Import & Export

Knowledge
 Overview of legal entities in Bangladesh:
Type of Maximum Minimum Minimum no. of
Entity allowed paid-up shareholders
foreign capital
ownership
Private 100% $1* 2
Limited
Company

Public 100% $1* 7

Limited
Company
Subsidiary 51%-100% $1* 2
Company

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 Overview of legal entities in Bangladesh:
Type of Maximum Minimum Minimum no. of
Entity allowed paid-up shareholders
foreign capital
ownership
Branch 100% No capital* No shareholders
Office

Representati 100% No capital* No shareholders

ve Office

 However, if you want to hire a foreign employee, you need to make an

inward remittance of US$ 50,000 beforehand.

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Requirements for company registration in Bangladesh:

 Allowed foreign ownership:

 Bangladesh is very open regarding foreign ownership,

allowing up to 100% of foreign ownership in most
sectors. In some sectors, however, you need prior
approval from the government and a few sectors
restrict both local and foreign investment. Similarly,
other benefits include the right to purchase land and
property in the name of the company, tax incentives,
etc.

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Requirements for company registration in Bangladesh:

 Minimum capital requirement:

 There is no official minimum capital requirement in

Bangladesh. For this reason, $1 is considered the
minimum capital contribution. However, investors
should keep in mind that they need to make an inward
remittance of no less than $50,000 if they intend to
hire foreign employees.

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Types of legal entities available in Bangladesh:
#1 Private Limited Company
A large number of companies in Bangladesh are
registered as private limited companies (LLC). The
liability is limited to shareholders’ shared capital and
LLCs in Bangladesh can be fully foreign-owned.

Any person who is above 18 is eligible to register a

company. Furthermore, the law prescribes a minimum of
two and a maximum of 50 shareholders, and two
directors. Also, note that you can form a joint venture
with a local entity to share the strengths and lessen the
risks.

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Types of legal entities available in Bangladesh:
#2 Public Limited Company
In contrast, a public limited company can invite the public
to hold shares and is usually registered on a stock
exchange.
A public limited company has a minimum of seven
members, three directors, with no maximum number of
shareholders. Its shareholders can be any legal person or
any individual who is above the age of 18, qualified by
Bangladesh Law.
It can raise funds from the public. Aside from Companies
Act 1994, it should also comply with Securities and
Exchange Commission Act 1993.

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The step-by-step process of company registration in
Bangladesh:
 Step 1: Name clearance
Firstly, you need approval for your company’s name from
The Registrar of Joint Stock Companies and Firms
(RJSC).
 Step 2: Drafting of required documents
Secondly, you need to draft the Article of Association
(AoA) and Memorandum of Association (MoA). While
preparing those, you need to draft it along with other
forms as requirements for compliance to RSJC.

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The step-by-step process of company registration in
Bangladesh:
 Step 3: Opening of bank account
Thirdly, you must open a bank account in the proposed
name of the company and make an inward remittance of
at least US$ 50,000 if you plan on hiring foreign
employees.
 Step 4: Submission of documents to the RSJC
In this step, you have to submit all the required papers to
the RJSC and pay the registration fees. You can also look
into RSJC for the incorporation certificate during the
standard process time.

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The step-by-step process of company registration in
Bangladesh:
 Step 5: Post-registration compliance
By this time, you have the certificate of incorporation, Articles
of Association (AoA) and Memorandum of Association (MoA),
and you have a newly registered company in Bangladesh.
You also need to proceed to some additional licenses and
registrations:
 Trade License
 Tax Identification Number (TIN)
 VAT Registration Certificate
 Fire Certificate
 Environmental Clearance Certificate (if necessary)

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Alternatives to setting up a company in Bangladesh:
 Branch
A branch is an extension of its parent company and not a
separately incorporated entity. In other words, the parent
company is responsible for its branch’s liabilities.

A branch can engage in commercial activities, given BIDA’s

approval. However, the Exchange Control Guidelines monitors
its operations strictly.

The average establishment time of a branch in Bangladesh is

45- 60 days.

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Alternatives to setting up a company in Bangladesh:
 Representative/ Liaison office
Just like a branch, a liaison, also called a representative office, is subject to
BIDA’s approval as its primary requirement. It must have a parent company
abroad, and its activities are limited since it only serves as a
communication or coordination instrument of the business resources in
Bangladesh.
Also, take note that a liaison office cannot earn any local income in
Bangladesh. The parent company shoulders all of its expenses and
operational costs through remittance.
There also cannot be any outward remittances of any kind from Bangladesh
resources, except the amount brought in from abroad. Similarly, it also
follows the general process of business registration in Bangladesh.

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Alternatives to setting up a company in Bangladesh:

 Franchise operation with local promoters

Foreign-owned companies can also enter into franchises in Bangladesh.

Through a franchise, you can permit local promoters to use your brand,
provide them with technical support and charge fees or commission on their
activity.

