Process of License and Registration:
Bangladesh has remained an appealing site for foreign firms to conduct business due to its cheaper manufacturing costs, abundant resources, expanding demand, geographical position, and labor wage in comparison to other Asian nations. In addition, the demand for glassware is gradually expanding as people’s lifestyles evolve. New buildings, hotels, and restaurants are being developed that are predominantly composed of glass, which is increasing the need for the glass industry in the country day by day.
The Government of Bangladesh has established many Export Processing Zones (EPZ) under the Bangladesh Export Zones Processing Authority in order to attract foreign investors. The primary objective of constructing these zones is to provide the necessary facilities for launching a business in a single location, including utility connections, land, office space, etc. In addition to these perks, investors in EPZ zones are eligible for additional tax benefits and incentives. In addition, there are specific economic zones (EZ) managed by both the government and the private sector. Some of the EZs are designated for specific industries or investors from specific nations. The Bangladesh Export Processing Zones Authority Act of 1980 and the Bangladesh Economic Zones Act of 2010 are crucial laws in this context.
In Bangladesh, the glass industry can be inaugurated by incorporating a company first through Glass Business Registration in Bangladesh.
Company Formation in Bangladesh:
A company lawfully registered in Bangladesh may participate in any business activity permitted under its Object Clause, as stated in its Articles of Association. A firm in Bangladesh may be either public or private. For the formation of a public company, a minimum of seven shareholders are necessary. In contrast, a minimum of two shareholders are required to form a private corporation. A private corporation cannot invite the public to subscribe for its shares, but a public firm can offer its shares to the general public. In actuality, private companies are the most preferred business structure for both foreign and domestic entrepreneurs. There are no restrictions on foreign equity involvement for foreign direct investment, hence 100 percent foreign equity is permitted. Foreign investment gets the same level of protection and security as domestic investment in Bangladesh. The laws of Bangladesh guarantee non-discrimination between international and domestic investment, as well as the repatriation of share and profit sales revenues.
The following actions must be taken to establish a company:
1. The prospective company must get a Name Clearance from the Registrar of Joint Stock and Companies.
2. Developing and executing the following:
• The company’s Memorandum and Articles of Incorporation;
• Form I: Declaration On Company Registration;
• Form VI: Notice Of Registered Office Location;
• Form IX: Director’s authorization to act;
• Form X: List of Individuals Who Consent to Serve as Directors;
• Form XII: Director, manager, and managing agent information
3. Opening a temporary bank account for the Proposed Company at any Bangladeshi scheduled bank.
4. Transfer the paid-up capital amount from each foreign shareholder’s account to the Bangladeshi bank account of the proposed company.
5. Obtain an encashment certificate from the Bank of the Proposed Company for each international transaction.
6. Submit the required documentation to the Company House.
7. Pay the Government Registration Fees.
8. Obtain the certificate of registration from Company House.
Required Company Formation Documents for Glass Business Registration in Bangladesh:
a) A copy of the company’s Valid Name Clearance;
b) An executed copy of the company’s memorandum and articles of incorporation.
c) Copy of Form I: Declaration On Registration Of Company, duly signed;
d) Copy of Form VI: Notice Of Situation Of Registered Office, duly executed;
e) Copy of Form IX: Consent of director to act, duly executed;
f) Copy of the executed Form X: List of Individuals Consenting to Serve as Directors;
g) Copy of Form XII: Particulars of the directors, manager, and managing agents, duly signed and dated;
h) Copies of shareholder and director identification cards (for Bangladeshi nationals);
I Copies of Shareholder Identification Number (TIN) Certificates (for Bangladeshi Nationals);
j) Copies of shareholders’ and directors’ passports (for foreign nationals);
k) Photos of shareholders and directors in passport format;
l) Bank Encashment Certificate for each international shareholder;
m) Receipt of the government fees’ payment.
In addition to the above-mentioned formats, a firm with 100% foreign ownership may also register as a Branch Office to commence Glass Business Registration in Bangladesh. However, a Branch office can only serve the job envisioned by the parent firm if Bangladesh Investment Development Authority has granted prior authorisation. Depending on the expansion/scope of the business, further licenses or approvals may be necessary following the formation of the specific firm.
