Portugal Passport By Investment

by Pymes Law | Feb 22, 2023 | Uncategorized

The three most common routes to Portuguese citizenship for expats are outlined below.

1. Portuguese Passport By means of Marriage:

After three years of marriage to a Portuguese citizen, one can acquire Portuguese citizenship through marriage. In addition, there is no minimum time requirement for prior residency in the country.

However, you must provide evidence of your relationship and affiliation with the Portuguese community.

Even if you divorce or separate in the future, you will not lose your Portuguese citizenship.

2. Portuguese Citizen By Descent:

Those who acquire citizenship through descent or birth are considered Portuguese descendants if,

A parent of yours was born in Portugal.
Your parents are Portuguese government servants.
You were born abroad to foreign parents, but at least one of your parents has a Portuguese birth registration.

3. Portugal Passport By Investment:

The Portugal Golden Visa program, designed to attract foreign investment, is another path to obtaining a Portugal passport. This visa program expedites the process for foreigners and non-EU/EFTA citizens who wish to invest in Portugal and obtain a residence permit and citizenship.

Through this program, the Portuguese passport is granted to investors in Portugal. This process is referred to as naturalization.

Portuguese Passport Processing Time

Normal processing time for a Portuguese passport is five business days after submitting all required documents and meeting residency requirements.

In emergency situations and genuine appeals, the processing time is reduced to two to three business days. In this instance, you may be charged an additional fee.

Dual Nationality Status in Portugal:

The Portuguese government permits foreigners to acquire Portuguese citizenship without relinquishing their original citizenship.

If you have dual citizenship and are looking for a new country to call home, Portugal is an excellent option. However, you must confirm with your home country whether dual citizenship is permitted. If so, you may retain both. If not, you must choose between the two options.

Portuguese Passport Eligibility:

You can apply for citizenship after a minimum of five years of living with a Portuguese investment visa. To do so, you’re required to take a Portuguese test. You may take the examination at any time before your application has been processed.

A Portuguese Passport Renewal:

The Portugal passport has a five-year validity period and can be renewed. Consequently, if your passport will expire within the next six months, you can submit an application for a replacement.

Note that once your passport has expired, it cannot be renewed. In addition, you will be required to repeat the entire passport application process.

In addition, the renewal of a Portuguese passport costs €100. Note, however, that regardless of the reason for your early renewal application (a stolen or lost passport), you will be required to pay an additional fee.

Passport Expenses:

The citizenship application fee ranges from €175 to €250, depending on the applicant’s category. For example, children who are eligible for citizenship through descent may apply for a free Portuguese passport.

In a different scenario, the cost of obtaining a passport is approximately €100 if you are applying for Portuguese citizenship abroad. However, a typical application will cost just €65, though this varies based on your location and personal circumstances.

Permanent residence is distinguished from temporary residence in that it is granted indefinitely. It is not required to be renewed every year or two. However, you must renew your permanent residence card every five years, as is the case in Portugal.

Validity of the Portuguese permanent residence card: 5 years

With the exception of political rights, permanent residence in Portugal nearly confers the same rights as citizenship. With a permanent residence card, you are ineligible to vote and hold public office.

Permanent residents of Portugal cannot take advantage of all the travel and relocation options available to citizens of the nation. A Portuguese passport, for instance, allows visa-free entry to 187 countries, and a permanent residence card to 26 Schengen zone countries.

The article “Five Questions About Residence Permit and Permanent Residency” explains how an investor can obtain permanent residence in European countries and what benefits this status confers.

Portuguese permanent residency requirements

To obtain a permanent residence card in Portugal, you must first acquire a temporary residence permit. After maintaining your status for five years, you can apply for permanent residency.

Residence permits in Portugal are obtained through study, employment, or marriage to a Portuguese national for the purpose of family reunion. In addition, this status can be obtained if there is a passive income and a residence in the country, as well as through the state investment program.

Obtaining a residence permit in Portugal through investment takes between four and six months. The requirements for investors are less stringent than those for other types of residence permit applicants.

Obtaining a residence permit in Portugal by investment takes 4 to 6 months. Conditions for investors are simpler than for applicants for a residence permit on other grounds.

Conditions for obtaining a residence permit in Portugal

Applicants invest from €250,000 in the economy of Portugal to get a residence permit card of the country. The residence permit program in Portugal offers investors seven options. 

The most popular option among investors is to acquire real estate in the country for at least €280 000. Real estate prices in Portugal are increasing by an annual average of 3-5%. The investment can be returned with a profit after five years if the property is rented out and sold.

The second most popular choice among investors is to invest €500,000 in units of investment funds. Other alternatives include investments in culture and art, scientific projects and business in the country, capital transfer, and the establishment of a business in Portugal.

Options and conditions of the residence permit by investment program in Portugal

To maintain a residence permit in Portugal, the investor must maintain the investment and spend a minimum of seven days per year in the country. The renewal of the residence permit card occurs every two years.

In order to maintain permanent residence in Portugal, it is sufficient to spend at least six months in the country within three years of obtaining the status.

Possibilities afforded by a Portuguese residence permit and permanent residency

Lodging options in Portugal. A Portuguese residence permit allows legal entry into the country, even when the borders are closed. Investors are permitted to reside permanently or vacation in the country.

It is possible to travel without a visa. Portuguese citizens may enter Schengen countries without a visa. There is a limit of 90 days per half-year.

Visa-free countries with permanent residence in Portugal

Free education for children. A residence permit and permanent residence in Portugal allow you to enroll a child in a kindergarten or school for free. 

Residents may enroll in universities in Portugal, and their degrees will be recognized in other EU nations. Free higher education is available to residents on a competitive basis.

Effective medicine. Portugal has a high standard of medical care. This verifies the average life expectancy: 82 years for the country’s citizens. This is greater than the length in Belgium, Denmark, the Czech Republic, or Croatia. In Europe, the average life expectancy is 78 years.

Cartão de Utente

To receive comprehensive health care in Portugal, you must enroll with the National Health Service (NHS). To do this, you need to get a user card — Cartão de Utente. The document must be presented at the hospital and pharmacy on each occasion.

You can obtain an NHS user card at your local Portuguese polyclinic. You must carry a valid residence permit or permanent residence card.

If they contribute to the Social Security Fund, Portuguese citizens and foreigners with a valid residence permit or permanent residency are eligible for free medicine. Additional diagnostic studies are funded by all parties.

Fiscal incentives Residents of Portugal are eligible for the non-habitual resident tax status (NHR). It exempts from taxation income earned outside of Portugal and paid in another country. In addition, the status reduces the tax rate on income earned in Portugal from professional activities to 20%. Without NHR status, the tax rate on income is 48%.

How to acquire a favorable tax status in Portugal

To become a tax resident of Portugal and obtain NHR status, you must spend more than 183 days per year in the country.

A European financial institution account. A residence permit or permanent residency in Portugal enables you to open an account in a European bank, keep your savings in hard currency, and avoid losing money on foreign transfer fees by keeping your savings in hard currency.

A chance to acquire EU citizenship. Those with a valid residence permit and permanent residence card in Portugal are eligible to apply for Portuguese citizenship.

Since Portugal is a member of the European Union, its citizens are able to live and work in any other member state. In addition, Portuguese citizens can enter 187 countries visa-free, including the United States, Canada, the United Kingdom, Japan, and Australia.

On the path to Portuguese citizenship, permanent residency is an optional step. After five years of holding a residence permit, you are eligible to apply for citizenship. The status of permanent residence in Portugal is advantageous for citizens of nations where dual citizenship is prohibited, such as Kazakhstan.

What makes Portugal desirable for relocation?

Portugal has a well-developed education and medical system, a favorable climate and ecology, a secure environment, affordable lodging, and high-quality food and wine.

The climate in Portugal varies by region: in the north, it is cool and wet, whereas in the south, it is warm and sunny. The climate along the border with Spain is continental, with warm summers and cool winters and low precipitation.

In the north of Portugal, summers are sunny and warm, but not oppressively so. The winters are wet, particularly in the Porto metropolitan area and further north. Snowfall is uncommon in Portugal. Snow is most prevalent in the Serra da Estrela.

In the central region of Portugal, which includes Lisbon and the Silver Coast, winters are mild and summers are hot and dry. In the coastal, central, and southern regions, summer heat is more bearable due to the cooling effect of the sea breeze.

Southern Portugal and the Algarve are among the sunniest regions in Europe. The sun remains even during winter. Consequently, the southern region of Portugal is a popular tourist destination.

Lisbon’s average annual temperature

Portugal has one of the lowest living costs in Europe. The cost of living in Lisbon is 37% less than in Paris and 20% less than in Berlin, according to Numbeo.com. In comparison to Madrid, prices are 6% less expensive.

Basic expenses for a month of living in Portugal

Safety:

In 2021, Portugal was ranked fourth out of 163 in the Global Peace Index. The country has a low crime rate, no internal conflicts, and the risk of terrorism is minimal. Portugal does not participate in international political conflicts and wars.

Safety. Portugal ranked fourth out of 163 countries on the Global Peace Index in 2021. The nation has a low crime rate, no internal conflicts, and a low terrorism risk. Portugal does not engage in international political wars and conflicts.

Good ecology. The Blue Flag was awarded to 352 Portuguese beaches. This award is given to beaches with safe, high-quality swimming conditions. Therefore, Portugal’s beaches attract tourists from around the world.

The country prohibits the development of coastlines so as not to harm the environment. Portugal generates 79.5% of its electricity from renewable natural energy sources such as wind, solar, and hydroelectric power plants.

Portugal plans to achieve carbon neutrality and electrify all public transportation by 2050.

Entertainment. Portugal has something for everyone, including picturesque beaches, water sports, hiking, sightseeing tours, and medieval architecture to explore.

Active time can be spent in the country’s entertainment and educational leisure centers for children and adults. The Lisbon Zoo and Aquarium, the Santo Andre Safari Park, the Evora Museum City, and the Surf Reserve are some examples.
Victor Esik, the head of Immigrant Invest’s Portuguese office, moved to Portugal, obtained citizenship, and described life in the country. Read about his experience in the article titled “How to Obtain Portuguese Citizenship After Obtaining the Golden Visa.”

Through this program, the Portuguese passport is granted to investors in Portugal. This process is referred to as naturalization.

