's responsibilities include issuing work permits for foreign employees, visas for foreign investors, processing loans from foreign sources, approving remittance of royalties and technical fees, assisting in the acquisition of industrial plots, facilitating utility connections, approving foreign loans, suppliers credit, and providing assistance and advice on a variety of investment-related issues.

        Foreign investors with industrial projects are strongly advised to register with BIDA after forming their limited company. However, there is no requirement for a commercial or trading company to register with BIDA. The average time frame for obtaining registration is 7-10 working days.

        What documents are needed to set up a private limited company in Bangladesh?

        1. Memorandum of Association
        2. Article of Association
        3. Certificate of Incorporation
        4. Trade License
        5. TIN
        6. VAT Registration Certificate
        7. Name Clearance
        8. Environmental Clearance Certificate
        9. Fire Certificate

        What is the minimum capital required for a private limited company in Bangladesh?

        In Bangladesh, there is no minimum or maximum authorised capital for a local company.

        However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50,000/- must be invested in the Company.

        Can a single person start a company in Bangladesh?

         Bangladesh does not allow a single person to open a private limited company or One Person Company (OPC).

        A private limited company must have at least two shareholders. In the case of a public limited company, however, the total number of shareholders required is seven.

        Can a private limited company have one director in Bangladesh?

        A private limited company must have at least two directors. Local or foreign nationals may serve as directors.

        Directors must be at least 18 years old and have never been bankrupt or convicted of a crime. A director is required by law to own the qualification shares specified in the Articles of Association.

        What is the difference between authorised capital and paid-up capital?

        - Authorised capital: The amount of authorised capital must be specified in the Memorandum of Association and Articles of Association. It is the maximum amount of share capital that a company may allocate to shareholders.  

        In Bangladesh, there is no minimum or maximum authorised capital for a local company. However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50000/- must be invested in the Company.

        -Paid-Up Capital : The minimum paid-up capital for registering a Bangladeshi company is Taka 1 (for local companies) and USD 50000 (for foreign companies).

        Infographics
        How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
        Video Tutorial
        Author’s Bio
        About Meheruba Mahbub | One of the most innovative young lawyers in Bangladesh

        Meheruba Mahbub is a finance partner and one of the Bangladesh's market leading international lawyers. She is head of the firm's Mergers and Acquisitions practice, which advises corporates and financial institutions on outbound and inbound investments, projects and financings.

        Meheruba has a diverse finance practice , representing large banks, financial sponsors, and corporations. She specializes in acquisition and structured financings, loan portfolio purchase and financing, real estate financings, and inbound and outbound transactions. She has extensive expertise in the energy and infrastructure industries.
        Work highlights

        Meheruba has acted on many high-profile Finance and Commercial deals in Bangladesh and India. These include advising:

        ⦾ Standard Chartered Bank on the sale of a portfolio of loans in Bangladesh, the first in a series of similar deals in Bangladesh as part of the government’s directive to banks to focus on the robustness of their balance sheets.

        ⦾ the lending and underwriting banks on the refinancing of US$6.9bn worth of debt uninsured by the Summit Group

        ⦾ Brookfield Property Partners on the acquisition and financing of Unitech’s real estate portfolio

        ⦾ Enron on the US$3bn Dhabol power project (since renamed Ratnagiri Gas and Power), the first ever inward investment into the power sector

        ⦾ the sponsor and borrowers on the Sakhalin LNG project, the world’s largest integrated oil and gas project and the largest LNG financing in Russia

        Email: [email protected]

        Address: 2 Turner Street, Canning Town, E16 1FH, United Kingdom

        Gender: Female

        Job Title: Barrister and Senior Associate

        Have a Different Question?

        Email us anytime : [email protected]

        Or call — +8801847220062 or +8801779127165

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        How to take Foreign loans in Bangladesh in 2022| How to effectively process Overseas Financing for Bangladeshi Companies | Pioneering Bangladesh

        How to take Foreign loans in Bangladesh in 2022| How to effectively process Overseas Financing for Bangladeshi Companies | Pioneering Bangladesh

        How to take foreign loans in Bangladesh in 2022 | Step by step process of getting loan from foreign entities

        11 Jan 2022

        Best Advocate Lawyer Barrister In Bangladesh

        Tahmidur Rahman, Director and Senior Associate

        This post will explain in details about Overseas Financing & Foreign loans for Bangladeshi Companies- How to take foreign loans in Bangladesh in 2022. Here in this post we explain the Procedure & Guidelines for the required approval of foreign loans by Bangladeshi Companies.

        Table of Contents

        Find the subsections below, If you want to jump through specific sections instead of reading the whole article.