Additional Permissions required for Glass Business Registration in Bangladesh:
The following are the additional licenses required to create a glass industry:
I. Trade License;
II. TIN Certificate;
III. VAT Registration Certificate;
Registration of Projects for Industrial Investment;
V. Factory Layout Authorization;
License of the Factory;
Certificate of Import Registration (applicable to Import Businesses for Glass Business Registration in Bangladesh);
IX. Certificate of Export Registration (applicable to Export Businesses for Glass Business Registration in Bangladesh);
X. Environment Clearance Certificate;
XI. Fire License;
Registration of the Trademark
The procedure for acquiring extra licenses is outlined below:
Trade License for Glass Business Registration in Bangladesh:
The most crucial prerequisite for launching a business in Bangladesh is acquiring a trade license. Every business entity is required to get a Trade License from the appropriate local government body. To obtain a Trade License, a complete application must be submitted to the appropriate local governmental entity (i.e., City Corporation/Municipal Corporation/Union Parishad) along with the required documentation.
To track tax payments, the government of Bangladesh issues TIN Certificates to individuals and businesses. The National Board of Revenue (NBR) is the only organization authorized to issue TIN Certificates. To receive the TIN Certificate, one must submit an online application to the NBR.
Every business is needed to have a Taxpayer Identification Number in order to conduct business (BIN). A BIN can be obtained through the National Board of Revenue’s VAT registration process. Every business organization must get a certificate of VAT registration. To obtain the VAT Certificate, the NBR must receive an online application along with the required supporting documentation.
Registration of Project for Industrial Investment:
Local or foreign industrial businesses (for Glass Business Registration in Bangladesh) in Bangladesh must register with the Bangladesh Investment Development Authority (BIDA). To register an Industrial Investment Project with the BIDA, an application and the required documentation must be submitted.
Factory Layout Acceptance:
The Department of Inspection for Factories and Establishments (DIFE) must grant written permission prior to the use, modification, or enlargement of any dwelling, building, or premises as a factory. The DIFE must receive an application accompanied by the required documentation in order to grant approval for the proposed layout.
License of Manufacturer:
Each owner or occupant must submit an application for registration and licensing of factory to the Department of Inspection for Factories and Establishments (DIFE) within thirty (30) days prior to the start of factory operations.
Certificate of Membership
The entrepreneur must become a member of a local Chamber of Commerce and Industry or appropriate Trade Association after establishing the respective business. The membership application form is accessible at the office of the relevant Chamber of Commerce or Trade Association. (Applicable for Glass Business Registration in Bangladesh too)
Certificate of Import Registration and Certificate of Export Registration:
An importer who possesses an Import Registration Certificate (IRC) and an exporter who possesses an Export Registration Certificate (ERC) are able to import and export any permissible goods without any value or quantity restrictions or approval from any authority. The Office of the Chief Controller of Imports and Exports (CCI&E) provides applicants with Import Registration Certificates and Export Registration Certificates. To obtain the IRC or ERC, an online application and supporting documentation must be submitted to CCI&E. (Applicable for Glass Business Registration in Bangladesh too)
Environmental Clearance Document
In Bangladesh, the Environment Clearance Certificate (ECC) is one of the essential permits required to launch an industrial unit or project. To get this Certificate, the owner of the industrial unit or project must submit an application to the Department of Environment along with the required documentation.
Buildings and commercial organizations are required to obtain a fire license out of consideration for the environment and to safeguard the safety of the facility and its employees. It is issued by the Fire Service and Civil Defense (FSCD) body functioning under Bangladesh’s Ministry of Interior. To receive this license, the concerned entrepreneur of the industrial unit or project must submit a request to the FSCD along with the required documentation.
Application for Trademark Registration
After the registration of the entity, it may apply to the Department of Patents, Designs and Trademarks (DPDT), which is administered by the Ministry of Industries, for the registration of its trademarks and/or any other Intellectual Property. The Trademark Registry Wing of the DPDT must receive the required documentation for the registration of a trademark from a candidate.
Legal Issues for Glass Business Registration in Bangladesh:
Foreign Investment Legislation:
The liberalized Industrial Policy and export-oriented, private sector-led economic strategy of Bangladesh offer substantial investment prospects to foreign businesses and individuals considering investing in Bangladesh. Except for a few regulated industries, Bangladesh welcomes private investment in all areas. The glass industry is completely open to foreign investment. The government’s objective is to facilitate the increase of domestic and international private investment by fostering an enabling environment. The policy framework for foreign investment in Bangladesh is based on the Foreign Private Investment (Promotion & Protection) Act of 1980, which provides legal protection against nationalization and expropriation for foreign investment in Bangladesh. This also ensures non-discrimination between foreign and domestic investment and the repatriation of capital gains and income.
