E-Commerce Company Formation in Bangladesh

E-Commerce Company Formation in Bangladesh

E-Commerce Company Formation in Bangladesh| Complete Overview of Starting an E-commerce Business.

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Tahmidur Rahman, Director and Senior Associate

Table of Contents

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

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E-commerce business formation in Bangladesh:

E-commerce is actually one of Bangladesh’s fastest growing field and trends. There are lots of e-commerce companies that have begun operating in Bangladesh since 2015. But mostly they only operate for Dhaka city and few businesses have only started in their city. This is a positive sign and e-commerce will certainly expand in days to come. Many people come to CLP with their enquiry if they need a trade license / or a PLC for their Bangladesh e-commerce business. And the answer is of course “yes.” In Bangladesh, every business is required to have a trade license, and eventually you might opt for establishing your own PLC for your e-commerce business!

Starting an E-Commerce business in Bangladesh

As the study shows, Bangladesh is entering its own period of demographic dividend, meaning that the proportion of young people in the next 25 years will be the highest in the history of the country. And this is a golden opportunity for Bangladesh to tap into the promise of e-commerce by building a viable e-commerce ecosystem that will transform the country’s economic landscape. Another Asian neighbor, China, has already shown that e-commerce can easily become the key drivers of the economy, with favorable policy and government commitment.

 The term e-commerce refers to the Internet-based buying or sale of goods, products or even services. E-commerce purchases vary from the obvious things like online retailing, online media outlets, online shopping, etc. to the more important items like digital payment, online banking and even the procedures of public administration. In this article we will concentrate on the information needed to start an E-commerce company in Bangladesh.

Major Categories and Types of E-commerce business in Bangladesh 

In terms of E-commerce business in Bangladesh, there are three kinds of e-commerce, which are as follows-
1. Items oriented: These online companies deal over digital media with tangible and physical goods or products.
2. Service-oriented: These online businesses are specialized in delivering services to a customer, be it between businesses or just ordinary people or vice versa;
3. Digital products oriented: These online companies are performing legal businesses like the two preceding ones but the goods or services they offer are entirely digital.

The buying and selling process involves the exchange of web and electronic data using personal computers , laptops, tablets , cell phones etc. Companies are categorized as ‘brick and mortar’ (traditional trade), ‘click and mortar’ (partial e-commerce) and ‘internet businesses’ where all is digital for merchandise, distribution, and payment. The definition of e-commerce thus includes both purchases of physical goods and digitized products and services.
In the current eBusiness world, M-Commerce (Mobile Commerce) and F-Commerce (Facebook Commerce) have become two common concepts. Within this paper both are listed within the wider e-commerce framework.

What are the usual transactions in a e-commerce business in Bangladesh?

These online transactions are usually done in the following six ways –

 

1.Business to Business (B2B): The “Business to Business” transactions include two more companies conducting business with each other and barely ever involve the final customers;

2. Business to Consumers (B2C): It is the business model where businesses directly offer goods or services to customers. Consumers are increasingly shopping for and purchasing goods online, arranging financing, arranging shipping or taking delivery of digital items such as apps, and getting after-sales services. B2C e-commerce includes online transactions often referred to as e-retail (or e-tail).
In building B2C networks, some of the advantages businesses can achieve are decreased operational costs, increased marketing, globalization, customer satisfaction, knowledge management, etc .. Bangladesh e-commerce begins and mostly switches to B2C.

3. Customer to Customer (C2C): The Customer to Customer” model refers to the direct transactions conducted between the consumers themselves;

4. Customer to Business (C2B): The Customer to Business transactions refers to the providing of goods or services by a customer to legitimate businesses;

5.Business to Administration (B2A): Business to Administration involves the transactions between businesses and governmental or administrative bodies.

6. Customer to Administration (C2A): Customer to Administration refers to the transactions that are made between the ordinary consumers and governmental bodies.

Open Your E-Commerce Business In Bangladesh

Process of Starting an E-commerce business in Bangladesh

The procedure required to start an E-commerce company in this country depends entirely on the nature of the business itself.

  • Individual businesses: If your online company is all about the Customer to Consumer ( C2C) model and you just want to trade with someone over the internet, then you don’t need a lot of formality. At the other hand, if you sell any goods or services actively through a website or page and you are the sole owner of the said company, then you will need a valid trade license and proper E-TIN set-up.

     

  • Companies or Associations: If your favored business model is Business to Customer (B2C), where you want to set up a company or association to sell your goods or services, the laws currently in force in Bangladesh regarding companies, partnerships or associations etc. will be applicable to you to set up your e-commerce business in Bangladesh.
  • Domain & intellectual properties: Another important step of setting yourself up in the E-economy is to purchase a domain name. Being prepared with a valid domain, trademarks, copyrights etc. will be instrumental in securing your intellectual properties among other things.
  • A typical Bangladesh online business: A typical Bangladesh online business starts with the development of a website or a public page in an asocial media network. The items or services to be sold are then cataloged on the Customers’ website or page on browse through. The final aspect of this initial phase is incorporating a safe form of payment, and there are quite a few good choices to choose from in your own e-commerce business in Bangladesh.
  • Payment methods: Most online stores have a cash-on – delivery system which, of course, needs no digital payment method. At the other end of the spectrum, a large chunk of all mobile banking in this country is currently being done via services such as Bkash, Rocket, Nexus Pay etc., but you do have the option of accepting other services such as the various credit or debit cards, PayPal, Money Gram or any other FIN Tech (Financial Technology) methods. The trick is to go for something that’s easily available and that has the most users. Hence:

     

    Setting up a payment gateway system in Bangladesh requires few papers/documents:

  1. Company Trade License
  2. Owner’s NID & Photograph
  3. Bank Details
  4. Company Logo
  5. Website URL
  6. Signature & Seal

As of now, the Bangladesh Bank has allowed funds to be transferred up to BDT 5,00,000 between two customers who have accounts on the same bank via online facilities, provided that the transactions comply with the prevailing Money Laundering Prevention laws and related government circulars.
Nevertheless, in the case of any legal issue emerging from these projects, it is often prudent to obtain professional assistance. According to the laws currently in effect in Bangladesh, e-economy participants are entitled to various legal remedies with the least amount of difficulty. The article would also address the prospective risks of operating E-commerce companies.

Legal Framework For E-Commerce Business In Bangladesh

Potential Legal regulations in regards to starting an e-commerce in Bangladesh

 

  •  Consumer Protection legislation is important in e-commerce business in Bangladesh to create consumer trust. In merchant’s bank account, a holding fund mechanism listed in the ‘E- Payment’ section might be established; consumers do need to use true identification for the purposes of the transaction.

     

  • Privacy of consumer’s communication, preference, visit information, personal and financial data must be maintained by the relevant merchant. There has to be a clear definition of what form of communication, intention or promise between merchant and consumer will be counted as service agreement; violation of which would face legal consequences in the justice system.

  • Community Conscious Driven Policy needs to be established in the e-commerce business in Bangladesh. The socio-economic scenario differs from country to country. Expectation from businesses and consumers need to weight in our existing standard.

     

  • Code of Conduct for the businesses and customers need to be defined. Any form of digital communication must not violate traditional social and business etiquette within the e-commerce business in Bangldaesh.

    Dispute Resolution Mechanism should be clearly stated and communicated properly to the stakeholders. A cyber court might just be established for quick resolution of such cases specifically for e-commerce businesses in Bangladesh.

     

    •  ICT Act is undergoing revision. As the cyber world evolves very rapidly, a legal committee will eventually be set up to review the law and make appropriate changes every six months. 

    •  Most e-commerce operations incorporate a variety of digital activities and conventional business processes. ICT Act will ensure compliance with current legislation and ecommerce regulations is sufficient.

    • Though e-commerce ensures easy access to entrepreneurship, some form of regulations will eventually be imposed for the new entrants for identification, authentication, taxation and monitoring purpose. Easy registration process using e-tin, address, etc will eventually be incorporated to ensure the transactions under a legal umbrella.