A franchise operation complies with both the purchase and license

agreement.

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Letter of Credit – Process:
The entire process under LC consists of four primary steps:
 Step 1 - Issuance of LC
After the parties to the trade agree on the contract and the
use of LC, the importer applies to the issuing bank to issue
an LC in favor of the exporter. The LC is sent by the
issuing bank to the advising bank. The latter is generally
based in the exporter’s country and may even be the
exporter’s bank. The advising bank (confirming bank)
verifies the authenticity of the LC and forwards it to the
exporter.

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Letter of Credit – Process:
 Step 2 - Shipping of goods
After receipt of the LC, the exporter is expected to verify
the same to their satisfaction and initiate the goods
shipping process.

 Step 3 - Providing Documents to the confirming bank

After the goods are shipped, the exporter (either on their
own or through the freight forwarder) presents the
documents to the advising/confirming bank.

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Letter of Credit – Process:
Step 4 - Settlement of payment from importer and
possession of goods
The bank, in turn, sends them to the issuing bank and the
amount is paid, accepted, or negotiated, as the case may
be. The issuing bank verifies the documents and obtains
payment from the importer. It sends the documents to the
importer, who uses them to get possession of the shipped
goods.

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Letter of Credit – Process:

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Import Procedure Including
Registration:
 Income tax registration certificate.
 Nationality certificate.
 Certificate from Chamber of Commerce and Industry or
Registered Trade Association.
 Bank Solvency Certificate.
 Copy of Trade License.
 Any other documents if required by CCI and E. (Chief
controller of imports and exports)

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Import Procedure Including
Registration:
On receiving application the respective CCI and E offices
will examines the documents and conduct physical
verification and issue demand notice to the prospective
importers to submit the following papers through their
nominated bank:

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Import Procedure Including
Registration:
 Original Copy of Treasury Challan deposited as IRC
fees.
 Asset certificate.
 Affidavit from 1st class Magistrate.
 Rent receipt.
 Two copies of passport size photograph.
 Partnership deed in case of partnership firms.
 Certificate of Registration, Memorandum, Articles of
Association in case of limited company.

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Execution of an Export Order
in Garments:
 First is the analysis of the order sheet. Then the total lead time and
shipment date.
 Make an effective time schedule which is known as time and action
plan (TNA plan).
 Distribution of responsibilities to different department of a garments
industry.
 Providing required information to different department clearly.
 Tracking different department for the word regarding the order.
 Collecting all the accessories before the garment are input to sewing
line. So that any production process is not interrupted due to the

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Execution of an Export Order
in Garments:
 Maintaining proper supply chain management.
 Meeting with production team to discuss about the order for timely
shipment which is known as pre-production meeting (PP meeting).
 Allocation of required number of sewing line.
 Inspection of goods for maintaining required quality level of the
product.
 Tack quality control pass (QC pass) report from buyer.
 Preparing all the documentation for shipment.
 Continuous follow up of any progress of any step of activity.
 Other if required.

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Execution Process of Garments
Export Order:
During the execution of a garment order, the following processes should
be maintained by a garments merchandiser:
 Order inquiry from buyer to factory,
 Approval of order from the buyer,
 Buyer bank gave master L/C to the buying house,
 Back to back (B/B), L/C is given to the suppliers,
 Fit sample sent to the buyer for the fit approval,
 Pre-production (P.P) sample submitted to the buyer,
 Fabrics and accessories should be in-housed according to the T/A
plan,

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Execution Process of Garments
Export Order:
 Pilot production should be started according to the T/A plan,
 Online inspection by the buyers Q.C,
 Bulk production should be started according to the T/A plan,
 The commercial department prepares the shipping documents,
 Final inspection according to T/A plan,
 Goods sent to port (Seaport or airport),
 Goods handed over to the shipping line.

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What is Export Marketing
Export marketing is the practice by which a company sells products or
services to a foreign country. Products are produced or distributed from
the company’s home country to buyers in international locations. But
there is a difference between products that are available to foreign
countries and products that are specifically marketed to foreign
customers. This where the importance of an export marketing plan comes
in.

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Why Do I Need Export
Marketing?
Businesses today are often doubling or tripling products by expanding to product sales on
an international level. But you can’t assume that foreign markets will be as interested in
your product as local customers. Cultural differences, shipping costs and transit time,
politics, and international trade policies all contribute to a marketing communication barrier
between suppliers and foreign buyers.

So why do you need export marketing? Simply put: Google translate is not enough. You
need to know the buying behaviors, interests, and needs of your foreign customers. All of
this can be addressed in an export marketing plan. An export marketing plan is created to
address a specific strategy that can be utilized to make product both available and enticing
to international buyers.

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How to Build an Export
Marketing Plan
The only difference between an export marketing plan and a regular marketing plan is the
location in interest. The same type of market research performed for locating an optimal
domestic market must be completed on an international scale. Here is how an export
marketing plan should be built.

Foreign Country Selection:

The first and most obvious step in building an export marketing plan is selection of a
country. While this is the “simplest” step, it is also the most crucial. Start by focusing on
continents. Although every country is different, many cultural differences and buying
behaviors can be attributed to continents as a whole. After selecting a continent, do some
research on the top 3 locations of your preference. This should give you more insight into
what country you should sell to.

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How to Build an Export
Marketing Plan
Natural Conditions Research (Optional):
The relevance of this factor will depend greatly on the product you are selling. Information
such as the weather, land size, environment, ease of mobility (mountains, roads, etc.), and
various other factors will all contribute to the success of your international expansion. For
example, selling perishable goods to mountainous regions where transport is difficult may
mean your products will expire before they are sold.
Socioeconomic Research:
This should go without saying, but your products must fit the socioeconomic demographics
of the region you plan on selling to. Fashion clothing may be too expensive for certain
countries in Africa or Asia. The quality of materials you build your product with may have
to change in an international market in order to accommodate the benchmark prices and
quality of goods in the foreign location.

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How to Build an Export
Marketing Plan
Competitor Landscape:
This is the one place in which competition is good. International business and trade has
existed for hundreds of years – any profitable international business endeavor that has a
promising return has already been done. Thus, you can use the density of competition in a
foreign country to disseminate whether or not it is a profitable industry to be in.

Make sure that your competition density research comprises research on local companies in
the foreign country as well as international businesses. Just because there is a market for,
say, tires in China doesn’t mean that there is a profitable market for foreign tire
manufacturers to sell there. See if any companies in your home country are selling the same
type of product or service in the country of question.

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Tools of public relations:
 Media relations
 Advertorials
 Social media
 Newsletters
 Brochures and catalogues
 Business events
 Speaking engagements
 Sponsorships or partnerships
 Employee relations
 Community relations

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What Is a Fashion Trade Show?
"An exhibition for companies in a specific industry to showcase and demonstrate their new
products and services." This source goes on to say that most trade shows aren't open to the
public, and only company representatives and press organizations are given access. Fashion
trade shows are special events where fashion designers and brand owners show off their
new fashions to potential clients and retailers, and these events are held all over the world.
In most cases, the facilitators of fashion trade shows rent out huge exhibition halls where
designers show off all the fashions they've been working on during the previous year.
Location is important in these types of trade shows, and designers fight tooth and nail for
the booth locations that will provide them with the best exposure.

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What Is a Fashion Trade Show?
While the best fashion trade shows are in fashion capitals like New York City and Paris,
pretty much every major city has one of these events at least once per year, which means
you'll have the opportunity to show off your fashions without having to travel a great
distance.

A fashion trade show allows you to select business partners and gain fame in the fashion
industry at one convenient location. Retailers rely on these trade shows for apparel
sourcing, so whether you focus on contemporary apparel, children's apparel, or any other
type of clothing, a trade fair is one of the first places you should visit as you make a name
for yourself as a designer.

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List of Top Fashion Trade
Shows
According to the popular list aggregator 10times, these are the world's top 10 apparel and
clothing events:
 MAGIC Las Vegas
 Texworld Paris
 MICAM Milano
 International Apparel & Textile Fair
 Texworld USA
 Intertextile Shanghai Apparel Fabrics
 Chandigarh Mega Expo
 Premier Vision France
 East China Fair
 Pure London

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List of Bangladeshi Apparel &
Textile Trade Shows
 Dhaka international yarn and fabric show(DIFS)
 Dhaka international denim show.
 Yarn and fabric sourcing fair (YFSF)
 International garment accessories and packaging expo show
(GAPEXPO)
 Yarn fabrics accessories and dye chem expo.
 International garments and textile machinery exhibition of
Bangladesh.

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What is Export Finance?
Export financing is a cash flow solution for exporters. Export Finance facilitates the
commerce of goods internationally.

The seller agrees on the payment terms of the cross border buyer. Thus, there is a cash flow
issue. The supplier ships the goods oversea while the payment will be received at a later
stage.

Export finance allows the businesses that sell products to another country to get access to
working capital before their clients pay for the products purchased.

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Government incentives:
RMG exporters were enjoying 1% additional special incentive in addition to the 4% cash
incentive against export of new textile and garment products and expanding export of textile
items to new markets, outside of the United States, Canada and the European Union.
Small and medium industries of the textile sector would get cash incentive at the rate of 4%
against export of apparel products.
The export-oriented local textile sector would enjoy cash incentive at the rate of 4% as an
alternative to duty bonds and duty drawbacks.
The 2% cash incentive also remained unchanged for the exporters of apparel products to the
Eurozone in FY21 as it was awarded in FY20.

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Thanks!
Any questions?

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