        Foreign Loans

        Overseas Financing by Bangladeshi Companies 

        Over the last decade, obtaining a foreign loan by Bangladeshi entities or companies, have increasingly become a routine occurrence. Bangladeshi companies choose international loans for a variety of reasons, including lower interest rates and the ability to borrow a big sum from a single lender.

        The Government of Bangladesh has been enabling foreign borrowing legally approved by the Scrutiny Committee in order to attract foreign investment in the private sector through simpler long-term financing of industrial projects at lower cost of funds and to relieve strain on foreign currency reserves.

        How To Take Foreign Loans In Bangladesh 2022 Overseas Financing For Bangladeshi Companies The Most Complete Guideline For Foreign Loans Best Banking Law Firm In Bangladesh

        Obtaining  foreign Loans in Bangladesh in 2022

        In 2022, Short-term loans from parent corporations and shareholders are now available to foreign-owned service companies as operating capital. Overseas-owned enterprises operating in Bangladesh now have more flexibility in receiving foreign loans according to the Bangladesh Bank.

        According to a notice released by the central bank’s Foreign Exchange Policy Department, foreign-owned service companies can now obtain short-term loans as working capital from their parent companies and shareholders for essential business needs (FEPD).

        Previously, such loans were exclusively available to foreign-owned industrial businesses that participated in manufacturing. Such loans were not available to service or trading enterprises. However, service businesses can now take out such loans as well.

        The central bank further stated that such a loan might be available in convertible foreign currencies for a maximum of six years from the start of manufacturing and/or service output operations, with the opportunity to renew or extend the term during that time. Borrowing businesses may pay interest at a maximum of 3% per year until additional instructions are issued, with all other relevant transaction directions remaining intact.

         What are the usual requirements to borrow?

        Though each foreign lender has its unique set of criteria, the following is a summary of some of the most frequent requirements that a company may be expected to meet before acquiring the foreign loan.

         

        • Borrower possesses the necessary licences and permits to operate its business.
        • The borrower’s business records are up to date.
        • Borrower is a firm that is conscious about the environment.
        • All industry standard certifications have been obtained by the borrower (e.g. ISO certification).
        • Borrower is a company that follows all labour laws.
        • The borrower or the project has proper insurance.
        How To Take Foreign Loans In Bangladesh 2022_ Overseas Financing For Bangladeshi Companies_ The Most Complete Guideline For Foreign Loans_ Best Corporate Law Firm In Dhaka

        Step by Step requirements and all the possible documents that you may need

        When the documents are issued, they will be thoroughly reviewed by the BIDA Inter-Ministerial Committee. When the committee is content with the verification then they may give the approval or can obtain additional documentation. Hence it is important to carefully prepare the papers.

         

        • The Company’s Board of Directors approval for the proposed foreign loan.
        • Copy of the most recent BIDA registration form, duly attested by a First Class Gazette officer;
        • Original copy of the parties’ Loan Agreement; (For the lender, a copy of the detailed repayment schedule; original copy of the grade period;)
        •  CIB Inquiry Forms 1&2 duly completed, as well as an undertaking from its Sponsors or Directors;
        • Sponsors’ or directors’ credentials;
        • The company’s and its sponsors’ CIB certificates;
        •  Record of previous foreign loans/deferred payments (if available);
        • Audited previous year’s balance sheet;
        • Utilization Certificate from nominated bank;
        • Latest company credit rating report;
        • Latest financial analysis 
        • Updated feasibility report of the proposed project in detail;
        • Form-X, Form-XII and Form-XV from RJSC&F;
        • Certificate of Incorporation of commencement;
        • Memorandum & Articles of Association;
        • Proforma Invoice or Price Quotation (where applicable);
        • Original copy of the Bank Solvency Certificate;
        • Descriptive statement of the use of the loan;
        How To Take Foreign Loans In Bangladesh 2022| Overseas Financing For Bangladeshi Companies| The Most Complete Guideline For Foreign Loans_Best Company Law Firm In Dhaka

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        Criteria for foreign borrowing

        Foreign lenders typically conduct extensive due diligence on the borrower. Financial due diligence is typically performed by the lender; however, for technical, environmental, and legal due diligence, the lender may hire external consultants. The borrower will be responsible for the costs of these consultants.

        The lender may require the borrower to appoint a process agent in the country of its choosing,  an auditor affiliated with an international auditing firm; and a compliance manager. The auditor and compliance manager may require a timely report to be submitted directly to the lender following disbursement.