    • Insurance policy might also be formulated to protect businesses and consumers from larger accident and fraud incidents.

For details of filing system, click here or in the image below-

 

If you want to know how to open a company in Bangladesh or about company formation click here!

  • Step by Step Process of Registering a Company in Bangladesh
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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!

What are the potential pitfalls of starting an e-commerce business in Bangladeh ?

  

As a fairly recent development in Bangladesh’s economic history, there are several possible problems that may emerge from an online company. Many of these problems are discussed briefly below- 

1. Credit and Guarantee: A large percentage of higher-end transactions are made by loans such as EMI or other types of instalment plans. For certain situations, civil proceedings can be required when the consumer defaults.  

2. Financial fraud: all the time when it comes to e-commerce in Bangladesh, financial fraud such as credit card fraud, the use of illegal payment methods etc. Established in compliance with the 1990 Money Loan Court Act, the Artha Rin Adalat is a judicial body dealing with the recovery of money loaned to citizens through public sector financial institutions. This court can adjudicate financial fraud committed in e-transactions such as credit card frauds etc. There are some other legal remedies available under Bangladesh ‘s laws to a possible victim of fraud such as the Digital Protection Act, 2018 among others. 

3. Return products or non-delivery of goods: E-commerce companies regularly recall items returned by consumers for different reasons, some of which are specific concerns such as the size of apparel products, while others are as ambiguous and illogical as they may be. In addition to the financial blows suffered by the sellers, factors such as product return or product non-delivery may also be harmful to the purchasers. Under existing legislation such as the Sale of Goods Act, 1930 etc., online sellers and purchasers are entitled to a plethora of protections that can be legally enforced.

4. Quality of products: The E-economy of Bangladesh has a long history of venders providing unsatisfactory goods or services to the customer. This is mainly due to the fact that the customers do not get to check or verify what they are buying before the actual delivery takes place. This has apparently resulted in sellers delivering damaged, expired or unusable products in the end. Issues of damaged goods or goods in lesser quantity than originally agreed upon can be brought to legal action under the governing laws of the country such as the Consumer Protection Act, 2009, The Sale of Goods Act 1930, The Contract Act, 1872, The Penal Code, 1860 and the Standard of Weights & Measures Ordinance, 1982 etc.

5. Adulterated goods: whether purchased by a customer or a business, whether it is the duty of an online retailer to deal with adulterated goods and products, it will be subject to legal consequences. The 1974 Special Powers Act provides legal provisions for adjudicating vendors trading in adulterated goods, beverages, or other items.

6. Infringement of Intellectual Property: There is a general disregard among the Bangladeshi people for intellectual property laws, particularly when it comes to digital products, due to the state of the basic economy and the newness of information technologies.

7. Exploitation: The very existence of the techs used to perform different transactions online leaves space for vulnerabilities that can be manipulated for illicit benefit. Frauds in the credit or debit card, frauds in the digital identity forgery, infringements of authority, unauthorized access to data and privacy etc. are some of the examples that can seriously hamper an individual’s or business’ livelihood. In addition to careful planning by the users, in the aftermath of these incidents, legal proceedings are also necessary. 

 

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Frequently Asked Questions- FAQ about E-commerce Business in Bangladesh

In regards to opening an E-commerce company in Bangladesh, people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.

General Questions about Starting an E-commerce company in Bangladesh

What is E-commerce business in Bangladesh?

E-commerce includes the purchasing and sale of products and services by businesses and customers via the electronic medium. E-commerce, also known as electronic commerce or internet commerce, refers to the purchasing and sale of goods or services through the Internet, and the transfer of money and data to carry out these transactions.

How many e-commerce business are there in Bangladesh?

The eCommerce Association of Bangladesh (e-Cab), an eCommerce trading organization in Bangladesh, reports that there are 700 eCommerce sites and about 8,000 eCommerce pages on Facebook. Facebook remains a common method of advertising and selling goods, to the point that many companies forgo the production of websites.

What are e-commerce companies?

Amazon, Alibab and e-bay probably the most influential e-commerce business in the world. Our neighboring country have flipkart, which is an Indian based eCommerce web portal founded by Sachin Bansal and Binny Bansal in 2007. In Bangladesh currently we have Daraz and E-valy dictating the e-commerce market.

What are the 5 types of e-commerce?
  • Business-to-Business (B2B)
  • Business-to-Consumer (B2C) 
  • Consumer-to-Business (C2B) 
  • Business-to-Administration (B2A) 
  • Consumer-to-Administration (C2A)
What is the best e-commerce company in Bangladesh?

Daraz is considered to be one of the best e-commerce companies in Bangladesh. As one of the most innovative and successful online stores in Bangladesh, Daraz.com.bd offers a wide range of products, including electronics , apparel, home appliances, children’s goods , furniture, beauty and health, and much more.

How to start an e commerce business in Bangladesh (step by step)?
  1. Select The Best Business Structure and Register Your Business legally in Bangladesh.
  2. Research Ecommerce Business Models.
  3. Start Ecommerce Niche Research.
  4. Validate Target Market and Product Ideas.
  5. Register Your Ecommerce Business & Brand Name.
  6. Finalize Your Ecommerce Business Plan.
  7. Create Your Online Store.
  8. Attract Customers To Your Ecommerce Website.
Do I need to register my e-commerce company in Bangladesh?

Choose a business name and register your company. There are legal protections and tax benefits for incorporating, so don’t skip it. Email us for aiding you to a seamless formation.

What is ECAB?

The e-Commerce Association of Bangladesh (e-CAB) was established to accelerate the growth of the e-Commerce sector in Bangladesh. The e-CAB was designed to address the current problems of e-Commerce in order to ensure its development. E-CAB aims to act as a shared forum for companies active in the e-commerce sector in Bangladesh. The e-CAB will act as their voice. In addition , e-CAB will undertake a range of activities, including research, publication, training, workshops , seminars, etc., to develop the e-commerce market.

How to become a member of E-CAB in Bangladesh?
  • Logo of your e-commerce company
  • A short profile of the company (minimum 100 words)
  • Contact person name and contact address
  • Photocopy of the updated trade license of the organization/company
  • Photocopy of the updated Tax Identification Number (TIN) certificate
  • Photocopy of the National ID card of the proprietor/managing director/Chairman of the company
  • Passport size picture of the proprietor/managing director/Chairman of the company

Get legal advice from the best company formation Law firm in Dhaka

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process and legal provisions relating to the setting up of your E-Commerce business in Bangladesh and the safeguarding of your rights and interests in case of any conflicts.

For any queries or legal assistance, please reach us at:

E-mail: [email protected]

Phone: +8801727983838

Address: House 39, Road 126 (4th Floor) Islam Mansion, Gulshan 1, Dhaka.

 

 

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Pharmacy Business in Bangladesh – Permission, License process and Business Formation

Pharmacy Business in Bangladesh – Permission, License process and Business Formation

Pharmacy Business in Bangladesh – Permission, License process and Business Formation

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Tahmidur Rahman, Director and Senior Associate

20 Sept 2019

In this post, Tahmidur Rahman speaks about how to open a Pharmacy Business in Bangladsh successfully and the process of formation in details.

How to open a Pharmacy Business in Bangladesh  

Bangladesh’s Pharmacy sector is one of the most profitable sector in regards to the proportionality of investment and output . Owning a pharmacy company in Bangladesh is not only a lucrative endeavor but also a satisfying one for you. This is the company for those who want a place to deliver a reliable service. But business startup is a challenging process. Things to do in this process are including market study, financial structure, trade licensing and product licensing, recruiting critical staff, etc.
And make sure you educate yourself thoroughly on what that means before you attempt to open a drug store. When you want to personalize the type of service that you deliver to your clients in different ways, a retail pharmacy offers you complete flexibility.

