Legal Updates

For a long time there were discussions related to amendments of the Code of Civil Procedure 1908, specially to reduce the time-consuming aspect of conducting litigation in Bangladesh. Finally we have the amendment. The Code of Civil Procedure (Amendment) Ordinance, 2025 (Ordinance No. XVIII of 2025), gazetted and effective from May 8, 2025, introduces significant modifications to the Code of Civil Procedure, 1908.

The Public Procurement (Amendment) Ordinance, 2025 (Ordinance No. XVI of 2025), promulgated on 4 May 2025, introduces substantial amendments to the Public Procurement Act, 2006 (Act No. XXIV of 2006). These changes aim to foster greater transparency, accountability, value for money, efficiency, ethics, quality, and sustainable procurement practices in Bangladesh.

Bangladesh Bank, through its Foreign Exchange Investment Department (FEID), has issued FEID Circular No. 02 dated March 27, 2025, introducing major changes regarding the establishment of legal entities abroad by Bangladeshi residents. This move appears aimed at supporting the burgeoning startup ecosystem in Bangladesh, and potentially creating pathways for future inward investment and repatriation of earnings.

The legal regime for specialized food products in Bangladesh is set for a significant transformation with the introduction of the Safe Food (Health Supplements/Dietary Supplements, Food for Special Dietary Uses, Food for Special Medical Purposes, Prebiotic and Probiotic Food) Regulations, 2025 - yes, that’s a long name. Gazetted on February 23, 2025, by the Bangladesh Food Safety Authority (BFSA) under the Ministry of Food, the detailed regulation (S.R.O. No. 50-Act/2025) are poised to come into effect six months after the publication date i.e. on August 23, 2025. This landmark regulatory framework aims to ensure the safety, quality, and appropriate labeling and marketing of a rapidly growing category of food products, providing clarity for manufacturers, importers, and consumers alike.

Imagine you are running a private limited company and managing its affairs. You have an auditor and are planning to reappoint them. Suddenly, you realise that your company is now classified as a “Public Interest Entity” (PIE), and your current auditor is not registered with the Financial Reporting Council (FRC). Consequently, this auditor is not authorised to audit your company.

The Bangladesh government is offering tax relief to encourage investment in renewable energy. A new directive, S.R.O. No. 400-Law/Income Tax-54/2024 dated November 26, 2024, provides substantial tax exemptions for individuals and companies involved in renewable energy projects. This new order replaces an earlier one (S.R.O. No. 375-Law/Income Tax-50/2024 from October 2024) and offers even better terms. Both S.R.O.s are issued by the National Board of Revenue under the Income Tax Act, 2023. The new, more favorable rules will take effect from July 1, 2025.

The Government of Bangladesh has enacted the Land Offences Prevention and Remedy Rules, 2024 (the “Rules”), effective from 24 October 2024. Formulated under the Land Offences Prevention and Remedy Act, 2023, these Rules are designed to streamline the protection of land rights, expedite the resolution of land disputes, and deter land-related criminal activities. This document outlines the key provisions of these Rules.

In Bangladesh, for any loan, bank usually ask for security. Usually, immovable property are considered as most secured form of security and most sought by bank. When banks consider other movable property as security, they faced a number of problems. To address those, on November 13, 2023 parliament has passed the Secure Transactions of (Moveable Assets) Act, 2023.

The Financial Reporting Council (“FRC”) has recently announced new regulations (SRO No. 291/AIN2023) that will broaden the definition of Public Interest Entity. These regulations, known as the Public Interest Entity (Based on Minimum Manpower) Definitions Regulations, 2023, were published on October 19, 2023.