Corporate law in Bangladesh is regulated by a set of statutes, rules, and regulations that covers various aspects of corporate governance. The Companies Act 1994 is the primary legislation governing corporate law in Bangladesh, which provides for the formation and registration of companies, their management, powers, and duties of directors, shareholders, and officers, as well as the rights and liabilities of shareholders and creditors.
The process of incorporating a company in Bangladesh is relatively straightforward, and the applicant must obtain a digital signature certificate and register for an account on the online portal of the Registrar of Joint Stock Companies and Firms (RJSC). The company must comply with various legal requirements, such as holding annual general meetings, maintaining proper books of accounts, and filing annual returns with the RJSC.
In addition to the Companies Act, the Securities and Exchange Commission (SEC) regulates the issuance and trading of securities in the capital market, including stocks, bonds, and other financial instruments. The Bangladesh Bank regulates the banking sector, and the Ministry of Commerce overseas foreign investment and trade-related matters.
The corporate law framework in Bangladesh is constantly evolving to keep pace with the changing business environment and global standards. The government has undertaken several initiatives to streamline the regulatory framework, promote ease of doing business, and attract foreign investment. These measures include digitalization of corporate registration processes, introduction of a one-stop service for company registration, and relaxation of restrictions on foreign investment in several sectors.
Overall, the corporate law framework in Bangladesh provides a conducive environment for businesses to operate and grow, with adequate protection for the interests of shareholders, creditors, and other stakeholders.