 

Procedure of starting a Pharmacy in Bangladsh

Launching a pharmacy company in Bangladesh is currently something difficult, but not impossible. Because of this sector’s strengthened regulation it provides a major opportunity to enhance community health. This means the government has given priority to the informal sector, including Bangladesh retail drug shops. It is positive news for the country’s health-care sector. Here are the steps to opening a Pharmacy Business in Bangladesh in simple three steps:

  • A. Market Research & Analyze the Local Community’s Needs and draft a business Plan:

    This is not only the first and initial step for your pharmacy business in Bangladesh but also the most important one. When it’s done, you’ll need to build lasting relationships with drug wholesalers and other vendors. In the process, you also have to negotiate good rebates. Unless you are trying to choose the right place where a lot of traffic passes every day, the company will definitely be running in full swing. If you find it in the vicinity of a government or private hospital, this is the best place for a pharmacy company.

  • B. Obtaining Permission from the Bangladeshi Pharmacy Council for Pharmacy Business in Bangladesh:

    To conduct business as a pharmacist in Bangladesh, you must first obtain Shonod (Permission) from the Pharmacy Council of Bangladesh. You can receive the permission from the Bangladesh Pharmacy Council after completing a 6 month course.

  • C.Obtaining Permission from the Bangladeshi Pharmacy Council for Pharmacy Business in Bangladesh:


    Collect Form 7 from Drug Administration’s (DGDA) General Directorate. To apply for a drug license, fill out Form 7 and submit it to DGDA. The applicant must also send Bank Statement of License Fee payment to Treasury Chalan along with Form 7. Receiving the store deposit or photocopying the rent agreement. If you own the store, then the store’s Ownership Deed. An Angikarpotro by another Pharmacist approved.
    A copy of your Trade License – if you want to set up a pharmacy in a Bangladesh municipal area, you need to get a Trade License. For an idea of how to get a trade license in Bangladesh, please check out our article on “The complete process of obtaining Trade License” here.

  1. At first obtain the Bank statement
  2. And then, the Treasury Chalan of the License fee submission
  3. The receipt of the rent of the shop or photocopy of the rental agreement. If you own the shop, then the Deed of ownership of the shop.
  4. An Angikarpotro by another licensed pharmacist.
  5. A copy of your Trade License – if you want to set up the pharmacy in a municipal area of Bangladesh, then you must obtain Trade License. To have an idea on how to obtain trade license in Bangladesh, please have a look at our article on “Trade License Process and Cost”.
  6. A copy of the certificate of completion of the 6-month course by Bangladesh Pharmacy Council

 

 

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Standards for the establishment and operation of  Pharmacies in Bangladesh

Even after successfully creating the establishment/business the  Pharmacy owner must have these required coml;

In addition to these, every Pharmacy owner shall keep in mind while conducting pharmacy business in Bangladesh:

  • Ensure that the Pharmacy staff has the appropriate skills, qualifications, and competencies for their role and for the tasks they carry out.
  • Prominently display the Pharmacy accreditation certificate, dispenser registration certificate(s), and trade license.
  • Prominently display the name of the pharmacist—in-charge for the premises and his/her registration certificate in the professional service area.
  • Notify the DGDA in writing within 30 days after the Pharmacy permanently closes; in so doing, the authority shall inspect the inventory and provide advice for proper disposal of medicines and other products.
  • Notify the DGDA in writing within 30 days after the Pharmacy temporarily closes with the anticipated date of re-opening, which should also be publicly displayed in front of the Should a Model Pharmacy close for one year, it shall be considered a new applicant for accreditation.
  • Notify DGDA in writing within seven days for any change in approved personnel including when a notice for termination of contract with pharmacist-in-charge is issued.
  • Report any thefts or unexplained losses of drugs or records immediately to the nearest police station and to DGDA.

Premise requirement for  Pharmacy Business in Bangladesh

In regards to the Pharmacy Business in Bangladesh and premise of the Pharmacy, every Model Pharmacy premises must meet minimum requirements as follows:

  • Be a permanent structure that is not at risk from floods.
  • Have a roof and ceiling free from leakage.
  • Provide adequate seating for customers waiting for service.
  • Have surfaces/floors/walls with smooth finish that can be washed with disinfectants.
  • Assure good hygiene inside and outside the premises.
  • Have a source of potable water.
  • Have space with dimensions of at least 300 square feet and a ceiling height of at least 8
  • Have a source of electricity such as a direct connection to an electrical grid, generator, instant power supply, or solar panels.
  • Have a sink with running water dedicated to support hand hygiene practices.
  • Where a Model Pharmacy prepares extemporaneous products, the sink must have sufficient space for cleaning related equipment.
  • The sink should not be used for disposal of mop water and other liquid wastes.
  • The building must be constructed and maintained to minimize entry of animals, such as rodents and birds.

How ‘Tahmidur Rahman & CLP Associates’ helps the formation of any business in Bangladesh

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process relating to formation of pharmacy business in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

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Signage Requirement for Pharmacies in Bangladesh

Pharmacies will have the following signage:

  • A sign board with the name of the outlet, registration number, address, and officially approved logo (brand) for a Model Pharmacy in accordance with DGDA’s Model Pharmacy branding guidelines.
  • A “NO SMOKING” sign conspicuously placed to prohibit smoking on the premises.
  • A sign indicating operating hours.
  • Upon closure or relocation, or loss of accreditation status, all signage indicating that the premises was a Model Pharmacy must be removed immediately.

 

Requirements in professional service area for Pharmacy Business in Bangladesh

 

  • The Model Pharmacy must have a clearly delineated and marked professional service area restricted to the provision of therapeutic goods and services.
  • The professional service area should be distinguishable from other areas of the Model Pharmacy; customers should readily be able to locate the dispensing area.
  • The area should be designed and located such that consumers are able to access the advice of the pharmacist or other qualified pharmaceutical personnel to assist in their safe and effective use of therapeutic goods.
  • The professional service area contains the dispensary, counselling area, prescription drop-off and collection points, and over-the-counter and prescription medicine storage areas. The professional service area must be free from information, products, and services that are not therapeutically related.
  • Non-therapeutic items (e.g., toiletries, cosmetics) should not be displayed for sale within the professional area.
  • No person other than a member of the Model Pharmacy staff is allowed behind the counter in the professional services area.
  • The dispensary must have a dispensing counter with a clean and smooth surface. (For Pharmacy Business in Bangladesh.)

 

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Frequently Asked Questions about Pharmacy Business in Bangladesh

In regards to opening a pharmacy business in Bangladesh, people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.

General Questions about Starting a Pharmacy business in Bangladesh

How can I get pharmacy license in Bangladesh?

The process is pretty easy! All you need to do is to complete a 6 months course from the Bangladesh Pharmacy Council.

How much does it cost to start a pharmacy in Bangladesh?

Only a fee of 3000 Taka must be paid through Treasury Chalan if the pharmacy is to be established in the municipality of Bangladesh. In the case of areas outside the municipal area, the fee will be 1500 Taka. The license must be renewed every two years.

Is pharmacy business profitable in Bangladesh?

Pharmacy business has emerged as one of the most profitable segments in the healthcare sector. Industry experts believe that Bangladesh will soon become one of the top ten countries in terms of individual medical expenditure. Medicine spending in Bangladesh is projected to increase by 10% over the next five years.

What is drug license in Bangladesh?

You need to get a drug license if you want to deal with medicine. This drug license is issued by the Department of Medicine Administration under the Ministry of Health and Family Planning. License fee is 3000 BDT inside the municipal area and outside the municipal area is BDT 1500.

How to apply for drug licence in bangladesh?

You need the following documetns for getting a drug license in Bangladesh:

  1. Bank statement.
  2. Treasury Chalan of the License fee submission.
  3. The receipt of the rent of the shop or photocopy of the rental agreement. …
  4. An Angikarpotro by another licensed pharmacist.

 

How to get GMP certificate License for drug?

Good manufacturing Practice (GMP) Certificate:

  1. An Application in Company Letter Head
  2. Manufacturing license of medicine
  3. Your company profile
How do pharmacies make their money in Bangladesh?

For each item sold, pharmacies shall be reimbursed at the agreed price as set out in the Drug Tariff. Buying profit is generated by ensuring that goods are purchased at a price lower than the price indicated. Bulk buying is one obvious way this can be done.