Portuguese Passport Processing Time:

Normal processing time for a Portuguese passport is five business days after submitting all required documents and meeting residency requirements.

In emergency situations and genuine appeals, the processing time is reduced to two to three business days. In this instance, you may be charged an additional fee.

Dual Nationality Status in Portugal

The Portuguese government permits foreigners to acquire Portuguese citizenship without relinquishing their original citizenship.

If you have dual citizenship and are looking for a new country to call home, Portugal is an excellent option. However, you must confirm with your home country whether dual citizenship is permitted. If so, you may retain both. If not, you must choose between the two options.

Portuguese Passport Eligibility

You can apply for citizenship after a minimum of five years of living with a Portuguese investment visa. To do so, you’re required to take a Portuguese test. You may take the examination at any time before your application has been processed.

Since the United Kingdom voted to leave the European Union, British citizens have been seeking permanent residence in Portugal.

A Portuguese Passport Renewal

The Portugal passport has a five-year validity period and can be renewed. Consequently, if your passport will expire within the next six months, you can submit an application for a replacement.

Note that once your passport has expired, it cannot be renewed. In addition, you will be required to repeat the entire passport application process.

In addition, the renewal of a Portuguese passport costs €100. Note, however, that regardless of the reason for your early renewal application (a stolen or lost passport), you will be required to pay an additional fee.

Passport Expenses

The citizenship application fee ranges from €175 to €250, depending on the applicant’s category. For example, children who are eligible for citizenship through descent may apply for a free Portuguese passport.

In a different scenario, the cost of obtaining a passport is approximately €100 if you are applying for Portuguese citizenship abroad. However, a typical application will cost just €65, though this varies based on your location and personal circumstances.

WHO CAN REQUEST THE PORTUGUESE ELECTRONIC PASSPORT? 

• Any Portuguese citizen.

WHERE CAN YOU REQUEST THE PORTUGUESE ELECTRONIC PASSPORT? 

• At the Passport Bureaus in the Airport of Lisbon and Airport of Porto
• At the Governments of the Autonomous Regions of the Azores and Madeira
• At the IRN’s desks which provide this service
• At the Portuguese consulate of your residence area.

WHAT IS THE PRICE TO REQUEST THE PORTUGUESE ELECTRONIC PASSPORT? 

The passport’s price depends on the delivery term and on the location where you submit the request.

You may pay in cash or with multibanco.

HOW CAN YOU REQUEST THE PORTUGUESE ELECTRONIC PASSPORT?

Are you intending to get a Portugal Passport By Investment from Bangladesh?

Get your Portugal Passport By Investment from Bangladesh with the help of  Tahmidur Rahman Remura: TLS: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TLS, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to PI Visa for foreign investor in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165 or +8801708080817

Address: House 410, Road 29, Mohakhali DOHS

Mergers and Acquisitions in Bangladesh

by Pymes Law | Feb 16, 2023 | Uncategorized

Review of Mergers & Acquisitions in Bangladesh

A summary of M&A in Bangladesh

After experiencing phenomenal economic growth, Bangladesh has emerged as one of Asia’s most remarkable economies and is poised to become the new Asian Tiger. Bangladesh, classified by Goldman Sachs and JP Morgan respectively as a Next Eleven emerging market and one of the Frontier Five emerging economies in the world, is projected to achieve middle-income status by 2021 and to become the 24th largest economy by 2033. Bangladesh has attracted a substantial amount of foreign direct investment (FDI) and a rise in inbound merger and acquisition (M&A) transactions and activities.

The combination of a highly competitive workforce, export-oriented industrialization, and an investment-friendly environment has made Bangladesh an attractive destination for foreign investment. Bangladesh received some of the largest FDIs in its history between 2018 and 2019. Japan Tobacco Inc.’s $1.47 billion (approximately 124 billion Bangladeshi taka) acquisition of Dhaka Tobacco was at the forefront of notable M&A activity.

Despite the global covid-19 pandemic, Bangladesh has witnessed some of the largest intra-group, private, and public M&A transactions in the country’s history in 2020. This includes Unilever’s acquisition of GSK Bangladesh for Dhaka Stock Exchange, with a record trade value of 20.2075 billion Bangladeshi taka, and Akij Group’s acquisition of Janata Jute Mills for approximately 7 billion Bangladeshi taka.

While Bangladesh’s astounding GDP average growth of above 8 per cent during 2018 and 2019 is expected to decline to 5.2 per cent in 2020 owing to the covid-19 pandemic, Bangladesh has the potential to attract increased FDI in the region given that Japan, Korea, the US, the UK and EU countries are considering relocating their factories from China. Chinese investments also continue to arrive in Bangladesh under the Belt and Road Initiative. Accordingly, the influx of FDI into Bangladesh and M&A activities therewith will not only continue but escalate, as actions of ameliorating the impact of the covid-19 pandemic have already gained notable momentum.

General introduction to the legal framework for M&A in Bangladesh

i The broad legal framework

Mergers and acquisitions in Bangladesh are governed by a combination of commercial laws and industry-specific laws. The key set of statutes that govern M&A transactions in Bangladesh include the Contract Act 1872, the Companies Act 1994 and the Competition Act 2012. Additionally, public limited companies including listed companies are required to ensure compliance with the Bangladesh Securities and Exchange Commission Acts 1993, Securities and Exchange Ordinance 1969 and the Bangladesh Securities and Exchange Commission (Substantial Acquisition of Shares and Takeovers) Rules 2018, alongside other security laws and by-laws promulgated by the regulators from time to time. Deals involving foreign investments and foreign currencies should also comply with the Foreign Exchange Regulations Act 1947, the Guidelines for Foreign Exchange Transactions and other regulations, circulars and guidelines of Bangladesh Bank, which is the central regulatory bank of Bangladesh.

Additionally, industry-specific laws have to be complied with. Examples of such laws include the Bank Companies Act 1991, the Financial Institution Act 1993, the Bangladesh Telecommunication Act 2001, the Telegraph Act 1885, the Petroleum Act 2016 and the National Digital Commerce Policy 2018, and relevant rules and by-laws promulgated thereunder.

Acquisitions that involve rebranding, IP rights on innovations, transfer of trademarks, designs patents, etc., will further require compliance of the Trademark Act 2009, the Trademark Rules 2015, the Patent and Design Act 1911 and the Rules of 1933.

Accordingly, a range of laws and regulations govern M&A transactions in the absence of a specific exhaustive M&A statute. The following section broadly outlines some of the key laws.

The law of contract in Mergers and Acquisitions in Bangladesh

Transaction documents in an M&A deal, including shareholders’ agreements, share purchase agreements, joint venture agreements, etc., as the case may be, are in general governed by the law of contract. The laws in relation to contracts in Bangladesh are governed and regulated by the Contract Act 1872. It establishes certain key elements behind the formation of a contract, including requirements with respect to the parties to the contract, capacity of the parties, offer and acceptance, lawful consideration, free consent, intentions to create a legal relationship, lawful purposes and object, certainty, specific subject matter, possibilities of performance, formalities and that the contract has not been declared void by or under any existing laws of Bangladesh.

Company laws in Bangladesh

All companies in Bangladesh, including wholly owned subsidiaries of foreign companies and joint venture companies, are governed by the Companies Act 1994, which is the key piece of legislation in Bangladesh. The Companies Act 1994, together with the Companies Rules 2009, encompasses detailed laws governing most if not all aspects of company law, including rules and procedures for the distribution of share capital of companies and provisions for the reduction of share capital, management and administration of companies, procedures and rules for holding requisite meetings, appointment of company directors, etc.

Mergers and acquisitions generally have to comply with the corporate compliance requirements of the target company and that of its stakeholders, including those required by the memorandum and articles of association of the companies and the Companies Act and Rules. In particular, mergers require the steps established in the Companies Act 1994 to be followed, and the Company Bench of the High Court Division of the Supreme Court of Bangladesh holds the jurisdiction to pass necessary orders in connection thereto. Merger proposals are first placed before the board of directors of the respective companies for approval. After due approval from the board, an application under Sections 228 and 229 of the Companies Act 1994 has to be filed before the company bench.

The jurisdiction under Sections 228 and 229 is supervisory in nature. The court shows deference to the business decisions of the proposed M&A deal subject to compliance with legal requirements. The order of the court sanctioning the merger thereafter needs to be submitted to the Registrar for Joint Stock Companies and Firms for the necessary action at the implementation phase.

In sanctioning the merger of the Bangladeshi operations of Axiata and Bharti Airtel in 2016, the court was mindful of its responsibility to protect the public interest as the subscriber base of the two telecoms firms was around 32 million, and it thus considered socio-economic factors such as consumer interest, employee interest and government revenue.

Security laws in Acquisition

If one or more parties involved in an M&A transaction, including asset acquisitions, share acquisitions, amalgamation, etc., is listed on a stock exchange or is otherwise a public limited company, the transaction will also come under the purview of the applicable security laws of Bangladesh. This includes the Bangladesh Security and Exchange Ordinance 1969, and the various by-laws enacted from time to time thereunder by the Bangladesh Security Exchange Commission (BSEC) (BSEC).

BSEC plays a key regulatory role in the regulation and approval of M&A transactions involving public limited companies, including listed ones, and some specific private limited companies. However, BSEC has granted exemption to companies under Public-Private Partnership (PPP), public limited companies having a total capital not exceeding 10 million Bangladeshi taka and private limited companies having a total capital not exceeding 100 million Bangladeshi taka at any given time after making an issue of capital. 9 The key instrument governing M&A transactions in the public sector is the BSEC (Substantial Acquisition of Shares and Takeover) Rules 2018, which affords unprecedented ease and flexibility to such transactions and provides a simplified procedure of substantial acquisitions.

ii Foreign exchange and the central bank regulatory regime

The Foreign Exchange Regulation Act 1947 requires foreign investors to obtain prior permission before taking over a Bangladeshi company owned by Bangladeshi residents.

The Bangladesh Bank, the country’s central bank, and its Banking Regulations and Policy Department play a pivotal role in regulating financial transactions associated with M&As, including the granting of general or specific exemptions.

