Our liason office & representative in the world (S & F CONSULTING FIRM LIMITED)

S & F CONSULTING FIRM LIMITED

www.sfconsultingbd.com

info@sfconsultingbd.com

Dhaka, Bangladesh

An international business service company in Bangladesh

German Arifur Rahman Email: german.office@sfconsultingbd.com MSC in business administration, University of Duisburg-Essen, Mönchengladbach, Germany Australia Mahbub Siraz Tuhin Email: australia.office@sfconsultingbd.com Post Graduate, Australian Human Resource Institution Adelaide, South Australia UK Rezaul Islam Sakib Email: uk.office@sfconsultingbd.com PhD, University of Nottingham, UK Flat C102 ,Newark Hall Jubilee Campus , The University of Nottingham , UK. NG8 1BB.

Sweden Md. Nur Hossain Email: sweden.office@sfconsultingbd.com MSc International Marketing & Brand Management Lund University MBA in SMIO, Linkoping, Sweden Malaysia Sujat Sikder Email: malaysia.office@sfconsultingbd.com Kualalampur, Malaysia Canada Mahbubur Rahman Email: canada.office@sfconsultingbd.com Toronto, Canada USA Md. Alamgir Hossain Email: usa.office@sfconsultingbd.com Business Graduate Sunnyside,

Our professional people (S & F CONSULTING FIRM LIMITED)

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Company Matter Md. Forhad Hossain,  MBA, LL.B, LL.M Accounts Services Shams Rezanur Iqbal,  ACMA Md. Shahadat Hossain,  ACMA Initial Public Offer (IPO) Reazul Haque Sikder,  ACS Associate of Chartered Secretary  IPO specialist & Tax Consultant TAX, VAT & Custom Zulfiquer Ali Babul, Tax & Company Law advisor Md. Abdus Sabur, LL.B (Hons), LL.M,  Tax & Company Law advisor Md. Kamruzzaman (Kammal), LL.B (Hons), LL.M,  Tax & Company Law advisor Md. Masum, Income Tax Practitioner

Company matter & Legal Service M. Mosharof Hossain Sikder, MBA, MSS, LL.B Supreme court of Bangladesh AKM Shafiuddin, Barrister at Law Supreme Court of Bangladesh Nirmal Chandra Paul, Retd. Judge Supreme Court of Bangladesh Fahima Akter, LL.B, LL.M Supreme Court of Bangladesh Bulbul Ahmed, LL.B, LL.M Supreme Court of Bangladesh Abdul Malek (Emon) Supreme Court of Bangladesh Mustafizur Rahman, LL.B (Hons), LL.M Supreme Court of Bangladesh Kamruzzaman (Kachi), LL.B (Hons), LL.M Supreme Court of Bangladesh

Capital machinery, 100 % export company, develop area

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Concessionary Duty on Imported Capital Machinery

Import duty at the rate of 7.5% ad valorem is payable on Capital Machinery and Spares imported for initial installation or ‘Balancing, Modernization, Rehabilitation and Expansion’ (BMR/BMRE) of the existing industries. The value of spare parts should not, however, exceed 10% of the total cost and freight value of the machinery. Out of this, 7.5% rate of duty payable, export-oriented industries and industries in the under developed areas, may enjoy a further concession of the import duty in the following manner:

100% export oriented industries:

No import duty is charged in case of capital machinery and spares listed in NBR’s relevant notification. However, import duty at 7.5% is secured in the form of a bank guarantee or an indemnity bond to be returned after installation of the machinery.

Minimum 70% export oriented industries in developed areas:

Import duty at 2.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional duty at 5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.

Minimum 70% export oriented industries in developed areas:

Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the norm of a bank guarantee or cash deposit to be returned after installation of the machinery.

Other industries outside developed areas:

Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.

Other industries in developed areas:

Import duty at 7.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Value Added Tax (VAT) is not payable for imported capital machinery and spares.  Duties and taxes on import of goods which are produced locally will be higher than those applicable to import of raw materials for producing such goods.