What Bangladesh Pharmacy Council?

Bangladesh Pharmacy council is the only regulatory body for controlling the pharmacist and the pharmacy education in Bangladesh as per the law of Bangladesh, The Pharmacy act 2013.

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Pharmacy Formation

CLP is considered one of the best law firm in Pharmacy formation in Bangladesh, and not only that in general it is considered as the best company law firm in Dhaka.

How to start a pharmacy seamlessly with Tahmidur Rahman CLP's help

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process relating to formation of pharmacy business in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

.

How do I run a successful pharmacy in Bangladesh?

First and foremost decide a strategic location to open your pharmacy. To make your pharmacy successful, you need to get to know the industry and determine what your goals are.

  • Invest in well-manered and trained employees by the Bangladesh Pharmacy council.
  • Make a really good first impression.
  • Incorporate state-of-the-art technologies for the easy distribution of medicines.
  • Provide expcetional health service to people, in the end its is a noble profession.
What other services does Tahmidur Rahman (CLP) provide in Company formation?

The firm offers advice to domestic and foreign clients on matters related to general company and corporate enforcement, including but not limited to investment legislation, sectoral structures and regulatory matters / enforcement. Clients in this field of practice come from across industries, including but not limited to telecommunications, e-commerce, technology, ITES, electricity, healthcare, real estate, security, retail, pharmaceutical, education , infrastructure, media, automotive, etc.
The firm actively advises clients on trade related issues that directly affect foreign investment in Bangladesh. These issues growing include preferential market access for Bangladeshi businesses, position of technology, etc.

Have a Different Question?

Email us anytime : [email protected]

Or call — +8801727983838

Real Estate Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh

Real Estate Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh

Real Estate & Construction Law in Bangladesh – Rules & Regulations & Everything you need to know

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Tahmidur Rahman, Senior Associate, Counsels Law Partners

20 Oct 2019

Table of Contents

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

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This post in will explain in details the Real Estate & Construction Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh | Everything about property law that you need to know and be aware of with diagrams and infographics.

 

Real Estate Law in Bangladesh 

At first let’s break down what is real estate Bangladesh before diving down towards Real Estate & Construction Law in Bangladesh . It is important to understand that Real Estate is not the same thing as personal property, and should not be confused. Personal assets include intangible assets such as investments, as well as tangible assets such as furniture and fixtures such as a dishwasher. Even renters may also claim parts of a home as personal property, provided that you have purchased and installed the property with the permission of the lessor.

What is Real Estate? 

Real estate is a property composed of land and its houses, as well as the land’s natural resources, including uncultivated flora and fauna, farmed crops and livestock, soil, and any other mineral deposits. 

 

Real Estate in Bangladesh  

Real estate is both a tangible asset and an immovable form. Definitions of real property include ground, houses and other facilities, as well as the rights to use and enjoy the land and all its amenities. Renters and leaseholders may be entitled to possess land or structures that are considered part of their house, but these rights are not, strictly speaking, considered ownership. Hence:

 

  • Real estate is real, that is, physical, land-based property and everything on it, including houses, flora and fauna and natural resources.
  • Immovable properties have three basic categories: residential, commercial and industrial.
  • Residential real estate is less costly and more viable for individuals when it comes to finance, whereas commercial real estate is more profitable and secure.
  • As an investment, real estate offers income and capital appreciation.

Jurisdiction of Real Estate Law in Bangladesh

Real Estate Development and Management Act 2010 is the authoritative act in regards to Real Estate Law in Bangladesh. In the act Section 2 explains the registration process of Real Estate Developers and their due responsibilities. (Real Estate & Construction Law in Bangladesh )

Section 2 Real Estate Law In Bangladesh
Best Construction Real Estate Construction Firm In Bangladesh

 

Registration Requirements for Real Estate Developers in Bangladesh 

If someone wants to enter the real estate market in Bangladesh for commercial purposes, the act specifies that he or she will have to submit the following documentation for registration with the agency concerned.

  • Trade License
  • Tax Identification Number (TIN)
  • VAT Registration Number
  • Credentials of experts in your company
  • Memorandum of Association, Article of Association and Certificate of Incorporation
  • REHAB Membership Registration Copy

Buying, Selling, Transferring of Real Estate in Bangladesh

Real Estate Development and Management Act 2010 is the authoritative act in regards to Buying, Selling, Transferring of Real Estate in Bangladesh Real Estate Law in Bangladesh. In the act Section 3 explains the registration of buying, selling and transferring process of Real Estate Developers and their due responsibilities. The buyer or seller can not adjust the quoted price as set out in the deal. The sum can, however, be changed later if the parties agree to jointly use better materials for the land. First, in no longer than three months, the owner will sign over the land, registry and principal deed. Additionally, if the property has any difference with respect to size or volume after sale, the price must be changed within three months of the transfer. So keep these things in mind when you buy a property next time in Bangladesh.

Transferring Of Real Estate Law In Bangladesh
Top Drawer Real Estate Construction Law Firm In Dhaka

 All Landowners and Developers / Purchasers will not initiate or carry out construction work on the land project’s construction or development work without receiving design permission from the government’s appropriate authority such as RAJUK, CDA, KDA, RDA, etc.

Tahmidur Rahman Real Estate Construction Law In Bangladesh

“Counsels Law Partners is Considered as one of the leading firms in Property Law and Real Estate Law Firm in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

The Property Contract in Real Estate Law of Bangladesh 

For a general landlord in Bangladeh, there has to be a legal property contract for any trade. Again it’s a common thing, too. As a homeowner, he or she will obtain for his / her possession a specific portion of the apartment building. But, if the owner wants to auction off his share’s apartments, he will have to enforce an attorney’s power and give the developer the right to sell his share of the house. Instead, as a proprietor of his new apartment, he is allowed by the owner to receive one year of maintenance facility. Additionally, if any errors arise within two years of the handover, the contractor must repair the damage from their wallet.

 

Real Estate Law For Developers in Bangladesh 

Real Estate Developers have to be committed towards the enhancement and growth of the Real Estate Sector of Bangladesh. If they recognize that for sustainable long term growth of this sector, they must conduct their business with a great proficiency, equality, honesty and ethics. Out of the all the parties in the market, a real estate developer has to deal with clause VI. B of the Memorandum and Articles of Association of the Real Estate Housing Association of Bangladesh incorporated under the companies ACT, 1913 (new 1994) the most. Rules and regulations are much rigorous for the real estate developers. For example, if you want to enter the market for commercial purpose, you will have to produce the following documents as stated above to the concerned authority for registration.

How ‘Tahmidur Rahman & Counsels Law Partners Associates’ helps the purchaser of any land in Bangladesh:

Tahmidur Rahman- Counsels Law Partners, Law Firm in Dhaka assists buyers, financiers, shareholders, developers on their land-related matters like property due diligence (domain identification, encumbrance check, ground limit, permissive land usage, building development) related to ownership and occupancy, lease, stamping and registration of papers, zoning and permissible use of lands, essential ambitions.

Real Estate Law In Bangladesh

 Legal Services Offered by Firms in Regards to Real Estate in Bangladesh

 

 

Drafting, look over & negotiating various property documents.

Legal opinion by vetting all property related documents.

Transaction support for all types of real estate schemes including due diligence and title search.

Arbitration and Litigation relating to property related disputes.

Assist and Advice on issues relating to stamp duty and registration.

Advice on matters relating to land tenures including agricultural land issues

Foreign Direct Investment in real estate.

Drafting and reviewing contract

Negotiating and litigating landlord/tenant disputes by serving Legal Notice.

 

Our real estate lawyers department has extensive experience in Bangladesh on different types of real estate ventures. Our main specialist areas cover acquisitions and divestments, selling, investments and other real estate and real estate transfers; legal aspects of residential property and landlord issues; landlords’, renters’ and homeowners ‘ privileges; real estate title; resolution of property rights claims; cost-sharing arrangements with investors and shareholders, growth and expansion financing etc.

