Legal Services | Regulatory Compliance in Bangladesh

To operate any business in Bangladesh, establishing a legal entity is essential—be it a sole proprietorship, partnership, branch office, or limited liability company. Once established, these entities must adhere to various laws and regulations set by regulatory authorities, which govern their operations.

Regulatory Authorities and Compliance Requirements

Regulatory compliance is dictated by the authority that grants incorporation or permission. For example:

• Registrar of Joint Stock Companies and Firms (RJSC) oversees limited liability companies and partnership firms.
• Bangladesh Investment Development Authority (BIDA) governs branch offices.

General Regulatory Compliance for Limited Liability Companies:

1. Board Meetings: Conduct at least four board of directors meetings annually.
2. Annual Audit: Obtain an annual audit report from a registered audit firm.
3. General Meetings: Hold annual general meetings of shareholders and submit relevant documents to RJSC.
4. Register Maintenance: Maintain a share register and a director register.
5. Trade License Renewal: Renew the trade license annually through the respective city corporation or local government office.

General Regulatory Compliance for Branch Offices:

1. Renewal Application: Apply to BIDA for renewal of branch office permission at least two months before the current permission expires.
2. Bank Notification: Notify the Central Bank (Bangladesh Bank) through the authorized dealer bank after obtaining initial or renewed permission from BIDA.

In addition to these requirements, businesses must comply with the regulations set forth by the National Board of Revenue (NBR) regarding taxation.

Taxation Regulatory Compliance Includes:

• Tax Returns: Submit annual and quarterly tax returns.
• VAT Filings: File monthly, quarterly, half-yearly, and annual Value Added Tax (VAT) returns.

Importance of Understanding Regulatory Compliance

While many investors—both local and foreign—have a general awareness of regulatory compliance requirements, they often lack detailed knowledge of the specific rules, procedures, and documentation necessary for compliance. This lack of understanding can lead to non-compliance and potential penalties.

To mitigate these risks, many establishments engage law or consultancy firms to handle regulatory compliance. This strategic approach helps prevent defaults and associated penalties from regulatory authorities.

Benefits of Compliance

Understanding and adhering to regulatory requirements enables business owners, investors, and potential investors to make informed decisions, reducing the risk of future legal complications. Multinational companies, in particular, prioritize full compliance to operate smoothly and avoid penalties that could harm their business and reputation.

At Helpink, we specialize in guiding businesses through the complexities of regulatory compliance in Bangladesh. Our expert team is committed to helping you navigate the legal landscape, ensuring that you meet all necessary requirements efficiently and effectively. Contact us today to learn more about how we can assist you in achieving seamless compliance for your business!