The Foreign Exchange Regulations Act of 1947, the Bangladesh Export Processing Zones Authority Act of 1980, the Bangladesh Private Export Processing Zone Act of 1996, the Bangladesh Economic Zone Act of 2010 and the Bangladesh Investment Development Authority Act of 2016 also address foreign investment.
Employment Law in Bangladesh:
The Labour Act of 2006 primarily governs employment law in Bangladesh. In addition to this Statute, the Labour Rules 2015, the National Labour Policy 2012, the Bangladesh Labour Welfare Foundation Act 2006, the Bangladesh Labour Welfare Foundation Rules 2010, the National Occupational Health and Safety Policy 2013, the Domestic Workers Protection and Welfare Policy 2015, and the National Child Labour Elimination Policy 2010 all contain rules and regulations pertaining to this issue. The Labour Act of 2006 addresses employment of labor, employer-employee relations, payment of wages and compensation for injuries to workers, leaves, benefits, formation of trade unions, resolution of industrial disputes, welfare, health, safety, and working conditions in the establishment, amongst other matters. Additionally, maternity benefits are provided to female employees. Note that if the company is established within an EPZ, the Bangladesh EPZ Labour Act 2019 will apply.
The government has declared minimum pay for workers in the glass and silicate industries in compliance with LaborAct 2006 section 140(1). The Ministry of Labor and Employment has published a gazette on this topic on May 25, 2019. No employee shall be paid less than the wages specified in the gazette, which are applicable to the entire Glass and Silicate industrial sector. The probationary period of the employee shall be three months, but it may be extended by an additional three months to establish the quality of the work. A worker on probation shall be paid 6,500 taka per month. The minimum and maximum monthly pay for workers and employees in the glass and silicate industry shall be $8,000 and $16,000, respectively. The Board will determine the wages, taking the cost of living and the factory owners’ ability to pay into account.
Relevant Contract Law for Glass Business Registration in Bangladesh:
The center of the economic world is contractual agreement. It specifies the obligations and responsibilities of the parties on the subject of the contract. A contract binds both parties to its agreed-upon and stipulated conditions, such as the party’s liability in the event of a breach of contract and the extent to which it would reimburse the other party’s damages. It is advisable to take the utmost care while drafting the contract’s terms and conditions so that they accurately reflect the parties’ intentions. The Contract Act of 1872 governs all contracts in Bangladesh.
A force majeure event is an extraordinary occurrence or scenario beyond the parties’ control, such as an act of God, war, or natural disaster. Generally, a successful use of the force majeure clause releases the parties from their respective contractual responsibilities and/or liability. A force majeure clause does not totally excuse a faction’s failure to comply, but merely suspends it for a period of time. Section 56 of the Contract Act of 1872 of Bangladesh outlines the notion of frustration. According to this doctrine, a contract is null and void if its performance becomes impossible due to the occurrence of an event, or if it becomes unlawful after its formation.
Compliances of the business entities for Glass Business Registration in Bangladesh –
The entities must comply with the annual filing requirements, such as updating trade license at the respective city corporation, renewal of chamber membership, renewal of IRC & ERC, filing taxes, updating the annual filings at the RJSC, reporting to Bangladesh Bank, NBR, etc.
Property Law: In order to finalize the registration of the lease or purchase of the land, property laws must also be applied. The Land Reform Act of 2014, the East Bengal Tenancy Rules of 1954, the Survey Act of 1875, the Non-Agricultural Tenancy Act of 1949, the Registration Act of 1908, and the Transfer of Property Act of 1882 are the major statutes in these sectors.
Description of the Tahmidur Rahman Remura and its services:
Tahmidur Rahman Remura Associates (TLS) is a full-service corporate law firm that attempts to provide customers with a wide range of legal services rather than specializing on a single field of law. It is one of the largest and most reputable law companies in Bangladesh, providing domestic and international customers with legal counsel that fulfills their needs and expectations. Tahmidur Rahman Remura provides all services associated with Company Incorporation, Sole Proprietorship, Partnership, and Foreign Company Registration, among others. Tahmidur Rahman Remura law office has legal professionals that can guarantee a smooth legal process and assist in getting Certificates or Licenses required for Company Incorporation, including VAT Certificate, IRC/ERC, Name Clearance, Factory/Fire/Environmental License, TIN, Trade License, and other certificates.
