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!

    • Step by Step Process of forming a liaison office in Bangladesh

    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

    Dedication

    Commercial Clients

    Partners

    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”

    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 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

    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

    Wildlife Laws In Bangladesh

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Admiralty Law in Bangladesh | Everything you need to know in 2023

    Admiralty Law in Bangladesh and Ship Arrest in Bangladesh in 202324 Jan 2022Barrister Tahmidur RahmanDirector, The Law Firm in BangladeshThis article will explain in details about admirlty law in Bangladesh and ship arrest procedure with details.Nature of...

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 2023Barrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Holding and Subsidiary Companies in Bangladesh and how can...

    Partnership Business in Bangladesh | Fastest and Effective Process of starting your business

    Partnership business in Bangladesh in 2023- Everything you need to knowBarrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Partnership Business in Bangladesh and how can you start your business in...

    Proprietorship Business in Bangladesh

    Proprietorship business in Bangladesh in 2023- Everything you need to knowBarrister Remura MahbubDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Proprietorship Business in Bangladesh and how can you start your business in...

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

    TR Law Firm in BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Legal Translation In Bangladesh

    Legal Translation & Notary Services in BangladeshBarrister Remura MahbubDirector, Tahmidur Remura TLS24 Jan 2022This article will explain in details about how we provide E-Notary and translation of high quality with utmost professionalism. We offer...

    How to take Mortgage Loan in Bangladesh

    How to take Mortgage loan in Bangladesh | Everything you need to know in 202211 Jan 2022Tahmidur Rahman, Director and Senior AssociateHere in this post Barrister Tahmidur Rahman will explain in details about the basics of mortgage loan procedures in Bangladesh- How to...

    What to do when someone or a neighbour builds property on my land | Land Trespassing in Bangladesh

    Land Trespassing in Bangladesh & what to do when someone or a neighbour builds property on my land  Barrister Tahmidur Rahman Senior Associate, The Law Firm in Bangladesh24 Jan 2022 What to do in case somebody illegally encroaches upon property?In this article we...

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন 2022 এ | Effective way of Registering Land

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন ২০২২ এতাহমিদুর রহমান, Director and Senior Associate বাংলাদেশে অনেক মানুষই ভূমি আইন সম্পর্কে খুব বেশি জানেন না। ফলে তারা জমি নিয়ে নানা ধরনের প্রতারণা ও হয়রানির শিকার হন। জমি রেজিস্ট্রেশন করা খুবই জরুরি।...
    Procedure of Foreign Investment in Bangladesh | Law, Policy, Direct, Angel, Rules, Policy- Everything you need to know in 21st century

    Procedure of Foreign Investment in Bangladesh | Law, Policy, Direct, Angel, Rules, Policy- Everything you need to know in 21st century

    Procedure of Foreign Investment in Bangladesh 2020| Law, Policy, Direct, Angel, Rules, Policy- Everything you need to know about Foreign Investment in 21st century Bangladesh

    Tahmidgoldenpicturebackground E1569742859700

    Tahmidur Rahman
     Director and Senior Associate, TR Barristers in Bangladesh

    17 Jan 2020

    Procedure of foreign investment in Bangladesh: Leading up to initiating a major investment , investors needs to navigate the basic legal policies on investment law in Bangladesh. Bangladesh is one of the easiest countries in the world to do business with straightforward regulation, a well-respected legal system and low entry barriers. Entrepreneurship is also massively respected and encouraged in the country.

    Despite this welcoming atmosphere and a lack of red tape, difficult choices and decisions need to be taken at an early stage, and this article describes everything you need to know about the Procedure of foreign investment in Bangladesh.

    Foreign Investment Policy in Bangladesh & Procedure of foreign investment in Bangladesh

     

    The Government of Bangladesh has put in place a wide range of policies aimed at bringing substantial socio-economic changes to the citizens of Bangladesh and, eventually, self-reliance to the country, which would in turn pave the way for seamless procedure of foreign investment in Bangladesh.

    In recognition of the capacity of the private sector to contribute to the achievement of these objectives, the government has recently initiated a number of major policy reforms, which are planned to create a more transparent and competitive environment for foreign investment in Bangladesh.

    In order to achieve the goal of accelerating industrial growth and increasing the share of industry in the Gross Domestic Product ( GDP) and to make industrial policy sensitive to changes in the global economy, the current government announced an Industrial Policy in 1999. 

     The core characteristics of the 1999 industrial strategy are as follows: 

    • To draw foreign direct investment in Bangladesh,  both export and domestic market-oriented industries to compensate for the lack of domestic investment opportunities and to acquire emerging technology and to gain access to export markets, so that the Procedure of foreign investment in Bangladesh bangladesh gets even easier.
    • To ensure the sustainable growth of industrial jobs by promoting investment in labour-intensive manufacturing sectors, including investment in productive small and cottage sectors.
    • Diversifying and increasingly increasing the production of manufacturing.
    • Coordinate economic and fiscal policies to inspire a growth in foreign investment in Bangladesh.
    • Promote the competitive strength of import substituting industries for catering to a rising domestic market.
    • To increase the production base of the economy by increasing the pace of industrial investment to ease the procedure of foreign investment in Bangladesh .
    • Promote the private sector to drive the development of industrial production and investment and making the Procedure of foreign investment in Bangladesh way easier.
    • Emphasis on the role of the government as a facilitator in creating an enabling environment for the expansion of private investment and the procedure of foreign investment in Bangladesh.

    Investment Structures in Bangladesh and Procedure of foreign investment in Bangladesh

    Bangladesh offers generous opportunities for investment under its relaxed Industrial Policy and export-oriented, private sector-led growth strategy. Except for the previously stated reserved sectors, foreign investors are free to make investments in Bangladesh in industrial enterprises.

    In regards to Procedure of foreign investment in Bangladesh, Foreign companies wishing to do business or establish a presence in Bangladesh have a number of options.

    1.  Foreign Direct Investment in Bangladesh

    FDI (foreign direct investment in Bangladesh) in industrial or construction projects must be registered with the Bangladesh Investment Development Authority (BIDA).

    BIDA, formerly known as the Investment Board, was formed by the Bangladesh Investment Development Authority Act 2016 to deal with issues related to FDI and to promote investment in Bangladesh.

    The foreign direct investment (FDI) inflow at the end of June 2018 amounted to USD 2.58 billion (foreign investment in Bangladesh stats, Bangladesh bank).