        Other Relevant Criterias for Foreign Loans

        i. Debt-to-equity ratio: The debt-to-equity ratio based on anticipated borrowing should be kept to a bearable level. While relatively higher debt levels may be warranted for long gestation infrastructure projects, total debt including the proposed borrowing should not breach 70:30 debt equity ratio even for these projects;

        ii. Liabilities to the Government: There should be absolutely no liability to the government, either in Taka or in foreclosed property.

        iii. Status of implementation and utilization report of authorized foreign borrowing: On a semi-annual basis, the borrowing firm must submit to the BOI the status of implementation and utilization report of the approved loan in the specified format.

        iv) If capital machinery and equipment to be bought: Quality, price, and economic life; The capital machinery and equipment to be procured with the proposed borrowing should either be brand new or, if refurbished, have a sufficient useful life as specified by the Government’s Import Policy Order.

        v) Validity of the approval: The Scrutiny Committee’s approval of foreign borrowing is valid for 6 (six) months from the date of the BOI’s permission letter. 

        Vi) Common Terms:
        a) The borrowing firm must follow Bangladesh Bank’s laws and regulations on the use and repayment of the loan, as well as the interest thereon.

        Foreign Loans In Bangladesh

        What are the due dilligence you may expect from your foreign lenders?

        Foreign lenders typically conduct extensive due diligence on the borrower. Financial due diligence is typically performed by the lender; however, for technical, environmental, and legal due diligence, the lender may hire external consultants. The borrower will be responsible for the costs of these consultants.

        The lender may require the borrower to appoint a process agent in the country of its choosing,  an auditor affiliated with an international auditing firm; and a compliance manager. The auditor and compliance manager may require a timely report to be submitted directly to the lender following disbursement.

        How to get the BIDA Clearance for Foreign Loan in Bangladesh

        After obtaining the prescribed application from BIDA, the applicant must submit the aforementioned documents, along with the applicable licence fee, to the Security Committee of Bangladesh Bank for review. If the committee grants clearance after reviewing the submitted documents, BIDA will grant the loan in accordance with their recommendation.

        The official time limit for such a process will be entirely dependent on the Borrower for document collection and, to a lesser extent, on the Scrutiny Committee to conduct the meeting, and the fee schedule for approval will be tentatively between BDT 5k and BDT 100k depending on the amount of lending.

        How to get a Trade License in Bangladesh?

        Click here and go to the post, Tahmidur Rahman speaks in details about Trade License in Bangladesh | Fees, Processing and Renewal!

        Regulatory Permissions from Bangladesh Bank and Board of Investment (BOI).

         

        Foreign loans with a term of less than a year require Bangladesh Bank’s prior authorization. The Board of Investment must authorize all other foreign loans (including supplier credits, financial loans from institutions or individuals, and debt issuance in international capital markets) (BOI).

        Borrowers in special economic zones, such as the EPZs, are eligible for certain concessions (Export Processing Zone).

        It normally takes three to six months for the BOI to approve the application. The loan must be applied for using a stipulated application form, which, along with accompanying documentation, must clearly state the loan’s purpose and planned usage by the borrower, as well as the repayment schedule with dates and amounts, and interest payment dates and amounts.

        The following documents must be supplied with the application as supporting documentation:

        • The term sheet, facility agreement, and security documents are all part of the loan documentation. These may be submitted in draft form:
        • The borrower’s corporate documents, such as the memorandum and articles of association; resolutions of the borrower’s Board of Directors approving the foreign loan on the terms and conditions reflected in the loan documentation and the application;
        • If the loan is to be used to import any equipment, a pro-forma invoice for that equipment;
        • Report covering key financial and commercial matters in in respect of the loan and related project.

        Foreign loans from Multilateral Development Banks

        Each of the major Multilateral Development Banks, including the Asian Development Bank and the World Bank, has a Commercial Liaison Office run by the Commercial Service.

        These financial organizations lend billions of dollars to initiatives in developing nations like Bangladesh that aim to boost economic growth and social development by decreasing poverty and inequality, increasing health and education, and expanding infrastructure development.

        The Commercial Liaison Offices assist American firms in learning how to participate in bank-financed projects and lobby on their behalf.

        How To Take Foreign Loans In Bangladesh 2022| Overseas Financing For Bangladeshi Companies| The Most Complete Guideline For Foreign Loans_Best Transactioanl Law Firm In Bangladesh.

        General Questions that people ask about Foreign Loans in Bangladesh

         

        Is it possible to receive international venture capital funding to launch a business in Bangladesh?

        IFC and IDLC funding helped Chaldaal, a food e-commerce firm, raise US$ 5.5 million. This is a positive indicator since if the business thrives, additional financial institutions may be willing to invest in it. Sindabad, a B2B e-commerce, received US$ 4.2 million from Aavishkaar, an Indian Impact Fund. Handy Mama, C-work, Gaze, and Beatles are among the four start-ups that BD Venture has invested in. They joined other Angel Investors in a second round investment in Esoshikhi, an educational technology. The government has set aside Tk 1 billion in the budget for new business ventures. However, the specifics of how that cash will be used have yet to be determined. The cabinet recently approved the ICT Ministry's initiative to establish a venture capital business.

