Garments Buying House has become an instrumental part of the garments business in Bangladesh. This article will help you to understand how to start a Buying House in Bangladesh.
Sometimes foreign buyers do not directly contact garment factories for order. They chose Buying House to procure the garments products for them.
Update September 15, 2015: Recently Bangladesh Parliament has amended the Foreign Exchange Regulations Act 1947. The requirement of and 18A Approval from Bangladesh Bank has been removed.
You can read about the amendment here.
Once you sing the agreement with the buyer, you should contact your bank.
Once the business is setup, permission from Bangladesh Bank for Buying House is required which is known as 18A Permission. Following documents are required to be submitted for approval: Application of the firm in the letterhead/pad addressing to the head of the concerned department/office of the Bangladesh Bank; A prescribed form has to be filled in properly, has to be signed by the authorized person, and should contain the name and designation of the signatory; Agreement with foreign principal/s; Updated Trade License; Attested copy of TIN; Bank Solvency Certificate; Partnership deed (for partnership firms); Certificate of Incorporation, Articles of Association & Memorandum of Association (for companies registered with Registrar of Joint Stock Companies and Firms); Work permit of the foreign national/s issued by Board of Investment (for 100% foreign owned or joint venture firms); VAT Registration Certificate (optional); Contract (agreement) made between the Buying House and the foreign principal(s) should also contain among other: full names of both the parties, full address with names of the countries, description of the products, rate of commission, signing and expiry date of the agreement Both of the parties have to sign on each page of the agreement and two sets of the above-mentioned papers should be forwarded to Bangladesh Bank. For inclusion of new foreign principal(s) or renewal the following documents will be required: Application of the firm; Agreement with foreign principal/s (if applicable); Updated Trade License; Updated work permit/s of the foreign national/s issued by Board of Investment (for 100% foreign owned or joint venture firms); Bank’s forwarding and applicant’s application should contain Bangladesh Bank’s approval number provided to the applicant.
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