    The Bangladesh Investment Development Authority (BIDA) announced an impressive 13.34% rise in FDI in the third quarter of 2018, receiving proposals worth USD 3.23 billion over the same period, suggesting strong interest on the part of foreign investors.

    The key objective of BIDA is to encourage domestic and foreign investment as well as improve Bangladesh’s international competitiveness. BIDA also provides the necessary facilities and assistance for the establishment of industries.

    In regards to the Procedure of foreign investment in Bangladesh, determining the route of investment usually depends on the specific sector and the policy of the FDI adopted by the Government in regards to foreign investment in Bangladesh. 

    2. Wholly owned subsidiaries in Bangladesh

    Foreign companies are allowed to create wholly-owned subsidiaries in Bangladesh. Such companies may be known as private limited or public limited companies. Foreign equity ownership can be up to 100% in most sectors, including construction, information technology and production.

    Foreign entities can acquire an existing Bangladeshi company or incorporate a new company that complies with the requirements of the Registrar of Joint Stock Companies and Firms (RJSC). Subsidiaries are entitled to remit dividends reported on income after tax.

    3. Joint Ventures in Bangladesh (Foreign Investment in Bangladesh)

    As with wholly-owned subsidiaries, international companies can have joint venture companies with Bangladeshi partners. The equity ownership of a foreign corporation would depend on the sector in which it is invested.

    Procedure Of Foreign Investment In Bangladesh.

    If you want to know everything about Branch office registration in Bangladesh!

    4. Setting up a Branch or Liasion offices in Bangladesh for foreign investors

    International companies can also create a presence in Bangladesh through a representative office, liaison office or branch office for the purpose of foreign investment in Bangladesh.

    Typically foreign companies that do not have local earnings in Bangladesh may choose to set up representative offices, liaison offices or branches.

    The operations of these organizations are limited to those set out in their BIDA approvals and are subject to strict compliance with the foreign exchange regulations.

    Generally, no outward remittance of any kind from Bangladesh is allowed unless expressly approved by the Foreign Exchange Regulations or the Bangladesh Bank.

    fSuch offices are expected to pay inward remittances of at least USD 50,000 within two months from the date of establishment as a cost of establishment.

    One of the requisite approvals for the establishment is that security clearance must be obtained from the Ministry of Home Affairs of the Government of Bangladesh. (foreign investment in Bangladesh)

    5. Option of Participating in an existing Bangladeshi company by purchasing shares (procedure of foreign investment in Bangladesh.)

    In regards to foreign investment in Bangladesh, Foreign investors are free to invest in local companies in Bangladesh unless expressly prohibited (as stated above).

    Shares can also be given to foreign investors against capital machinery brought by them to Bangladesh (subject to confirmation by the Customs and Excise Office of the import documents, Procedure of foreign investment in Bangladesh).

    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
    Procedure Of Foreign Investment In Bangladesh

    Right to Issue and Transfer Shares in Bangladesh – Procedure of foreign investment in Bangladesh.

     

    There is no need for permission from the Bank of Bangladesh to set up such ventures if the entrepreneurs use their own funds. Prior approval of the Central Bank is not necessary for the issuance of shares in favor of non-residents against foreign investment in BD.

     

    Shares may be issues relating to freely convertible foreign exchange brought in from abroad via the banking channel or to the importation of capital machinery or the combination of both.

     

    Foreign exchange thus entered must be paid out in taka before the issuance of shares, except in the case of Type A (full foreign owned) and Type B (joint venture) units of EPZ and EZ, where FC ‘s foreign bright equity of be held in the FC accounts of the units concerned.

     

    Transferring shares and securities in Bangladesh from one shareholder to another shareholder regardless of their nationality / residence does not require approval from Bangladesh Bank.

     

    In the event of a transfer of private / public (non-listed) shares between resident-non-residents or vice versa, a general intimation to Bangladesh Bank is required by the Approved Bank within 14 days of such a transaction.

     

    As there is no established marketplace for such investment in Bangladesh, Bangladesh Bank will accept fair value of the shares as on the date of sale based on a reasonable combination of three valuation approaches (NAV; FMV and DCF), depending on the nature of the company in regards to the Procedure of foreign investment in Bangladesh.

     

    If you want to know everything about Share Transfer process in Bangladesh!

    Foreign Investment In Bangladesh

    Full Repatriation of Dividend, Investment and Income for foreign investors in Bangladesh.

    It will enable complete repatriation of the capital invested from free sources in regards to the Procedure of foreign investment in Bangladesh. Profits and dividends accruing to foreign investment can likewise be transferred in full (Procedure of foreign investment in Bangladesh).

    Those would be considered as new investment if foreign investors reinvest their reparable dividends and/or retained earnings. Foreigners living in Bangladesh have the right to remit up to 50 percent of their income and can enjoy facilities for complete repatriation of their savings and pension benefits. (Procedure of foreign investment in Bangladesh.) 

     

    Laws for the Protection of Foreign Investment in Bangladesh

     

    For a seamless procedure of foreign investment in Bangladesh, the government guarantees immunity from nationalisation and expropriation through the 1980 Foreign Private Investment Act that involves repatriation of capital and dividend for foreign investors.

    In addition, to facilitate the Procedure of foreign investment in Bangladesh, Bangladesh has made ample legal provisions to secure intellectual property rights. In addition to the 1980 Foreign Private Investment Act , the government has developed an FDI Policy (Foreign Direct Investment Policy for the Procedure of foreign investment in Bangladesh), which supports easy but efficient investment mechanisms in Bangladesh.

     

    The policy encourages the establishment of enterprises by simplifying the leasing and purchasing process of private property, forming an agency, enabling corporate tax holidays for 7 years (15 years in the power sector) and in some respects introducing an exemption of foreign employees’ income tax for up to 3 years.

     

     

     

    Foreign Investment In Bangladesh_Trends In Foreign Investment In Bangladesh

    Disputes Settlement in regards to the procedure of Foreign Investment in Bangladesh

    In dispute cases alternative conflict settlement is possible under the 2001 Arbitration Act. The Bangladesh International Convention on the Recognition and Compliance of Foreign Arbitral Awards was signed. Bangladesh is also a member of International Centre for Investment Dispute Settlement (ICSID).

