setting up a joint venture in Bangladesh
Why set up a joint venture?
Foreign ownership limitations
- Fishing in the deep sea
- Bank/financial institution in the private sector
- An insurance company in the private sector
- Generation, supply, and distribution of power in the private sector
- Exploration, extraction, and supply of other mineral resources
- Large-scale infrastructure project (e.g. a flyover, elevated expressway, monorail, economic zone, inland container depot/container freight station)
- Crude oil refinery (recycling/refining of lube oil used as fuel)
- Medium and large industry using natural gas/condescend and other minerals as raw material
- Telecommunication service (mobile/cellular and land phone)
- Satellite channel
- Exploration, extraction, and supply of coal
- Cargo/passenger aviation
- Sea-bound ship transport
- Sea-port/deep sea-port
- VOIP/IP telephone
- Industries using heavy minerals accumulated from sea beach
- Exploration, extraction, and supply of natural gas/oil
industries in which the government recommends to form a joint venture
- Crude oil refinery (recycling/refining of lube oil used as fuel)
- Generation, supply, and distribution of power in the private sector
- Medium and large industry using minerals as raw materials
Prohibited sectors in Bangladesh
- Military equipment and machinery
- Nuclear power
- Security printing/minting
- Forestation and mechanized extraction within the boundary of a reserved forest
Setting up a Joint Venture in Bangladesh
Incorporation of a legal entity
company registration process in Bangladesh
Minimum capital requirement
How to register a joint venture in Bangladesh
an essential document in which you need to set the conditions and rights for both parties
Post-registration tasks
- Collect Trade License
- Obtain Taxpayer’s Identification Number (TIN) Certificate
- Regularize Bank Account for the newly registered Joint Venture Company
- Obtain VAT Certificate
- Import Registration Certificate (In case of Import Business)
- Export Registration Certificate (In case of Export Business)
How to protect yourself when entering into a joint venture?
Conduct thorough due diligence
- Determine the business classification of the company
- Determine whether the company has acquired all the relevant licenses
- See if the company has reported tax and investment correctly
- Determine the number of employees
- Determine the registered address
Proper Cooperation Agreement
- Purpose and structure
- Equity, capital, and future financing
- Warranties and exit provisions
- Etc.
If you need help on setting up a Joint Venture in Bangladesh, fill up the form below to discuss how we can help you do business in Bangladesh.