Bangladesh is an attractive destination for foreign companies looking to expand their operations and enter new markets. However, registering a joint venture in Bangladesh can be a complex and time-consuming process, with many legal requirements and regulatory hurdles to navigate.
To open a joint venture in Bangladesh, foreign companies must meet specific requirements and provide various documents to the relevant authorities. Here are the key requirements and documents that foreign companies need to register a joint venture in Bangladesh:
Memorandum of Understanding (MoU) or Joint Venture Agreement (JVA): Foreign companies and local partners must sign an MoU or JVA that outlines the terms and conditions of the joint venture, including the percentage of ownership, management structure, investment obligations, profit-sharing arrangements, and dispute resolution mechanisms.
Incorporation Certificate: Foreign companies must provide a copy of their incorporation certificate or equivalent document from their country of origin.
Board Resolution: Foreign companies must provide a board resolution that authorizes the establishment of a joint venture in Bangladesh.
Local Partner: Foreign companies must have a local partner in Bangladesh who will hold at least 30% of the shares of the joint venture. The local partner can be an individual or a company registered in Bangladesh.
Office Space: The joint venture must have a physical office space in Bangladesh to operate.
Permission from Bangladesh Investment Development Authority (BIDA): The joint venture must obtain permission from the Bangladesh Investment Development Authority (BIDA) to operate in Bangladesh.
Tax Identification Number (TIN): The joint venture must obtain a Tax Identification Number (TIN) from the National Board of Revenue (NBR).
Registration Fee: The joint venture must pay the registration fee to the Registrar of Joint Stock Companies and Firms (RJSC), based on the authorized capital of the joint venture.
Foreign companies should seek professional advice to ensure they have fulfilled all necessary requirements, obtain the necessary approvals and clearances, and ensure compliance with local laws and regulations before proceeding with the registration process.
Navigating the complexities of registering a joint venture in Bangladesh can be challenging, but with the right guidance and support, foreign companies can successfully establish a joint venture and expand their business in Bangladesh.