    The new law also provides for the implementation without much hindrance of international arbitral awards. Although venturing in a company may be overwhelming, Bangladesh offers investors a safe and resourceful environment suitable for establishing or expanding any company, and it can be said that Bangladesh is in fact a “dream investment destination,” after much consideration.

     

    Visa, Work Permit, Citizenship in Bangladesh (Procedure of foreign investment in Bangladesh)

    For periods ranging from one month to five years prospective foreign investors may apply for visas. Foreign workers must get BIDA / BEZA / BEPZA work permit.

    In an industrial organization the number of expatriate workers can not exceed the ratio of 1:20 (foreign: local) for industrial settings and 1:5 (foreign: local) for commercial establishments.

    Citizenship in a scheduled bank may be subject to investment of USD 1 million or a fixed deposit of USD 2 million. Investors can also get ‘NO Visa Requirement’ exemption for investment of more than USD 10 million.

     

    If you want to know more in details about Visa obtaining process in Bangladesh

    “Tahmidur Rahman Remura Parnters is Considered as one of the leading Investment Law Firms in Dhaka, Bangladesh”

    Carpe Noctem Bangladesh

    Incentives offered to Foreign Investors in Bangladesh

    Bangladesh is keen to boost the economy in a short time and turn the poverty-stricken economy into a developed one. Government investment strategy provides competitive stimulus packages to attract foreign investment. These incentives are updated annually and new incentives are announced, too.

    These installations are subject to certain conditions and are issued by the BIDA. Moreover, Bangladesh gives international investors citizenship, permanent residency and multiple entry visas for their ease of business and ease of the Procedure of foreign investment in Bangladesh.

     

    Investing in the Stock market in Bangladesh

    International investors are eligible to engage in Initial Public Offerings ( IPOs) without regulatory restrictions. In addition , capital gains from listed securities are tax-exempt for private investors and lower tax rates apply to corporations and other organizations.

     

    Import Duty exemption in Bangladesh (Procedure of foreign investment in Bangladesh)

    No import duties are applicable for export-oriented sectors. There are duty exemptions also for some preferred sectors. General exemption of import duties is also available in respect of import of specific Plant & Machinery and spares.

     

    If you want to know everything about Immigration and Citizenship in Bangladesh read this articl

    Foreign Investment In Bangladesh_Entering The Bangladshi Market

    Allowance of Capital repatriation in Bangladesh

    Full repatriation of invested capital, profits and dividends is allowed, subject to applicable taxes to make the process seamless in regards to the Procedure of foreign investment in Bangladesh.

     

    Tax holiday facility in Bangladesh (THF) for seamless procedure of foreign investment in Bangladesh

    Tax holidays are granted to industries subject to the relevant rules and procedures laid down by the National Revenue Board of Bangladesh (NBR). This may vary from 3 to 7 years depending on the location of the establishment. For example, industries located in the Dhaka and Chittagong Divisions (excluding three Hill Tract districts of the Chittagong Division) are exempted for a period of five years.

    This tax holiday scheme, which was scheduled to end in 2015, was extended until June 2019 to create an investor-friendly atmosphere in Bangladesh. Tax holiday facilities are also available to manufacturing units and economic zone developers for a period of 10 years and 12 years respectively, and once again it makes it more seamless, the procedure of foreign investment in Bangladesh.

     

    Special Tax Exemption for the foreign investors in Bangladesh

    Tax exemptions are commonly permitted in the following cases:

    • There will be scope of tax exemption on royalties, technical know-how fees earned by any international partner, business, company and expert;
    • Reasonable income tax-upto-threeyearsforeign technicians working in industries as defined in the respective schedule of income tax regulations;
    • Relevant revenue of a private corporation conducting public infrastructure projects;
    • In regards to capital gains from the sale of shares of limited public company listed on the stock exchange;
    • NGO reported with the NGO Affairs Bureau;
    • Reasonable profits of companies and other sectors defined in the income tax Ordinance

    Depreciation allowance in regards to Tax (Procedure of foreign investment in Bangladesh)

    Depreciation allowance shall be allowed in respect of any house, equipment, factory, furniture, bridge, road or overhead used in any company or industrial undertaking in the measurement of income or gains.

    The third schedule of the Income Tax Ordinance 1984 sets out a list of various types of properties and their corresponding depreciation allowance rates, which usually range from 10 % to 30% of costs.

    The plan also sets out the overview of the usual rate of depreciation allowance, the original rate of depreciation allowance and the accelerated rate of depreciation allowance for various asset groups.

     

    If you want to know more in details about tax submission in Bangladesh click here!

     

    Avoidance of Double Taxation for Foreign Investors

     

    Double taxation for international investors can be avoided on the basis of the Bilateral Double Taxation Avoidance Treaties (DTTs). NBR is responsible for negotiating Double Taxation Agreements (DTAs) with foreign countries to facilitate FDI in Bangladesh.

    The DTA is an arrangement between two countries that aims to prevent double taxation by specifying the taxing rights of each country with respect to cross-border income flows and providing for tax credits or exemptions to remove double taxation for the ease of the Procedure of foreign investment in Bangladesh.

    It also allows for the exchange of information between treaty partners on tax evasion. For instance, Bangladesh has double taxation treaties with  Denmark, France, Germany, Belgium, Canada, China, India, Italy, Japan, Poland, Romania, Singapore, South Korea, Sri Lanka, Sweden, Thailand, The Netherlands, The United Kingdom and other countries.

     

    Procedure Of Foreign Investment In Bangladesh

    Remittance of profits for foreign investors in Bangladesh

    Remittance of income of subsidiaries of foreign companies / companies, dividends / capital gains, wages and savings of expatriates, royalties and technical fees, training and consulting fees, receivables obtained by shipping companies and airlines for freight and transit can be made by approved dealers without the prior approval of the Bangladesh Bank.

    In addition to that the Procedure of foreign investment in Bangladesh are placed in such a way that global entrepreneurs are also entitled to the same facilities as domestic entrepreneurs with regard to tax holidays, dividends, technological know-how fees, etc.

    Business profits and tax exemption for foreign investors in Bangladesh

    The income of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein.

    If the enterprise carries on business as mentioned above, the benefit of the enterprise may be taxed in the other Contracting State, but only in so many cases as is due to that permanent establishment. (Article 7 of the Double Taxation Agreement).

    Dividends and tax exemption for foreign investors in Bangladesh

    Dividends paid by a company resident in a Contracting State to a resident in the other Contracting State may be taxed in the other State.