Team Tahmidur Rahman | Counsels Law Partners additionally draws on the experience of the Business Law Practice in its practice of Real Estate & Construction Law in Bangladesh . We give guidance on organizing land co-speculation or joint venture project, raising capital, setting up a suitable business vehicle and verified loaning. CLP team assure their client rapidly assemble a multi-disciplinary group of experienced business real estate specialists to address a diverse range of real property needs.

 

 

Best Real Estate Law Firm In Dhaka Bangladesh

“For a general landlord in Bangladeh, there has to be a legal property contract for any trade. Again it’s a common thing, too. As a homeowner, he or she will obtain for his / her possession a specific portion of the apartment building. But, if the owner wants to auction off his share’s apartments, he will have to enforce an attorney’s power and give the developer the right to sell his share of the house.”

 

Land Registration Bangladesh Law Firm In Dhaka Tahmidur Rahman
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Employee Rights in Bangladesh and Employer Rights| Labour & Workers Law in Bangladesh| A complete Overview

Employee Rights in Bangladesh and Employer Rights| Labour & Workers Law in Bangladesh| A complete Overview

Employee Rights & Labour Law in Bangladesh – All you need to know about Employment Law 

Tahmidgoldenpicturebackground E1569742859700

Tahmidur Rahman, Senior Associate, Counsels Law Partners

2 Oct 2019

Table of Contents

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

Employee Rights &Amp; Labour Law In Bangladesh _ Best Labour Law Firm In Dhaka_Tahmidur Rahman

This post in will explain in details the Employee Rights & Labour Law in Bangladesh| Labour & Workers Law in Bangladesh| Everything about Employment law that you need to know and be aware of.

Labour/Workers in Bangladesh 

With a population of 168.1 million people, Bangladesh has a huge and cheap workforce of about 90 million, consisting of 60 million agricultural jobs (growing at one percent per year) and 30 million non-agricultural jobs (growing at six percent per annum). Industrial jobs fall mostly within non-agricultural work. All employers are required to follow federal labor laws that prescribe conditions of employment, working hours, salary levels, leave policies, health and health conditions, and insurance for injured workers. Bangladesh constitution guarantees freedom of association and the right to join unions in it’s jurisdiction of Employee Rights & Labour Law in Bangladesh.  

 

Bangladesh’s employment law is regulated by the 2006 Labor Act (“Act”) and the 2015 Labor Rules (“Rules”). The Act and Rules apply to employees (laborers) working in commercial and industrial enterprises. The laws and regulations prescribe working hours, weekly vacations, annual leave, medical leave. It also uses the company’s profits for gratuity benefits, provident funds and participation. 

 

 

Best Labour Law Firm In Dhaka Bangladesh Tahmidur

Types of Workers in Bangladesh 

 

Workers employed in any institution are graded according to the type and condition of their work in any of the following classes: (a) Apprentice, (b) Substitute / Badli, (c) Casual, (d) Temporary, (e) Probationer, (f) Permanent and (g) Seasonal.

 

  1. Apprentice: As a trainee + Paid allowance only
  2. Substitute/ Badli: In the post of a permanent Worker or of a probation worker
  3. Casual: Casual in nature
  4. Temporary: Temporary in nature + finished within a limited period
  5. Probationer: In a permanent post + the period of his probation
  6. Permanent: He has completed the period of his probation
  7. Seasonal: Any work season and remain in employment up to the end of the season 

Conditions of Employment   

 

It is given in the 2006 Bangladesh Labor Act that any establishment may have its own service rule, but the service rule must include all the regulations specified in the Act.
The service rule will then have to be presented to the Chief Inspector. He must accept it if no change is made within 90 days of receipt.
If he does not agree, however, the aggrieved person can pursue an appeal within 30 days to the Court. The Government will then dispose of such an appeal within 45 days and the Government’s order will be final.  

 RECRUITMENT in Bangladesh (Employee Rights & Labour Law in Bangladesh): 

 No employer shall hire any worker without giving a letter of appointment to such worker and a photo identity card shall be given to each such employed worker.

 

Employee Rights Labour Law In Bangladesh Tahmidur Rahman

“Counsels Law Parnters is Considered as one of the leading firms in Labour Law in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

Working Hours in Bangladesh Labour Law 

 

Some labor law regimes require legislative working time limits. Originally, it was intended to enforce hour limits to ensure a safe and healthy working environment and sufficient rest or leisure time between shifts. However, over the past century, hour limits have become increasingly seen as a way to advance the additional policy objectives of allowing workers to balance their paid work with their family responsibilities and other aspects of their lives, promoting productivity and reducing unemployment. In our country, the 2006 Labor Act lists the daily and weekly basis of working hours, with the overtime hours and their payment.

 

Under the provisions of Employee Rights & Labour Law in Bangladesh, it is brought up the working hours of a worker, such as:

 

  1. Daily Working Hour: Up to 8 hours per day.
  2. Interval for Rest or Meal:

 

Shift exceeding 6 hours: 1-hour break

 

Shift of 5 hours: 30 minutes

 

Shift of 8 hours: i) Two 30 minutes break, or ii) One 1-hour break

 

  • Weekly Working Hour: Up to 48 hours per week.
  • Overtime: Up to 10 hours per day and 60 hours per week.

 

On average 56 hours per week.

 

For road transport workers, 150 hours of overtime per year.

 

  • Night Shift: A holiday for a whole day which means 24 hours break between each night shift has to be given.
  • Limitation for Women Workers: No shift from 10.00pm to 06.00am without the woman worker’s consent.
  • Restriction on Double Employment: Double employment is not allowed for any worker.

 

Best Employee Rights Labour Law In Bangladesh Law Firm In Bangladesh 1

Daily Limit in regards to International Standards Labour Law

 

Daily working hour limits are a feature of Conventions Nos. 1 and 30, both of which provide for an 8-hour limit on normal hours. Convention No. 47 and Recommendation No. 116 do not provide for daily limits, the 40-hour week being considered an adequate guarantee of a working day of 8 hours or less[1]. Under the international standards, daily hours can be averaged within the 48-hour week, allowing the 8-hour limit to be extended to 9 hours in industry (Convention No. 1)19 and 10 hours in commerce (Convention No. 30).

 

The Labour Act, 2006: as per section 100, 8-hour day is the daily work limit but it may not exceed 10-hour day subject to the satisfaction of section 108.

 

• Wages in Bangladesh:

 

Wages’ means any remuneration expressed in terms of money or capable of being so expressed that, if the terms of employment, expressed or implied, were met, would be payable to a worker in respect of his or her employment or work performed in that job, and includes any other additional remuneration of the aforementioned nature that would be so payable but not included-

 

o The value of any house accommodation, supply of light, water, medical attendance or other amenity or of any service excluded by general or special order of the government,

 

o  Any contribution paid by the employer to any pension fund, provident fund,

 

o Any traveling allowance on the value of any traveling concession,

 

o Any sum paid to the worker to defray special expenses entitled on him by the nature of his employment;

 

Every worker’s wages shall be paid before the expiry of the seventh day after the last day of the payable wage period.
Where any worker’s employment is terminated by retirement or by the employer, whether by retrenchment, discharge, removal, dismissal or otherwise, the wages payable to him shall be paid before the expiry of the seventh working day from the day on which his employment is so terminated according to Employee Rights & Labour Law in Bangladesh.
All salary payments shall be made on a working day.

 

How ‘Tahmidur Rahman & Counsels Law Partners Associates’ helps the Employee/Employer according to Labour Law Provisions of Bangladesh

 

At Counsels Law Partners in Gulshan, Dhaka, Bangladesh, the barristers, lawyers and lawyers are highly experienced in dealing with labor disputes. It also has experience in consulting and assisting numerous international clients, in addition to handling various issues related to employment service among domestic clients on a regular basis.

For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

 

 

Leave and Holidays in Bangladesh Labour Law

The topic of’ Leaves and Holidays’ in labor law is relevant and also fundamental. Every employee usually with a holiday is entitled to the following leaves:

  • Weekly holy day
  • Personal leave
  • Sick leave
  • Festival leave
  • Annual leave and
  • Maternity leave with full pay as per the Maternity Benefit Act of 1939 (now abrogated). 