In order to establish a Glass Business in Bangladesh, Tahmidur Rahman Remura can give the following services:
Tahmidur Rahman Remura has an outstanding and capable team that can set up a glass business smoothly and quickly. Tahmidur Rahman Remura’s legal counsel can assist clients through consultations and meetings and offer them with incorporation rules for any sort of business.
In order to incorporate any form of business, a number of deeds, contracts, and other documents must be created. The legal staff at Tahmidur Rahman Remura can assist customers with the preparation and drafting of these documents.
Before establishing a business, it is necessary to find an appropriate piece of land. Tahmidur Rahman Remura can give a service to the client by searching for an ideal location for the client’s business establishment. In addition, Tahmidur Rahman Remura can assist with the drafting of lease agreements, the inspection of land by the appropriate land registry office, and the preparation for the acquisition of land, including registration.
Tahmidur Rahman Remura can also assist with making payments of government fees to the proper authorities, such as BIDA or RJSC, and liaising with them to get incorporation documentation. Tahmidur Rahman Remura, legal professionals have excellent working relationships with government authorities, making it simpler to obtain any certificate or license.
Trademark/Copyright/Patent registration is sometimes required to incorporate a business in order to obtain protection against infringement, to add value to the organization, and to increase legal protection. Tahmidur Rahman Remura helps its customers gain registration for
Trademark/Copyright/Patent from the Department of Patents, Designs, and Trademarks (DPDT), providing the legal protection of the company.
Tahmidur Rahman Remura also offers services for getting or renewing any form of license; in order to operate a glass business, multiple licenses are required. The legal staff at Tahmidur Rahman Remura can help obtain these licenses and, if necessary, renew them on time.
Tahmidur Rahman Remura provides clients with labor-related services, such as preparing employment agreements, resolving labor-related issues, and rendering legal opinions on labour legislation.
Tahmidur Rahman Remura is able to provide guidance and assistance in meeting routine legal requirements in order to facilitate the smooth operation of a firm.
Taxation for Glass Business Registration in Bangladesh
The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Opening a TIN, Monthly Tax deduction statement, Half Yearly Withholding Tax statement, Yearly statement related to tax return submission of its employees, Yearly statement related to salary disbursed from company to its employees, Quarterly Advance tax deposition, Annual Tax return submission, and attending appeal/hearing session on behalf of the company are among the nominal requirements for a limited company formed locally. Tahmidur Rahman Remura may provide guidance and assistance to ensure that all regulatory compliances are met, allowing the business to operate without difficulty.
Increasing socioeconomic development and fast urbanization have led to a substantial increase in the production and importing of glass items. The glass industry has contributed to economic expansion thus far. Bangladesh could be a great site for establishing a glass industry due to the availability of raw materials and inexpensive labor. The glass industry could be a significant source of foreign exchange earnings, so contributing to the economic progress of a nation. However, there is no formal government policy directive for this significant sector. The glass manufacturing industry can prosper on the worldwide market with policy assistance and by prohibiting importation of glass from other nations.
Glass is an inorganic solid material that is durable, brittle, typically transparent or translucent, and used in a wide range of everyday applications. The primary raw ingredients for glass production are available in Bangladesh, hence only a limited amount of raw materials must be imported. Exporting high-quality glassware to Asia, Africa, and the Middle East generates a substantial quantity of foreign currency. As individuals’ lifestyles evolve, the need for glassware continually rises. New buildings, hotels, and restaurants are being developed that are predominantly composed of glass, which is increasing the need for the glass industry in the country day by day.
To do glass-related business in Bangladesh, it is necessary to obtain license from the relevant authorities or department. A glass business could be incorporated or operated as a partnership. To incorporate a business, licenses such as fire, environment, factory, IRC/ERC, and trademark must also be secured.
In Bangladesh, the growth of the glass industry can have a significant impact on the country’s economy as a whole. In order to build glass businesses and industries and Glass Business Registration in Bangladesh, the legal team at Tahmidur Rahman Remura may provide numerous incorporation-related services. Tahmidur Rahman Remura offers an exceptional and knowledgeable workforce that can easily establish businesses in this field.
Are you planning to do Glass Business Registration in Bangladesh?
Glass Business Registration in Bangladesh at Tahmidur Rahman Remura: TLS: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TLS, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and incorporating a Glass Business Registration in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: [email protected]
Phone: +8801847220062 or +8801779127165
Address: House 410, Road 29, Mohakhali DOHS