    However, such dividends may also be taxed in the Contracting State in which the corporation paying the dividends is resident and in compliance with the laws of that State, but where the beneficiary is the beneficial owner of the dividend, the tax paid shall not exceed 10% of the gross sum of such dividends (Article 10 of the Double Taxation Agreement).

    Interest arising from contract state for investors

    Interest occurring in a Contracting State and charged to a citizen of the other Contracting State may be taxed in another State.

    However, such interest may also be taxed in the Contracting State in which it exists and in compliance with the laws of that State, however if the beneficiary is the beneficial owner of the interest, the tax so paid shall not exceed 10% of the gross sum of the interest.(Article 11 of the Double Taxation Agreement).

    Capital gain derived by a foregin resident in Bangladesh

    Gains obtained by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other Contracting State. (Article 13 to prevent a double taxation agreement, Procedure of foreign investment in Bangladesh)

    Foreign Investment In Bangladesh-Formal Sectors In Bangladesh

    Repatriation of investment in Bangladesh – Foreign Investment Law in Bangladesh

    Full restitution of the capital accumulated from foreign sources is permitted. Likewise, the gains and dividends accrued on foreign investment can be transferred in full.

    If foreign investors reinvest their repatriable dividends and/or retained profits, they will be considered as new assets. Foreigners living in Bangladesh are required to pay up to 75% of their wages and will benefit from complete repatriation of their savings and retirement benefits.

    In order to allow full repatriation of the capital invested, benefit and dividend, foreign investors will have to apply for repatriation approval from the Bangladesh Bank through an approved bank. 

    Foreign Private Investment (Promotion and Protection) Act, 1980, section 8 also states:

    (1)  In respect of foreign private investment, the transfer of capital and the returns from it and, in the event of liquidation of industrial undertaking having such investment, of the proceeds from such liquidation is guaranteed.

    (2)  The guarantee under sub-section (1) shall be subject to the right which, in circumstances of exceptional financial and economic difficulties, the Government may exercise in accordance with the applicable laws and regulations in such circumstances.

    Foreign Investment In Bangladedsh

     

    List of online portals for potential investors in Bangladesh (Procedure of foreign investment in Bangladesh)

    Foreign direct investment (FDI)

     

    www.bida.gov.bd

    BIDA
    Investing in economic zoneswww.beza.gov.bd BEZA
    Trade-related Informationhttps://www.bangladeshtradeportal.gov.bd/Bangladesh Government
    Company name Clearance

    http://app.roc.gov.bd:7781/psp/nc_ search?p_user_id=

     

    Office of the Registrar of Joint Stock Companies and Farm (RJSC)

     

    Registration of Companyhttp://www.roc.gov.bd/

    Office of the Registrar of Joint Stock Companies and Farm (RJSC)

     

    VAT Registrationhttp://www.nbr.gov.bd/

    National Board of Revenue

     

    Issuance of Certificate for using standard mark

    http://www.bsti.gov.bd/Form_Online.html

    Bangladesh Standards and Testing Institution (BSTI)

     

    Foreign Investment In Bangladesh_All The Priority Sectors For Foreign Investment In Bangladesh

    Elimination of Taxation treaty in Bangladesh

     

    In double taxation the following shall be eliminated:

     

    (a) If a resident of China receives income from Bangladesh, the amount of tax on that income payable in Bangladesh in compliance with the terms of this Agreement may be credited against the Chinese tax levied on that resident.

     

    However, the amount of the credit shall not exceed the amount of Chinese tax on that income determined in accordance with China’s tax laws and regulations.

     

    (b) where the revenue received from Bangladesh is a dividend paid by a company resident in Bangladesh to a company resident in China and holding not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the tax paid to Bangladesh by the company paying the dividend for its revenue.

     

    Bilateral Investment treaties in Bangladesh

    Bangladesh has with many nations, including China, signed Bilateral Investment Treaties (BIT) and Trade Agreements (TA). Typical provisions contained in BITs are clauses on foreign investment protection and treatment standards which usually address issues such as fair and equal treatment, full protection and security.

    Provisions on reimbursement for damages suffered by foreign investors as a result of expropriation or as a result of war and dispute are typically a central part of such agreements as well. Most IIAs also control the moving of funds across borders in connection with the Procedure of foreign investment in Bangladesh.

    The BITs also contain a clause on dispute resolution between investor and state. Usually this allows investors the right to bring a lawsuit to an international arbitral tribunal if a dispute occurs with the host country (Procedure of foreign investment in Bangladesh).

    The International Center for Settlement of Investment Disputes (ICSID), the United Nations Commission on International Trade Law ( UNCITRAL) and the International Chamber of Commerce (ICC) are common places in which arbitration is sought.

    Foreign Investment In Bangladesh_Best Law Firm For Investment Tahmidur Rahman

    Funding options for foreign investors in Bangladesh

    Foreign entities can conveniently access funding for short- and long-term investments from local financial institutions, including working capital loans, syndication, and trade finance. In addition, some of the Foreign Institutions (FIs) at home and abroad have access to on-shore and off-shore funding.

    There are currently 58 planned commercial banks in the financial sector, as well as a host of Non-Bank Financial Institutions (NBFIs) and specialized financial institutions.
    In addition to raising debt-based funding, investors may also consider securing equity-based capital-market financing from the country.

    Raising Capital from the Equity market in regards to the Procedure of foreign investment in Bangladesh

    International companies can start raising capital from the stock market, subject to fulfillment of certain terms and conditions. The government is keen to increase the number of companies listed on the local stock exchange, and offers regulatory incentives to attract profitable businesses and facilitate the Procedure of foreign investment in Bangladesh.

    Listed firms pay 25 per cent corporate taxes on non-listed entities, excluding those markets, compared with 35 per cent tax limit.
    Formal approval from the Bangladesh Securities and Exchange Commission (BSEC) is required for the fundraising process. Companies may use either the fixed price, or the option of constructing books.

    The appointed merchant bank and auditor help prepare a prospectus under the fixed-price process, valuing the business based on current assets and prospects for future growth. The indicative stock price is determined and has to be certified by the regulator.

    The method of book building involves a designated merchant bank to prepare an indicatively priced prospectus. The contending business then holds a series of road shows in which institutional investors are invited to bid on their stocks. IPO share price is dependent on input from other institutional investors and their interests. 