Casual Leave in Bangladesh:

 

Casual leave eligibility is created by circumstances such as sudden illness, minor accidents, urgent purposes. It should be obtained on prior application, unless the urgency prevents such application from being made. Section 115 of the Labor Act, 2006, allows for casual leave. It is given for ten days in a year with maximum wages and will not be carried forward into the next year.

Sick Leave in Bangladesh:

With lieu of a medical certificate sick leave is usually used. Under Section 116 of the Labor Act, 2006 No such leave shall be allowed unless a registered medical practitioner appointed by the employer or, unless such medical practitioner is appointed by the employer, after review, any other registered medical practitioner certifies that the worker is ill and needs sick leave for cure or care for such time as may be specified by the employer. These leave shall not accumulate and be carried forward into the next year. Over fourteen days in a calendar year, any worker other than a newspaper worker shall be entitled to sick leave with full wages.

The Factories Act, 1965 Sub-Section (2) of Sections 80 Provides as follows:
Every worker shall be entitled to fourteen days ‘ sick leave on half-average wages in a year.

Again, Section 16 of the Shops and Establishments Act, 1965 says that Every worker shall be entitled to sick leave With full wages for a total period of fourteen days in a year; if such leave not availed of by any worker during a calendar year may be carried forward, but the total accumulation of such leave shall not exceed twenty-eight days at any one time.

 Annual Leave with wages in Bangladesh:

Labor Act 2006 section 117 deals with annual leave. A worker who completes one year of continuous service at an institution is usually allowed to leave with Wages for a number of days measured at a certain rate during the corresponding span of twelve months. The rate for adults usually is:

 

(a) in case of a shop or commercial or industrial establishment or factory or road transport service, for every eighteen days of work ;

(b) In the case of tea plantation, for every twenty two days of work;

(c) In case of a newspaper worker, for every eleven days of work performed by him during the previous period of twelve months.

Leave In Bangladesh Labour Law Firm In Dhaka Tahmidur Rahman
How To Open A Company In Bangladesh Tahmidur Rahman

Termination process of employees in Bangladesh

 

Employment termination process can be performed by either the employer or the worker. The employer and the worker each have separate job termination process procedures under the Labor Act 2006.

Termination by dismissal in Bangladesh

 

If either an employee is found to be: Convicted of any offence; or
Guilty of such crimes as stealing, bribe giving and taking, fraud, deliberate disobedience etc.

Employer can terminate the employee in lieu of a notice without warning or without pay. The boss, however, always has the option of offering less penalty instead of dismissal for more behaviour.

What is the procedure of penalising an employee  in Bangladesh?

 

The employer can not fire or discipline an employee for his misconduct unless:
♢ The charges brought against him are reported in writing;
♢ A copy of the accusation shall be given, and a duration of at least seven days to explain;
♢ He is given a chance to be heard;
A committee shall then be created for the investigation in this regards. The commission will complete its inquiry within 60 (sixty) days. The order of dismissal will be accepted, after having sufficient evidence. If, upon investigation, the allegation against the worker is not proven, he shall be considered to have been in service during the time of suspension and his wages shall be charged for that time with the modification of the subsistence allowance already charged.

Termination by Retrenchment in Bangladesh

 

An employer could be retrenching an en employee on retirement grounds from the operation of any institution. If any worker has been in continuous service under an employer for at least 1 (one) year, in the case of such worker being retrenched, the employer shall:

◙ Offer him 1 (one) month’s notice in writing specifying the reasons for his withdrawal, or pay him salaries for the duration of notice in lieu of such notice;
◙ Give a copy of that notice, if any, to the Chief Inspector or any other officer specified by him, and another copy to the establishment’s collective bargaining agent;
◙ Pay him as reimbursement 30 (thirty) days’ salaries in excess of his annual service or gratuity, if any, whichever is greater.

Lay-off termination in Bangladesh Labour Law


An employer that, at any moment, in the event of a fire, a sudden disaster, an epidemic (like the Coronavirus pandemic/Covid 19 pandemic) a breakdown of machinery, a power shutdown, epidemics, wide-spread riots or any other cause outside his control, stop any section or section of his establishment, wholly or in part, for such duration as the cause of such shutdown remains. In such a case where the duration of work stoppage reaches 3 (three) working days, the workers concerned shall be laid off. 

What if, the lay off period is more than 45 days  in Bangladesh?

It should be remembered that during any calendar year, no worker shall be entitled to pay compensation in the event of a laid-off for more than 45 (forty-five) days.
However, if, within a calendar year, any worker is laid-off for more than 45 (forty-five) days, whether continuously or intermittently and after the expiry of those 45 (forty-five) days, the lay-off period shall be extended for an additional 15 (fifteen) days or more, the worker shall be paid for each subsequent lay-off period for 15 (fifteen) days or more. The pay sum for an extension of 15days shall be equal to one-fourth of the total basic wages and dearness allowance and ad hoc or temporary wages.

What are my rights to compensation as a laid-off employee/worker?

Whenever a worker, other than a replacement or casual worker, whose name is on an establishment’s muster-rolls and who has completed at least 1 (one) year of service under the employer is laid off, the employer shall pay compensation to him for all the days on which he is so laid off, except for weekly holidays.

 

What would be the amount of compensation for laid off workers?

The amount of compensation for a worker other than a replacement or temporary worker shall be equivalent to half of the overall regular wages and dearness allowance and, if any, ad-hoc or transitional wages, and equivalent to the maximum amount of housing allowance that would have been payable to him had he not been so laid-off. Nevertheless, if a substitute worker whose name is on an institution’s muster-rolls has completed one year of continuous service at the institution, he would not in this case be considered as a substitute worker.

Termination by Discharge in Bangladeshi Labour Law

For reasons of physical or mental incapacity or continuing ill health, a worker may be discharged from service, approved by a licensed medical practitioner.
If a worker who is discharged completes at least one year of continuous service, the employer shall pay, as compensation, 30 (thirty) days’ wages for each year of service, or gratuity, if payable, whichever is greater.

Termination by Notice in Bangladesh

An job can also be terminated by providing a notice to the employer. The time frame for the warning, however, defers depending on whether the employee is permanent or temporary.

Termination by notice for Permanent Workers:

The written notice must be given on:
120 (one hundred and twenty) days, if he is a respected worker every month;
In the case of other workers 60 (sixty) days.
Upon paying the fee an job of a permanent worker can be terminated by notice. The employer’s rate of compensation shall be at the rate of 30 (thirty) days’ wages for each completed year of service or gratuity, where payable, whichever is higher. The salary shall be in addition to any other benefit payable to such employee.

Termination by notice for Temporary Workers:

The written notice must be given on:

30 (Thirty) days, if he is a skilled worker per month;
14 (14) days, in the case of other jobs.

At the other hand, it is possible to fire an employee without warning by paying the salary of the worker for the notice period instead of the notice as specified for permanent and temporary employee.

Termination of employment by the workers or employee themselves in the  Labour Law of Bangladesh

Employees may terminate their employment by notifying employers. The time period for the warning varies, however, depending on whether the employee is a permanent or temporary employee.

Permanent Employees terminating their employment:

A permanent worker can terminate his service by giving written notice of 60 (sixty) days to the employer. Where a permanent worker withdraws his job by presenting the warning, compensation to the employer shall be paid.
Temporary Employees terminating their employment:

A temporary worker can terminate his job by notifying the employer in writing of:
30 (Thirty) days, if he is a skilled worker per month;
14 (14) days, in the case of other jobs.

Employee resigning without notice in Bangladesh:

A worker may resign without notice from his / her job. The worker can only do so by paying the employer for the notice period an sum equal to the salaries.

