For the development of an appropriate Memorandum of Understanding and AOA in accordance with the laws of Bangladesh and in accordance with the joint venture agreement previously concluded in Bangladesh, it would be preferable if you could hire a lawyer or law firm in Bangladesh to assist you. These documents must comply with the law while fully reflecting the intentions of the parties, so hiring a law firm in Bangladesh could be a viable option. When registering a joint venture in Bangladesh, the first step is to submit your company`s Memorandum of Association and Articles of Association to the RJSC. In addition, prepare the scanned pages of the subscriber data and the signed Form IX, as you will also need to submit them. Our service area: Registration of a joint venture in Bangladesh (merger, acquisition, subsidiary); The third and most important step in registering a joint venture is to prepare a joint venture agreement and submit it to the RJSC. This is a guide that shows the step-by-step procedure for setting up a joint venture in Bangladesh and was created by the lawyers of the leading law firm in Dhaka, Bangladesh. In the recent past, Bangladesh has been a nerve center for foreign investors due to the rapid growth of the country`s economy and low labor prices, which is why it has become more important to understand the process of setting up a joint venture in Bangladesh or the process of setting up a joint venture in Bangladesh. Many foreign investors are joining forces with local partners to set up a joint venture in Bangladesh and set up a limited liability company. This helps them use local resources more efficiently, as their local partners are more familiar with the business attitude of the local market. With regard to the assumption of responsibilities, each partner of the joint venture is jointly and severally liable for the performance of the contract, all responsibilities, ethical and legal obligations are borne in accordance with the terms of the contract (sub-clause 18.7). This criterion is also discussed above in Rule 54(4) of the 2008 Government Procurement Rules. However, with regard to liabilities, each partner of the JVCA is jointly and severally liable for all ethical or legal liabilities and obligations arising from the contract (sub-rule 4); and a representative is appointed who is authorized to conduct all matters involving the receipt of payments for and on behalf of all JVCA partners (Sub-Regulation 5).

Joint venture proposals and 100% foreign investment in the private sector: Foreign investors can set up wholly-owned companies or in cooperation with a local partner. Before submitting the documents to the RJSC, the joint venture is required to open a temporary bank account with one of the authorized banks of Bangladesh on its behalf by submitting the signed draft articles of association and articles of association, the certificate of discharge, the completed bank form and other required documents. Once the temporary bank account is opened, the foreign investor is required to transfer the amount of share capital from his foreign bank account to this temporary bank account. Once the amount of the share capital has been received by the bank, the bank issues a cancellation certificate stating that this share capital is transferred by the foreign investor. He is then required to submit the redemption certificate to the RJSC along with the draft articles of association and articles of association, the release of the name, the signed forms and the personal information of the shareholders and directors. In Bangladesh, there are classifications of companies where a joint venture with a local company is mandatory or highly recommended. Here are 17 controlled sectors that require prior government approval: Any entrepreneur, whether local or foreign, can start an industry with a public sector company. Such a joint venture must be registered with the BOI if the private sector contribution exceeds 50% of the project costs and, in this case, is treated as a private sector project. Indeed, any public sector that makes a contribution from its own fund requires the approval of the responsible ministry.

If the company`s contribution is 50% or more, it will be treated as a public sector project. The public sector project is currently under review by the relevant ministry for approval by the Planning Commission. The Government of Bangladesh encourages foreign investment both in the form of 100 per cent foreign participation and in the form of joint ventures. Joint ventures could be formed in any combination of holdings (from 1% to 100%). A joint venture in Bangladesh is treated as a separate legal entity and the process of forming a joint venture in Bangladesh is similar to that of other countries. First of all, before going any further to understand how to start a joint venture in Bangladesh, it is important to gain prior knowledge of corporate law with regard to starting a business in Bangladesh. Anyone over the age of 18 and/or a company (foreign or local) can register a business in Bangladesh. The shareholders are not responsible for the debts of the company that exceed the amount of the share capital contributed by them. .