Preparing of Joint Venture in Bangladesh

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Are you and your partner interested in collaborating on a project but unsure how to get started? Network BD has you covered, and we’re here to assist you. There are a variety of reasons why two or more people would pool their resources to form a joint venture agreement, and the outcomes are almost always beneficial to the entrepreneurs involved. More resources, a larger production capacity, increased technical expertise, and more distribution channels are all advantages if the two or more parties work well together.


Such ventures open the door to a plethora of profitable and lucrative opportunities. Learn how to draft a Joint Venture Agreement and begin working together on a mutually beneficial venture!

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Key Elements of a Joint Venture Agreement

The most important aspect of a joint venture agreement is determining whether or not the chosen partner is a good fit for your firm. Examine whether the partnership is genuinely beneficial to your market position. After settling on the best collaboration, develop a joint venture agreement with particular terms to bring the relationship ahead.


We’ve put together a checklist of the 10 most important aspects of a joint venture agreement below:


  1. Address for a business
  2. Types of joint ventures
  3. The agreement’s purpose
  4. Members’ names and addresses
  5. responsibilities and responsibilities
  6. Requirements for voting and official meetings
  7. Percentage ownership is assigned.
  8. Allocation of profit or loss
  9. Terms of dissolution
  10. Non-competition and non-disclosure agreements

Streamline Joint Venture Company Registration With Us

In Bangladesh, the procedure for forming a joint venture company is called incorporation. Foreign investors may not conduct business in the form of a Branch office in sectors where foreign investors’ equity participation is restricted, as in those cases, the Joint Venture partners (local and foreign investors) open a Joint Venture Company and run the business according to the object clauses of the Memorandum of Association while maintaining the government’s equity participation ratio.


In Bangladesh, 100% foreign investment is permitted unless the sector falls under the scope of reserved sectors, which include arms and ammunition, forest plantations, nuclear energy production, and security printing. Another point to consider is that, under Bangladeshi law, foreign shareholders cannot own more than 40% of a company that intends to provide freight forwarding services. Only a  Logistics Company with a minimum of 40% foreign shareholding and 60% local shareholding can obtain a freight forwarding license. In Bangladesh, one or more foreign investors can form a joint venture company with one or more Bangladeshi investors.

NetworkBD Make Joint Venture Company Formation Easy

In Bangladesh, the procedures for forming a Joint Venture (JV) are similar to those for forming a general Private Limited Company.


Incorporation of a Joint Venture in Bangladesh (Outline):


The Companies Act of 1994 deals with the statutory requirements of company incorporation rather than providing a step-by-step procedure for forming a company. The RJSC, the appropriate body, deals with it, and on its official website, it provides a detailed guideline on how to set up a company, from name clearance to incorporation.


Recognize and Address the Threats for You:


Every business venture entails some level of risk. Fortunately, you can take steps to mitigate these risks before committing to one. Misalignment of communications, work culture, and core values or objectives is one of the most common. Mutual understanding is critical in any relationship, and it would benefit the venture as a whole if the minds behind it were on the same page.


Though this is a preferred state, it is up to you to decide who or what company you want to work with, and we recommend that you try to find enough common ground to suggest a future successful partnership. . Furthermore, you must ensure that both parties have invested appropriately in terms of money, leadership, and expertise. You should also consider whether your company is ready for such an endeavor. Network BD provides a range of business services, including advisory services to assist you in making informed decisions. We have teams of seasoned professionals who can assist you in determining the best course of action.

Our Assistances in Creating a Contract for a Joint Venture:


You’ll need to make a formal agreement once you’ve determined that both you and the other party are ready to collaborate. A written and signed document outlining the various aspects of your business relationship. Thankfully, Network B D also provides legal services such as contract drafting, licensing, and more. We recognize that drafting a contractual agreement can be a lengthy and time-consuming process, and we are here to help.


The following the 8 key points covered in the contract to help you understand:

  • 1. A list of all parties involved, along with their agreed-upon responsibilities. This emphasizes the people or entities to whom the contract applies while also listing the roles and responsibilities of both parties.
  • 2. Definitions for a few key terms: Many terms, such as intellectual property, debt, liabilities, and internal contributions, are best explained in the most straightforward way possible.
  • 3. The joint venture’s objectives help all parties involved understand what is expected of them.
  • 4. The Organizational Structure Explaining how management works and what actions would be taken in various situations. It also clarifies the significance of power.
  • 5. Delegation. Describe how each party will contribute to the venture.
  • 6. How profits, losses, and liabilities are shared are discussed. This will make it clear how resources are shared and help to avoid future conflicts.
  • 7. Dispute resolutions are number seven. Conflicts can arise, and a good contract will include options for resolving them, such as mediation, negotiation, binding or nonbinding arbitration, and litigation.
  • 8. The procedure for ending the project. There will be an end, just as there will be a beginning. This can happen for a variety of reasons, and the procedures outlined here can help.

Begin right now!


Managing a business can be a difficult task, and forming an alliance can make it even more difficult. A joint venture, if done correctly, can yield huge profits; Network BD can help you through the process with a variety of services ranging from contract drafting to accounting. Get in touch with us right away if you need help drafting a joint venture agreement!

FAQs For Preparing of Joint Venture Agreement in Bangladesh

What is the purpose of a joint venture agreement?

The purpose of a joint venture agreement is to identify the terms of the agreement between the members. A joint venture agreement should outline a joint venture project or object, each member’s contribution (financial and operational) and obligations, duration of the joint venture, management of the joint venture and distribution of any revenue or expenditure. Joint venture.

Who can enter a joint venture agreement?

A joint venture agreement can be made between individuals, partnerships, limited liability partnerships (LLPs) and limited companies. The contract can also be very flexible because it can be done between a company and an individual or two individuals or two partnership organizations.

Do you need to register a joint venture?

You do not have to register a joint venture but if you set up an individual legal entity, such as a company, you must comply with the relevant rules of company setup and any NetworkBD registration requirements.

Can you enter a joint venture agreement with more than two parties?

Any form of joint venture (contractual or separate legal entity) can be between any number of parties, but having more than two parties in a joint venture agreement increases the risk of dispute and therefore it is better to seek expert legal advice and draw a detailed agreement.

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