While the rules pertaining to foreign exchange, including those on the repatriation of profits and share sale proceeds, have been relaxed by the central bank in recent years, a few decisions of the Bangladesh Bank in relation to approving foreign transactions regarding M&A transactions have exemplified undesirable precedents. For instance, in the global merger between Holcim and Lafarge, two of the leading cement giants globally, the Bangladesh Bank designated the agreed transaction price of US$117 million between the two parties and their respective subsidiaries in Bangladesh as ‘too high’ and only approved the repatriation of US$62.5 million. Despite the Bangladesh Bank retaining the discretion in purchase price determination, some uncertainties therefore exist as to the valuation methodology governing the exercise of discretion, rendering the remittance of sale proceeds difficult at times.

Developments in corporate and takeover law and their impact

i BSEC (Substantial Acquisition of Shares and Takeover) Rules 2018

The new 2018 Rules on the substantial acquisition of shares and takeover have replaced the 2002 rules, and has been a welcome change in the M&A laws. The Rules allow for substantial acquisitions of shares in a public listed company through cash purchase from security exchange and through negotiated deals, within and outside the trading system of the exchange. The Rules also provide for an application for exemption from the restrictions imposed therein.

ii Companies (Amendment) Act 2020

An amendment to the Companies Act 1994 was passed by the National Parliament of Bangladesh on 25 February 2020. The key legislative object achieved with this amendment is scrapping the mandatory requirement for a company to have a seal to be registered.

iii Companies (Second Amendment) Bill 2020 (National Parliament Bill No. 23 of 2020) – proposed introduction of One-Person Company

At present, a company is required to have at least two shareholders and two directors under the laws of Bangladesh. The Second Amendment Bill proposes to introduce the concept of a One-Person Company (OPC) in the Companies Act 1994. The Bill, if passed, will likely result in enhanced foreign direct investment in Bangladesh and pave the way for a higher number of M&A transactions. However, one limitation in the draft amendment is the proposed requirement for the sole shareholder of the OPC to be a natural person. The purpose for such a requirement may, however, be to safeguard against the incorporation of shell companies and prevent money laundering. This might, however, act as a deterrent to foreign corporations to incorporate an OPC that often prefer to hold the entire shareholding.

iv Bangladesh Bank Circular FE Circular No. 01 (5 February 2020) (5 February 2020)

This circular is aimed at facilitating the transfer of residual money payable to foreign shareholders in a winding-up of the concerned company. In the case of a winding-up of a company by the court or subject to the supervision of the court, the authorised dealers shall submit an application to the Bangladesh Bank along with an order of the court evidencing endorsement of the amount determined to be distributed to the shareholders for remittance.

v Bangladesh Bank Circular FE Circular No. 02 (5 February 2020) (5 February 2020)

This circular introduced detailed guidelines regarding share money deposit, which is likely to be beneficial for foreign investors acquiring shares in a Bangladeshi company. The circular introduced several guidelines to protect the legal interests of foreign investors. They include the concerned company completing the formalities of the issuance of shares within 360 days of receiving share money deposit from the foreign investor, and the share money deposit not being used for any purpose other than the main business of the company.

vi National Digital Commerce Policy 2018

In 2018, the government introduced the National Digital Commerce Policy 2018, which restricted acquisitions of digital commerce businesses by a foreign company without forming a joint venture with a local company.

This policy deterred potential entrants such as Amazon and Alibaba from the digital marketspace of the country. In the wake of growing e-commerce platforms amid the coronavirus pandemic, the government issued the National Digital Commerce (Amended) Policy 2020, scrapping the requirement of forming a joint venture with a local company and allowing wholly foreign owned e-commerce entities, provided they complied with the laws and regulations of the country.

To facilitate export trade amid the covid-19 pandemic, the restrictions on refinancing from the Export Development Fund have been relaxed.

To enhance foreign investment to combat the financial crisis prompted by the pandemic, balances held by non-residents in non-resident investors taka accounts have been allowed to be used for the purchase of foreign end mutual funds.

Furthermore, non-resident Bangladeshis have been allowed to deposit money earned abroad in Bangladeshi banks’ taka accounts.

Non-banking financial institutions (NBFIs) have been allowed to increase the tenure of term loan and leases.

Foreign involvement in M&A transactions

Outbound acquisitions by Bangladeshi nationals or investors are rare in Bangladesh, largely because of the conservative stance of regulators coupled with the lack of a legal framework for such outward investment. Most M&A transactions involve foreign corporations acquiring local or foreign companies by means of inbound remittance in the form of FDI.

As per the report of the Foreign Investment & External Debt Management Cell, Statistics Department, Bangladesh Bank, the UK leads the table of net inflow of FDI with US$117.8 million of investment in the first quarter of 2020. The major investment sectors include power, food and banking. Norway was second with US$68.93 million of inflow of FDI, primarily in the telecommunications sector. The United Arab Emirates followed with US$51.23 million, primarily in the power and construction sectors.

Foreign investment flow during the financial years 2018–19 and 2019–20 stood at US$2.88 billion and US$3.88 billion respectively.

The total FDI stock was estimated at US$16.4 billion in 2019 by UNCTAD.

The main investors in the country are China, South Korea, India, Egypt, the UK and the United Arab Emirates.

Significant transactions, key trends and hot industries

Some of the notable M&A transactions in Bangladesh include the following deals.

Evercare and CDC Group, the UK’s development finance institution, have recently acquired the controlling interest in STS Holdings Ltd, the infrastructure owner and operator company of Apollo Hospitals in Dhaka, marking an FDI of over 10 billion Bangladeshi taka. The transaction was consummated during the first half of 2020 despite the covid-19 pandemic.

Bangladesh’s Akij Group, which has the world’s largest jute yarn manufacturing unit, acquired Janata Jute Mills for around 7 billion Bangladeshi taka during the covid-19 pandemic.

Despite the ongoing covid-19 crisis, Anchorless Bangladesh, a US-based venture capital firm, has invested in digital logistics platform start-up Loop Freight, with an initial seed fund of US$600,000 in May 2020.

In June 2020, Unilever acquired an 81.98 per cent stake in GlaxoSmithKline (GSK) Bangladesh Ltd from Setfirst, a GSK Group member, marking a record trade value of an individual company in the history of the Dhaka Stock Exchange, valued at a total 20.2075 billion Bangladeshi taka.

In December 2019, Heidelberg Cement completed acquiring 100 per cent shares of Emirates Cement Bangladesh Limited and Emirates Power Company Limited from UltraTech Cement Middle East Investment Limited for around 1.83 billion Bangladeshi taka. Reportedly, they have also expressed interest in acquiring Meghna Energy, a captive power plant in Narayanganj district.

Bangladesh saw some of its biggest M&A transactions during 2018 and 2019. It established a record when Akij Group sold its entire tobacco business, Dhaka Tobacco, to Japan Tobacco Inc for a mammoth $1.47 billion in November 2018.

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In April 2018, an interesting M&A transaction took place between Alipay, an affiliate of Alibaba Group, and bKash, when 20 per cent of the latter was bought by Alibaba Group. Neither bKash nor Alipay gave any financial figure on the deal.

A Chinese consortium that included the Shenzhen and Shanghai stock exchanges bought 25 per cent stakes in the Dhaka Stock Exchange for $125 million in 2018.

Beximco Pharmaceuticals Limited completed the acquisition of about 85 per cent of Nuvista Pharma Limited in the same year.

There have been a few major acquisitions in the telecoms sector in the recent past that are worthy of mention: the purchase by Malaysia’s Axiata of telecom operator Aktel, which was later rebranded as Robi; the acquisition of Warid Telecom by India’s Airtel; and the purchase of Sheba Telecom by Egypt’s Orascom Telecom. The acquisition of significant shares of City Cell by SingTel and Aktel’s shares by NTT DoCoMo were all among notable acquisitions in the sector.

Bangladesh’s ride-sharing start-up app Pathao closed equity financing from a number of investors, including Indonesia’s Go-Jek, reportedly at a valuation of over US$100 million.

In 2016, Siam City Cement, one of Thailand’s largest cement producers, acquired Cemex Cement Bangladesh Ltd.

Bangladesh’s leading conglomerate Transcom acquired local Philips and Pepsi business from its previous foreign owners.

M&As are comparatively rare in the financial sector. Reportedly, three local groups of companies have been discussing with Bangladesh Bank to take over the operation of People’s Leasing and Financial Services (PLFS) (PLFS). Previously, Oriental Bank was acquired by ICB Financial Group, another Malaysia-based group. In 2010, Summit acquired ICB Bank’s stake. B Banking Group, which acquired Oriental Bank and renamed it ICB Islamic Bank Bangladesh, has decided to sell its entire shareholding for US$55 million.

Intra group M&As are increasingly being used for group restructuring and commercial strategy to maximise profit and reduce operational costs. For example, the board of directors of the publicly listed United Power Generation and Distribution Company Limited has decided to acquire two power plants of the United Group: the United Anwara Power Ltd and United Jamalpur Power Ltd.

Trends suggest that construction and engineering, healthcare, power development, digital commerce, telecommunication, communication, ready-made garments and banking and finance are currently generating most interest for possible M&A transactions. Furthermore, foreign investors have been demonstrating increasing interest in the power, energy and petroleum sectors.

Financing of M&A: main sources and developments

i Debt-based financing

The acquirer company may obtain debt-based financing from local banks and NBFIs to finance acquisition. Foreign investors may use such financing through their subsidiary companies in Bangladesh. This is, however, subject to furnishing satisfactory collateral. Upon acquisition of the target company, a wide range of debt-based financing can pave the way for pursuing the ambitions of the acquirer. This includes loans for working capital and various funded credit facilities.

Syndication loans and other structured finance are also available in Bangladesh. Debt restructuring is often relevant in M&A transactions. Furthermore, non-funded credit facilities such as bank guarantees may also be relevant and used depending on the transaction structuring.

ii Private borrowings from foreign sources

Industrial enterprises in the private sector may obtain borrowings or credit from recognised lenders including international banks, international capital markets and multilateral financial institutions, as well as export credit agencies and suppliers of equipment. Borrowing from foreign equity holders for bridge financing may also be used.

