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Presence of shareholder is mandatory for share transfer – RJSC

Physical presence of the shareholder is now compulsory for transfer of shares. By a circular on March 27, 2016, the Registrar of Joint Stock Companies and Firms (RJSC) impose this condition. Main goal of the circular is to prevent fraud relating to transfer of shares.

The circular does not provide any guideline for corporate shareholders or foreigner shareholders. How these types of shareholders will transfer their shares is not clear from the circular.

Though RJSC issued this circular now, in practice, they imposed this condition for the last several months. We are already facing trouble with transferring share of some of our foreign and corporate clients.

You may read this article to learn more about transfer of shares of a Bangladeshi company.

All power producers must become member of BIPPA

All power producers in Bangladesh including Independent Power Producers (IPP), Small Independent Power Producers (SIPP) and Commercial Power Producers (CPP) must become member of Bangladesh Independent Power Producers’ Association (BIPPA). Ministry of Commerce on February 25, 2016, issued a circular (স্মারক নম্বর-বাম/টিও-২/এ-৪০/২০১৪/৫৭) in this regard.

Bangladesh Independent Power Producers’ Association (BIPPA) is a trade organization formed under the Trade Organizations Ordinance, 1961. Section 13 of the Trade Organizations Ordinance, 1961 empowers the government to impose such compulsory membership of a trade organization. No timeline is mentioned in the circular. If you are a power producer, you should become a member of BIPPA without any delay.

If any power producer does not become a member of BIPPA, it may be fined by the government.

Import Policy Order 2015-18 introduced

After almost 6 months delay, Bangladesh government on February 15, 2016, introduced the Import Policy Order 2015-18. The previous policy expired on 30th June 2015 (however it was valid till the Import Policy Order 2015-18 is issued).

The new policy puts emphasis on imported raw materials for export-oriented industries. It will now be easier to import such materials.

Country of origin must be mentioned on all products, product packaging or containers. However for importing coal, cotton, aluminum raw materials and export-oriented garment and industrial raw materials, country of origin is not required. Nuclear radiation test is mandatory for imported milk, dairy, edible oil, vegetable seeds and cereal products, etc. (food products). Such certification should also be submitted to the Customs authorities.

[Read more…] about Import Policy Order 2015-18 introduced

City Corporation Ideal Tax Schedule 2016 introduced

If you remember, just last year, government introduced the City Corporation Ideal Tax Schedule 2015. However, within a year, government is introducing a new Tax Schedule repealing the last one.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has been actively lobbying for lowering the tax rates fixed by the Schedule of 2015.

The amount of tax has changed slightly. In most cases, the amount of tax become less, however, it certain areas, government increased the tax.

This Tax Schedule would be applicable to the City Corporations of the Country. [Read more…] about City Corporation Ideal Tax Schedule 2016 introduced