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Residence, Tax holiday & depreciation allowance

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Residence

Permanent resident permits on investing US$ 75,000 and citizenship on investing US$

500,000

Tax holidays:

1. In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three  and four: and 25% in the year five.
2. In the Rajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts:

100% for first three years, 50% for next three years, and 25% for year seven

Depreciation allowances

1. Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery
2. Cash and added incentives to exporting industries
3. Businesses exporting 80% or more of goods or services qualify for duty free import  of machinery and spares, bonded warehousing
4. 90% loans against letters of credit and funds for export promotion
5. Export credit guarantee scheme
6. Domestic market sales of up to 20% is allowed to export oriented business located  outside an Export Processing Zone (EPZ) on payment of relevant duties
7. Cash incentives and export subsidies are granted on the Free on Board (FOOB) value  of selected exports ranging from 5% to 20% on selected products. 

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Visa & Work Permit in Bangladesh

S & F CONSULTING FIRM LIMITED

An international company service firm in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

 BOI Recommendation Letter (for Visa)

Two types of Visa exist: the PI-type for a Private investor, and the E-type for an Employee.

An application has to be made to the BOI for a PI Visa for foreign investors. The documents  required are:

a. Business introduction letter

b. Forwarding letter

c. Passport photocopies

Visa Application

Foreign Nationals have to apply for Visa in any foreign mission of GoB,

a. BOI recommendation letter

b. Company letter introducing the business

This Visa must be renewed yearly or bi-yearly depending on various factors (e.g. country of

origin).

Work Permit

A work permit for foreign nationals is a prerequisite for employment in Bangladesh. Private sector industrial enterprises desiring to employ foreign nationals are required to apply in advance to the BOI in the prescribed from. For expatriate employment the guidelines are as follows:

1. Nationals of countries recognized by Bangladesh are considered for employment.

2. Employment of expatriate personnel will be considered only in industrial establishments which are registered by the appropriate authority.

3. Employment of foreign nationals is normally considered for the job for which local experts/technicians are not available.

4. Persons below 18 years of age are not eligible for employment.

5. A decision of the board of directors of the concerned company for new employment/ employment extension is to be furnished in each case.

6. The number of foreign employees should not exceed 5% of the total employees,  including top management personnel.

7. Initially employment of any foreign national is considered for a term of two years,  which may be extended on the basis of merit of the case.

8. Necessary security clearance has to be obtained from the Ministry of Home Affairs.

BOI Form: See Website: http://www.boi.gov.bd/how-to-invest/forms-a-procedures/ obtaining-a-work-permit:

Papers/documents needed for recommendation of PI or E type visa application in favour of the expatriate(s) to be employed in Branch/Liaison Office and other Private and Public Enterprise

1. Copy of the permission letter for Branch/Liaison Office if not submitted earlier
2. Board resolution for employment of foreign nation(s) mentioning salary & other benefit.
3. Passport size photographs of the expatriate(s)
4. Memorandum & Article of Association and Certificate of Incorporation of the company duly signed by Shareholders, if not submitted earlier.
5. Photocopy of passport.
6. Service contract/agreement or appointment letter in case of employee.
7. Certificates of all academic professional & experience for employees.
8. Paper clipping showing advertisement made for recruitment of local personal prior to appointment of the expatriate(s).
9. Statement of manpower showing list of local & expatriate personal employed with designation, salary break-up, nationality and date of first appointment.
10. Encashment certificate of inward remittance of minimum US$ 50,000 as initial establishment cost for branch/liaison offices and locally incorporated/join-venture and 100% foreign ownership companies.

 Note:    All documents to be attested by the Managing Director/Managing Partner/Proprietor of the Company/Firm.  

Work Permit

Documents

 The following papers/documents are required for New Work Permit in favour of the expatriate (s) employment in Branch/Liaison Office and other private Public Enterprise  

1. Attested copy of the permission letter for Brach/Liaison Office/Company.
2. Commercial Enterprise from the appropriate authority, if not submitted earlier
3. Application in prescribed form along with passport size photographs of the expatriate(s) attested by the Managing Director/Managing Partner/Proprietor/appropriate authority.
4. Board resolution regarding employment of foreign national(s) including salary & other benefit to be provided.
5. Memorandum & Article of Association and Certificate of Incorporation of the company duly signed by Shareholders, if not submitted earlier.
6. Attested photocopy of passport with arrival stamp ‘E’ type visa for employee and ‘PI’ type visa for investors.
7. Attested copy of service contract/agreement and appointment letter in case of employee
8. Attested copies of all academic, professional & experience certificate for employee.
9. Paper clipping showing advertisement made for recruitment of local personal prior to appointment of the expatriate(s).
10. Statement of manpower showing list of local & expatriate personal employed with designation, salary break-up, nationality and date of first appointment.
11. Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2 years.
12. Encashment certificate of inward remittance of minimum US$ 50,000 as initial establishment cost for branch/liaison offices and locally incorporated/join-venture and 100% foreign ownership companies.
13. Up-to-date income tax certificate for branch office locally incorporated companies in Bangladesh.