        Can I take loan from foreign bank in Bangladesh?

        A company can obtain a soft loan in one of two ways: automatically or through the government: The automatic method allows a borrower to get a loan from a foreign firm without first obtaining clearance from Bangladesh's Central Bank. The loan arrangement must, however, be recorded with the BIDA in this case.

        How to determine the existing indebtedness structure and creditworthiness of the borrowing company?

        (a) CIB report: A CIB report will be needed for all proposals to be processed. The CIB report will be collected by BOI from Bangladesh Bank.
        (a) Bank certificate: Existing indebtedness structure and creditworthiness of the sponsors involved, duly confirmed by their bankers, will be required for foreign borrowing permission. The chosen bank will submit to BOI the required inquiry papers as well as an undertaking from the borrowing company's Sponsor Directors.

        What are the funding programs for Bangladeshi Entrepreneurs?

        Robi, a mobile telecom business, has overhauled its Accelerator program. They broadened the scope by allowing applications from anybody in Robi payroll. They expanded its coverage to include all of Bangladesh. They got almost 2200 applications, of which 56 were chosen for pitching. Finally, eight funds and incubation facilities were given. These programs were aired on television in order to raise awareness and encourage people about the notion of entrepreneurship. Grameenphone has renamed its Accelerator program GP Accelerator 2.0, which is divided into two parts: Pre-Accelerator and Accelerator. Pre-Accelerator is an 8-week program that provides training and coaching to assist verify their concept and get it to market. The accelerator is a 4.5-month program for teams with a Minimum Viable Product (MVP).

        How to determine the Quality & Commercial viability of the project for Foreign Loan?

        The following financial analyses are necessary to verify the quality/commercial viability of the project feasibility study;

        a) The project's internal rate of return (IRR) b) The payback period c) The break-even point at what capacity and what time of year d) A sensitivity analysis in terms of IRR
        d) Ratio of Debt Service Coverage (DSCR)

        What are the challenges regarding overseas financing in Bangladesh?

        Globally, governments that backed startups saw an increase in their GDP. In the fourth industrial revolution period, creativity and technology assistance are critical for competing in global marketplaces. As a result, startups should be at the top of everyone's priority list. It is a priority for our government, but it should be represented at all levels of policy making. Our entrepreneurs have difficulties in obtaining trade licenses, intellectual property rights, and other business licenses and permissions. Foreign investors are hesitant to invest in a company that lacks all necessary legal documentation. Foreign investors are likewise unconvinced about the ease with which they might abandon their investments. Regional centers such as Singapore and China have vast amounts of money to invest, yet we are unable to entice them to engage in our enterprises.

        Can an individual from Bangladesh take loan in foreign currency?

        Provided, however, that for sufficient reasons, the Central Bank may permit a person resident in Bangladesh to borrow or lend in foreign exchange from or to a person resident in or outside Bangladesh, and/or permit a person resident in Bangladesh to borrow or lend in BDT from or to a person resident outside Bangladesh.

        Can a foreign director give loan to Bangladeshi company?

        Yes, it is permitted.  But bear in mind, a company cannot lend to a director without paying taxes, while a director can lend to a company.

        How do I record a loan repayment?

        When your company records a loan payment, you debit the loan account to remove the liability from your books and credit the cash account. Repayments on an amortized loan are made over time to meet interest expenditures and principle reduction.

        What are the 3 classification of loans in Bangladesh?

        A loan is a sum of money borrowed from a lender by an individual or a business. It is divided into three types: unsecured and secured loans, conventional loans, and open-end and closed-end loans. Before any money crosses hands, the beneficiary and the lender must agree on the conditions of the loan. In some situations, the lender may compel the borrower to put up an asset as collateral, which will be specified in the loan agreement. Individuals, businesses, and governments can all get loans. The major reason for taking one out is to obtain funds to increase one's total money supply. The lender earns money by charging interest and fees.

        Company Law practice in TR Barristers in Bangladesh 

        The Barristers, Advocates, and lawyers at TLS Law chamber in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients in dealing with and registering branch offices in Bangladesh.   For queries or legal assistance to set up a branch office in Bangladesh, please reach us at:

        E-mail: [email protected]
        Phone: +8801847220062 or +8801779127165 or +8801708080817
        House 410 Road 29 Mohakhali DOHS

         

        How To Take Foreign Loans In Bangladesh 2022_ Overseas Financing For Bangladeshi Companies_ The Most Complete Guideline For Foreign Loans_Best Company Law Firm In Bangladesh

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