Foreign borrowings will, however, require prior approval from the Bangladesh Investment Development Authority, and the process also involves approval from the central bank’s scrutiny committee. The proposed rate of interest must be competitive, with prevailing lending rates in the international markets in the concerned currencies for the relevant tenure. Usually, the interest rate should be based on the prevailing government treasury bond rate in that currency for that tenure, plus a reasonably modest country risk premium.

iii Equity financing

Investors may also consider equity-based financing from Bangladesh’s capital market, which has two stock exchanges. Investors have to comply with the securities laws of Bangladesh, and are subject to prior approval from the Bangladesh Securities and Exchange Commission.

iv Bonds

The corporate bond market in Bangladesh is still in its infancy, with very few publicly placed corporate bonds. The lack of demand for such debt instruments has, therefore, discouraged companies from floating the option.

Employment law

The labour and employment law of Bangladesh is codified substantially by the Labour Act 2006, as amended, and the Labour Rules 2015. The Labour Act 2006 addresses the conditions of employment and service, maternity benefits, health, hygiene and safety of workers, working hours, leave, wages and payment thereof, compensation for injury caused by accident, trade unions and industrial relations, settlement of disputes, participation of workers in the profit of the companies, provident funds, apprenticeships, dismissal, termination and separation, among other relevant provisions.

There are no provisions in the Labour Act 2006 or concerned rules that apply specifically to M&A transactions. However, as far as intra-group M&A transactions are concerned, there has not been much concern that would necessitate legislative intervention. However, in private and public transactions, the impact of M&A transactions on employees and the safeguarding of their rights and interests need to be addressed. Presently, as has been seen in the Robi merger case, the High Court plays a pivotal role in ensuring the rights and interests of employees in M&A transactions that may potentially have an adverse impact on employee rights. Parties to an M&A deal are required to undertake comprehensive due diligence on employment law compliance of the target company.

Tax law

The principal legislation governing income tax in Bangladesh is the Income Tax Ordinance, 1984 (ITO), which undergoes annual amendments and additions through the Finance Acts promulgated every year. The ITO is complemented by the Income Tax Rules 1984 enacted by the National Board of Revenue (NBR) which is the regulatory authority for tax administration in Bangladesh. Additionally, the NBR from time to time promulgates statutory regulatory orders and general orders as and when required.

i Taxations in connection with M&A transactions

Acquisition involves the purchase of shares. Stamp duty at a rate of 1.5 per cent of the agreed purchase consideration is payable on the share transfer. However, there is no stamp duty on the transfer of dematerialised shares. The seller is required to pay 15 per cent capital gains tax. The capital gain is calculated by subtracting the acquisition cost and development cost from the sale consideration.

A lower tax rate of 10 per cent applies on capital gains made by firms and companies from transferring public company shares listed on stock exchanges, and 5 per cent for sponsor shareholders and directors of banks, financial institutions, insurance companies, merchant banks, leasing companies, portfolio management companies, stock dealers or stockbrokers. For other individuals, these gains are exempt from tax. Capital gains made from transferring stocks or shares in a publicly listed company made by a non-resident assessee are exempt from tax if similar exemptions may be used by them in their country of residence.

For the sale of other assets in the course of an M&A transaction, a stamp duty of 3 per cent of the purchase price for the transfer of any immovable or movable property applies. In addition, a local government tax of 1 per cent and a registration fee of 2 per cent of the property value is payable for the transfer of immovable properties. There is no exemption from stamp duty on an asset sale or transfer with the exception of a demerger.

An asset sale structured as a merger in accordance with the income tax rules can be tax neutral for the parties involved if it satisfies certain conditions.

A demerger is tax neutral by its structure. Following a demerger, the undertaking’s transfer is dealt with in the same way as a share sale.

All other asset sales, including slump sales and item-wise sales, attract a 15 per cent capital gains tax. In addition, there is a potential 15 per cent VAT obligation triggered by an asset sale. Individuals holding an asset for less than five years are required to pay capital gains tax at the highest applicable income tax rate. The only exemptions are mergers and demergers.

ii Corporate income tax

Under the Bangladesh tax law, corporate income tax (CIT) rates are 35 per cent for non-publicly traded companies and 25 per cent for publicly traded companies. Some sector-specific businesses attract higher CIT rates, such as banks and NBFIs (37.5 per cent to 42.5 per cent) and cigarette manufacturers (45 per cent) (45 per cent). If any non-publicly traded company transfers a minimum of 20 per cent of shares of its paid-up capital through an initial public offering it would receive a 10 per cent rebate on total tax in the year of transfer.

iii Income tax incentives

To facilitate and promote export-oriented trade, the decentralisation of industries and FDI in Bangladesh, a range of income tax incentives are available for investors. These include a tax holiday for industrial undertakings established in Export Processing Zones, tax benefits for investment in Special Economic Zones, tax rebates for manufacturing companies set up in places other than city corporation areas, and tax holidays for certain industrial undertakings. Industries and projects funded by foreign investment may also use deemed export tax benefits and refunds. Export-oriented industries can use bonded warehousing facilities for importing raw materials and packaging materials.

iv Covid-19 tax incentives

Following the covid-19 pandemic, with a view to rejuvenating the economy and promoting development in the power sector, a number of tax incentives have been declared by the government, which include:

income of private power generation companies (PPGCs) are exempted from tax liabilities up to 31 December 2034;

income of foreign nationals exempt for three years;

interest payments on foreign loans can be paid off without Withholding Tax (WHT); and

royalty, technical know-how and technical assistance fee payments can be made without WHT.

Capital gains arising from divestment are exempted.

If commercial production of a PPGC starts during the period 1 January 2023 to 31 December 2024, there is a 100 per cent exemption from tax if available for the first five years, and then a 50 per cent exemption for the next three years, followed by a 25 per cent exemption for the next two years for a total of 10 years of some types of exemption.

Additionally, in response to the covid-19 pandemic, on 22 March 2020, the NBR exempted 12 types of safety products and test kits from import duties and taxes until 30 June 2020. Moreover, steps are being taken to extend the time limit for the filing of necessary VAT returns and tax returns. Taxpayers complying with the extended deadlines shall not be subject to penalties or interest.

The NBR plans to modernise the Bangladesh Integrated Tax or BiTAX system of the tax department involving digital tax payments, as well as online tax return submission facilities.

Competition law

Bangladesh, being a developing country with promising economic features, has always felt the necessity of a legal framework for maintaining a free, open and sustainable market to ensure an affable atmosphere for competition in trade. Accordingly, the Competition Act 2012 was enacted to prevent, control and eradicate activities adverse to competition.

Bangladesh’s Competition Act strictly prohibits anticompetition agreements and abuse of dominant position owing to the adverse impact it may have on the fair competition of trade. It further states that no person shall directly or indirectly enter into any agreement or collusion that causes or may cause adverse effects on competition or creates a monopoly or oligopoly in the market in respect of the production, supply, distribution, storage or acquisition of any goods or services.

Parties to an M&A deal must give due regard to the competition laws of Bangladesh and undertake due diligence in connection thereto. The Competition Act refers to various anticompetition agreements, including tie-in arrangements, exclusive supply agreements, exclusive distribution agreements, refusal to deal and resale price maintenance.

Most importantly for mergers, the Competition Act specifically prohibits combination that causes or is likely to cause an adverse effect on competition in the market of goods or services.

Combination, under the said Act, refers to the acquisition, taking control, amalgamation or merger in trade.

Accordingly, combination transactions may require the prior approval of the relevant regulator after satisfying that such a combination is not likely to cause any adverse effect on competition.

The Competition Act established the Bangladesh Competition Commission to investigate complaints under the Act and to promulgate further rules in this regard. The Competition Commission is yet to become fully operational but is soon expected to eliminate anti-competitive practices as well promote competition for ensuring the freedom of trade.

In the past year, there’ve been a flurry of headline-busting acquisitions in the technology segment. Facebook spent $19 billion to buy WhatsApp, App Annie snapped up Distimo for better mobile metrics, and Twitter bought Gnip for more social data power. 

But atop the biggest transactions of the year, you might have missed some of the more crucial ones for marketers, or the reasons they impact marketers.

We’ve rounded up the six most important acquisitions of 2014 thus far, and shared marketing insights for each. Check it out below.

Summary of M&A in Bangladesh

As mentioned earlier, it can be concluded that Bangladesh has witnessed some of its largest M&A transactions in 2020, notwithstanding the covid-19 pandemic. The impact of the pandemic has complicated the processes involved in M&A transactions but it has certainly not prevented deals from concluding. Smaller enterprises don’t appear in the media, but numerous acquisitions are taking place every day in Bangladesh.

To date, there has not been any codified set of laws or regulations that can regulate M&A transactions and it can fairly be said that the laws and regulations in relation to M&A are rather scattered. Guidance in relation to M&A is a much-needed initiative that should be undertaken by the government as soon as possible. Possible reforms may include the enactment of a single codified M&A law or code consolidating the different scattered provisions and guidelines with reference to the various industry-specific laws in it. This would have an important bearing on the perception of the adequacy of the legal framework.

Until then, comprehensive due diligence, legal and financial, is of utmost importance before embarking on a deal. In addition, a compliant, enforceable and tax-efficient deal structuring is of the essence.

Mergers and Acquisitions in Bangladesh, M&A at TLS:

The Barristers, Advocates, and lawyers at TLS in Gulshan, Dhaka, Bangladesh are highly experienced at dealing with Mergers and Acquisitions, In TR Barristers in Bangladesh, our experience helps us to efficiently execute local and cross-border global transactions while helping you at all stages of the process and offering you cost-effective, realistic business solutions.

In addition to handling various issues related to domestic clients on a regular basis, it also has experience in consulting and assisting numerous international clients with utmost care and attention throughout their legal troubles.  For queries or legal assistance, please reach us at:

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আপনি কিভাবে সহজে এবং দ্রুত কোম্পানির শেয়ার স্থানান্তর করতে পারেন?

by Pymes Law | Feb 14, 2023 | Uncategorized

আপনি কিভাবে সহজে এবং দ্রুত কোম্পানির শেয়ার স্থানান্তর করতে পারেন?

