Over the years, a significant and sustained expansion in import and export has allowed the logistics and freight industries to thrive by providing services via maritime transportation. Logistics businesses today provide freight transportation services by sea, road, and air, with shipping freight accounting for 80 percent of the country’s import and export. Because BSC (Bangladesh Shipping Corporation) is the country’s only state-owned shipping company, it had to cease its liner services till recently owing to market changes and poor profitability. As a result, more private shipping businesses were able to quickly fill this market gap.

Foreign shipping companies, on the other hand, are seizing this expanding demand for shipping services, effectively creating a monopoly market. The maritime industry, on the other hand, is still a developing business with plenty of room for advancement. Bangladesh is also developing a plan for a deep sea port, which will provide entrepreneurs with new commercial prospects.

The shipping business is estimated to have grown fivefold between 2005 and 2017, with profit margins for both international and domestic enterprises increasing dramatically. Bangladesh continues to work toward “Vision 2021” – imports and exports will continue to rise in the coming years, and the country is content to rely on mostly shipping freight services – the shipping sector appears to have no substitutes for many years to come, as evidenced by an increase in service buyers. The expansion of both the public and private sectors has resulted in an increase in the demand for maritime transportation services.

Dreaming of working in the shipping sector and actually doing so are two different things. The combination of different licenses and the registration procedure for a shipping company makes the overall process complex and time-consuming. The entrepreneur must first validate his or her choice of entity during the registration process. After deciding on a legal entity, such as a private limited company or a public company, a sole proprietorship, or a partnership, the registration process can begin.

Following the selection of an entity, a range of licenses must be secured, depending on the sort of services that the business wishes to provide to its clients. The following list of licenses is not exhaustive and varies depending on the service supplied.

1. Obtain a certificate of registration from the Director General of Shipping for a Bangladesh ship (under Ministry of Shipping)

2. Obtain a license from the Ministry of Shipping to take ships to sea.

3. Obtain a Certificate of Competency from the Director General of Shipping for various levels of ship service (under Ministry of Shipping)

4. Obtain port approval from the applicable Bangladeshi ports’ customs collectors.

5. Obtain a Certificate of Passenger Ship Safety from the Director General of Shipping (under Ministry of Shipping)

6. Obtain a Certificate of Cargo Ship Safety Equipment from the Ministry of Shipping.

7. Obtain certificates from the Ministry of Shipping for load lines.

8. Obtain fishing vessel registration from the Ministry of Shipping.

9. Obtain sailing vessel registration from the Ministry of Shipping.

10. Obtain an inland ship registration from the Ministry of Shipping.

11. Obtain an inland ship competency certificate from the Ministry of Shipping.

12. Obtain a Certificate of TIN (Tax Identification Number) from the National Board of Revenue (NBR)

13. Obtain a City Corporation Trade License

14. Obtain a Certificate of Vat Registration from the National Bureau of Revenue (NBR).

The owner of a Bangladesh ship also has a legal obligation to refrain from converting, modifying, or altering the ship’s character or identity after registration compliance has been completed, and the owner’s careless attempt to do so without prior permission in writing from the Director-General of Shipping may result in imprisonment for a term of up to three years, a fine of up to taka ten lakh, or both.

The owner of a Bangladeshi ship must guarantee that he does not change the name under which the ship was registered under The Bangladesh Merchant Shipping Ordinance Act 1983 unless the name change is done in the way specified in section 48 of The Bangladesh Merchant Shipping Ordinance Act 1983. If the owner changes the name of the ship without following the prescribed procedure, he will be fined up to 50,000 Taka and the ship will be detained.

The Bangladeshi shipowner must remember not to fly any colors on their ships other than the right national or distinctive colors that have been allowed by the government, as per Section 52 of the Bangladesh Merchant Shipping Ordinance Act 1983, by notification in the official Gazette. The owner will risk legal ramifications if he or she hoists any other colors than those permitted by the authorities.

1. Through their persistent effort and dedication in meeting their professional commitments, NetworkBD has earned the title of top law firm in Bangladesh. Our clients never come to us with empty hands when they need legal help. Their worries are entrusted to the best lawyers and barristers, who treat each case with the utmost seriousness and dedication.

2. NetworkBD may also assist with the full process of company incorporation, from the preparation of the AOA and MOA, as well as all other essential papers, to getting name clearance and submitting all paperwork to RJSC. The NetworkBD assists businesses with the renewal of trade licenses as well as the Name Clearence.

3. Our immigration law team can assist the Company in obtaining the E-visa (employment visa) recommendation letter and work permit on behalf of the foreign employee, as well as obtaining the extension of the work permit and the E visa for the foreign employee. The service will entail drafting all necessary applications and documents, as well as collecting relevant documents from the foreign employee and the Company, and submitting them to the appropriate government authorities, as well as liaising with them to obtain the necessary work permit and visa extension.

4. Our legal team has gained proficiency in drafting and reviewing employment agreements/appointment letters for such entities as a result of their years of experience in employment law, and they are also well-equipped to represent both employers and employees in the Labour Courts in the event of any industrial dispute.

5. Service agreements between shipping corporations acting as service providers and suppliers requiring transportation and logistics services are frequently discovered to be irregular. NetworkBD advises clients in examining and drafting service agreements that are executed between clients in accordance with Bangladeshi legislation in order to avoid future disputes.

The Bottom Line

The marine industry is a thriving industry with a lot of promise. Bangladesh’s government, on its own initiative and after assessing the sector’s viability, authorized international investors to invest in it, which was closely linked to the country’s GDP. The marine industry has aided Bangladesh’s economic and social growth by facilitating national and international trade through the export and import of goods and passenger transportation by sea. Enterprises must comply with legal and regulatory standards under the Inland Shipping Ordinance 1976 and the Bangladesh Merchant Shipping Ordinance to be able to compete in this industry without hindrances.