What is a Joint Venture Company in Bangladesh

A joint venture company in Bangladesh is treated as separate legal entity and the
formation procedure of a joint venture company in Bangladesh is similar to other
countries. Firstly, before proceeding on to understand how to form a joint venture
company in Bangladesh, it is important to grasp preliminary knowledge about
company laws in regards to formation of a company in Bangladesh. Any two
persons, above the age of 18, and/or entities (foreign or local) can register a
company in Bangladesh. Shareholders are not liable for the company’s debts
beyond the amount of share capital they have contributed. The entity is free to
carry out its activities within the law and provide dividends to its shareholders.
The joint venture company in Bangladesh has to comply with all required Tax
and VAT implications and shall have to pay taxes on profits.

It usually takes three to four weeks to register a company from the date of
submitting all the documents to Company House. The government fees to
incorporate a company depend on the amount of Authorized Capital. If the
company is looking to hire any foreign national, the company needs to show a
minimum investment of USD 50,000. Furthermore, if foreign nationals are hired,
the Company needs to ensure that the ratio between foreign and local employees
is 1:5, however, the Company can apply for waiver of such condition, if required,
with proper justification. A Company is most preferable form of establishment
for investor who wished to provide services in Bangladesh for a long time basis.
On the other hand, winding up a Company is more complex and time consuming
matter comparing to a liaison/branch office. Usually it shall take 6-8 months to
wind up a Company. The laws of Bangladesh guarantee non-discriminatory
treatment between foreign and local investment, and repatriation of proceeds
from sales of shares and profit.