    The DSEX listing process has the mandatory requirement that an Issue Manager be employed or named (approved by the DSEX). The way IPOs are determined needs support from the approved Issue Manager.

    The draft prospectus shall be prepared in compliance with the Regulations of an Issue Manager and the Securities and Exchange Commission (Public Issue for the Procedure of foreign investment in Bangladesh ), 2015. IPOs can be issued by either book building or fixed-price system.

    Debt capital from local commercial Banks in Bangladesh

    International investors have access to financing for the local debt. Trade finance, term loans, and working capital are readily accessible to large foreign investors, in particular.

    Interest rates are low for such loans and between 9-16 per cent. Bangladesh has a very large number of  State and commercial banks (as stated in the preceding section), and bank loans can be obtained against collateral secured in regards to the Procedure of foreign investment in Bangladesh.

    Private Foreign Commercial borrowing in Bangladesh

    To secure long-term foreign currency loans, a request must be sent to BIDA, which will then be forwarded to the Central Bank for further review.
    To secure the loans, a business case supporting the loan condition must be included in the application. The proposal, along with the business case, is submitted for evaluation and decision by a committee chaired by the Bangladesh Bank Governor including members from BIDA, PMO Ministry of Finance.

    Procedure Of Foreign Investment In Bangladesh

    Regulatory institutions facilitating investment in Bangladesh

    The investment route depends on the business sector and on the FDI policy introduced by the Government of Bangladesh. The following government and trade agencies would oversee and encourage investment in most sectors;

    The Bangladesh Investment Development Authority (BIDA), Formerly known as the Investment Board (BOI), has been set up to deal with local and foreign investment issues. All incoming investments must be pre-approved by BIDA.

    The regulatory body aims to encourage domestic and foreign investment by simplifying the bureaucratic complexities of entering the Bangladesh market in regards to the Procedure of foreign investment in Bangladesh. 

    Bangladesh Bank ( BB) is the central bank of the country. The central bank must be officially informed of any foreign transactions, including equity investments made on the stock market. All incoming investments shall be reported to BB via commercial banks.

    Relevant trade bodies and chambers in Bangladesh

    The Dhaka Chamber of Commerce and Industry (DCCI) is a non-profit, service-oriented chamber serving as the first point of contact for small and medium-sized enterprises. DCCI offers market-oriented inputs to imports , exports and investments throughout the government’s policy formulation period for the Procedure of foreign investment in Bangladesh.

    The Chamber periodically publishes guidebooks to promote trade and investment. DCCI also has its own training facility to facilitate the growth of capability of professionals associated with member organizations.

    The International Investment Chamber of Commerce and Industries (FICCI), founded in 1963, is made up of 188 members across the mining, service and manufacturing sectors. Classified as Class ‘A’ Chamber of Commerce, FCCI is affiliated with the FBCCI, the International Trade Center (Geneva) and the World Trade Organization (Paris).

    The Metropolitan Chamber of Commerce and Industry (MCCI) is a leading chamber body made up of representatives of major local and multinational corporations. The MCCI maintains frequent ties with major international trade organizations and global private sector organizations. (procedure of foreign investment in Bangladesh)

    Exit policy for foreign investors in Bangladesh

    An investor can terminate an investment either by a decision of an annual or an extraordinary general meeting. Once a foreign investor has completed the formalities to leave the country, he or she can repatriate the net proceeds after obtaining proper authorisation from the central bank (Bangladesh Bank, Procedure of foreign investment in Bangladesh).

    Procedure Of Foreign Investment In Bangladesh

    Frequently Asked Questions about Foreign Investment in Bangladesh

    In regards to Foreign Investment in bangladesh people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.

    Foreign Direct Investment in Bangladesh at TLS:

    The Barristers, Advocates, and lawyers at TLS in Gulshan, Dhaka, Bangladesh are highly experienced at dealing with foregin direct investment, where we assist clients in setting up of the complete business irrespective of whether it is within a specialized zone or any other part of Bangladesh. In TR Barristers in Bangladesh, our experience helps us to efficiently execute local and cross-border global transactions while helping you at all stages of the process and offering you cost-effective, realistic business solutions. In addition to handling various issues related to domestic clients on a regular basis, it also has experience in consulting and assisting numerous international clients with utmost care and attention throughout their legal exploration in Bangladesh. For queries or legal assistance in regards to the Procedure of foreign investment in Bangladesh, please reach us at:

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

    House 410, Road 29, Mohakhali DOHS

     

    FAQ

    Which Countries invest the most in Bangladesh?

    The country's major investors are China, South Korea , India, Egypt, the United Kingdom , the United Arab Emirates and Malaysia. According to the most recent data available from Bangladesh Bank, FDI flows increased by 5.36% to USD 1.65 billion in July-October 2019 per year. -Procedure of foreign investment in Bangladesh

    How is the Investment Scenario in Bangladesh in 2020?

    Bangladesh is already recognized as a thriving investment hub, reflected in influxes of foreign direct investment ( FDI) from the region. Bangladesh 's FDI amounted to USD 2.58 billion at the end of June 2018.
    According to the Bangladesh Investment Development Authority (BIDA), there was a 13.34% rise in FDI in the third quarter of 2018, with proposals worth USD 3.23 billion in the basket. Mega-projects by the government is seen as the primary explanation for significant FDI investments in  Transportation, transportation , and communications. Exports from the country are also growing amid domestic consumption.

    What is an example of Foreign Direct Investment in Bangladesh?

    Examples of foreign direct investment in Bangladesh include, but are not limited to, mergers, acquisitions, retail, utilities, logistics, and development. Foreign direct investment and the laws that regulate it can be critical to the growth strategy of a business.

    What are the types of foreign Investment?

    Examples of foreign direct investment in Bangladesh include, but are not limited to, mergers, acquisitions, retail, utilities, logistics, and development. Foreign direct investment and the laws that regulate it can be critical to the growth strategy of a business.

    What is the current trend of foreign investment in Bangladesh?

    35.4 per cent of the FDI came from the manufacturing industry in 2016-17. The country witnessed phenomenal Y-o - Y growth of 11 per cent 2017 In this area. Experts in industry are optimistic this development will be maintained in the years to come. The sectors of transport , storage and communications ranked second with FDI inflows of 25 per cent.

    This may be due to the mega projects being initiated and executed by the government at the present time. Over the time, electricity, accompanied by gas and petroleum, attracted FDI of 19 per cent. Over the years, the power sector has steadily drawn foreign investments due to the Government 's attractive tax incentives. (Procedure of foreign investment in Bangladesh)

    How Foreign investors can enter into Bangladeshi Market?

    Foreign investors may either form a wholly / partially owned subsidiary, or set up a branch or liaison office for Bangladesh operations. The type of organization that was created will rely on the medium- and long-term strategy of the investor for market penetration. Hence the three conventional ways of entering the Market in Bangladesh:

    • Wholly owned subsidiaries
    • Limited liability by purchasing shares in an existing Bangladeshi company
    • Joint ventures

    How to get work permit and visa as a foreign investor in Bangladesh?

    For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.

    Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.

    How to get work permit and visa as a foreign investor in Bangladesh?

    For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.

    Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.

    How to get work permit and visa as a foreign investor in Bangladesh?

    For investors planning to become resident in Bangladesh by taking a full-time position or for the company's expatriate employee, branch office, liaison office, work permit is required.

    Upon arrival in Bangladesh for a short period of time under two types of visa, the person is required to apply for a work permit with BIDA and an extension from the Passport and Visa Department, subject to effective completion of the security clearance.

    What is EPZ or Export Processing Zone in Bangladesh?

    Export Processing Zone is ideal for wholly owned export-oriented companies, if it is a Joint Venture, etc. 08 (eight) EPZs are geographically diversified in various locations within Bangladesh.

    Depending on the nature of the company, availability of utilities, rental rates, transportation, availability of qualified man power, etc. Customer may choose acceptable EPZ to invest.

    Have a Different Question?

    Email us anytime : [email protected]

    Or call — +8801847220062

    Tahmidur Rahman | Law Firm in Dhaka

    Affiliated with TR Barristers in Bangladesh, A full service multi-directional law firm in Dhaka.

    © 2018-2020 Tahmidur Rahman Matte IT Ltd.

    NEED HELP?

    Privacy Policy
    Disclaimer
    Client Login
    Sitemap

    Liquidation or Winding up a company in Bangladesh | Everything you need to know

    Liquidation or Winding up a company in Bangladesh | Everything you need to know

    Liquidation or Winding up a company in Bangladesh | Solvency declarance, Board meeting, declaration filings| Everything you need to know.

    Tahmidgoldenpicturebackground E1569742859700

    Tahmidur Rahman, Director and Senior Associate

    12 Nov 2019

    This post in will explain in details about the process of Liquidation or winding up a company in Bangladesh – This article will explain the step by step process of winding up a company office in Bangladesh, Declaration of solvency , accounts and audit, extraordinary general meeting, declaration of solvency and everything you need to know and to be aware of.

     

    What is Liquidation or Winding up a Company? And how a Liquidation or winding up works?

    Winding up is the process of dissolving a company. A business organisation stops doing business as normal when it winds up. Its conventional aims are to sell off stock, pay off creditors and transfer to partners or shareholders any remaining assets. The term is used mainly in UK where liquidation is synonymous with the process of turning assets into cash. In other terms, this mechanism generates a monetary fund in which a business pays its debts, outstanding bills, and splits the remainder and distributes to shareholders, members of the corporation, investors, or any other investor. A receiver may be designated to control such asset distribution (known as “Liquidator”) process.

    Winding up a business is a legal process regulated by company laws of Bangladesh as well as a company’s AoA (Articles of association) or partnership agreement. Winding up can be compulsory or voluntary and can apply to publicly and privately held companies. (Liquidation or Winding up a company in Bangladesh)

    Process of Liquidation or Winding up a company in Bangladesh

    Before we deep dive into the process of winding up a company in Bangladesh, it is pertinent to note the term used here is Company but not businesses, as sole proprietorships or partnership business in Bangladesh do not follow the equivalent pathway or practice such as liquidation or winding-up. Therefore, to continue with the liquidation process one must have or have an operating company, properly incorporated / registered under Bangladesh law.

    Under the company law 1994, there are three modes of winding up a company in Bangladesh. The winding up of a company may be either:

     

    • by the court or
    • voluntarily or
    • Subject to the supervision of the court.

     

    Who can file the petition of winding up in Bangladesh?

    A winding-up petition can be filed jointly or separately by a creditor, the business or the company (i.e. shareholders) or lender under section 245 of the Companies Act 1994. In the event of a company winding up, section 235 of the Companies Act notes that each of the company’s current and former owners will be liable to contribute to a amount adequate to cover the company’s debts, liabilities, costs and liquidation expenses. Section 237 describes the term contributory; it means that in case of wound up each individual is liable to contribute to the assets of a corporation. (For Liquidation or Winding up a company in Bangladesh)

    Hence to summarise,

    A petition for winding up can be filed by:

    1. Creditor or,
    2. the Company (i.e. shareholders) or
    3. Contributory (who contributes to a companies’ assets in paying the debts and costs of the company), together or separately.

     

    Liquidation Or Winding Up A Company In Bangladesh_Tahmidur Rahman_Best Law Firm In Bangladesh

    Winding up a company by the court in Bangladesh

    Winding Up of a company by court may be done in certain circumstances which are:

     

    • if the company through the special resolution decided that it must be winded up by the court; or
    • if default is made in filling the statutory report or in holding the statutory meeting; or
    • if the number of members reduced below the required number as per the Company Law; or
    • the company is incapable of paying its debts; or
    • if the court is of opinion that it is just and equitable to wind up the company.

    Liquidation or winding up a Company by Court- Process in Bangladesh

    Company winding up or Liquidation process in Bangladesh by court has been discussed very briefly in order to give an idea of the process.

    Step one: Filing Petition to Court

    In order to wind up a company by the court, a petition has to be filled the company court of High Court Division of Supreme Court .  It is to be noted that winding up of a company by the court shall be deemed to commence from the time of presentation of petition for winding up. Upon hearing the application the court will pass an order for winding up of the company.

    Step two: Notification to registrar

    In issuing a winding-up order, the petitioner and the corporation are obliged to file a copy of the order with the Registrar within 30 ( thirty) days from the date of the request. The Registrar shall register a summary in his company related books upon filing a copy of a winding-up order. The registrar then notifies the official Gazette that such an order has been made. Such an order shall be considered to be a discharge notice to the company’s employees, except when the company’s business is continued.

    Step three: Appointment of Liquidator

    The court will then appoint an official liquidator and the liquidator will perform its duties as per the Companies Act 1994. In case of winding up by the court, all the property and effects of the company shall be deemed to be in the custody of the Court as from the date of the order for the winding up of the company.

    Step four: Information recorded with RJSC

    Once a company’s affairs have been completely wound up, the Court shall make an order to dissolve the company from the date of the order, and the company shall be dissolved accordingly. Official liquidator shall report the order to the registrar within 15 (fifteen) days of the order. The registrar shall record a minute of the company’s dissolution in his books.

    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
    Liquidation Or Winding Up A Company In Bangladesh_Best Full Service Law Firm In Dhaka

    “Tahmidur Rahman Remura is Considered as one of the leading firms in Company Law in Dhaka, Bangladesh”

    Bdlawfirms & Carpe Noctem Bangladesh

    Voluntary Liquidation or a winding up a company in Bangladesh

    A company may be winded up voluntarily:

    • when the period, if any, fixed for the duration of the company by the articles expires or any event  occurs for which the articles provides that the company is to be dissolved and the company in general meeting has passed a resolution for winding up voluntarily;
    • if the company resolves by special resolution that the company be winded up voluntarily;
    • if the company resolves by extraordinary resolution to the effect that it cannot by reason of its liabilities continue its business, and that it is advisable to wind up.

    It is to be noted that commencement of voluntary winding up shall be deemed to commence at the time of the passing of the resolution for voluntary winding up. (Liquidation or Winding up a company in Bangladesh)

    Company Winding up process subject to Court in Bangladesh

     

    When a company has by special or extraordinary resolution resolved to wind up voluntarily the court may make an order that the voluntary winding up shall continue but subject to supervision of court and such terms as the court thinks just.

     

    Section 242 of the Companies Act 1994 takes into account whether a corporation is found to be unable to pay its debts. This will be the case if a creditor to whom the company is indebted for a sum and the company fails to pay the sum for three weeks or if the execution or other proceedings issued under a decree or order of any court in favor of a company creditor are returned unsatisfied in whole or in part or if it is demonstrated to the court’s satisfaction that the company is unable to pay its debts and the court is to take account of them.

     

    Section 316-321 of the 1994 Companies Act deals with turning up being subject to court oversight. If a company has agreed to wind up voluntarily through special or exceptional means, the court may make an order that the voluntary winding up must proceed but be subject to court oversight and such conditions as the court considers appropriate. Where an order for winding up is made subject to supervision, the liquidator may exercise all the powers, subject to any limitation imposed by the court, as if the company were being wound up voluntarily entirely. (Liquidation or Winding up a company in Bangladesh)

     

     

    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!

    Steps by Step process of voluntary Winding Up a Company in Bangladesh

     

    This is the liquidator ‘s responsibility in any voluntary winding-up to settle the company’s debts and change the creditors’ right among themselves. Here is the comprehensive step-by – step method of voluntary wind-up of a bangladesh company.

    Step One: Drafting documents for Winding Up

    The first step on the process of winding up is to prepare documents. The documents that need to be prepared are:

    1. Declaration of Solvency, (which includes information such as the company has no debts among other things) and
    2. Profit and Loss Account and
    3. Audited Balance. 

    The above mentioned documents will have to be approved by the majority directors of the company.

    Step Two: Submission to RJSC

    The next step is to file the approved Declaration of Solvency to the RJSC within 5 (five) weeks from the approval by directors.

    Step Three: Pass Special Resolution

    The third step requires the Extraordinary General Assembly to pass a special resolution. This is to approve the company’s decision to wind down and the liquidator appointment. It should be noted that the meeting ‘s content is also to be filed with the RJSC. The special resolution will then be published in the official Gazette, and in a newspaper circulated in the district where the company’s registered office is located. It will be achieved within 10 ( ten) days of the special resolution passing it.

    Step Four: Appointing Liquidator

    Once the chosen liquidator has been approved by the extraordinary general meeting and the liquidator has accepted the appointment, such must be notified to the RJSC. In addition, the Deputy Commissioner of Taxes will also be informed of the same within 30 (thirty) days of the said appointment. 

    Step Five: Final Report by Liquidator

    At this stage the liquidator need to prepare a Final Account. The Final Account must have the details of how the winding up has been conducted and the assets distributed. Thereafter, the liquidator will call an extraordinary general meeting and the notice for that must be circulates by advertisement in the official Gazette, and in a newspaper. Such a notice must be given not less than one month before the meeting.

    The special resolution will be passed in the extraordinary general meeting with regards to the disposal of the books and papers of the company. 

    Step Six: Documents filing to RJSC

    Lastly, a final meeting must be hold and a return of the meeting must be submitted to the RJSC upon which the company will be winded up. The submission must be made within one week of the meeting.

    Step Seven: Petition filing to Court for Winding Up

    For voluntary winding up, the petition to the court is made at this stage. All the documents relevant to the winding up of the company are submitted to the court. The court being satisfied, declares that the company has been dissolved. This stage is essential to avoid any allegation of fraud later on.  

    If you want to know how to seamlessly transfer the share of a company click here!

    • Step by Step Process of Registering a Company in Bangladesh
    Liquidation Or Winding Up A Company In Bangladesh_Tahmidur Rahman_Law Firm In Bangladesh

    Government fees for Company Winding Up Process

     

    Here are the minimal required government fees for the company winding up process (Liquidation or Winding up a company in Bangladesh):

    1.         For Private and Public Company: BDT 20.00

    2.         For Trade Organization and Foreign Company: BDT 10.00

     

    Liquidation or winding up a company in Bangladesh services in TR Barristers in Bangladesh

     

    Tahmidur Rahman | TR Barristers in Bangladesh, a leading Company law firm can provide following the legal services: The Law firm will assist in arranging the actual consent and interest of each company share. Furthermore, TLS will provide a complete road map for winding up processes. Team TLS may also help in the disposal of company properties and make use of the proceeds to pay creditors. In addition , the team will assist in holding creditors’ meetings, settling legal disputes and settling all the company’s pending obligations. TLS will be responsible for sending the documents to RJSC and preparing all documents in Bangladesh for the termination or liquidation of the company. On top, the company law department will provide the complete legal services in relation to Company winding up or Liquidation process in Bangladesh.

     

    For queries or legal assistance, please reach us at:

     

    E-mail: [email protected]
    Phone:+8801847220062 (WhatsApp also available)

     

    Address: .

     

    Liquidation or Winding up a company in Bangladesh.