শেয়ারের মাধ্যমে, আপনি একটি কোম্পানির একটি অংশ কিনতে পারেন, মালিকানা লাভ করতে পারেন এবং সিদ্ধান্তে ভোট দেওয়ার অধিকার পেতে পারেন। শেয়ারহোল্ডাররা তাদের শেয়ার হস্তান্তর করতে পারে, তবে সাধারণত এতে সীমাবদ্ধতা থাকে। অ্যাসোসিয়েশনের নিবন্ধগুলি দেখে, আপনি এই বিধিনিষেধগুলি সম্পর্কে আরও জানতে পারেন।

একটি কোম্পানিতে শেয়ার হস্তান্তর করতে, আপনাকে প্রথমে পরিচালনা পর্ষদকে অবহিত করতে হবে। বোর্ড স্থানান্তর অনুমোদন করার পর, বোর্ডের লিখিত সম্মতিও প্রয়োজন।

ধাপ ১:বাংলাদেশে শেয়ার হস্তান্তরের সীমাবদ্ধতা:

একটি কোম্পানির অ্যাসোসিয়েশন নিবন্ধগুলি কোম্পানির শেয়ারহোল্ডারদের তাদের শেয়ার হস্তান্তর করার অধিকারকে সীমাবদ্ধ করতে পারে। কারণ অ্যাসোসিয়েশনের নিবন্ধে শেয়ার স্থানান্তর সংক্রান্ত বিধান অন্তর্ভুক্ত থাকতে পারে। সুতরাং, আপনি যদি একটি প্রাইভেট কোম্পানিতে শেয়ার কিনতে বা হস্তান্তর করতে চান, তাহলে আপনাকে প্রথমে দেখতে হবে যে কোম্পানির আর্টিকেল অফ অ্যাসোসিয়েশনে শেয়ার হস্তান্তরের ক্ষেত্রে কোনো বিধিনিষেধ আছে কিনা।

ধাপ ২: শেয়ার হস্তান্তর করার বিষয় কোম্পানির পরিচালনা পরিষদ কে অবহিত করা:

কোম্পানির একজন শেয়ারহোল্ডার তার শেয়ার হস্তান্তর করতে ইচ্ছুক তখন তাকে শেয়ার হস্তান্তর করার বিষয় কোম্পানির পরিচালনা পরিষদ কে অবহিত করে লিখিত নোটিশ দিতে হবে। এর পর পরিচালনা পরিষদ শেয়ার স্থানান্তর অনুমোদনের জন্য একটি বোর্ড মিটিং করবে এবং বোর্ড মিটিং এ শেয়ার স্থানান্তর এর বিষয় লিখিত ভাবে সম্মতি প্রদান করবে।

 ধাপ ৩: শেয়ার হস্তান্তরের জন্য মূল্য পরিশোধ:

কোম্পানির পরিচালনা পরিষদ থেকে শেয়ার হস্তান্তর এর বিষয় লিখিত ভাবে সম্মতি পাওয়ার পর শেয়ার হোল্ডারকে তার শেয়ারের মূল্য পরিশোধ করতে হবে।

ধাপ ৪: শেয়ার স্থানান্তর

শেয়ার হোল্ডারকে তার শেয়ারের মূল্য পরিশোধ করার পর শেয়ার হস্তান্তরকারী এবং শেয়ার গ্রহিতা উভয়ই শেয়ারের হস্তান্তরের সকল ডকুমেন্ট স্বাক্ষর করবেন । তারপরে প্রয়োজনীয় শেয়ারের হস্তান্তরের সকল ডকুমেন্ট জয়েন্ট স্টক কোম্পানি ও ফার্মের নিবন্ধকের (RJSC) কাছে জমা দিতে হবে এবং সাথে শেয়ার হস্তান্তরের ফি ব্যাংকে জমা দিতে হবে।

ধাপ ৫: স্বাক্ষর যাচাইকরণ:

রেজিস্ট্রেশন অব জয়েন্ট স্টক কোম্পানি অ্যান্ড ফার্মের নিবন্ধকের এর কাছে প্রয়োজনীয় শেয়ার হস্তান্তরে ডকুমেন্ট জমা দেওয়ার পর হস্তান্তরকারীর স্বাক্ষর যাচাই করার জন্য হস্তান্তরকারীকে ব্যক্তিগতভাবে রেজিস্ট্রারের সামনে উপস্থিত হয়ার জন্য তারিখ প্রদান করবে। নিদ্দিষ্ট দিনে হস্তান্তরকারীকে ব্যক্তিগতভাবে রেজিস্ট্রারের সামনে উপস্থিত হতে হবে এবং শেয়ার স্থানান্তরের সত্যতা নিশ্চিত করতে পুনরায় স্বাক্ষর করতে হবে।

ধাপ ৬: বিদেশী নাগরিক বা কোম্পানির শেয়ার স্থানান্তর প্রক্রিয়া:

যদি শেয়ার হস্তান্তরকারী একজন বিদেশী নাগরিক হন এবং বাংলাদেশে আসতে অক্ষম হন তাহলে শেয়ার হস্তান্তরের সকল ডকুমেন্ট এবং হলফনামা বাংলাদেশ দূতাবাস/হাইকমিশনের মাধ্যমে অনুমোদিত অফিসার দ্বারা সত্যায়িত করতে হবে এবং হস্তান্তরের ডকুমেন্ট পরবর্তীতে পররাষ্ট্র মন্ত্রণালয় দ্বারা যাচাই করে সত্যায়িত ডকুমেন্ট জয়েন্ট স্টক কোম্পানি ও ফার্মের নিবন্ধকের কাছে জমা দিতে হবে।

ধাপ ৭: অর্থপ্রদানের প্রমাণ প্রয়োজনীয়তা

শেয়ার হস্তান্তরকারী এবং শেয়ার গ্রহিতা উভয়ই বাংলাদেশের নাগরিক হলে অর্থপ্রদানের কোন প্রমাণের প্রয়োজন নেই। কিন্তু যদি হস্তান্তরকারী এবং শেয়ার গ্রহিতার মধ্যে একজন বিদেশী নাগরিক হন তাহলে রেজিস্ট্রেশন অব জয়েন্ট স্টক কোম্পানি অ্যান্ড ফার্মে ব্যাংক সলভেন্সিসার্টিফিকেট জমা দিতে হবে।

ধাপ ৮: ফর্ম ১১৭

হস্তান্তরকারী সমস্ত প্রয়োজনীয় কাগজপত্র সম্পূর্ণ করারা সাথে ফর্ম ১১৭ তৈরী করতে হবে । হস্তান্তরকারী কে রেজিস্ট্রেশন অব জয়েন্ট স্টক কোম্পানি অ্যান্ড ফার্মের প্রতিনিধিদের উপস্থিতিতে ফর্ম ১১৭ স্বাক্ষর করতে হবে। কোম্পানি ফর্ম ১১৭ এর একটি স্বাক্ষরিত অনুলিপি সরবারাহ করতে হবে।

ধাপ ৯: স্ট্যাম্প শুল্ক প্রদান:

প্রতিটি শেয়ারের ফেস ভ্যালুর উপর ১.৫% স্ট্যাম্প শুল্ক প্রদান করতে হবে।

ধাপ ১০: শেয়ার সার্টিফিকেট ইস্যু এবং রেজিস্ট্রার বই আপডেট করা

উপরে উল্লিখিত কাজ সম্পন্ন করার পরে, কোম্পানির তার শেয়ার রেজিস্ট্রার, শেয়ার ট্রান্সফার রেজিস্ট্রার আপডেট করা এবং নতুন শেয়ার হোল্ডারের অনুকূলে শেয়ার সার্টিফিকেট ইস্যু করা

কোন কোম্পানির শেয়ার হস্তান্তর জন্য যে সকল ডকুমেন্টের প্রয়োজন

•  হলফনামা
•  ফর্ম ১১৭
•  ফর্ম ১১২
•  শেয়ার বিক্রির জন্য অফার লেটার
•  বিদেশী নাগরিক শেয়ার হোল্ডারের ক্রয়কৃত শেয়ার মূলধনের সমর্থনে ব্যাংক সলভেন্সি সার্টিফিকেট।
•  শেয়ার ট্রান্সফার সংক্রান্ত কোম্পানির পরিচালনা পরিষদ কর্তৃক অনুমোদন পত্র:
•  কোম্পানির বোর্ড রেজুলেশন মাধ্যেমে শেয়ার হস্তান্তরের অনুমোদন করে;
•  শেয়ার সার্টিফিকেট, শেয়ার রেজিস্টার, শেয়ার ট্রান্সফার রেজিস্টার।

তাহমিদুর রহমান রিমুরা টি এল এস ল ফার্ম কর্তৃক আইনী সেবা:

তাহমিদুর রহমান রিমুরা টি এল এস ল ফার্ম একটি সনামধন্য ‘ল’ চেম্বার যেখানে ব্যারিস্টারস , আইনজীবীর মাধ্যমে সকল বিষয়ে আইনগত সহায়তা, পরামর্শ প্রদান করে থাকে। কোম্পানির শেয়ার হস্তান্তর জন্য যে কোন প্রশ্ন বা আইনী সহায়তার জন্য আমাদের সাথে যোগাযোগ করুনঃ-

GLOBAL OFFICES:
DHAKA: House 410, ROAD 29, Mohakhali DOHS
DUBAI: Rolex Building, L-12 Sheikh Zayed Road
LONDON: 1156, St Giles Avenue, Dagenham

 Email Addresses:
info@trfirm.com
info@tahmidur.com
info@tahmidurrahman.com

 24/7 Contact Numbers, Even During Holidays:
+8801708000660
+8801847220062
+8801708080817

Warisan Certificate in Bangladesh

by Pymes Law | Feb 14, 2023 | Uncategorized

How to Obtain a Warisan and Succession Certificate

A Warisan and Succession Certificate is a vital document used to determine the successors or heirs of a deceased person. The Warisan Certificate is issued by the Ward Councilor’s Office within the City Corporation area, the Ward Commission’s Office within the Pourashava area, or the Union Parishad Chairman’s Office within the Union Parishad area. The Succession Certificate, on the other hand, can only be granted by the Court under Section 371 of the Succession Act of 1925. In this article, we will discuss how to obtain a Warisan Certificate and a Succession Certificate from the appropriate authority in Bangladesh.

How to Obtain a Warisan and Succession Certificate

Succession is necessary to prove the inheritance of property ownership by the survivors of a deceased property owner. Usually succession is done in two stages:

(A) Obtaining a Succession (Warishan) Certificate from the local government authorities, such as the City Corporation, Municipality, or Union Parishad, and (B) Obtaining a Succession Certificate from a Court of Law. Typically, one of the deceased’s heirs must apply to the Court for a Succession Certificate. This is treated as a lawsuit and is resolved by the Court verifying the authenticity of the successors. The turnaround time for procession succession certificates through court is usually three months or more, depending on the time availability of the court schedule and the court officials’ regular presence. On the other hand, obtaining a warishan certificate from the local government is a lot easier and takes less time. In order to obtain Court Succession, the government charges a fee. In both cases, service charges apply.

Service Include

(a) Assist and facilitate in obtaining Succession Certificate or Warishan Certificate from the Court or Municipal Office
(b) Counseling and guidance re: Court proceedings 

Service Exclude
(a) Govt Fees
(b) Misc Charges
(c ) Any additional Cost
(d) Service requests outside Dhaka City Corporation jurisdiction
(e ) Collection or making up charges for shortage of or issues with documents

Terms & Condition
(a) The service charges quoted against each of the services under different categories are standard minimum charges. 
(b) Service charges would vary on a case to case basis, based on incompleteness of the property documents, legal observations on the property ownership, faulty or fraudulent chain of ownership, attachment of govt interests on the property ownership, difference in the nature of property; i.e. Leasehold vs. Freehold etc. etc.
(c ) As of now, our services are extended throughout the geographical limits of Dhaka City only. Gradually our services would be expanded beyond Dhaka City in the surrounding and adjoin areas as well as other Divisional Towns 

WHAT IS A WARISAN CERTIFICATE?

It is a certificate that contains the list of heirs of a deceased person and is printed on the letterhead pad of the Ward Councilor’s Office in the City Corporation area, the Ward Commission’s Office in the Pourashava area, or the Union Parishad Chairman’s Office in the Union Parishad area. Unless cancelled by the appropriate authority, this certificate is evidence of the deceased person’s heirs.

WHAT IS A SUCCESSION CERTIFICATE?

It is a certificate that confirms the proportion of the share of property, particularly deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, and so on, and it must be granted by the appropriate court. According to Section 371 of the Succession Act 1925, the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if at that time he had no fixed place of residence, the District Judge within whose jurisdiction any part of the deceased’s property may be found, may grant a certificate.

WHY IS A WARISAN CERTIFICATE NECESSARY?

It is required for the partition and distribution of immovable property among the deceased person’s heirs. Furthermore, this document is required for a variety of purposes and government offices, such as the AC Land and Sub-Registry Office for the completion of mutation and transfer of land.

WHY IS A SUCCESS CERTIFICATE NECESSARY?

It is required, where the deceased person has left some immovable property, such as deposits in banks (liquid money), shares, cars, certificates and bonds, stocks, insurance amount, etc., that an application under Section 372 of the Succession Act, 1925 is issued by the court to establish the ownership of that deceased person’s legal heirs. This certificate is required by the bank and other government offices in order to transfer ownership of these immovable properties.

HOW TO OBTAIN A WARISAN CERTIFICATE

Process 1: Documents required:

Photos (passport size) of the applicant and heirs, NIDs of the applicant and heirs, Applicant’s parent’s name, Applicant’s current address, Applicant’s permanent address, NID of the deceased person, and Death Certificate of the deceased person.
Process 2: Fill out the application form

If the deceased person ordinarily resided within the city corporation area at the time of his death, the application form is available in the Ward Councilor’s Office. This form is also available online for Dhaka North City Corporation by clicking here and Dhaka South City Corporation by clicking here.
If the deceased person ordinarily resided in the Pourashava area at the time of his death, the application form is available at the Ward Commission’s Office.
If the deceased person ordinarily resided in the Union Parishad area at the time of his death, the application form can be found in the Union Parishad Chairman’s Office.
It is important to note that this Warisan Certificate is now available through a full-fledged online process by clicking here. This online process makes obtaining the Warisan Certificate simple and quick. However, this online process is not available to all city corporations, Pourashava, or Union Parishad, and this information can also be found by clicking the above-mentioned link.
Process 3: Application submission

The completed application form, along with the above-mentioned documents, must be submitted to the appropriate authority.
HOW TO GET A SUCCESS CERTIFICATE:

Process 1: Documents required:

Photographs (passport size) of the applicant and heirs, NIDs of the applicant and heirs, NID of the deceased person, Warisan Certificate, and Death Certificate of the deceased person.

Process #2: Application Preparation:

According to Section 372 of the Succession Act, 1925, the applicant will prepare an application, verify and sign it, and submit it to the District Judge within whose jurisdiction the deceased ordinarily resided at the time of his death, or, if he had no fixed place of residence at the time of his death, the District Judge within whose jurisdiction any part of the deceased’s property may be found after paying the appropriate court fees.

Process 3: Court Proceedings:

The appropriate Court will begin the proceedings by holding a preliminary hearing on the application and deciding whether or not the application is admissible.
Following the preliminary hearing, the judge will set a date for the final hearing and send notice of the hearing to whomever the judge deems appropriate.

After the final hearing, when the Judge determines that the applicant has the right to the certificate, the Judge shall issue an order granting the certificate to the applicant.

If the Judge cannot decide the right to the certificate without deciding questions of law or fact that appear to be too intricate and difficult to resolve in a summary proceeding, he may still grant the certificate to the applicant if he appears to be the person with the best prima facie title to it.

GLOBAL OFFICES:

DHAKA: House 410, ROAD 29, Mohakhali DOHS
DUBAI: Rolex Building, L-12 Sheikh Zayed Road
LONDON: 1156, St Giles Avenue, Dagenham

 Email Addresses:
info@trfirm.com
info@tahmidur.com
info@tahmidurrahman.com

 24/7 Contact Numbers, Even During Holidays:
+8801708000660
+8801847220062
+8801708080817

Process 4- Certificate Contents:

When the District Judge grants a certificate, he must specify the debts and securities specified in the application for the certificate and may thus empower the person to whom the certificate is granted-

(a) to receive interest or dividends on, or

(b) to negotiate or transfer, or

(c) both to receive interest or dividends on, and to negotiate or transfer, the securities or any of them.

A succession certificate is a document that gives authority to the successor of a deceased person, to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. Succession Certificate is granted by a Civil Court to the legal heirs of a deceased person who dies without leaving a will under the Succession Act 1925. It establishes the authenticity of the heirs and gives them the authority to have securities and other assets transferred in their names as well as inherit debts.

How to Obtain Succession Certificate: 

Required Documents: 

• Death Certificate & NID of the Deceased 
• Warisan Sanad of the Heirs 
• Statements of Debts and Securities (e.g. Bank Statement)
• NID of the Applicants (Heirs of the Deceased)

• Death Certificate: Death Certificate have to collected from the concern City Corporation/Municipality/Union Parishad as per Birth and Death Registration Act, 2004. 
• Warisan Sanad: It contains the list of the heirs of the deceased. It have to collect from the concern City Corporation / Municipality/Union Parishad.

Contact the best law firm for Warisan and Succession certificate collection in Bangladesh:

Tahmidur Rahman Remura is a full-service law firm in Dhaka which has been dealing with Warisan and Succession issues through its competent and experienced lawyers. Therefore, if you need any assistance or consultation, visit their chamber at Mohakhali DOHS.

মালিকানা পরিবর্তন

by Pymes Law | Jan 31, 2023 | Uncategorized

বাংলাদেশে জমির মালিকানা পরিবর্তন ২০২৩ এ

জমির মালিকানা কার–এই তথ্য খুঁজে বের করা বেশ কঠিন কাজ। কারন দিন দিন জনসংখ্যা বৃদ্ধি পাচ্ছে পাশাপাশি একজন অন্য জনের জমি দখলের ঘটনাও দিন দিন বাড়ছে। আবার অনেকেই জানে না যে তাদের কোথায় জমি আছে। এই সকল কারনে একই জমি একাধিক মালিকের নামে তালিকাভুক্ত হচ্ছে। সুতরাং, জমি ক্রয়-বিক্রয়ের সময় জমিটি কার নামে আছে এবং সে জমিটির মালিক কিভাবে হয়েছে তা দেখে নেওয়া খুবই জরুরি। আইনিসেবা পূর্ববর্তী মালিক সঠিকভাবে বা আইনিভাবে জমি/সম্পত্তির মালিকানা লাভ করেছে কিনা – তা অনুসন্ধানে সকল প্রকার সহায়তা করে থাকে। 

নিন্মোক্ত দলিল সঠিকভাবে সম্পাদনের মাধ্যমে জমি/সম্পত্তির মালিকানা পরিবর্তন করা যায়ঃ

• হেবা
• বিক্রয়
• ওয়াকফ
• উত্তরাধিকার
• উইল/ অছিয়ত
• নামজারি
• পাওয়ার অব অ্যাটর্নি

কোন ক্ষেত্রে কোন দলিল প্রয়োজনঃ

হেবা – কোনো মুসলমান অন্য কোনো মুসলমানকে কোনো বিনিময় ব্যতিরেকে কোনো সম্পত্তি হস্তান্তর করলে তাকে হেবা বলে। হেবা সম্পন্ন করার জন্য তিনটি বিষয় অত্যন্ত গুরুত্বপূর্ণ-হেবার প্রস্তাব, গ্রহীতার সম্মতি এবং দখল হস্তান্তর।

বিক্রয়  – বিক্রয় হচ্ছে দুই বা তার অধিক পক্ষের মধ্যে লেনদেন করা যেখানে ক্রেতা অর্থের বিনিময়ে দৃশ্যমান বা অদৃশ্যমান পণ্য, সেবা বা সম্পত্তি গ্রহণ করে থাকে। এককথায়, মুনাফা অর্জনের উদ্দেশ্যে দুইটি পক্ষের মধ্যে পণ্য বা সেবার আদান-প্রদানকে সেলস বা  বিক্রয় (Sales) বলে।

ওয়াকফ – ১৯৬২ সালে জারিকৃত ‘ওয়াকফ অধ্যাদেশ ১৯৬২’ এর আইন অনুযায়ী ওয়াকফ সম্পত্তির কার্যক্রম পরিচালিত হয়। ওয়াকফ বলতে, যেকোন মুসলমান কর্তৃক ধর্মীয়, পবিত্র বা দাতব্য কাজের উদ্দেশ্যে তার স্থাবর বা অস্থাবর সম্পত্তি মালিকানা স্থায়ীভাবে উৎসর্গ করাকে বুঝায়।