Note:    All documents to be attested by the Managing Director/Managing Partner/Proprietor of the Company/Firm.  

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Dhaka

Tax certificate, IRC, ERC, Factory plan, Environment cert, Fire License,Employment, Labor

S & F CONSULTING FIRM LIMITED

An international company registration service firm in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Import Registration Certificate (IRC)

For the Import Registration Certificate (IRC) one needs to register with the BOI and the Chief Controller of Imports & Exports, CCI&E . The following supporting documents are needed:

a. Trade License photocopy

b. Valid membership of association (e.g. DBCCI)

c. Attested copy of:

i. AOA

ii. MOA

iii. Incorporation certificate

d. Passport photocopy of the Managing Director

e. Bank solvency certificate (original)

f. Original receipt (challan) of bank deposit for the fees

Export Registration Certificate (ERC)

For the Export Registration Certificate (ERC) the following documents are needed :

a. Attested copy of:

i. Trade License

ii. Valid membership of association or chamber

iii. AOA

iv. MOA

v. Incorporation certificate

b. Original of Bank receipt (challan) for deposit of the fees

Environmental Clearance Certificate

The company has to apply to the BOI Utility Service Cell (USC) for Environmental Clearance Certificate. BOI USC will obtain the necessary clearance from the Department of Environment (DOE) who will visit the factory for inspection.

Social Compliance

The registration for Social Compliance can be acquired from the Chief Inspector of  Factories and Establishments (CIFE). Any manufacturing company employing ten or more  workers is required to be registered under the Factories Act 1965 at the office of CIFE. This act is primarily intended to regulate working conditions and to ensure safety in the factory.  The prescribed Application Form has to be collected from the office of CIFE, filled in and submitted with all requirements. The CIFE office issues registration within the stipulated period. A different example concerns the acquisition of the Fire License.

http://www.boi.gov.bd/how-to-invest/forms-a-procedures

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

License,documents & other info

S & F CONSULTING FIRM LIMITED

An international company registration service provider in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Business Registration Requirement permission & Process

The BOI registration makes the company eligible to avail the incentives and facilities provided by the government. Required documents are:

a. Application Forms

b. Certificate of Incorporation

c. MOA

d. AOA

e. Joint Venture Agreement (if any)

f. Attested copy of deed agreement for rental premises

g. Project Profile

h. Background of the promoters (shareholders)

i. List of Machineries indicating quantity and price

j. Copy of the relevant Loan documents

k. Pay Order/Bank draft for the fee

Other:

1. Factory: Approval of Factory Plan
2. Bonded Warehouse License
3. Registration of Local Investment Project

Industrial Registration Application

Application for BOI Industrial Registration with following supporting documents:

a. Project Profile

b. MOA

c. AOA

d. Land Information & Document

e. Machinery Details

f. Financing sources

g. TIN

h. IRC

i) ERC

j) BOI Recommendation Letter (for Visa)

k) Visa Application

l) Work permit

m) Environment Certificate

n) Social Compliance

Business Licenses are required

1 . Approval of Factory Plan

2 . Bonded Warehouse License Customs Bond Commissionerate (CBC)

3 . Certificate of Incorporation

4 . Environmental Clearance Certificate Department of Environment (DOE) http://www.doe-bd.org/

5 . Export Registration Certificate (ERC)

6 . Fire License Fire Service and Civil Defense (FS&CD)

7.  Import Registration Certificate (IRC)- Office of the Chief Controller of Imports & Exports (CCI&E)

8 . Registration of Foreign Investment/ Joint Venture- Board of Investment (BOI)

9 . Registration of Local Investment Projects - Board of Investment (BOI)

10 . Tax Holiday Certificate National Board of Revenue (NBR)

11 . Tax Identification Number (TIN) National Board of Revenue (NBR)

12 . Trade License for a Commercial Firm-  Dhaka City Corporation

13 . Trade License for a Manufacturing Firm - Dhaka City Corporation

14 . Trade Marks Registration - Department of Patents, Designs & Trademarks (DPDT)

15.  VAT Registration National Board of Revenue (NBR)

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Dhaka