Doing business in bangladesh
Bangladesh is a booming economy. Lawyers in Bangladesh and Advocates in Bangladesh often work as retainers of the companies who wish to set up a business in Bangladesh. Some of the foreign investors are interested in opening new company registered in Bangladesh and some of the investors are not interested in opening companies in Bangladesh and wish to open Representative office in Bangladesh. Representative offices do not generate any profit on it’s own and are dependent on the parent company for all it’s expenses. The Foreign Exchange and Regulation Act 1974 (FERA) and ForEx guidelines issued by Bangladesh Bank makes it obligatory for representative offices to obtain permission to deal in forex in Bangladesh. This permission is popularly known as 18A/18B permission.
Any foreign investor should first submit their investment proposal in Board of Investment (BoI) and register with BoI. BoI approval is mandatory for obtaining work visa for foreign investors and foreign executives in those businesses. The Registrar of Joint Stock and Companies (RJSC) registers companies in Bangladesh. Once any company is registered with them it can commence operation. For tax purposes Tax Identification Number and VAT registration number is also necessary. For the businesses who wish to import or export they will also require an Import or Export license issued by Ministry of Commerce.
Any company operating in Bangladesh shall comply with Bangladesh Labour Act 2006 while formulating HR policies and regulation. In the present circumstances we feel that setting up a business in Bangladesh is a fair process and not so cumbersome.