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Exiting or Closing a Business in Bangladesh

Table of Contents

Exiting or closing a business in Bangladesh involves specific legal procedures depending on the type of business entity and the circumstances of the exit. Whether it’s a planned cessation of operations, a transfer of ownership, or insolvency, understanding the correct pathway is crucial for compliance and minimising liabilities.

This section outlines the primary methods for exiting or restructuring a business presence in Bangladesh:

Sole Proprietorship Firm:
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  • Cancelling a Trade License: Describes the essential administrative step of cancelling the local government trade license upon cessation of business activities. This is a mandatory procedure for formally closing any business, particularly Sole Proprietorship Firms where it is often the primary closing requirement.

Partnership Firm
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  • Dissolving a Partnership Firm: Explains the procedures for formally ending the legal relationship between partners and closing a partnership firm according to the Partnership Act, 1932.
  • Transferring Partnership Interests: Covers the mechanisms for changing the constitution of a partnership, including the retirement, addition, or exit of partners and the assignment of partnership interests, heavily guided by the Partnership Deed.

Company
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  • Winding Up a Company: Details the formal process for liquidating and dissolving a registered company (Private or Public Limited) under the Companies Act, 1994, typically initiated voluntarily when the company is solvent.
  • Transferring Shares in a Company: Outlines the steps involved in selling or transferring ownership stakes (shares) in a Private Limited Company, a common exit route for shareholders.

Bankruptcy
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  • Bankruptcy Proceedings: Provides an overview of the legal process under the Bankruptcy Act, 1997, applicable when individuals or companies are unable to pay their debts (insolvency).

Liaison, Branch and Project Office
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Key Contacts

For assistance with navigating the process of exiting or closing your business in Bangladesh, please reach out to: