In Bangladesh, inheritance law concerns are a contentious matter. It is impossible to address exhaustively the law of succession upon death. The law of intestate succession is unquestionably the most intricate aspect of the law that is also relevant to everyone’s existence.
Generally, after the death of a man or woman, many questions arise regarding who has the right to the deceased’s property and how much each individual will receive.
After the demise of a man or woman, it is first necessary to pay for his or her funeral, repay his or her entire debt, and carry out his or her will using the property he or she left behind. After the disposal of these items, the offspring and relatives of the deceased have the right to inherit the remaining property. The laws that govern the distribution of a deceased person’s remaining property to their successors are known as the law of succession.
Religion and Inheritance law in Bangladesh
In Bangladesh, a person’s religion governs inheritance. Consequently, if the deceased person was an adherent of Islam, his property will be distributed in accordance with Islamic law of Succession. If, however, the deceased person was a follower of Hinduism or Buddhism, his property will be distributed in accordance with Hindu law. The Succession Act of 1925 is primarily applicable to individuals who do not practice Islam, Hinduism, or Buddhism.
In Bangladesh, Hanafi law is primarily used to divide the property of Muslims who adhere to Islam. According to Hanafi law, there are three (3) primary categories of heirs:
Shareholders, dividend recipients, and distant relatives:
Sharers are those who, according to the Al Quran, are entitled to a predetermined portion of the property. Sharers are the chief heir among the three descendants. Principal sharers who cannot be deported under any circumstances are the father, mother, daughter, husband, and wife. Other sharers include the grandfather, grandmother, uterine brother, uterine sister, consanguine sister, and the daughter of the son.
After distributing the claims to the sharers, if there is any remaining share, it will be distributed to the residuary. All reliquaries have a male connection to the deceased. All distant relatives are those who are related by blood.
If there are neither heirs nor reliquaries, the inheritance will be divided among those distant relatives who have the right to inherit it. The scope of this section is too broad; consequently, the government cannot claim any property, even if there is no heir.
In the event of the death of any son or daughter of the propositus prior to the opening of succession, the children of such son or daughter, if any, living at the opening of succession shall receive a share equivalent to the share that such son or daughter would have received if alive.
In film, it is a common occurrence for a father to disinherit his son or daughter from his property. In contrast, according to Muhammadan inheritance law, a beneficiary cannot renounce his right to inherit. Notably, a Muslim cannot dispose of more than one-third of his complete estate through a will.
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Requirements for Writing a Will
Age Requirement:
To make a will, the person must be of legal age. Most states consider 18 to be the legal age of consent.
The goal of forming a will is for an individual to decide to enact a permanent transfer of property upon their death at the time of signing.
Reasonable estate distribution:
Proper property distribution among relatives is essential.
Mental Stability:
The writer must be of sound mind, which means he must be aware that he is signing a will that will have consequences.
A will should be freely constructed if it is to be voluntary. If one is forced to do so, it is not legal.
Signed and Witnessed:
For legal confirmation, a will must be signed by the writer and witnesses. The number of witnesses will be determined by regional laws.
In Bangladesh, how do you make a will?
Wills in Bangladesh are controlled by a combination of legislative and religious norms. Wills in Bangladesh are governed by the Succession Act of 1925 in general. In contrast, Muslim Personal Laws on this topic are more prevalent in this country due to the flexibility of criteria and the majority’s desire. Executing a will, or Wassiyyah, is one of four compulsory ceremonies performed for the deceased in Islam.
Only one-third of a Muslim’s possessions may be bequeathed. The intent of the testator must be clear in order for the wasiyyah to be carried out after his death.
A will can only be revoked if the testator produces a second will, according to the 1925 Act and Muslim personal law.
Both sets of regulations that govern wills are required for their lawful execution. There are many similarities and distinctions between the two. The legislation is in place and in force, albeit with unspecified limitations.
Wills in accordance with the Succession Act and Muslim Law
Wills legislation in Bangladesh is a synthesis of legislative and religious principles. Wills in Bangladesh are mostly governed by the Succession Act 1925. However, because to the leniency of standards and the majority’s inclination, Muslim Personal Laws on this topic are more widespread in this country. In Islam, one of the four required obligations performed for the departed is the execution of a will, or (Wassiyyah).
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A Muslim may leave only one-third of his fortune in his will. The testator’s intention must be evident that the wasiyyah will be executed after his death.
A will, according to section 2(h) of the Succession Act 1925, is “the legal declaration of a testator’s intention with respect to his property which he desires to be carried into effect after his death.” A Muslim who has anything to bequeath owes it on himself to not let two nights pass without making a will.
Section 59 of the Act states that any person of sound mind who is not a minor may dispose of his property by will. In Bangladesh, a person reaches adulthood at the age of eighteen, according to Section 3 of the Majority Act 1875. As a result, everyone above the age of eighteen is eligible to form a will under the Succession Act. However, an adult who has reached the age of fifteen is also permitted to make a will under Islamic law.
According to Section 63 of the Succession Act, a will must be in writing, signed by the testator, and witnessed by at least two witnesses. However, according to Muslim personal law, a will can be either oral or written, and if written, it does not need to be signed, and if signed, it does not need to be attested. However, as stated in the preceding section, the need of two witnesses is the same in Muslim law.
The only proper documentation of the executor’s appointment is a probate, which is obtained to certify the legality of the will. The court granting probate of a will establishes it and makes all acts of executor lawful under section 227 of the 1925 Act. To make the will effective, the receiver must file a probate complaint in District Judge Court. However, there are no such obligations under Islamic law.
According to both the 1925 Act and Muslim personal law, revocation of a will is only conceivable if the testator creates another will.
Both sets of rules for wills operate together to ensure their legal execution. There are numerous similarities and differences between the two. Both the law and its application are in agreement, with some restrictions that have yet to be discovered.
Property Transfer through Last Will and Testament in Bangladesh
The transfer of the dead to the living has two aspects: Testamentary Succession (i) and Intestate Succession (ii).
Under Muslim law, testamentary successions under marz-al-maut are (a) Will and (b) Gift. This is governed by Islamic testamentary succession law. A will’s key requirements are that it takes effect only after the testator’s death, that no donation exceeds one-third of the estate, and that no bequest be made to an heir. A Will can be verbal in Muslim law. anything is not necessary to put anything to writing. No registration is required. A Will’s content can be changed at any time by its author.
Gifting during Marz-al-Maut fulfills all of the essential requirements of intra-vivos gifting, including:
(1) A donation offer,
(2) The donee’s acceptance, and
(3) Immediate possession transfer. It is also subject to all of the limitations mentioned in will law, including: (1) it takes effect after the donor’s death, (2) it cannot be given to an heir, and (3) it cannot exceed one-third of the property. According to Hindu law, the District Judge must grant probate for the will’s execution after the testator’s death.
How to Write a Will in Hindu Law
Any adult may dispose of his property by will in Hindu law, provided he does not breach his wife’s or anybody else’s lawful claim to maintenance. A Hindu can dispose of his separate or independently acquired property via will. The Succession Act of 1925 now governs Hindu wills. According to Section 63 of the Succession Act of 1925, every Hindu will must be in writing, signed by the testator, and witnessed by at least two witnesses.
Inherited succession
In Bangladesh, the Hanafi law of inheritance governs Muslim intestate succession, whilst the Dayabhaga School of Inheritance governs Hindu intestate succession. There are three types of heirs in Hanafi inheritance law:
a. Sharers, who have a predetermined part of the inheritance;
b. residuaries, who do not take a prescribed part but succeed to the balance after the sharers’ claims are satisfied; and c. remote Kindred, who are all blood relations who are neither sharers nor residuaries.
Under Hindu law, the Dayabhaga Law of Inheritance acknowledges three types of heirs: (a) Sapindas, (b) Sakulyas, and (c) Samonodakas.
Making a will in accordance with the Succession Act:
A will must be in writing, signed by the testator, and witnessed by at least two others. However, under Muslim personal law, a will can be either oral or written, and a written will does not need to be signed or witnessed if it is signed. However, in Muslim law, the requirement for two witnesses is the same as in the preceding section.
Probate is obtained to validate the validity of the will and is the only valid proof of the executor’s appointment. All executor actions become legal after a judge approves probate for a will. In order for the will to take effect, the executor must file a probate action with the District Judge Court. However, such requirements do not exist under Islamic law.
As a result, there are several types of real property transfers that can be made in a will. Some transfers are between living people, while others are between deceased people and living people. A single administrative entity to manage all forms of real estate transfers is desperately needed. Furthermore, a complete law governing the transfer of all sorts of immovable property should be enacted. The 1882 Transfer of Property Act is deficient.
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It makes no mention of the transition from the dead to the living. Currently, transferees’ rights are typically limited. As a result, there should be explicit legal safeguards protecting the transferee’s or property purchaser’s rights and interests. Because modern society and circumstances are becoming more complex, it is preferred that all transactions of immovable property be documented and recorded.
Difficulties with will and Succession
It’s difficult to think of one’s own death. Nonetheless, one should plan their estate ahead of time so that their affairs are in order in the unfortunate event of their death.
The last thing anyone wants to do at this time is add to their family’s stress. Property in Bangladesh has value after the contract is signed and the initial payment is made; hence, even before the property is transferred, one will have an asset to consider for estate planning.
It is prudent to review Will on a regular basis to verify that it still reflects wishes, especially in light of family developments such as births, deaths, or weddings.
While making a will in Bangladesh, the organization provides legal services for the preparation of a Wasiotnama, commonly known as a Bangladeshi Will. Your assets in Bangladesh, such as real estate, bank accounts, and automobiles, will be listed in the papers. When a foreigner dies in Bangladesh or a Bangladeshi dies in another country, a government official will normally request a copy of the deceased’s Will from the deceased’s family or attorney.
A variety of things can happen to property if one is unaware of their legal rights in Bangladesh. If certain precautions are not taken from the start, the entire procedure can become extremely complicated and often rather costly. Risk minimization and investment protection are critical components of any real estate transaction.
This is especially important when acquiring a home outside of your home jurisdiction, where communication can be a major barrier to attaining your goals. The majority of the risk is mitigated by a legitimate will. It is always good to seek professional advice from a trustworthy specialist who looks out for your best interests and knows your needs.
What is the ramifications of an unregistered will?
Once a Will has been registered, it is held in the safe possession of the Registrar and cannot be tampered with, destroyed, mutilated, or stolen. The failure to register a Will, on the other hand, does not mean that it is invalid.
Are you intending to make a will in Bangladesh?
Make a will in Bangladesh with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
Import and Export License and business setup in Bangladesh
International trade, usually referred to as export-import business, entails the purchasing and selling of commodities and services between nations. Because it permits the interchange of goods and services between nations, fostering economic growth and development, it is a crucial component of the global economy.
In South Asia, Bangladesh has one of the economies that is expanding the fastest, and over the past few decades, it has achieved great strides in the export-import sector.
The Bangladeshi government has been aggressively promoting the export-import sector and has put in place a number of policies and measures to promote investment and trade.
Due to this, foreign direct investment rose and will surpass $3 billion in FY2022. To increase its competitiveness in the international market, the nation has also been working to upgrade its infrastructure, including building ports, roads, and bridges.
Step 2: Scheduled fees may be deposited at Bangladesh Bank or specific Sonali Bank locations. Deposits for fees ought to be made under the heading 1-1731-0001-1801.
If Bangladesh Bank is unavailable, only use the branches of the Sonali Bank. Get three copies of the chalan form, fill them out, and pay the schedule cost.
Category
Ceiling Value of annualimport
Initial Registrationfees
Annual renewal fees
First
Tk. 5, 00,000
Tk. 5,000
Tk. 3,000
Second
Tk. 25,00,000
Tk. 10,000
Tk. 6,000
Third
Tk. 50,00,000
Tk. 18,000
Tk. 10,000
Fourth
Tk. 1,00,00,000
Tk. 30,000
Tk. 15,000
Fifth
Tk. 5,00,00,000
Tk. 45,000
Tk. 22,000
Sixth
Above Tk.5,00,00,000
Tk. 60,000
Tk. 30,000
Step 3: Submit the application form together with the necessary recovery documents.
Please provide a recent passport-size photo of the applicant.
Make copies of the entire application packet for self-submission. Submit application by 4 p.m. to the receiving room on the third floor of CI&E.
Obtain the office entry number.
Why is export-import one of the best options for business in BD?
Export-import firms are more relevant and significant than ever thanks to the rise of globalization and the growing interconnectedness of the world. Getting involved in the export-import market has many advantages. Reasons to choose an export-import company:
Almost all of the products that are exported from Bangladesh or imported into Bangladesh are supported by a variety of groups that offer various forms of help to beginning exporters and importers.
For instance, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Fresh Fruits Importer Association (BFFIA), Bangladesh Chemical Importers and Merchants Association (BCIMA), Bangladesh Ceramic Manufacturers & Exporters Association (BFFEA), Bangladesh Jute Goods Exporters Association (BJGEA), Bangladesh Frozen Food Exporters Association (BFFEA), etc.
You can export a variety of non-conventional goods in addition to fresh and dried fish, including frog legs, crabs, shrimp, butternut squash seeds, betel nuts, vegetables, fruits, coconut husks, and tree roots.
Legal prerequisites
In order to start an export-import business in Bangladesh, you must adhere to a number of legal restrictions. You should keep up with the most recent laws and regulations because it’s crucial to recognize that these legal requirements vary over time.
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Additionally, you must get qualified legal counsel to make sure that your company complies with all applicable national laws. The essential paperwork you’ll need to run an export-import company in Bangladesh is listed below.
Business Registration: You must apply for a Trade License from the regional government office and register your business with the Registrar of Joint Stock Companies and Firms (RJSC).
Import and Export Licenses:
Depending on the products you are importing or exporting, you might need to acquire licenses and export registration certificates (ERC) or import registration certificates (IRC) from the appropriate government bodies, such as the Bangladesh Bank, Bangladesh Tariff Commission, or the Ministry of Commerce.
Required Documents for Obtaining Import Registration Certificate
Attested Copy of original duly attested Trade License of the company.
Valid Attested Copy of Chamber of Commerce Membership Certificate from relevant trade association.
A VAT registration certificate.
Attested Copy of Joint Registered Agreement.
Attested Copy of Company Incorporation Certificate (if Limited Company).
Attested Copy of Memorandum of Association and Articles of Associations.
Original copy of Treasury Challan.
Partnership Deed in case of Partnership business.
Copy of Financial/Bank Solvency Certificate of the company.
Tax Clearance Certificate (TIN) of previous year of the establishment.
An Office Rent Agreement.
Details regarding list of employees, their salary & nationality of the company.
Passport size photographs of the Managing Director/Entrepreneur.
Citizenship Certificate of the directors by the Word Commissioner.
National ID card of Managing Director of the company.
Passport Copy & Work permit is required if the director is a foreigner.
Tax Identification Number:
To begin an export-import firm in Bangladesh, you must receive a Tax Identification Number (TIN) from the National Board of Revenue.
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Compliance with International Trade Agreements: As a member of the World Trade Organization (WTO), Bangladesh is required to abide by all WTO and other international trade agreement rules and regulations.
Customs clearance:
The Bangladesh Customs Authority must clear all imported and exported goods. You must abide by customs laws, which includes paying all applicable fees and taxes.
Compliance with Labor Laws: You must abide by all applicable labor laws in Bangladesh, including those governing minimum wages, working hours, and other employment benefits.
Depending on your export-import firm, you could also require a fire service license, an environmental clearance certificate, a membership certificate from the appropriate association, etc. in addition to these documents. Always strive to maintain your paper up to date; otherwise, law enforcement may inquire.
RENEWAL OF IRC
IRC is required to be renewed every year. The required documents are:
IRC and Last year IRC Certificate (soft copy)
Renewal Application by the applicant
Treasury Challan of the annual renewal fee at Bangladesh Bank or Sonali Bank Pay, Online banking ( Scan Copy)
The applicant must gather the relevant paperwork and pay the yearly renewal cost at Bangladesh Bank or Sonali Bank.
Note: In accordance with the Import Policy Order 2021-24, Nominated Banks may also renew IRC. For successive renewals, the IRC applicant must include the name of a single Nominated bank on the IRC application form.
Purchasing and Sourcing
An export-import business must carefully consider its sourcing and procurement processes. You may efficiently manage the sourcing and procurement process by taking the following actions:
Finding Suppliers:
You must locate suppliers who can deliver the appropriate goods at the appropriate cost and level of quality. A variety of tools, including online directories, trade exhibitions, and industry groups, can be used to find suppliers. Contract negotiations are necessary after you have found a supplier to determine the supply, payment, and delivery terms.
Understanding the supplier’s capabilities, including lead times, production capacity, and quality standards, is crucial. Managing the Supply Chain: You must oversee all aspects of the supply chain, from obtaining raw materials to producing goods and delivering them to customers. Coordination with vendors, freight forwarders, customs brokers, and other parties is required for this.
Monitoring Quality:
In the export-import industry, quality is crucial. You must keep an eye on the products’ quality to make sure they live up to the high standards set by your clients.
Managing Inventory:
You must successfully manage your inventory to make sure you have enough goods to satisfy customer demand. To monitor your inventory levels and effectively manage goods, you might need to develop inventory management methods and procedures.
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Cost management:
Procurement and sourcing decisions might affect how much your products cost. To guarantee that you can give your clients competitive prices, you must efficiently control your costs. To save expenses, you might need to bargain with suppliers or explore for different sourcing possibilities.
You may successfully manage the sourcing and procurement process in your export-import business by following these procedures, which will also guarantee that you have the correct products, at the right price, and of the right quality.
Logistics
A key factor in guaranteeing the success of an export-import business is logistics management. Supply chain definition, carrier selection, and efficient document management are critical for managing logistics effectively.
Additionally, a freight forwarder can help with the handling of paperwork and customs clearance as well as the transportation of goods. Keeping track of the goods that are in stock, on order, and in transit requires inventory management, which is another essential task.
Additionally crucial is the ability to follow goods in real-time, including their position, estimated delivery window, and any potential problems that might surface. The export-import company may make sure that its logistics are effective, efficient, and match its changing needs by routinely analyzing and modifying its logistics operations.
Operations Shipping Logistics
The majority of international trade in Bangladesh happens through marine ports. Air cargo is employed in its place, nevertheless, if the exporting or importing commodity is perishable or has a short shelf life.
When importing, the exporter typically uses their own agency or a freight forwarder to deliver the product to the importer. Clothing, leather goods, and soap are examples of common things that are typically sold in harmless containers.
Specialised International Maritime Dangerous items (IMDG) containers must be used to transport dangerous items like chemicals and gas oil. Reefer or frozen containers are needed for perishable or temperature-sensitive goods. After completing the required papers, the freight forwarder delivers the container to the port authority upon arrival.
The shipping agent subsequently delivers the required paperwork to the shipping company, gets the bill of lading, and obtains the Chamber of Commerce exporter origin certificate. When the importer receives the product, he or she uses these documents to clear the product.
The nearest city corporation or city council office is where you can get a trading license. Simply gather the required information and fill out the trade license form.
A NID copy, holding tax payment receipt, company incorporation certificate, TIN certificate, and other supporting documents must be included with this form, along with the fee, which varies depending on your operational capital. For instance, the initial registration fee is Tk 5000, and the renewal fees are Tk 3000, if you want to import goods worth BDT 5 lac.
What is an export business risk factor, and how can export risk be reduced?
A. It frequently happens in the case of export business that the importer has problems paying for the commodity exported to him. In order to avoid major risk factors like importer bankruptcy, order cancellation, and currency conversion issues, it is therefore preferable for exporters to purchase credit insurance in advance. Additionally, by diversifying the export business, the risk factor may be avoided.
Contact Tahmidur Remura Wahid for your import and export license in Bangladesh:
TRW can provide the following services in order to obtain an Import Registration Certificate and your Export Registration Certificate:
TRW has a good and professional team that can efficiently pursue the IRC Certificate.
TRW’s legal experts can assist clients through consultations and meetings, and they will be asked to produce the relevant documents–NID, Trade License, Incorporation certificate, photos, MOA/AOA, and so on–in order to file for IRC. Documents for application are collected based on the type of company or establishment.
TRW legal specialists can prepare all relevant drafting of documents required to obtain IRC, which are then supplied with clients for execution. Clients execute documents, which are then returned to TRW along with the other relevant documents. TRW then completes the application by submitting the supporting documents to the appropriate authority and coordinating with them to acquire a certified copy of the IRC.
TRW, legal professionals, have solid working relationships with government organizations such as BIDA and RJSC, which makes obtaining any certificate easy.
TRW also offers services for renewing licenses when they expire by performing the necessary measures at the appropriate time.
24/7 Contact Numbers, Even During Holidays: +8801708000660 +8801847220062 +8801708080817
How do I obtain ERC?
Ans: To get an Export Registration Certificate (ERC), you must submit an application in the prescribed form to the Office of the Chief Controller of Import and Export (CCI&E). You must send the following documents with your application:
Nationality certificate issued by Ward Commissioner or Union Parishad Chairman (for Bangladeshi nationals) Copy of trade license In appropriate circumstances, income tax payment certificate from the prior year) Valid Chamber of Commerce or Registered Trade Association membership certificate Bank solvency certificate Photograph - 2 copies of the partnership document or incorporation certificate. The prescribed form and other associated information are available on the CCI&E's official website. CCI&E's website address is www.ccie.gov.bd.
Is a quality assurance certificate required for export?
Ans. Yes, in most circumstances, a quality assurance certificate is required. These certificates are granted by approved offices/organizations/trade associations such as the Export Promotion Bureau (EPB), the Department of Fisheries (DOF), the Bangladesh Standard and Testing Institute (BSTI), and others.
What exactly is compliance in the export business?
Ans: In the export business, compliance involves meeting the requirements of the foreign buyer. Foreign buyers/buyer country/countries may impose special conditions on quality issues, factory working conditions, and so on. These criteria are referred to as compliance.
Do I need Bangladesh government permission to export?
Ans. Except for the restricted items specified in Annex-1 (export forbidden items) and Annex-2 (conditional export items), all products are freely exportable and do not require government approval.
As stated in Annex-2 of the Export Policy 2009-2012, conditional export products require clearance from the appropriate authority.
How can I collect money for my exported goods?
Ans: You can receive financial rewards for the items listed in Annexure-4. Simply follow the steps outlined and submit your claim to your merchant bank along with any required documentation.
I plan to buy some finished goods and then resell them at a greater price. Is it conceivable?
Ans: Yes, but only under certain conditions; for example, if your export is an entre-pôt and re-export, you must follow the rules and procedures outlined in the corresponding policy or circulars, which are included here as Annexure-3.
What exactly is GSP?
GSP stands for Generalized System of Preferences. We benefit from some preferential treatment under this system, such as duty-free or concession-free access.
In which countries do we have GSP?
Ans: We have GSP in 37 countries, including 27 EU nations and 10 others such as the United States, Canada, Japan, Norway, and Switzerland.
How an exporter export certain products. How can I help him?
Initially, an exporter requires an ERC (Export Registration Certificate) upon submission of a bank balance, membership certificate of some association, trading license, and other documents, as mentioned in response to question no. 5. He can then look for international buyers. He can obtain a buyer list from the export destination country's Export Promotion Bureau (EPB) and Bangladesh Mission.
What are RTA and BTA, and what is Bangladesh's role in these agreements?
Ans:
RTA is an abbreviation for Regional Trade Agreement. Bangladesh, for example, is a member of BIMSTEC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand). BTA stands for Bilateral Trade Agreement. Although no bilateral deal has been reached, preliminary bilateral trade talks have begun with India, Pakistan, and Sri Lanka.
What is the difference between comparative advantage, competitive advantage, and absolute advantage?
Ans:
Comparative advantage: determining which activities a country/firm/individual is most efficient at (e.g., naturally available-cheap labor, inexpensive resources, better environment, etc.). Another example of how Canada has the ideal climate, trained labor, resources, and so on to efficiently make wood pulp. According to CA theory, you should grow and sell the product in which you have a comparative advantage (CA) and buy the product in which you have a lower CA.
Advantage in Competition: In competitive markets, competitive advantage is important to a form's performance. Firms or products compete with one another. For example, lower-cost, distinctive items.
Absolute advantage: A firm or product has absolute advantage if it is superior at manufacturing both items.
What are NT, MFN, TBT, and NTB?
Ans:
NT: National Treatment (equal treatment of indigenous and foreign products). MFN: Most-Favored Nation Treatment (equal treatment of all WTO members). TBT: Technical Barriers to Trade (WTO regulation): Ensure regulations, standards, testing, and certification. SPS stands for Sanitary and Phytosanitary Standards. TBT supplement Non-Tariff Barrier:
What exactly are dumping, antidumping, and countervailing duties?
Ans:
Dumping occurs when a corporation exports a product at a lower price than is generally charged in the home market. Antidumping: Impose an export fee on dumping goods. Countervailing duties are anti-subsidies that can be used to counteract (remedy) unfairly subsidized trade. RoO-Rules of Origin- are used to determine where a product originates. TRIPS-Trade Related Intellectual Property Rights-Copy Law, Patent Law, Trade Mark Law etc.
Power of Attorney (PoA) is a formal document that lets one person ask another to do certain things on his or her behalf. It’s not strange that many Non-Resident Bangladeshis use it to do business in Bangladesh. Some of the most popular questions about Bangladeshi law are about the POA.
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The Power of Attorney Act of 2012 and the Power of Attorney Rules of 2015 set the rules for how Powers of Attorney can be used, both inside and outside of Bangladesh. Rules set out specific rules, formats, and formal steps for executing a power of attorney outside of Bangladesh. This article will give a brief summary of the most important standards and deadlines for Non-Resident Bangladeshis (NRBs). There are different rules for people who are not from Bangladesh and for businesses.
Where to use Power of Attorney
Most POAs are needed to handle things like land administration, the process of passing on a business, and/or legal cases. POAs can also be used to manage bank accounts, stock and share investments, cash, or any other assets, like jewelry in a safe locker. But POAs can’t be used to carry out a will, a gift, or certain types of trust.
What’s in the POA?
The POA is a very complicated and tightly controlled piece of paper. It might not be useful if it isn’t done and aged the right way. Because of this, it is very important to talk to a lawyer about the powers and limits of the powers given to the attorney so that it can be used correctly.
By writing the powers in a clear and straightforward way, you can make sure they are not open-ended and can’t be abused. If it has to do with a piece of land, the coordinates of the land must be given using the most up-to-date land records. It is also common to include maps or pictures of the plots of land to help the reader understand them better.
If the PoA is about a lawsuit, the facts of the lawsuit, like the case number and the court, need to be included. It’s best to choose someone you can trust and who shows up on time, since the attorney will have to go to court dates as if he or she is the receiver.
Executing A Power Of Attorney In Bangladesh 20
Details and Paperwork for Power of Attorney in Bangladesh
Depending on what the PoA is about, we need different papers. For instance, if the POA is about how to run a piece of land,
Title records (khatians) and deeds (dolil) for the land in question that are up to date and will be the subject of the POA,
Identification papers (passports, national ID cards) and pictures of the executor and nominated attorney
the area Sub-registry address and the DC office address.
Even though it’s not written in any rule, only Bangladeshi citizens can carry out POAs outside of Bangladesh. Because of this, the receiver needs to have a Bangladeshi ID. As many NRBs may not have a Bangladeshi passport, it is best for them to apply for one or at least get a No Visa Required (NVR) seal on their foreign papers.
Depending on the Bangladesh High Commission/Consular section/Embassy, applying for and getting an NVR can be done in a single day. One can make an appointment or find out if they can just walk in. One must bring the originals of all papers, enough copies, and loose change. It is best to have a soft copy of the PoA on hand in case officials who will be there need to make changes at the last minute.
After execution
After the PoA is signed, it must be sent to Bangladesh to age. This is how the Ministry of Foreign Affairs (MoFA) in Dhaka verifies the seal of the Bangladesh High Commission/Consular section/Embassy. If the POA is about selling or buying land, the District Commissioner of the area needs to sign it and, more importantly, it needs to be registered at the Sub-Registrar’s office.
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If the PoA doesn’t have anything to do with land, it is considered mature after the MoFA attests to it. A PoA needs to be matured within 3 or 4 months of entering Bangladesh. This is why it is very important to start the maturing steps as soon as possible after completion.
Revoking a PoA
There are times when the attorney goes beyond what he or she is allowed to do, and the paper must be revoked. It is a complicated area that needs help from experts. If the Power of Attorney was written correctly, it can be automatically ended or cancelled.
But if that isn’t possible, a letter of revocation can be signed at the Bangladesh High Commission/Consular section/Embassy in a similar way to what was described above. It is very important to keep a copy of the original Power of Attorney so that the correct information can be used in the notice of revocation.
How can we help?
It is important to pay close attention to the POA’s timeline, whether the executor is qualified and has all the right information about the property, the details of the local sub-registry office, the effects of giving the powers, how they mature in Bangladesh, and how they can be revoked.
After talking with the client, we can tell them what they need to do to get ready or find out if their problems can be solved by a PoA. Most of the time, there are better ways to do things.
We can help clients by giving them information on the process, helping them write powers of attorney, and helping with execution in the UK, the US, and other European countries until the contract is ready to be signed in Bangladesh.
For clients outside of the UK, we can walk them through the process and set up a meeting at the High Commission/Consular section/Embassy so that the client can go on their own, knowing what they need to do.
Power of Attorney should be processed in accordance with the laid down rules stated in ‘The Power of Attorney Act-2015’. Please click on the link for ‘The Power of Attorney Act-2015’. The POA executant(s) and executee(s) are strongly advised to read the ‘Power of Attorney Act-2015’ before initiating the process.
Risks Associated with Choosing a Power of Attorney
Attorneys Or Lawyers Are Advising Clients In Defamation Cases, They Are Collecting Evidence To Bring Charges Against The Parties For Damages. The Concept Of Defamation Case Counseling.
Even when your child is acting as your agent, you should be aware of the risks of theft and self-dealing that a POA creates. Having your POA require your agent to disclose all actions to a third party on a regular basis, such as the family’s accountant or attorney, will help to reduce the possibility of such malfeasance in addition to the measures previously discussed.
Or, believe but double-check. Your POA can be written by an experienced attorney to provide these protections in accordance with state law.
The POAs you have made should be reviewed and updated as your family’s needs change. A POA can be revoked by merely identifying it in a letter, stating that you renounce it, and giving the letter to your former agent. Some states demand that a letter of this nature be notarized, just like the paperwork itself.
Sending copies to any other parties the agency may have dealt with on your behalf is a smart idea. After that, draft a new POA and provide it to your new preferred agent.
By granting a trustworthy individual the legal ability to act on your behalf and in your best interests, a power of attorney can offer you convenience as well as protection.
The finest agent under your power of attorney may be one of your adult children who is entirely trustworthy and competent to carry out your wishes. However, you shouldn’t appoint someone as the agent just because they are your child. Whoever you choose as your agent, be sure they are capable and trustworthy first.
Power of Attorney related legal advice at Tahmidur Remura Wahid TRW Law Firm
The lawyers, advocates, and barristers at Tahmidur Remura Wahid in Mohakhali DOHS, Dhaka, Bangladesh, have a great deal of experience handling Power of Attorney-related concerns. It regularly handles a variety of domestic client-related matters and has expertise consulting and supporting several overseas customers throughout their legal difficulties with the utmost care and attention.
Please contact us at the following numbers or email address for questions or legal assistance:
হেবা কি,হেবা কিভাবে করবেন এবং হেবা সম্পর্কিত প্রযোজনীয় তথ্য সমূহ ২০২৩ এ 25
৬।কি কি কারনে হেবা দলিল বাতিল করা যায় না।
৭।অন্য ধর্মাবলম্বী ক্ষে্ে হেবা।
৮।হেবা রেজিঃ ফিস/ খাত সমূহ।
হেবা কাকে বলে—-
কোনো মুসলমান অন্য কোনো মুসলমানকে কোনো বিনিময় ব্যতিরেকে কোনো সম্পত্তি হস্তান্তর করলে তাকে হেবা বলে। হেবা সম্পন্ন করার জন্য তিনটি বিষয় অত্যন্ত গুরুত্বপূর্ণ-হেবার প্রস্তাব, গ্রহীতার সম্মতি এবং দখল হস্তান্তর।
হেবার প্রকারভেদ—
সাধারণত হেবাকে ২ দুই ভাবে ভাগ করা য়ায়—নিম্নরুপ,
১।হেবা-বিল-অ্যাওয়াজ
২।হেবা বা শর্ত-উল-এওয়াজ
হেবা-বিল-অ্যাওয়াজ-—
হেবা-বিল-অ্যাওয়াজ হলো সম্পত্তির মূল্যের পরিশধের বিনিময়ে হেবা। হেবা বা দানের ক্ষেত্রে এটি একটি বিশেষ ব্যতিক্রম বটে । এই হেবাকে বৈধ করতে হলে ২ (দুটি) শর্ত অবশ্যই পালন করতে হবে।
১। দান গ্রহিতা কর্তৃক হেবা-বিল-অ্যাওয়াজ এর বিনিময় মূল্যে প্রকৃ্ত অর্থেয় দিতে হবে । ২। দাতার মালিকানা পরিত্যাগকরত দান করার আন্তরিক অভিপ্রায় ব্যক্ত করতে হবে।
হেবা বা শর্ত-উল-এওয়াজ—
কোন একজন মুসলিমঅন্য কোন একজন মুসলমানকে কোন প্রকার বিনিময় প্রদানের শর্তযুক্ত সম্পত্তি হস্তান্তর করাকে হেবা বা শর্ত-উল-এওয়াজ বলে। হেবা বা শর্ত-উল-এওয়াজ মূলত দান। এটা সম্পাদন হওয়ার জন্য দখল হস্তান্তর আবশ্যক। বিনিময় প্রদানের পূর্বে হেবা বা শর্ত-উল এওয়াজ বাতিলও করা যায়।
হেবা কি,হেবা কিভাবে করবেন এবং হেবা সম্পর্কিত প্রযোজনীয় তথ্য সমূহ ২০২৩ এ 26
হেবার শর্তসমূহ কি কি—
কোনো হেবা আইনানুগ হতে হলে অবশ্যই সেখানে তিনটি শর্ত পূরণ করতে হবে। সেগুলো হলো-
(১) দাতা কর্তৃক দানের ঘোষণা বা প্রস্তাব ।
(২) দানগ্রহীতা কর্তৃক উহা গ্রহণ ।
(৩) দাতা কর্তৃক দানগ্রহীতাকে দানের বিষয়বস্তুর দখল প্রদান করতে হবে। এই শর্তগুলো যদি পালন করা হয়, তাহলে হেবাটি আইনানুগভাবে সিদ্ধ হবে ।
যে সকল সম্পর্কের ক্ষেত্রে হেবা করা যেতে পারে:
রেজিস্ট্রেশন আইন-১৯০৮, এর ধারা ৭৮এ (বি) নং অনুসারে হেবার ঘোষণা দলিলের মাধ্যমে মুসলিমরা যে সকল সম্পর্কের ক্ষেত্রে হেবা করা যেতে পারে তা নিম্নরূপঃ
সহোদর ভাই-বোন।
পিতা/মাতা-ছেলে/মেয়েকে।
স্বামী-স্ত্রী এর মধ্যে।
দাদা/দাদী-নাতী/নাতনীকে।
নানা/নানী-নাতী/নাতনী এই কয়েকটি সম্পর্কের মধ্যে সম্পত্তি হস্তান্তর করা যায়।
হেবা দলিল বাতিলের নিয়ম–
মুসলিম আইন অনুযায়ী নিম্নবর্ণিত অবস্থায় দাতা হেবা বা দান বাতিল করতে পারেন।
১. দখল প্রদানের আগে যেকোনো সময় দাতা হেবা রদ করতে পারে। কারণ দখল প্রদানের আগে হেবাটি পূর্ণভাবে কার্যকর হয় না।
২. হেবাদাতাই শুধু হেবাটি বাতিল করতে পারেন। দাতার মৃত্যুর পর তাঁর উত্তরাধিকারীরা এটি বাতিল করতে পারবে না। অর্থাৎ দান রদে বা বাতিলে গ্রহীতার ইচ্ছা নহে, দাতার অভিপ্রায়ই মুখ্য এবং প্রযোজ্য।
৩.দান গ্রহণের পূর্বে দাতার মৃত্যু হলে দান বাতিল বলে গণ্য হবে।
এছাড়া অনেকেই একটা বিষয় জানেন না যেটা বিশেষ ভাবে উল্লেখ্য যে, পাওয়ার অফ এটর্নি বিধি, ২০১৫ এর বিধি ৪ অনুযায়ী পাওয়ার অব অ্যাটর্নির মাধ্যমে দান বা হেবা সম্পর্কিত ঘোষণা বিষয়ে কোন ক্ষমতা অর্পণ করা যায় না।
কি কি কারনে হেবা দলিল বাতিল করা যায় না।
একটা হেবা দলিল সকল শর্ত প্রতিপালন করে একবার রেজিস্ট্রি হলে সেটা আর সাব-রেজিস্টার বা জেলা রেজিস্টার কেউই এই দলিল বাতিল করতে পারে না।
বাতিল করতে হলে একজন আইনজীবীর মাধ্যমে যথাযথ এখতিয়ার সম্পন্ন আদালতে মামলা করতে হবে। সুনির্দিষ্ট প্রতিকার আইন ১৮৭৭ সাল অনুযায়ী, আংশিক বাতিল চাইলে ৪০ ধারা অনুযায়ী, সম্পূর্ণ বাতিল চাইলে ৩৯ ধারা অনুযায়ী এবং ভুল হয়েছে এবং এটা রদ করতে চাইছেন তাহলে ৩৬ ধারায় মামলা করতে হবে।
নিম্ন ক্ষেত্রে হেবা বাতিল করা যায় না-
হেবা কি,হেবা কিভাবে করবেন এবং হেবা সম্পর্কিত প্রযোজনীয় তথ্য সমূহ ২০২৩ এ 27
১. দখল হস্তান্তর হয়ে গেলে।
২. হেবা গ্রহণ করে বিক্রি করে দিলে এবং হেবা গ্রহণকারী যদি অন্য কাউকে হেবা করে দেয়
৩. হেবাকৃত সম্পতির দাতা গ্রহিতা স্বামী বা স্ত্রী হলে।
৪. হেবাকৃত সম্পতি হারিয়ে বা ধ্বংস হয়ে গেলে।
৫. হেবাকৃত সম্পতি সম্পূর্ণ পরিবর্তন হয়ে গেলে।
৬. হেবাকৃত সম্পতি বিনিময় দান বা হেবা বিল এওয়াজ হয়ে থাকিলে।
উল্লেখ্য বাস্তব অভিজ্ঞতায় দেখেছি কোন দলিল রেজিস্ট্রি হওয়া মানে দলিলের গর্ভে দখল অর্পণের বিষয়টা উল্লেখ করেই রেজিস্ট্রি হয়।
অন্য ধর্মাবলম্বী ক্ষেএ হেবা—-
একজন মুসলমান ইসলামী শরিয়ত মোতাবেক অন্য একজন মুসলমানকে শুধুমাত্র হেবা করতে পারে। কিন্তু ভিন্ন ধর্মাবলম্বীকে দানে আইনগত কোনো বাধা নেই। অন্য ধর্মাবলম্বীগন চাইলে রেজিস্ট্রেশন আইন-১৯০৮, এর ধারা ৭৮এ (বিবি) নং অনুসারে দানের ঘোষণা দলিলের মাধ্যমে সম্পত্তি হস্তান্তর করতে পারবেন।
হেবা দলিল আইনএবংহেবা রেজিঃ ফিস/ খাত সমূহ—
হেবা দলিল এবং বিক্রয় দলিল উভয়ই বাংলাদেশের আইন অনুসারে নিবন্ধিত হওয়া প্রয়োজন। বিক্রয় দলিলের নিবন্ধন ফি সম্পত্তির পরিমান ও মূল্যের উপর নির্ভর করে। হেবা দলিল এর ক্ষেত্রে সম্পত্তির পরিমান ও মূল্য যতই হোক না কেন এর ফিস পরবর্তন হয় না। হেবা দলিলের রেজিস্ট্রেশন ফি নিম্নে দেওয়া হলোঃ
৭।এনএন ফি ৩৬০টাকা (ইংরেজি)(১০ পৃষ্ঠা হিসাবে) ৮। হলফনামা স্ট্যাম্প ৩০০ টাকা ৯। কোর্ট ফি ১০ টাকা মোট খরচ ২৫১০ টাকা
হেবা করার জন্য যোগাযোগ করুন বাংলাদেশ এর সবচেয়ে স্বনামধন্য ল ফার্ম এর সাথে –
তাহমিদুর রহমান রিমুরা টি এল এস একটি সনামধন্য ‘ল’ চেম্বার যেখানে ব্যারিস্টারস , আইনজীবীর মাধ্যমে হেবা সহ অন্য সকল বিষয়ে আইনগত সহায়তা, পরামর্শ প্রদান করে থাকে। কোন প্রশ্ন বা আইনী সহায়তার জন্য আমাদের সাথে যোগাযোগ করুনঃ-
Public Limited Company Registration or Incorporation Procedure in Bangladesh in 2023
Barrister Tahmidur Rahman Director, Tahmidur Rahman Remura Wahid Law Firm in Bangladesh
24 Jan 2022
In this article we are going to talk about how to incorporate a public limited company in Bangladesh.
Public Limited Company
Public Limited Company in Bangladesh:
A Public Limited Company, according to the Company Act of 1994, is a company that can be formed by at least 7 (seven) people as members and whose membership is open to the public.
A public limited company must register its name as a stock exchange member in order to issue shares. A company must issue a certain number of public shares in order to begin operations.
What to submit to incorporate a Public Limited Company in Bangladesh?
❂ Submission of an application for name clearance to RJSC, along with the Application Form and Proposed Name ❂Drafting of the Memorandum of Articles ❂Creating the Articles of Association and other necessary documents ❂Directors’ decision to establish a new company in Bangladesh ❂Obtaining and filling out the following forms in order to register the company with RJSC:
✅ Form I: Declaration on Company Registration ✅ Form VI: Notice of Registered Office Situation ✅ Form IX: Consent of Director to Act ✅ Form X: List of Persons Consenting to Be Directors ✅ Form XII: Information about the directors, manager, and managing agents. ✅ Taxpayer Identification Number (TIN) ✅ VAT Registration Certificate/BIN (Business Identification Number) ✅ Trade License for Public Limited Company
A Step-by-Step Guide to Form a Public Limited Company in Bangladesh:
The following are the steps for registering a public company in Bangladesh:-
GET A NAME CLEARANCE LETTER FIRST
RJSC must receive an application for name clearance along with the following information: a) Application Form; b) Name Suggestion.
DOCUMENTATION IS THE SECOND STEP.
a) Preparation of the Memorandum of Articles and Articles of Association, as well as other required documents
b) Resolution of the Board of Directors to establish a new company in Bangladesh;
c) Obtaining and completing the following forms for the Company’s registration with RJSC:
Form I: Declaration on Company Registration; Form VI: Notice of the status of the registered office; Form IX: Acting permission from the director; Form X: List of people who have agreed to serve as directors; Form XII: Information about the directors, manager, and managing agents.
STEP 3: FORMALITIES IN CONNECTION WITH A BANK ACCOUNT
a. Directors shall open a temporary bank account in the proposed Company’s name with any scheduled bank, with the understanding that the account will be regularized once the Company is duly registered with Company House.
b. Deposit of funds into a bank account.
c. A bank encashment certificate stating that the required capital contribution has been deposited in the proposed organization’s temporary bank account.
Application to RJSC, along with the above-mentioned documents.
Compliances for a Public Company Limited by Shares after registration
◪ (a) Commercial License
The Companies must obtain a trade license from the appropriate City Corporation. The proposed Company must file its application with the nearest City Corporation, along with the necessary documents and fees.
◪ b) Taxpayer Identification Number (“TIN”).
A company must obtain an E-TIN from the National Board of Revenue’s (NBR) recommended website.
◪ (c) Certificate of VAT Registration
The newly formed company must obtain a VAT registration certificate. In this case, an application must be submitted to the National Board of Revenue (NBR).
◪ (d) Fire Safety Certificate
The Bangladesh Fire Service and Civil Defense Authority issue fire certificates.
◪ (e) Certificate of Environmental Clearance
If a company is involved in an industrial project, it must obtain an environment clearance certificate from the Department of Environment by completing the prescribed form.
Special Case (In-Kind Investment, etc.)
The definition of ‘investment in kind’ is not defined in the Companies Act of 1994.
In practice, however, significant investment is made in a Company by a shareholder or a proposed shareholder in a Company incorporated in Bangladesh by investing in machineries and other equipment.
Although CA 1994 does not govern the procedure, the following steps are taken when making such in-kind investments:
The concerned company must be duly registered with RJSC, the concerned investors must complete the relevant Form(s), the concerned investors must have a vendors’ agreement between them, and the completed Form(s) and the vendors’ agreement must be filed with RJSC.
The RJSC will then record the investment and ensure that the proper procedure was followed.
How long does it take to incorporate?
Following completion of the aforementioned formalities, RJSC typically issues the certificate of incorporation (Company registration certificate) within 6-8 working days.
It usually takes 2-3 weeks from the date of submission of all documents to RJSC to register a company.
After obtaining name clearance, the clearance is valid for 6 months. Obtaining a name clearance usually takes three working days. Following the receipt of the Name Clearance certificate, a bank account must be opened into which the initial paid-up capital must be transferred from the shareholders’ account.
If there is any foreign investment, the paid-up capital must be remitted through the newly opened bank account using the proper procedure.
Are there any fees associated with incorporation?
The amount of Authorised Capital determines the governmental fees for company registration. Government fees for the issuance of an Incorporation Certificate shall be BDT 1000.
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“In Bangladesh, you need at least 2 directors and 2 shareholders to start a limited company. A public limited company, on the other hand, can’t be set up without at least 3 directors and 7 shareholders. In a limited company, there can be no more than 50 shareholders, but there is no limit on the number of shareholders in a public limited company. Directors and shareholders of a limited company or a public limited company do not have to be from the same country or live in the same place.”
Barrister Tahmidur Rahman
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How much money is required for company registration in Bangladesh?
The governmental fees for registering a company are determined by the amount of authorized capital. Government fees for the issuance of an Incorporation Certificate shall be BDT 1000.
How long does it take to register a company in Bangladesh?
Once the aforementioned formalities have been completed, RJSC will usually issue the certificate of incorporation (Company registration certificate) within 6-8 working days.
It usually takes 2-3 weeks from the date of submission of all documents to RJSC to register a company.
What is BIDA?
Bangladesh Investment Development Authority (BIDA) is in charge of facilitating foreign investments in the country.
BIDA's responsibilities include issuing work permits for foreign employees, visas for foreign investors, processing loans from foreign sources, approving remittance of royalties and technical fees, assisting in the acquisition of industrial plots, facilitating utility connections, approving foreign loans, suppliers credit, and providing assistance and advice on a variety of investment-related issues.
Foreign investors with industrial projects are strongly advised to register with BIDA after forming their limited company. However, there is no requirement for a commercial or trading company to register with BIDA. The average time frame for obtaining registration is 7-10 working days.
What documents are needed to set up a private limited company in Bangladesh?
1. Memorandum of Association 2. Article of Association 3. Certificate of Incorporation 4. Trade License 5. TIN 6. VAT Registration Certificate 7. Name Clearance 8. Environmental Clearance Certificate 9. Fire Certificate
What is the minimum capital required for a private limited company in Bangladesh?
In Bangladesh, there is no minimum or maximum authorised capital for a local company.
However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50,000/- must be invested in the Company.
Can a single person start a company in Bangladesh?
Bangladesh does not allow a single person to open a private limited company or One Person Company (OPC).
A private limited company must have at least two shareholders. In the case of a public limited company, however, the total number of shareholders required is seven.
Can a private limited company have one director in Bangladesh?
A private limited company must have at least two directors. Local or foreign nationals may serve as directors.
Directors must be at least 18 years old and have never been bankrupt or convicted of a crime. A director is required by law to own the qualification shares specified in the Articles of Association.
What is the difference between authorised capital and paid-up capital?
- Authorised capital: The amount of authorised capital must be specified in the Memorandum of Association and Articles of Association. It is the maximum amount of share capital that a company may allocate to shareholders.
In Bangladesh, there is no minimum or maximum authorised capital for a local company. However, for practical reasons and to obtain complete flexibility in terms of expatriation and bringing in foreign expatriates, a minimum of USD 50000/- must be invested in the Company.
-Paid-Up Capital : The minimum paid-up capital for registering a Bangladeshi company is Taka 1 (for local companies) and USD 50000 (for foreign companies).
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Author’s Bio
About Barrister Remura Mahbub | One of the most innovative young lawyers in Bangladesh
Barrister Remura 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
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Whoever has ownership rights of immovable property and is recorded as such in records of rights or other public documents in which a record of ownership is entered or maintained is regarded as the legal owner of immovable property and has the right to transfer such property in whole or in part.
Even if a person is not the owner of immovable property, but is legally authorized by the owner to transfer it, that person may also transfer the property.
Possessors of immovable property may assert ownership of the property, but mere possession of an immovable property does not make a person the property’s true owner.
As you are no doubt aware, title to immovable property can be acquired via purchase, long-term lease, gift, inheritance, etc. To determine the real owner in possession who can sell the property, it is essential to examine records of rights or other public documents in which ownership information is recorded or maintained.
Confirm the rights record with the Land Office
The land administration system in Bangladesh segregates ownership records and revenue records. We have Land Records Offices for land records, surveys, publication, and record maintenance under the Ministry of Land’s directorate of land records and survey.
Land Revenue Offices exist in Bangladesh under the Ministry of Land. Each subdistrict (upazila) contains eleven administrative offices. Bangladesh has 64 districts, but only 61 of them have registration facilities.
Comprehensive Guide For Purchasing Land In Bangladesh 48
Three of the hill districts lack registration centers. Under the Ministry of Law, the district land registration office in Dhaka has thirteen Sub-registrar offices.
Check and verify the Bia Deeds, Khatiayans, and Mutations in favor of the Seller.
If the present Seller acquired the land through a Purchase, the present purchaser must first examine all such Sale Deeds (Bia Deed) to determine the land’s chain of ownership, with a minimum of 25 years’ worth of chain of ownership preferably being determined.
The second step involves requesting documents in Khatain format from the Seller. The buyer must examine the Khatiayan records (C.S., S.A. R.S., B.S./City Jarip) provided by the seller and confirm with the seller’s attorneys whether the supplied documents establish the seller’s ownership (either through purchase or inheritance).
Draft/Khosra Khatiyan provided by the seller is ineligible for record verification; purchasers should request copies of certified/printed Khatiyan.
In addition to comparing the Khatiyan to the records at the Deputy Collectors Office, the buyer should verify the Khatiyan with the records at the Deputy Collectors Office. Particular emphasis should be placed on the last two Khatiyan of the relevant property.
Is the acquisition of land in Bangladesh a wise investment?
According to a popular saying, land is one of the safest investment options, especially in Bangladesh. While the rate of inflation is rising and the value of currency is falling, investing in a tangible asset such as land in such a populated country is rationally a wise decision. However, this investment also depends on a number of variables.
Location
Location plays a significant role in the overall ROI of land acquisition.
A simple illustration will make it clear. A survey reveals that the price of land per katha in the Gulshan region increased by more than 1,036% between 1990 and 2010. And the situation is comparable in urban areas across the nation.
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Zoning Regulations
The cost of land depends on zoning regulations as well. There may be zoning regulations for commercial, residential, and office spaces, for instance. Some areas may be zoned against the development of new structures. Before purchasing land, it is vital to examine the zoning regulations.
Upfront Price
Land acquisition is not like any other transaction. The upfront costs associated with the survey, registration, and taxes should be factored into the total investment decision.
Long-Term Expenditure
Buying land as an investment is a long-term endeavor. The value of land does not increase overnight. It could be years or decades before there is a significant value increase. Therefore, long-term commitment should also be taken into account when investing in land.
Comprehensive Guide For Purchasing Land In Bangladesh 49
Considerations Before Purchasing Land
Prior to purchasing land, there are numerous factors to consider. Aside from standard pricing and market overviews, a buyer of immovable property, such as land, should consider several ownership and transfer of ownership factors.
Rights/Ownership Rights Document
Multiple government documents issued by the land office under the Ministry of Land establish land ownership. These documents are the legal tender that verify ownership and the ability to transfer ownership to another individual.
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A land attorney should review the pertinent documents to ensure that no fraudulent activities are associated with the property.
Sales Deed
The sales deed is the document that outlines the land’s ownership through the generations. The detailed sales deed can be found at the local sub-registry office. A certified copy of the sales deed can be obtained by paying the government-mandated fees.
At least ten to twenty-five years of sales deeds should be reviewed to ensure that there are no land ownership issues. In the event of an inheritance, the inheritance deed (“Bontonnama”) must also be examined.
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Khatiyan/Porcha
The “Khatiyan” and the “Porcha” are the land authority’s records of rights against the land’s actual ownership. The Khatiyan or Porcha should be compared to the sales deed in order to determine the legitimacy of the land’s ownership.
There are two types of Khatiyan: certified and draft. It is preferable to avoid a Khatiyan draft.
Land Regulation (Khas/Auctioned/Unauthorized)
The local land office (Tohsil) should also have information regarding whether or not the land has previously been auctioned. In such cases, Section 7 of the Government Claims Act of 1993 can prohibit the purchase or sale of such land.
If the land was ever put up for auction, the auction details can be found in the Khatiyan’s footnote.
A prospective purchaser should also determine if the land is “Khas” or unapproved. Numerous lands are Khas (government-owned), abandoned, unapproved, or acquisition-approved. Occasionally, individuals with forced acquisition (“Dokhol”) attempt to sell these lands as genuine Khatiyan cleared lands.