নামজারি – নামজারি বলতে মালিকানার পরিবর্তনের সাথে সাথে নামের পরিবর্তনকে বুঝায়। উদাহরন স্বরুপ মনেকরি জমির রেকর্ডীয় মালিক আবু তাহের, সে এক স্ত্রী, এক মেয়ে ও দুই ছেলে রেখে মৃত্যু বরন করেন। এখন তার মৃত্যুর পর তার স্ত্রী ছেলে ও মেয়েদের নামে রেকর্ড হালনাগাদ করাকেই নামজারি বলে।

পাওয়ার অবঅ্যাটর্নি – পাওয়ার অব অ্যাটর্নি বা আমমোক্তারনামা হলো কোন ব্যক্তিকে কোন কাজ করার ক্ষমতা প্রদান করা অর্থাৎ কোন ব্যক্তিকে অন্য কোন ব্যক্তির পক্ষে কোন কাজ সম্পাদন করে দেওয়ার জন্য লিখিতভাবে ক্ষমতা প্রদান করাই হলো পাওয়ার অব অ্যাটর্নি।

তাহমিদুর রহমান রিমুরা ল চেম্বার এর আইনিসেবার মাধ্যমে আপনি আগের মালিকের দলিলাদি, খতিয়ান যাচাই, নতুন দলিল তৈরিসহ রেজিস্ট্রেশন এবং পরবর্তীতে নামজারির সেবা গ্রহণ করে সম্পূর্ণ চিন্তামুক্ত থাকতে পারেন। আপনার যে কোন প্রয়োজনে আমাদের সাথে লাইভ চ্যাট বা ফোনে কথা বলতে পারেন।

প্রত্যেক ব্যক্তি, যার স্থাবর সম্পত্তির মালিকানার অধিকার রয়েছে এবং অধিকারের রেকর্ড বা অন্যান্য পাবলিক নথিতে লিপিবদ্ধ করা হয়েছে যেখানে মালিকানার রেকর্ড প্রবেশ করানো বা রক্ষণাবেক্ষণ করা হয়েছে, তাকে স্থাবর সম্পত্তির আইনী মালিক হিসাবে বিবেচনা করা হয় এবং এই জাতীয় সম্পত্তি হস্তান্তর করার অধিকারী, হয় সম্পূর্ণ বা আংশিক। যে কোনো ব্যক্তি যদিও স্থাবর সম্পত্তির মালিক নন কিন্তু তার মালিক কর্তৃক তা হস্তান্তরের জন্য আইনত অনুমোদিত তিনিও এই ধরনের সম্পত্তি হস্তান্তর করতে সক্ষম। স্থাবর সম্পত্তির অধিকারী সম্পত্তির মালিকানা দাবি করতে পারে তবে শুধুমাত্র একটি স্থাবর সম্পত্তির দখলের অর্থ এই নয় যে ব্যক্তি সম্পত্তির প্রকৃত মালিক। স্থাবর সম্পত্তির শিরোনাম, যেমন আপনি প্রশংসা করবেন, হয় ক্রয়, দীর্ঘমেয়াদী ইজারা, উপহার বা উত্তরাধিকার ইত্যাদির মাধ্যমে অর্জিত হতে পারে। সম্পত্তিটি বিক্রি করতে পারে এমন প্রকৃত মালিককে নিশ্চিত করার জন্য, এটি বিশেষভাবে প্রয়োজন অধিকারের রেকর্ড বা অন্যান্য পাবলিক নথি পরীক্ষা করুন যেখানে মালিকানার রেকর্ড প্রবেশ করানো বা রক্ষণাবেক্ষণ করা হয়।

ভূমি অফিস থেকে অধিকারের রেকর্ড নিশ্চিত করুনঃ

বাংলাদেশে ভূমি প্রশাসন ব্যবস্থা মালিকানার রেকর্ড এবং রাজস্বের রেকর্ড আলাদা করে। আমাদের ভূমি রেকর্ড ও জরিপ অধিদপ্তর, ভূমি মন্ত্রণালয়ের অধীনে ভূমি রেকর্ড, জরিপ, প্রকাশনা এবং রেকর্ড রক্ষণাবেক্ষণের জন্য ভূমি রেকর্ড অফিস রয়েছে। বাংলাদেশেও ভূমি মন্ত্রণালয়ের অধীনে ভূমি রাজস্ব অফিস রয়েছে। প্রতিটি উপজেলায় (উপজেলা) ১১টি প্রশাসনিক কার্যালয় রয়েছে। বাংলাদেশে ৬৪টি জেলা রয়েছে কিন্তু তাদের মধ্যে মাত্র ৬১টিতে নিবন্ধন সুবিধা রয়েছে।
তিন পার্বত্য জেলায় নিবন্ধন কেন্দ্র নেই। ঢাকায়, জেলা ভূমি নিবন্ধন অফিসে আইন মন্ত্রণালয়ের অধীনে ১৩টি সাব-রেজিস্ট্রার অফিস রয়েছে।

বিয়া দলিল, খতিয়ান এবং বিক্রেতার অনুকূলে সম্পত্তির মিউটেশন চেক ও যাচাই করুনঃ

বর্তমান বিক্রেতা যদি ক্রয়ের মাধ্যমে জমি প্রাপ্ত করে থাকেন, তাহলে বর্তমান ক্রেতাকে প্রথমে মালিকানার চেইন নিশ্চিত করার জন্য এই ধরনের সমস্ত বিক্রয় দলিল (বিয়া দলিল) দেখতে হবে এবং এটি বাঞ্ছনীয় যে কমপক্ষে 25 বছরের মালিকানার চেইন স্পষ্টভাবে নির্ধারণ করা উচিত।

দ্বিতীয় ধাপ হল বিক্রেতার কাছ থেকে খাতাইন আকারে নথি চাওয়া। ক্রেতাকে বিক্রেতার দ্বারা সরবরাহকৃত খতিয়ান রেকর্ড (C.S., S.A. R.S., B.S./City Jarip) পরীক্ষা করা উচিত এবং সরবরাহ করা নথিগুলি বিক্রেতার পক্ষে মালিকানা (ক্রয় বা উত্তরাধিকারের মাধ্যমে) প্রতিষ্ঠিত করে কিনা তা আইনজীবীদের মাধ্যমে যাচাই করতে হবে। উল্লেখ্য যে বিক্রেতা কর্তৃক সরবরাহকৃত খসড়া/খোসরা খতিয়ান রেকর্ড যাচাই করার যোগ্য নয় এবং ক্রেতাকে অবশ্যই প্রত্যয়িত/মুদ্রিত খতিয়ানের কপি চাইতে হবে।
ক্রেতাকে ডেপুটি কালেক্টর অফিসে রেকর্ড সহ খতিয়ান যাচাই করতে হবে (সম্ভাব্য বিক্রেতাদের দ্বারা খতিয়ান তৈরির দীর্ঘ ঐতিহ্য রয়েছে)। সংশ্লিষ্ট সম্পত্তির শেষ দুই খতিয়ানে সুনির্দিষ্ট গুরুত্ব দিতে হবে।

শারীরিক সমীক্ষা

সবচেয়ে গুরুত্বপূর্ণ, ক্রয়কারীকে জমির ভৌত জরিপ করা উচিত। এটি বর্তমান শর্তও প্রদান করবে এবং জমির দখল যাচাই করবে।
সম্পত্তির গ্রাউন্ড রেট প্রদানের যাচাইকরণ
ক্রেতাকে বিক্রেতাকে সম্ভাব্য জমির জন্য হালনাগাদ গ্রাউন্ড ভাড়া প্রদানের রেকর্ড জমা দিতে বলা উচিত। এখানে উল্লেখ্য যে গ্রাউন্ড রেট স্পষ্ট না হলে সাব-রেজিস্ট্রার অফিস বিক্রেতার পক্ষে সম্পত্তি নিবন্ধন করতে অস্বীকার করতে পারে।

একাধিক বিক্রেতা এবং অ্যাটর্নি

বিক্রেতার পূর্বসূরির নামে জমি লিপিবদ্ধ থাকলে, স্থানীয় সরকারের প্রতিনিধি কর্তৃক বিক্রেতাদের অনুকূলে ইস্যুকৃত ওয়ারিশান সার্টিফিকেট যাচাই করতে হবে।
এছাড়াও, যদি জমিটি উত্তরাধিকারীদের কেউ বিক্রি করে থাকে (সবাই নয়), পার্টিশনের নিবন্ধিত দলিল/বিয়া দলিল চেক করতে হবে।
জমিটি অনুমোদিত অ্যাটর্নি দ্বারা বিক্রি করা হলে, নিবন্ধিত পাওয়ার অফ অ্যাটর্নি প্রয়োজন৷

সংশ্লিষ্ট সাব-রেজিস্ট্রি অফিস থেকে নন-কমব্রেন্স সার্টিফিকেট নিন

ক্রেতাকে সংশ্লিষ্ট সাব-রেজিস্ট্রি অফিসে জমির আইনি অবস্থা (বন্ধক বা ইজারা বা মালিকানা) পরীক্ষা করতে হবে। জানুয়ারী 2012 থেকে, সাব-রেজিস্ট্রি এবং ভূমি রাজস্ব অফিস উভয়ই নন-কমব্রেন্স সার্টিফিকেট প্রদান করে। কখনও কখনও জমি রিপোর্ট প্রয়োজন হয়.
একটি ভূমি প্রতিবেদন ভূমির বর্তমান অবস্থা এবং মালিকানা সম্পর্কে একটি ধারণা দেয় যার মধ্যে মালিকানার চেইন, ভূমি কর, জমির রেকর্ড, রেজিস্ট্রি স্ট্যাটাস ইত্যাদি অন্তর্ভুক্ত থাকতে পারে, যেখানে সম্পত্তি লেনদেনে একটি অ-দায়িত্ব শংসাপত্র ব্যবহার করা হয় এনটাইটেলমেন্টের প্রমাণ হিসাবে। সম্পত্তি