Employee absent from work without notice in Bangladesh:

If a worker remains absent without warning or consent for more than 10 (ten) days, the employer shall enquire about the absence from him through a notice. The notice should ask to justify why he is missing, and to resume the service within 10 ( ten) days. The employer shall send him another 7 ( seven) days in which to defend himself if he fails to provide any written statement or enter the service within the prescribed time. If the worker does not resume the service or protect himself then he shall be considered to have been released from service on and from the date of such absence.

 

 

Employee Rights Labour Law In Bangladesh Law Firm In Dhaka

Maternity Benefit/Maternity Leave in Bangladesh

 

In the last few years there has been a significant increase over women’s participation in Bangladesh’s workforce. Women workers currently account for one-fourth, that is, 12.1 million, of Bangladesh’s total workforce of 49.5 million. Important legal changes have also been implemented through the introduction of the Labor Act, 2006, which eliminates some ambiguities in the existing, diverse labor laws and amends occupational safety issues such as maternity benefits, health and hygiene, injury compensation, etc. 

The Labor Act, 2006 repeals three previous Maternity Benefit Acts-The Maternity Benefit Act, 1939, The Mines Maternity Benefit Act, 1941 and The Maternity Benefit (Tea Estate) Act, 1950 and combines almost all of the provisions of these Acts in Chapter IV. Section 2(xxxiv) of the Act describes maternity benefit as the sum of money payable to a woman under Chapter IV;
Section 45(1) of the Act prohibits an employer from employing a woman for the eight weeks immediately after the day of delivery. Section 45(2) prohibits a woman employee from working in any establishment for the eight weeks immediately after the day of delivery.

Section 45(2) forbids a woman employee from serving in any institution for the eight weeks immediately following the day on which she was born. Section 45(3) prohibits the use of any woman for some arduous work if she is likely to be delivered from a child within 10 weeks or if she has been delivered from a child within 10 weeks.
In Section 46 of the Labor Act provisions have been made for maternity leave of 16 weeks (8 weeks before and 8 weeks after the delivery).It has also made the provision that this benefit shall only be available to workers who have served under the owner for a minimum period of6-months prior to the notice of the probability of the delivery.

 

Implementation of Maternity Benefit/Maternity Leave in Bangladesh

 

 

The main purpose of having 16 weeks maternity leave was to combat hunger and to ensure that the new generation grows to be physically and mentally much healthier[20]. It was also expected to help increase the productivity and motivation of working women. Nevertheless, the reality is that many women working in the private sector are unaware of their maternity-related rights, especially those in the garment industry and in low-paid labor-intensive jobs. In fact, most non-governmental organizations and ready-made textile companies don’t even give their female employees four months of leave.

 

For queries or legal assistance in regards to Bangladesh Labour Law, please reach us at:

E-mail: [email protected]
Phone: +8801727983838

 

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Contract Agreement| Breach of Contract | A complete overview of Contract Law in Bangladesh

Contract Agreement| Breach of Contract | A complete overview of Contract Law in Bangladesh

Contract Agreement & Breach of Contract in Bangladesh| A complete overview of Contract Agreement in Bangladesh

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Tahmidur Rahman, Senior Associate, Counsels Law Partners

12 Nov 2019

Table of Contents

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

Best Law Firm In Dhaka Bangladesh

This post in details will explain Contract Agreement & Breach of Contract in Bangladesh and remedies and consquences with detailed definitions and infographics, i.e will provide a complete overview of Contract Law in Bangladesh and everything you need to know about contracts and breach of contracts.

 

 

Definition of Contract in regards to Law of Bangladesh 

 

A contract is generally an agreement made between two or more parties or persons. In order for a contract to have legal effect under the Contract Act 1872, the following factors must be present:

 

Contract Agreement & Breach of Contract in Bangladesh

Breach of Contract in Bangladesh

Before we deep dive into Contract Agreement & Breach of Contract in Bangladesh, let’s clarify our knowledge about the types of Breaches in Bangladeshi Law.

There are four main types of contract breaches:

  1. Minor Breach:

    A minor contract breach occurs when a party fails to perform a part of the contract, but does not infringe the entire contract. To be considered a minor breach, the infringement must be so non-essential that any remaining contractual obligations may otherwise be fulfilled by all parties involved. A minor infringement is sometimes referred to as an unbiased infringement.

  2. Material Breach:

    A material violation of a contract is such a significant infringement, it severely impairs the contract as a whole; in addition, the infringement must make the object of the agreement fully defeated. Often, this is considered a complete violation.

  3. Fundamental breach:

    A fundamental breach of contract is exactly the same as a material breach, in that the non-breaching party is entitled to terminate the contract and claim damages in the event of a breach. The distinction is that a substantive breach is deemed to be much more egregious than a material breach; and

  4. Anticipatory Breach:

    An anticipatory breach happens when one party makes it clear to the other party, either orally or in writing, that they will not be able to fulfill contract terms. Therefore, the other party may immediately claim a contract violation and seek a settlement, such as reimbursement. Anticipatory violation may also be called anticipatory repudiation.

If a party to a contract fails or refuses to meet his / her obligations under the contract (also contains an indication of reason for non-performance) is known as the breach of contract. (Contract Agreement & Breach of Contract in Bangladesh)

 

Contract Agreement Law Firm In Dhaka Tahmidur Rahman

“Counsels Law Partners Considered as one of the leading firms in Commercial Law in Dhaka, Bangladesh”

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Things the innocent party can do in breach of a contract in Bangladesh

Contract terms, contracting parties rights and obligations and the effects of breach or violation of contract can be found in the 1872 Contract Act. The innocent party can lodge a claim for:

  • Specific performance of contracts
  • Compensation
  • Revocation of contracts after breach of contract

Compensatory Damage:
Upon breach of a contract, the party suffering from such breach shall be entitled to receive compensation from the wrongdoer. The Court is likely to conduct 3-tier tests in awarding the compensation as stipulated below:

  • Has there been a breach of contract? The answer is Yes.
  • Has there been a failure or injury arising from that breach? Yes should be the resolution.
  • Is the damage too remote? Answer is No.

    Final Stage: Court grants damages determining the loss number.

Now the consequences of the breach of contract and remedies available in Bangladeshi contract law.

A. Cases in which specific performance enforceable according to the Contract Law of Bangladesh

Specific performance of any contract may be imposed at the Court’s discretion-

  1. Where the act agreed to be performed is in the service of a trust;
  2. Where there is no criterion for assessing the actual damage caused by the act agreed to be performed;
  3. Where the essence of the act agreed to be performed is such that monetary compensation for its failure to perform would not be sufficient
  4. When it is probable that monetary compensation cannot be obtained for the non-performance of the act agreed to be done.

    Since the order of particular performance is voluntary, the Court is not obligated to grant such relief merely because it is lawful to do so.

The following contracts cannot be specifically enforceable-

How ‘Counsels Law Partners’ help one of the contracting party in any agreement in Bangladesh

Team Tahmidur Rahman | Counsels Law Partners Law Firm in Dhaka, Bangladesh is very astutue and outcome driven law firm, that has a vast amount of experience in dealing with contractual infringements, effects and demands for money. For legal aid or questions in regards to Contract Agreement & Breach of Contract in Bangladesh, please contact us at:

E-mail: [email protected]
Phone: +8801727983838
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.

Corporate Contract Law Firm In Dhaka Bangladesh Tahmidur Rahman

 

Contracts which is not enforceable according to the Contract Law of Bangladesh:

 

  • A contract for the non-performance of which compensation in cash is an adequate relief;
  • A contract which encompasses such a minute or numerous details, or which is so dependent on the parties ‘ personal qualifications, or otherwise by its nature, that the Court can not endorse the specific performance of its material conditions;
  • A contact with the duration of which the Court can not find reasonableContract for Sale: If the seller and buyer agree to sell or buy the property at a later stage, the seller and buyer must enter into a contract for sale.
  • A agreement establishes a contractual responsibility between the buyer and the seller, and
  • A contract for sale does not change ownership of the property. A sales contract in the sub-registry should be registered.
  • A contract made by trustees either in excess of their powers of in breach of their trust;
  • A contract concluded by or on behalf of a corporation or public company founded for special purposes or by the promoters of such a company which exceeds its powers;
  • A contract whose performance involves the performance of a continuous duty stretching over a period of more than 3 years from its date; and
  • A contract in respect of which a substantial part of the subject matter is deemed to be performed by both parties

 

B. Monetary Compensation in Contract Agreement & Breach of Contract in Bangladesh

 

1. Monetary compensation for loss or damage incurred by infringement:

When a contract has been violated, the party arising from such violation is entitled to receive compensation from the party violating the contract for any loss or damage resulting from such infringement, which inevitably resulted from such infringement in the normal course of events.
This compensation shall not be provided for any loss or damage caused internally or indirectly because of the breach.