The land condition information is also available at the DC office for a nominal fee. Any land that falls into any of the aforementioned categories should be avoided at all costs.
DAG
DAG is the land office registry of the land area under the record of rights’ ownership. A prospective purchaser should compare the DAG size listed in the property records with the property’s square footage.
Legal Issues
Comprehensive Guide For Purchasing Land In Bangladesh 50
Additionally, the property should be cross-checked to determine whether or not it has ongoing legal issues. If there is a building on the land in question, its construction documents and permits should also be examined to determine whether they comply with the regulations.
Transferable Duties
There are numerous expenses associated with the property transfer. Obtaining the non-encumbrance certificate is the primary prerequisite for initiating the process of transferring the property.
After that, a legal stamp outlining the transfer of the property should be signed. This stamp is typically worth 3% of the property’s value. The property must then be registered with the sub-registry office under the new owner.
As soon as possible, the Khatiyan, Porcha, and sales deed should be updated to prevent any future issues with the transfer. This will ensure that there are no legal complications when the land is resold.
Physical Land Survey
Most importantly, the Purchaser must conduct a physical land survey. This will also provide current conditions and confirm ownership of the property.
Verification of Ground Rate Payment for the Property
Additionally, the Purchaser should request from the Vendor proof of current Ground Rent payment for the prospective property. Notably, if the Ground Rate is ambiguous, the sub registrar’s office may refuse to register the property in the seller’s name.
Multiple Vendors
If land is recorded in the seller’s predecessor’s name, a Warishan certificate issued by the local government’s representative in favor of the seller must be verified. In addition, Registered Deed of Partition/Bia Deed must be verified if the land is sold by some of the successors but not all. If the land is sold by an authorized representative, a Registered Power of Attorney is necessary.
Obtain the certificate of no encumbrance from the appropriate sub-registry office
The purchaser must verify the land’s legal status (mortgage, lease, or ownership) at the relevant Sub-registry office. Since January 2012, both Sub-registry and Land Revenue Offices issue certificates of no encumbrance. Occasionally, a land report is required.
A land report provides information regarding the current status and ownership of the land, which may include the chain of ownership, land tax, land record, registry status, etc., whereas a non-encumbrance certificate is used in real estate transactions as evidence of the property’s ownership.
Prepare transfer deed and pay stamp duty
The transfer deed may be drafted by an attorney, but it may also be drafted by the parties themselves. The deed must be prepared on stamped paper, which should cost three percent of the property’s value. This represents the tax on stamps. Additionally, any Baina Deed executed between a seller and a buyer must be registered.
At a designated bank, pay capital gains tax, registration fee, VAT, and other taxes.
The registration fee must be paid to the bank in favor of the sub-registry office, and the receipt must be presented at the time of application.
The purchaser is responsible for remitting the local government tax to the appropriate city corporation or municipality office. In addition, a capital gains tax (CGT) and a value-added tax (VAT) of 1.5% (applicable only for municipal corporation area and payable by private housing and apartment developers and commercial businesses) must be paid at this point. The capital gains tax does not apply to agriculture in rural areas.
Submit an application for registration at the appropriate Sub-registry:
At this point, the purchaser may submit an application for registration at the relevant Sub-Registry Office, along with receipts for payment of registration and other fees. Within one week, a certified registration document is obtained for the buyer’s files. Obtaining the original sale deed or certificate takes approximately six months.
Register the transfer with the Land Revenue Office:
The transfer of property must be recorded with the Land Revenue Office. The property is recorded under the new owner’s name, and he or she is responsible for paying the land taxes as of the date of transfer.
Comprehensive Guide For Purchasing Land In Bangladesh 51
It is necessary to submit a property-specific application to the applicable AC. The assistant commissioner will forward the request to the relevant Tahsil office, which will conduct the necessary survey and provide a report to the assistant commissioner of land.
AC Land will issue Mutation Khatiyan in the name of the new owner along with a Duplicate Carbon Receipt (DCR) upon approval of the report.
In the application form, the applicant must include their names and addresses, a detailed description of the land and its surrounding boundary, the land’s size, nature, and identification, as well as the registered deed number and registration date.
In addition, the applicant must include a copy of the main deed, a copy of the via deed, a copy of Khatiyan, a receipt for payment of land development tax, proof of means to acquire ownership, i.e. partition deed, a copy of the decree or judgment obtained from the competent court (if any), a passport-sized photograph of the applicant, etc.
It is important to note that neither a middleman nor additional funds are required for land mutation. However, the entire mutation process must now be completed within 60 days in metropolitan areas and 45 days in all other regions.
If the AC (Land) refuses to change the applicant’s name due to a lack of documents or for any other reason, the applicant may appeal to the Additional Deputy Commissioner (Revenue) within 30 days of the refusal. However, anyone can appeal the Additional Deputy Commissioner’s decision to the Additional Divisional Commissioner (Revenue) within the next 30 days.
Finally, the complainant has another opportunity to appeal a questionable order issued by its immediate superior authority to the Land Appeal Board within ninety days. A person may also submit a request for review within 30 days of the date of the initial denial, but in that case, the right to appeal is lost.
Including the Land in the most recent survey (B.S./City jarip)
The purchased land should, if possible, be recorded under the most recent survey (i.e. B.S. Jarip or City Jarip) if these surveys are being conducted in the area where the land is located in the name of the current owner. Additional requirements for Certain Land Types (Waqf, Lease, Khas Land)
Transferring or mortgaging Waqf property requires the prior approval of the Waqf Administrator, and the Sale Deed must be executed by an authorized Mutawalli.
Whenever a Lease property from RAJUK/CDA (Rajdhani Unnayan Kartripakkha) is transferred, the Ministry of Housing & Public Works must grant permission.
Regarding Khas land, neither sale nor mortgage are permitted. Before purchasing any type of land, it must be determined whether the land is Khas land or not.
In the case of Shikosthi Jorip (river-eroded land), it is extremely challenging to obtain mutation of that land. Therefore, it must be determined whether or not the land falls under Shikosthi Jorip.
From the Tohasil office/Upazila Land office, the buyer must determine whether the land’s certificate is being litigated or whether the land has been auctioned. The buyer must keep in mind, however, that Section 7 of the Government Payment /Claim Act of 1993 states that the property listed on the certificate is not eligible for sale.
From the Tohsil office, the LA branch of the Upazila Land office, or the Deputy Commissioner Office (DC office), it is necessary to determine whether the land in question is Khas, abandoned/unapproved, or marked for acquisition. Additionally, purchasers must ensure that the sale of the land is not prohibited by existing laws.
It is necessary for the buyer to determine whether or not a lawsuit has been filed against the property he or she intends to purchase.
However, the land in question should not be acquired. If there is a structure on the property, such as a building or apartment, the buyer must examine the building plan and the approval letter to ensure that the structure was constructed according to the blueprint.
The sub-registry office or the district registrar’s office should be contacted for the most up-to-date registration information.
The record of land tax (Khajna) should be examined. If a property’s land tax is not paid, the government may seize the property.
If the preceding steps are followed, one can reduce the likelihood of legal complications arising from the purchase of land.
How to Hire the best lawyers in Bangladesh to successfully purchase a land in Bangladesh:
If you want lawyers who can help you with acquiring a land in Bangladesh effortlessly, you came to the right place. We, at Tahmidur Remura Wahid TRW, we have acquired land on behalf of a lot of clients. Sometime, we take care of the whole process and our clients delegate the whole responsibility to us through a Power of Attorney.
We have also acquired land on behalf of world class manufacturing companies in several economic zone throughout the country. We bought lands on behalf of Fortune 500 companies (including but not limited to: Mitsubishi, Yabang, Miago, Marubeni etc.) and dispatched the responsibility from physically surveying the land, vetting, registering and then eventually doing the namjari on behalf of our clients.
If you want to hire Tahmidur Remura Wahid TRW to purchase your land in Bangladesh:
