How to obtain BIDA registration in Bangladesh?

All industrial enterprises in Bangladesh are required to be registered with Bangladesh Investment Development Authority (BIDA). BIDA registration allows an entity to obtain essential licenses and permits to explore various industrial sectors. The registration process requires submission of supporting documents according to the requirement of BIDA and there is a slight difference on documentation requirement depending on the nature of the investment of the company. An online application along with original copies of the following documents need to be submitted and this application is subject to approval by an inter-ministerial committee of BIDA: Required Documents for 100% Foreign Investment / Joint Venture Forwarding letter by Chairman/Managing Director Application in prescribed form of BIDA Certificate of Incorporation along with Memorandum & Articles of Association Joint venture agreement duly signed by both parties in case of joint venture project List of Shareholder/Directors Trade License E-TIN certificate List of machineries local and imported Agreement/deed (in case of rental/lease land), ownership document (in case of own land) Encashment certificate Project profile NOC from BSCIC (if applicable) NOC from concern Ministry/Directorate/ Department (if applicable) In case of power plant, Power Purchase Agreement Required Documents for Local Investment Forwarding letter by Chairman/Managing Director Application in prescribed form of BIDA Certificate of Incorporation along with Memorandum & Articles of Association List of Shareholder/Directors Trade License E-TIN certificate Agreement/deed (in case of rental/lease land), ownership document (in case of own land) Project profile in case project exceeds TK 5 crore NOC from BSCIC (if applicable) NOC from concern Ministry/Directorate/ Department (if applicable) In case of power plant, Power Purchase Agreement KMS is one of the leading professional service firms in Bangladesh and can assist clients in obtain BIDA registrations.  

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Looking for Professional Employer Organization (PEO) Service in Bangladesh? Here’s why it makes sense!

With an end to the COVID pandemic now on the radar, many companies are beginning to focus on a return to growth and international expansion. In times past this presented a number of challenges, especially when you were confronted with all the complexities associated with setting up in a new country: different laws, unfamiliar tax regimes, employment regulations, employee benefits and entitlements, currency exchange, payroll issues, bank account opening issues like time and procedural activities etc. As companies explore new markets and pursue global opportunities to be closer to talent, resources and customers, they need an employment solution that helps them rise above the competition. This is why so many companies embarking on international expansion today are utilizing a Professional Employer Organization (PEO) structure in each country of employment – which equips you with next level HR solutions and enables you to reimagine your business and workforce by providing the strategy, expertise and infrastructure to support your global goals. Professional Employer Organization (PEO) is a third-party organization that works with your company to manage your human resources requirements. Their services include strong HR capabilities to assist you in growing your workforce and improving the employee experience while you concentrate on other elements of your business. So why consider PEO? Let’s find out. No local entity Setting up shop in Bangladesh is a laborious and voluminous work which can take weeks and sometimes months to complete. With a PEO structure you can skip the full process and get right down into business. ACE Advisory allows you to activate a PEO setup in 48 hours. Limited exposure to compliance Not having a legal entity setup in Bangladesh limits your exposure to all sorts of regulatory compliances which not only reduces your time managing back-office operation for reporting and compliances but also minimizes costs of doing business. The entire compliance risk is transferred to us at ACE Advisory. Expert local assistance With a PEO setup you are partnered with expert consultants who specialize in local legal, tax and labour regulations as well as employment practices and expectations in different local industries. The local expertise aids in providing a rapid and informed response to support local employees. Educated decisions for Global HR Management PEO service providers are equipped to advise you on setting up HR policy for specific locations in compliance with your company policy and local regulations which aids in a smooth global HR management process. Common myths and misconceptions about PEOs “PEO is a headhunting firm?” False. While the use of a PEO does help companies to widen the talent pool from which they wish to employ, a PEO is not directly responsible for seeking out talent and supplying organizations with access to talent. “PEO is a recruitment service?” False. A PEO allows companies to recruit talent from anywhere, as we are able to ensure they are employed compliantly and in-line with local labor laws, but a PEO does not act as a recruitment service. “PEO means you only process payroll and that’s it?” False. Although payroll is an integral feature of the PEO model, it is far from the only function of a PEO. Through partnering with a PEO, organizations are also able to make use of benefits administration, aid when bidding on global projects, support with remote teams and much, much more. KMS has been independently judged by RemotePad as one of the leading PEO service providers of Bangladesh. With our PEO setup, companies from all over the world are able to recruit professionals in as little as 48 hours. And we also take care of onboarding, evaluations, termination and monthly payroll processing leaving you to focus on growing core business in Bangladesh.        

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Startup Sandbox in Bangladesh!

The Finance Act 2022 introduced a set of exemptions and incentives to aid in the sustenance of growth and continued compliance of the startups provided they register with NBR as such and comply with a specific list of eligibility criteria. Details are as follows: Who is a Startup? For the purposes of this provision, startup means any company with annual turnover not exceeding Tk. 100 crore in any financial year and which: is incorporated under the Companies Act 1994 (section 18 of the Act); works towards deployment or commercialization of new products, process or service driven by innovation, development and technology or intellectual property; is not a subsidiary of another company holding fifty percent or more of its shares; is not a resulting company of a scheme of amalgamation or demerger. However, the companies will have to register with NBR as startup to enjoy the benefits and their eligibility for registration will be dictated as follows: Company Incorporation Date Eligibility Before 1 July 2017 Not Eligible Between 1 July 2017 – 30 June 2022 Eligible till 30 June 2023 On or after 1 July 2022 Till 30 June of the following year of incorporation What are the Benefits? For startups, the initial years subsequent to the commencement of operation will now be termed as Growth Years. The duration will be demarcated as follows: Company Incorporation Date Growth Years Between 1 July 2017 – 30 June 2022 3 Years (1 July 2023 – 30 June 2026) On or after 1 July 2022 5 Years (Starting from 1 July of the following year of incorporation) During the growth years, registered startups will be eligible for the following benefits and exemptions: Provision and treatment of disallowance of deductions/expenses pursuant to Section 30 and 30B of Income Tax Ordinance will not be applicable; Losses from the business which cannot be set off in any particular year can be carried forward over nine successive assessment years; The rate of minimum tax as specified by section 82C(4) will be 0.1%; No reporting obligation will be applicable except the annual return of income if companies grant access to its system and records to the income tax authority. KMS Advisory is one of the leading providers of tax consultancy and compliance services in Bangladesh. We can help your entity obtain the registration as a startup from the National Board of Revenue (NBR) and with any other tax requirements.

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