Get Skilled Assistance When Doing Business In Bangladesh
NetworkBD gives a review of key recent developments influencing doing business in Bangladesh, as well as an introduction to the legal system; foreign investment, including limits, currency rules, and incentives; and business vehicles, including restrictions and liabilities.
We also include brief overviews of competition law, data protection, and product liability and safety, as well as summarizing the laws governing employment relationships, including redundancies and mass layoffs. There are also summaries on taxation and tax residence, as well as intellectual property rights such as patents, trademarks, and registered and unregistered designs.
Doing Business In Bangladesh Without Hassle With NetworkBD
For UK companies, doing business in Bangladesh opens up a world of possibilities. Bangladesh, on the other hand, is a vast and complicated market. It should not be viewed as a single market, but rather as a network of interconnected regional markets with varying legal and investment climates.
We’re here to assist you, and UK businesses, large and small, may flourish in India by seeking assistance from the proper professionals on how to conduct business in Bangladesh.
We’ve gathered tips from a variety of Bangladeshi market entry experts for our guide on doing business in India. Understanding the market, business culture, market entry structures, creating your team, finding customers, managing money, legal concerns & incentives, and support networks are all important factors to consider. Our guide to conducting business in Bangladesh will assist you in gaining a better understanding of how to flourish in the Bangladesh market.
Foreign Investments In Bangladesh For Doing Business
A number of sectors are prohibited for private investment, including:
- Ammunition and arms.
- Equipment for defense.
- Plantations of trees.
- Extraction of protected forests.
- Atomic energy.
- Printing currencies.
Foreign investment is generally not restricted except in sectors governed by administrative licensing processes.
3 Recent Reforms Of Doing Business In Bangladesh
1. With the elimination of the certifying price for digital certificates and the lowering of registration and name clearing fees, starting a new firm has become less expensive.
2. The city of Dhaka invested in technology and human capital, making establishing an electricity connection more straightforward. At the same time, the amount of the security deposit required for a new connection was reduced.
3. The credit information bureau’s extended coverage improves access to credit information. Bangladesh’s greatest significant improvement came as a result of this reform.
Bangladesh Is The Successful Business Hub For Doing Business
Bangladesh is a potential market in and of itself (as well as a potential gateway to the much bigger South Asian market). Bangladesh also has a lot of potential as a labor-intensive manufacturing base. When asked to name the most appealing features of Bangladesh, both the corporate and public sectors cite low-cost labor as the most important consideration. Bangladesh, in addition to its enormous population and low-cost labor, has significant natural resource reserves, particularly natural gas.
Bangladesh is a democratic country that is moderate, secular, and liberal, with enormous potential. It has a global reputation for poverty alleviation, primary school enrollment, women’s empowerment, family planning, newborn, under-five, and maternal mortality rate reductions, as well as the reduction of infectious diseases and child immunization rates.
Legal Formation and Business Registration Process
Incorporate a private limited company with a minimum of two promoters. Follow these steps:
- The promoters propose a unique name in a resolution.
- Once the Registrar of Joint Stock Companies (RJSC) has approved the name, the foreign capital contribution must be remitted to obtain an encashment certificate from a local bank.
There must be at least seven shareholders and three directors if the number of shareholders exceeds 50. The company must be incorporated or converted into a public limited company if its paid-up capital reaches BDT400 million. Companies with a paid-up capital of BDT500 million must be listed on the local stock exchange. Foreign investors and joint ventures are exempted from these compulsory conversions, however.
A company can be registered in three weeks and branch or liaison office in one month.
In addition, the following licenses are required:
- License to trade.
- The tax identification number.
- Registration for VAT.
- Factory and establishment registration with CIFE.
- For industries, IRCs and ERCs are required.
- Registration of factories (applicable to industries).
- An industry license is required to operate a fire.
- Industry registrations for electricity and the environment.
Our Top 3 Tips For Starting Business In Bangladesh
1. You must consider local laws, government incentives, local infrastructure, and workforce while deciding on a location. Finding the perfect partner for your product or service is often also critical.
2. You must choose the most appropriate entrance approach, the optimal structures, and how to reduce risks while maximizing long-term viability.
3. It doesn’t matter how big or little a company is: in Bangladesh, businesses of all sizes and sectors have found success.
Liability of Directors and Officers
In the event of a breach of fiduciary duty, a director is liable for both civil and criminal penalties. A director is also liable for monetary penalties and/or imprisonment for breaches of statutory provisions if it can be proven that either:
- It was committed without his knowledge.
- To prevent the breach, he had exercised all due diligence.
Directors of bankrupt companies are punishable with up to two years’ imprisonment and fine if, within 48 months immediately before the filing of bankruptcy, they incur any debt they cannot reasonably expect to repay.
Know About Bangladesh's Contracts, Laws, & Permits
The Labour Act of 2006 governs the employment of “workers”. It excludes from its scope persons employed mainly in a managerial or administrative capacity. Nevertheless, case law has held that employees who have no hiring or firing power must be considered workers.
Employers typically execute written contracts with their employees which include 6 ways:
- Time spent at work.
- The designation.
- Work environment.
- Vacations and leave.
- Procedure for terminating an employee.
Any employee who is a member of a trade organization in the specific company or industry is covered by the collective bargaining agreement.
How NetworkBD Help?
NetworkBD is the world’s leading authority in cross-border company formation, offering services to help people form businesses all across the world. Our complete services are provided by seasoned teams of local experts that have deep knowledge of more than 80 jurisdictions across the world.