Taiwan-based pesticide company enters Bangladesh market
Setting up the base in Bangladesh
Our Client Andrew and his wife Linda were based in Taiwan with an international company specialized in export and distributions of pesticides and agrochemicals. The company was also in the Import, export and distributions of agricultural device, and machinery in more than 100 countries.
Following successful operations in Taiwan, Hong Kong and China, they wanted to create their business presence in Bangladesh.
The engagement began in mid-2011, when our Client Andrew, who lives in Taiwan, signed our engagement letter and supplied all the required due diligence by courier to our Singapore office. We had warned Andrew that the process to incorporate a Bangladeshi company was challenging because of the lack of professionalism in this developing country.
Linda advised that after successful Bangladesh company incorporation, they will obtain a trade license (category pesticide import/export and distribution) and will be able to apply for pesticide registration under the new Bangladesh entity.
Linda informed Healy Consultants that they do not wish to set up a corporate account for this company. Only after receiving some business in Bangladesh they would want to open a corporate bank account in Bangladesh. Healy Consultants informed the Clients that before Bangladesh Company set up it is mandatory to have a temporary corporate bank account to input the company’s share capital.
Our Clients agreed and informed Healy Consultants that HSBC Dhaka is their preferred bank as it is an international and reputed bank. Due to the bank’s high minimum deposit requirements the Client preferred to proceed with SCB Dhaka.
Company incorporation and corporate banking
Healy Consultants prepared a corporate structure suitable for their business and licensing requirements. Following the Client’s approval, Healy Consultants prepared the incorporation forms for signing and courier return.
After obtaining the company name clearance with Company registrar in Bangladesh, Healy Consultants proceeded towards the set up of temporary corporate bank account with SCB Bangladesh. Healy Consultants submitted all the requisite documents and obtained an in principle approval from SCB Dhaka for this application. Because of the inefficiency and lack of professionalism in SCB Dhaka, the temporary corporate bank account opening process took four months. Every week, the manager of SCB Dhaka bank reverted with additional due diligence requirements or contradictory instructions.
Immediately after successful temporary corporate bank account opening, the Client input the required minimum share capital. Following the same, Healy Consultants submitted the Bangladesh corporate documents and the certificate of funds received with the Bangladesh government for company registration. After the government’s evaluation and approval, the incorporation was complete and the registration certificate was mailed to Healy Consultants.
Healy Consultants then transformed the temporary corporate bank account into a permanent corporate bank account opening. Finally, Healy Consultants submitted the trade license application and VAT registration documents to the Bangladesh Tax and licensing authority.
Upon the receipt of all the documents and registration certificates, Healy Consultants couriered the company kit to the Client’s preferred address.