     

     

     

    Liquidation Or Winding Up A Company In Bangladesh_Best Law Firm In Dhaka
    “For voluntary winding up, the petition to the court is made at this stage. All the documents relevant to the winding up of the company are submitted to the court. The court being satisfied, declares that the company has been dissolved. This stage is essential to avoid any allegation of fraud later on.  .”

     

    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
    Finallllllll 1 3

    Want new articles before they get published?
    Subscribe to our Awesome Newsletter.

    Admiralty Law in Bangladesh | Everything you need to know in 2023

    Admiralty Law in Bangladesh and Ship Arrest in Bangladesh in 202324 Jan 2022Barrister Tahmidur RahmanDirector, The Law Firm in BangladeshThis article will explain in details about admirlty law in Bangladesh and ship arrest procedure with details.Nature of...

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 2023Barrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Holding and Subsidiary Companies in Bangladesh and how can...

    Partnership Business in Bangladesh | Fastest and Effective Process of starting your business

    Partnership business in Bangladesh in 2023- Everything you need to knowBarrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Partnership Business in Bangladesh and how can you start your business in...

    Proprietorship Business in Bangladesh

    Proprietorship business in Bangladesh in 2023- Everything you need to knowBarrister Remura MahbubDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Proprietorship Business in Bangladesh and how can you start your business in...

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

    TR Law Firm in BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Legal Translation In Bangladesh

    Legal Translation & Notary Services in BangladeshBarrister Remura MahbubDirector, Tahmidur Remura TLS24 Jan 2022This article will explain in details about how we provide E-Notary and translation of high quality with utmost professionalism. We offer...

    How to take Mortgage Loan in Bangladesh

    How to take Mortgage loan in Bangladesh | Everything you need to know in 202211 Jan 2022Tahmidur Rahman, Director and Senior AssociateHere in this post Barrister Tahmidur Rahman will explain in details about the basics of mortgage loan procedures in Bangladesh- How to...

    What to do when someone or a neighbour builds property on my land | Land Trespassing in Bangladesh

    Land Trespassing in Bangladesh & what to do when someone or a neighbour builds property on my land  Barrister Tahmidur Rahman Senior Associate, The Law Firm in Bangladesh24 Jan 2022 What to do in case somebody illegally encroaches upon property?In this article we...

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন 2022 এ | Effective way of Registering Land

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন ২০২২ এতাহমিদুর রহমান, Director and Senior Associate বাংলাদেশে অনেক মানুষই ভূমি আইন সম্পর্কে খুব বেশি জানেন না। ফলে তারা জমি নিয়ে নানা ধরনের প্রতারণা ও হয়রানির শিকার হন। জমি রেজিস্ট্রেশন করা খুবই জরুরি।...
    Wildlife Laws In Bangladesh

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Share Transfer Process of a Bangladeshi Company | Cost, Required Documents & Restrictions | A complete Overview of How to Transfer Share

    Share Transfer Process of a Bangladeshi Company | Cost, Required Documents & Restrictions | A complete Overview of How to Transfer Share

    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, TR Barristers in Bangladesh

    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

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

    Carpe Noctem Bangladesh

    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.

    Company Share Law Firm In Dhaka Bangladesh
    Custom Law Firm In Bangladesh Tahmidur Rahman
    Custom Law Firm In Dhaka

    Admiralty Law in Bangladesh | Everything you need to know in 2023

    Admiralty Law in Bangladesh and Ship Arrest in Bangladesh in 202324 Jan 2022Barrister Tahmidur RahmanDirector, The Law Firm in BangladeshThis article will explain in details about admirlty law in Bangladesh and ship arrest procedure with details.Nature of...

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 2023Barrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Holding and Subsidiary Companies in Bangladesh and how can...

    Partnership Business in Bangladesh | Fastest and Effective Process of starting your business

    Partnership business in Bangladesh in 2023- Everything you need to knowBarrister Tahmidur RahmanDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Partnership Business in Bangladesh and how can you start your business in...

    Proprietorship Business in Bangladesh

    Proprietorship business in Bangladesh in 2023- Everything you need to knowBarrister Remura MahbubDirector, The Law Firm in Bangladesh24 Jan 2022This article will explain in details about Proprietorship Business in Bangladesh and how can you start your business in...

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

    TR Law Firm in BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Legal Translation In Bangladesh

    Legal Translation & Notary Services in BangladeshBarrister Remura MahbubDirector, Tahmidur Remura TLS24 Jan 2022This article will explain in details about how we provide E-Notary and translation of high quality with utmost professionalism. We offer...

    How to take Mortgage Loan in Bangladesh

    How to take Mortgage loan in Bangladesh | Everything you need to know in 202211 Jan 2022Tahmidur Rahman, Director and Senior AssociateHere in this post Barrister Tahmidur Rahman will explain in details about the basics of mortgage loan procedures in Bangladesh- How to...

    What to do when someone or a neighbour builds property on my land | Land Trespassing in Bangladesh

    Land Trespassing in Bangladesh & what to do when someone or a neighbour builds property on my land  Barrister Tahmidur Rahman Senior Associate, The Law Firm in Bangladesh24 Jan 2022 What to do in case somebody illegally encroaches upon property?In this article we...

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন 2022 এ | Effective way of Registering Land

    বাংলাদেশে জমি রেজিস্ট্রেশন আইন এবং কিভাবে জমি রেজিস্ট্রেশন করবেন ২০২২ এতাহমিদুর রহমান, Director and Senior Associate বাংলাদেশে অনেক মানুষই ভূমি আইন সম্পর্কে খুব বেশি জানেন না। ফলে তারা জমি নিয়ে নানা ধরনের প্রতারণা ও হয়রানির শিকার হন। জমি রেজিস্ট্রেশন করা খুবই জরুরি।...
    Want new articles before they get published?
    Subscribe to our Awesome Newsletter.

    Wildlife Laws In Bangladesh

    Wildlife laws in Bangladesh

    Wildlife laws in Bangladesh - Everything you need to know in 2022Barrister Tahmidur RahmanDirector, Tahmidur Rahman Remura Law Firm in Bangladesh24 Jan 2022This article will explain in details about Wildlife laws in Bangladesh and how you can deal with any...

    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 BangladeshCompany Share in Bangladesh24 Jan 2022This 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...

    Call Now

    /* home and contact page javasccript */ /* our-firm page javasccript */ /* articles page javasccript */