Jute, sometimes known as the Golden Fibre, was one of Bangladesh’s most important cash crops. The manufacturing of jute and related commodities was the single greatest industry in this region during British control and then throughout Pakistan’s rule. For more than a decade after Bangladesh became an independent country, jute was the main source of foreign exchange profits. Jute demand has been lowered due to the extensive usage of substitute materials such as plastic and hemp. It is still one of the country’s most important export commodities.

Bangladesh is one of the world’s leading jute producers. Bangladesh has been a prominent player in the worldwide jute trade for centuries. Bangladeshi jute is renowned as the “golden fiber.” It is the world’s largest exporter of raw jute and jute products. Bangladeshi jute dominates the global market, particularly in the Middle East, Europe, Australia, the United States, and Africa. Start jute Business in Bangladesh and success your business.

1. SOLE PROPERTY RIGHTS

Because a sole proprietorship in Bangladesh does not form a separate legal entity, it is not distinguished from the owner/proprietor. If any responsibility arises during the course of business, the business owner will be personally liable for all obligations. A sole proprietorship is open to any Bangladeshi citizen who is at least 18 years old.

Procedure for Registration

The following steps must be taken in order to start a sole proprietorship firm in Bangladesh:

Step 1: Proposed Bangla business name

Step 2: Obtaining a Business License

2. PARTNERSHIP BUSINESS

Procedure for Registration

A partnership must be registered with Bangladesh’s Registrar of Joint Stock Companies and Firms (“RJSC”).

STEP 1: SELECTING A PARTNERSHIP NAME

The Registrar of Joint Stock Companies and Firms must issue a Name Clearance for the proposed name of the Partnership Business (RJSC).

STEP 2: PREPARATION OF A PARTNERSHIP AGREEMENT

The Partnership Deed shall be drafted on a stamp paper in compliance with the Stamp Act, signed by all partners, and notarized after that.

3. PRIVATE LIMITED COMPANY

The setup procedure for a business:

The steps for forming a business are as follows:

Step 1: Obtain the RJSC’s Name Clearance Certificate.

Step 2: Create and sign the necessary documents.

Step 3: Open a bank account for the Bangladeshi company and transfer the foreign shareholders’ share capital to the local firm’s bank account (not required for local shareholders).

Step 4: Get an encashment certificate from the bank for the foreign shareholders’ contributions to the company’s capital (not required for local shareholders).

Step 5: Submit the needed documentation, as well as the government fees and the encashment certificate (if applicable).

Step 6: The RJSC will evaluate the paperwork and issue the Certificate of Incorporation to the company.

The Ministry of Textiles and Jute issues a Jute Goods Export License (Department of Jute). The steps are as follows:

Step 1: Obtain the prescribed application form from the Department of Jute’s district office or headquarters

Step 2: Make a Treasury Challan payment and collect it

Step 3: Submit the completed application form, along with all supporting documents and a Treasury Challan, to the Directorate General of the Department of Jute at the Head Office

Step 4: The Department of Jute verifies and approves the application; Step 5: The Department of Jute issues a license to the applicant.

The Department of Inspection for Factories and Establishments (DIFE) is the only institution in Bangladesh that may grant factory approval and issue a certificate of registration. The Department (DIFE) is part of Bangladesh’s Ministry of Labour and Employment.

The online factory license application method must be followed to receive a license for a jute mill. The online license application portal for the Department of Inspection for Factories and Establishments (DIFE) is available. It is required to apply for Factory Layout Plan approval before applying for the license at the same portal.

NetworkBD, as a full-service law firm, offers all types of legal and financial services with its experienced and skilled professional teams. NetworkBD provides services for establishing entities in Bangladesh, such as a single proprietorship, partnership firm, and limited liability company, as well as getting the necessary permits from the applicable government authorities. The services include drafting relevant documents, forms, and providing the required document list and procedure, as well as filing the application with the relevant documents with the appropriate government office, liaising with them throughout the verification process, and obtaining the required certified documents.

1. NetworkBD  provides legal advice to clients on the implications of laws and their impact on various matters, allowing them to make informed business decisions while keeping the legal component in mind.

2. Additionally, NetworkBD delivers a due diligence report to interested clients for their entities that highlights all legal criteria that must be fulfilled as well as any non-compliances that must be addressed.

3. NetworkBD has a strong litigation team that assists and represents clients in all sorts of litigation by defending/filing disputes in court or tribunals.

Bangladesh’s government has been working tirelessly to restore the country’s former glory and position Bangladesh as a global leader in jute, an environmentally benign material. It is predicted that providing sufficient guidance to local investors and implementing appropriate marketing tactics will boost jute consumption in the local economy.