|
BUSINESS
ORGANIZATIONS
he
establishment of a business operation in Bangladesh is governed
by the Companies Act of 1912. Foreign businesses typically
operate through formation of public and private corporations.
Corporations of either type may be of limited or unlimited
liability. However, business entities may also take the form of
sole proprietorships, partnerships, or incorporated or
unincorporated associations.
The
government has made an effort to increase the attractiveness of
joint ventures. The Board of Investment requires no prior
approval for foreign investment in a joint venture project if
the project is valued at less than Tk 300 million, and the
investment is not in sectors the government has listed as
"discouraged".
FOREIGN
INVESTMENT
The
Government of Bangladesh actively encourages foreign investment.
The government prefers investments in projects requiring
sophisticated technology, use of local labor, use of indigenous
natural resources as well as large capital outlays in the export
generating and import substitution sectors. The following rules
and regulations affect investments in Bangladesh:
* Approval from the Board of Investment (BOI) is required for
investments greater than Tk 300 million. Prior approval for
lesser valued projects is not necessary.
* For export-generating investments, 100 percent foreign
ownership is permitted.
Foreign
investment is not permitted in certain areas reserved for the
public sector. These areas include defense, power generation,
forestry, most telecommunications, air transport and railways,
atomic energy, security printing, and minting.
The
government also publishes a list of industries and sectors in
which foreign investment is discouraged or nor permitted.
Incentives:
The BOI offers the
following investment incentives:
* Package permission is granted to all infrastructure-related
facilities and operations.
* Accelerated connections are guaranteed for utilities, customs
clearance for imported machinery, spare parts and raw materials.
* Tax holidays are offered to entities investing in export
generating industries.
* Companies investing in export generating industries also
receive reduced import duties for capital machinery and raw
materials, accelerated depreciation, bonded warehouses and
various tax breaks and exemptions.
INTELLECTUAL
PROPERTY RIGHTS
Bangladesh
is a member of the World Intellectual Property Organization (WIPO) and the
Universal Copyright Convention (UCC). However, it is not party to the
Paris Convention for the Protection of Industrial Property or the Berne
Convention for the Protection of Literary and Artistic Works.
Patents:
Patents
are protected under the 1911 Patent Act which permits both products and
processes to be patented. Once a patent is granted, it is renewable every
year for 16 years.
Trademarks:
Trademarks
that are well-known and registered outside of Bangladesh are given no
protection under Bangladesh law. The right to a trademark registration in
Bangladesh is granted to the first user of the insignia.
REGULATORY
AGENCIES
The
main government bodies charged with developing and enforcing economic and
commercial policies in Bangladesh are:
* The Office of the Chief Controller of Imports and Exports which issues
import pass books, import permits, clearance permits or prior permission
for the importation of certain goods.
* The Chief Controller of Imports and Exports issues information on import
licenses.
* The Bank of Bangladesh manages the exchange of currency for foreign.
|
General Section