2. Compensation for violation of the contract: 
Where a penalty has been levied for infringement of the contract, where a sum is specified in the contract as the amount to be paid in the event of such infringement, or where the contract includes any other clause by way of penalty, the party complaining of the infringement is entitled to receive from the contract, whether or not the actual damage or loss has been found to have been incurred thereby. The innocent party may also demand the section interest on the amount listed above.

 

Damages For Breach Of Contract In Bangladesh Law Firm In Dhaka Tahmdiur Rahman
Best Banking Law Firm In Dhaka Bangladesh Tahmidur Rahman

C. Contract withdrawal

 

  Any person interested in a contract in writing may sue for having it withdrawn, and such withdrawal may be permitted by the Court in the following cases–where the contract is invalid or terminable by the plaintiff; where the contract is unlawful for reasons not apparent to the plaintiff and the defendant is more to blame than the plaintiff; where there is a decree for a contract specific;

 

Contract Agreement & Breach of Contract in Bangladesh Services By Counsels Law Partners

 

At Counsels Law Partners, as the leading law firm in Dhaka, we also already supported our clients in securing the full compensation for a broken contract by means of out – of-court settlement or litigation. We will inform our clients with full clarity on the steps that need to be taken to minimize the damage caused by the breach and also enable them to obtain the best possible solution in the event of damage that has already been sustained in Contract Agreement & Breach of Contract in Bangladesh.

 

 

 

Breach Of Contract Remedies Law Firm In Dhaka Bangladesh Tahmidur Rahman 1

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Share Transfer Process of a Bangladeshi Company | Cost, Documents| Overview

A Complete Transfer Share Overview In Bangladesh Company Law Firm In Bangladesh Tahmidur Rahman
Tahmidgoldenpicturebackground E1569742859700

Tahmidur Rahman, Senior Associate, Counsels Law Partners

9 January, 2020

Table of Contents

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

Share Transfer Of Company In Bangladesh

What is ‘Share’ according to Bangladeshi Law?

The term ‘share’ is defined in Sec. 2 (1) (v) of the Companies Act of 1994, which reads as below:

  “Share means a share in the share capital of a company, and includes stock except where a distinction between stock and share is expressed or implied.”

Why a Company would like to Transfer Share in Bangladesh 

Share Transfer Process of a Company in Bangladesh can be a seamless process for both private and public limited companies. If someone (who is the company’s shareholder) wants to transfer his / her share to another person or if he / she does not want to remain the shareholder or director of this company, he / she may leave the share to someone else. Basically the existing shareholder of the company buys this particular share otherwise the new shareholder or director of this company may be involved by purchasing the transfer share. Monitoring of this activity by the Joint Stock Company Registrar and Firms (RJSC). The share allocation of the company is also a process that gets monitored by RJSC in Bangladesh.

The managers of the company may want to add experienced or veteran professional for some time to increase the business capacity of the company. The addition of a new shareholder or the company’s director is therefore a fairly conventional process. Companies generally include experienced business people in a particular area or country to increase the market and profit ratio of the company. RJSC is the only authority in Bangladesh for Company Registration, Share Transfer, Share Allotment, Wind-up and related business activities.

How to Share Transfer of a Company in Bangladesh?

In this infographics, the six steps is shown on how to transfer company shares in Bangladesh.

Six Steps Of Share Transfer Of A Comapny Law Firm In Dhaka Bangladesh

Shares in a company registered in Bangladesh are a movable property that can be transferred in a manner given in the company’s Articles of Association. But before proceeding with the Transferring Shares process, it is important to remember that the right to transfer shares may be restricted in a private limited company. Share Transfer Process of a Company is pretty straightforward if it’s not then.

If you want to know how to open a company in Bangladesh or about company formation click here!

  • Step by Step Process of Registering a Company in Bangladesh

Six Steps of Transferring Company Shares in Bangladesh

 

Here we have described in details (six steps), the procedure of transferring shares of a private limited company registered in Bangladesh.

 

Step1: Find out whether there was any existing restrictions against Share Transfer

 

The share transfer in a Private Limited Company can be restricted by the Articles of Association (AOA). Thus, the Articles of Association of the Company must be assessed before starting the offer exchange method. It is basic in Bangladesh that the organisation’s articles of affiliation typically contain pre-concurred methodology set out that are required to be followed for any exchange of offers in the organization.

 Limitations on right of the investors to move shares are for the most part as pre-emption. Which implies that if an investor wishes to sell a few or the entirety of his offers, such offers should initially be offered to other existing individuals from the private constrained organization at a value controlled by the Directors or the Auditor of the Company. In no current investor is intrigued, at that point portions of the Company can be unreservedly moved to an untouchable.

On the off chance that there is any limitation or extraordinary techniques, those confinement or strategy must be followed for any offer transfer.Which implies that if an investor wishes to sell a few or the entirety of his offers, such offers should initially be offered to other existing individuals from the private constrained organization at a value dictated by the Directors or the Auditor of the Company. In no current investor is intrigued, at that point portions of the Company can be openly moved to an outcast.

Hence, all the license, permits, agreement etc. should be checked for any restriction imposed on share Transfer Process of a Company. If there is any restriction, prior approval should be obtained.

Share Transfer Law Firm In Dhaka Tahmidur Rahman 1

 

Step 2: Notify the Board of the Directors of the Company

 

The Shareholder intending to move the offers should serve notice recorded as a hard copy to the Board of Directors of the Company about expectation to move portion of the organization. The Director may have the forces to deny enlistment of move of offers in specific situations – endorsed in the Articles of Association. The Board of Directors should hold an executive gathering and endorse the exchange of the offers. The Director ought to likewise give a declaration in this respect. 

Step 3: Paying the Price of the intended shares

Once the company has granted its approval, the price of the shares should have been paid. If both buyer and seller are local or foreign, there is no requirement for proof of payment. However, if the seller is a Bangladeshi and the buyer is a foreigner, the Joint Stock Companies and Firms Registrar (RJSC) will require a letter of bank encashment for the transfer of the share.

Step 4: Completion of Form 117

Once the company has granted its approval, the price of the shares should have been paid. If both buyer and seller are local or foreign, there is no requirement for proof of payment. However, if the seller is a Bangladeshi and the buyer is a foreigner, the Joint Stock Companies and Firms Registrar (RJSC) will require a letter of bank encashment for the transfer of the share.

How To Transfer Share In Bangladesh Company Law Firm In Bangladesh Tahmidur Rahman

“Counsels Law Partners is Considered as one of the leading firms in Company Law in Dhaka, Bangladesh”

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Step 5: Payment of Stamp Duty

Stamp duty is payable on the face value of each share.

Once the Form 117 is signed, a copy of the same should be delivered to the Company.

Step 6: AMENDMENT OF THE SHARE CERTIFICATE REGISTRAR BOOKS AND ISSUANCE.

Upon completion of the above steps, the company should update its share registrar, share transfer registrar, minutes registrar, and issue a share certificate in favour of the new shareholder or modify the existing share certificate to reflect the changes.

Essential documents needed for Share Transfer of the Company

 

Essential documents needed for Share Transfer of the Company:

1. Letter from Company’s board of director approving the transfer company’s share.
2. A document indicating Number of shares to be transferred of the Company.
3.A completed (signed) Company form 117.
4. Board Resolution by the company approving the transfer of the shares; and
5.Certificate of Transfer of Shares.

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