স্থানান্তরের দলিল প্রস্তুত করুন এবং স্ট্যাম্প ডিউটি প্রদান করুন

একজন আইনজীবী হস্তান্তর দলিল প্রস্তুত করতে পারেন, তবে এটি দলগুলি নিজেরাও প্রস্তুত করতে পারে। দলিলটি অবশ্যই স্ট্যাম্পড পেপারে প্রস্তুত করতে হবে যা এটি পেতে সম্পত্তির মূল্যের 3% খরচ করতে হবে। এটি স্ট্যাম্প ডিউটি প্রতিনিধিত্ব করে। এছাড়াও, বিক্রেতা এবং ক্রেতার মধ্যে সম্পাদিত যেকোন বাইনা দলিলকেও নিবন্ধিত করতে হবে।
একটি মনোনীত ব্যাঙ্কে মূলধন লাভ কর, নিবন্ধন ফি, ভ্যাট এবং অন্যান্য কর প্রদান করুন
নিবন্ধন ফি সাব-রেজিস্ট্রি অফিসের অনুকূলে ব্যাংকে প্রদেয় এবং নিবন্ধনের জন্য আবেদন করার মুহূর্তে রসিদ উপস্থাপন করতে হবে।
ক্রেতাকে স্থানীয় সরকার কর সংশ্লিষ্ট সিটি কর্পোরেশন বা পৌরসভা অফিসে দিতে হবে। উপরন্তু, একটি মূলধন লাভ কর (CGT) এবং 1.5% ভ্যাট (শুধুমাত্র বেসরকারি আবাসন এবং ফ্ল্যাট বিকাশকারী এবং বাণিজ্যিক ব্যবসার দ্বারা প্রদেয় পৌর কর্পোরেশন এলাকার জন্য প্রযোজ্য) এই পর্যায়ে দিতে হবে। কৃষির জন্য গ্রামীণ এলাকায় ক্যাপিটাল গেইন ট্যাক্স প্রযোজ্য নয়।

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Company: Tahmidur Rahman Remura Law Firm
Contact Person: Tahmidur Rahman
Email Address: info@tahmidur.com
Website: https://tahmidurrahman.com/
Phone Number: +8801847220062 & +8801779127165

Ship Arrest lawyers in Bangladesh

by Pymes Law | Jan 23, 2023 | Uncategorized

Capture of an Admiralty Ship in Bangladesh

Admiralty time legislation dates back to the Admiralty Courts Act of 1840. After that, the Admiralty Court Act of 1861, The Courts of Admiralty Act of 1891, and the Admiralty Rules of 1912 were added to the Act. The Admiralty Courts Act of 2000 now governs all aspects of admiral admiralty in Bangladesh.

Admiralty maritime ship arrest lawyers are normally involve the detention of a vessel for the purpose of securing a claim against it. This can include claims for unpaid debts, cargo damage, and other maritime disputes. Typically, these services are provided by attorneys with expertise in admiralty law and international maritime law, and they may involve collaboration with local courts, government agencies, and other legal authorities. Creditors typically initiate ship arrest by filing a complaint and a warrant for the ship’s arrest, followed by the marshal’s physical arrest of the vessel. The arrest of the vessel creates a lien and prevents the ship from leaving port until the dispute is resolved. If the disputes are not resolved, the arrested vessel can be auctioned off to pay off the debts.

This is Admiralty Court

The High Court Division of Bangladesh’s Supreme Court has original jurisdiction over admiralty cases.

Admiralty refers to ships or vessels anchored in any Bangladeshi port.

Capture of an Admiralty Ship in Bangladesh

Admiralty Court Authority

The Admiralty Court shall have the authority to hear and decide any questions or claims pertaining to (a) the possession or ownership of a ship; or (b) the operation of a ship. (b) any question arising between co-owners of a ship as to possession, employment, or income of that ship;(c) any claim in respect of a mortgage or charge on a ship or any share therein;(d) any claim for damage done by a ship;(e) any claim for damage received by a ship;(f) any claim for loss of life or personal injury sustained as a result of any defect in a ship; (g) any claim for loss or damage to goods carried in a ship;(h) any claim arising out of any agreement relating to the carriage of goods in a ship or the use or hire of a boat;(i) any claim relating to the rescue of life from a boat. (j) any claim relating to the towing of a vessel or aircraft;(k) any claim relating to the forfeiture or condemnation of a vessel or goods.

Mode of workout

Under certain conditions, the High Court Division’s admiralty jurisdiction may be exercised personally and by action in rem. The Admiralty Jurisdiction of the High Court Division, also known as the Court of Admiralty, may be exercised via an action against a ship, aircraft, or property.

Suit Initiation: An action or suit brought before the High Court Division must be initiated by a plaint drafted, subscribed, and verified in accordance with the Code of Civil Procedure (1908). According to section 7 of the 2000 Admiralty Act, the maximum court fee for Admiralty cases is Taka.1, 00,000 (One Lac), with the exception of claims by the master or crew for wages earned on board.

Legal Services for Maritime Ship Arrests by the Admiralty

Attorneys can provide counsel on the legal process of ship arrest, including the requirements and procedures for obtaining an arrest warrant and the legal grounds for arrest.

Attorneys can represent clients in court proceedings related to the arrest, such as hearings to determine the legality of the arrest and challenges to the release of the arrested ship.

By providing evidence of ownership or other grounds for dismissal, attorneys can aid clients in securing the release of arrested ships.

To resolve the dispute and secure the ship’s release, attorneys can assist in negotiating settlements between the parties involved in the arrest.

Attorneys can advise clients on their legal rights and responsibilities in relation to their arrest and any disputes that may arise.

The High Court Division of the Supreme Court of Bangladesh has admiralty jurisdiction, i.e the court of first instance for admiralty suits. 

Section 3 of the Admiralty Court Act 2000:

(1) The High Court Division shall be a Court of Admiralty.

(2) The Admiralty Court shall have jurisdiction to hear and determine any of the following questions or claims:

(a)    any claim to the possession or ownership of a ship or to the ownership of any share therein or for recovery of documents of title and ownership of a ship, including registration certificate, log book and such certificates as may be necessary for the operation or navigation of the ship;

(b)   any question arising between the co-owners of a ship as to possession, employment or income of that ship;

(c)    any claim in respect of a mortgage of or charge on a ship or any share therein;

(d)   any claim for damage done by a ship;

(e)    any claim for damage received by a ship;

(f)    any claim for loss of life or personal injury sustained in consequence of any defect in a ship or in her apparel or equipment, or of the wrongful act, neglect or default of the owners, charterer or persons in possession or control of a ship or of the master or crew thereof or any other persons for whose wrongful acts, neglects or defaults the owners, charterers or persons in possession or control of ship are responsible, being an act, neglect or default in the navigation or management of the ship, in the loading, carriage or discharge of goods on, in or from the ship or in the embarkation, carriage or disembarkation of persons on, in or from the ship;

(g)    any claim for loss of or damage to goods carried in a ship;

(h)   any claim arising out of any agreement relating to the carriage of goods in a ship or to the use or hire of a ship;

(i)     any claim in the nature of salvage of life from a ship or cargo or any property on board a ship or the ship itself or its apparel, whether services were rendered on the high sea or within territorial waters or inland waters or in a port, including any claim arising by virtue of the application by or under section 12 of the Civil Aviation Ordinance, 1960, (Ordinance XXXII of 1960) of the law relation to salvage to aircraft and their apparel and cargo;

(j)     any claim in respect of towage of a ship or an aircraft;

(k)   any claim in respect of pilotage of a ship or an aircraft; 

(l)     any claim in respect of goods or materials supplied to a ship for her operation or maintenance;

(m)any claim in respect of construction, repair or equipment of a ship or dock charges or dues;

(n)   any claim for wages by a master or member of the crew of a ship or any claim for any money or property recoverable as wages of master or member of the crew under the Merchant Shipping Ordinance, 1983, hereinafter referred to as the Ordinance, or in the Court;

(o)   any claim for disbursements made on account of or for the purpose of a ship by the Master, shipper, charterer or agent of the ship;

(p)   any claim arising out of an act which is or is claimed to be a general average act;

(q)   any claim arising out of bottomry or respondentia; 

(r)     any claim for forfeiture or condemnation of a ship or of goods which are being or have been carried, or have been attempted to be carried, or for the restoration of a ship or any such goods after seizure, or for droits of admiralty together with any other jurisdiction to grant reliefs as are provided under the provisions of the said Ordinance or any other jurisdiction which was vested in the High Court Division as a Court of Admiralty immediately before the commencement of this Act and any other jurisdiction as to any matter in connection with ships or aircraft which has by custom been exercised by the High Court Division as a Court of Admiralty.

(3) The jurisdiction of the Court of Admiralty in case of a ship, under Sub-Section (2)(b) includes power to settle any account outstanding and unsettled between the parties in relation to the ship, and to direct that the ship, or any share thereof, shall be sold, and to make such other order as the Court thinks fit.

(4)  The reference in sub-section (2)(i) to claim in the nature of salvage includes a reference to such claims for services rendered in saving life from a ship or an aircraft of in preserving cargo, apparel or wreck as, under any law for the time being in force, are authorized to be made in connection with a ship or an aircraft.

(5)  The preceding provisions of this section shall apply-

(a)  in relation to all ship or aircraft, whether Bangladeshi or not and whether registered or not and wherever the residence or domicile of their owners may be;

(b)  in relation to all claims, irrespective of the plaice of claim, claims relating to salvage or cargo or wreck or cargo or wreck found on the ground; and

(c)  in relation to mortgage and charge, to all legal and equitable mortgages or charges, including mortgages and charges created under foreign law whether registered or not:

  Provided that, nothing in this sub section shall be deemed to be applicable to money or property recoverable under the said Ordinance.

Execution of Judgment

Upon satisfaction of a well-grounded case, the Honorable Court may enforce the payment of a judgment by attachment against the party on whose behalf a caveat has been entered, or by seizure of the property if no caveat has been entered. Unless the Honorable Court orders otherwise, the Marshal will conduct an order of sale as a sale of movable property in execution of a decree in an ordinary civil suit. In practice, a bank guarantee will be cashed in favor of the judgment debtor if it is provided. The Honorable Court will also enforce the mental and arbitral decisions of foreign judges.

Legal Assistance Required for Admiralty Maritime Ship Arrest in Bangladesh

Barristers, Advocates, and attorneys at Tahmidur Rahman Remura in Mohakhali DOHS, Bangladesh, have extensive experience assisting clients.

Legal Services for Maritime Ship Arrests by the Admiralty

For questions or legal counsel, please contact us at:

E-mail: info@tahmidurrahman.com
Phone: +8801847220062
House 410 Road 29 Mohakhali DOHS is the address.