Procedure of Remitting funds after closing the company

 

LegalSeba.com offers comprehensive services to facilitate the remittance of residual funds to foreign shareholders following the winding up of a company in Bangladesh. This process, which involves strict compliance with regulatory requirements and guidelines set forth by Bangladesh Bank, can be complex and very time consuming. LegalSeba.com provides expert assistance in both court-supervised and voluntary winding up scenarios to ensure a smooth exit strategy for businesses.

Court-Supervised Winding Up

In cases where a company is winding up under the supervision of the court, LegalSeba.com offers several key services:

  • Application Preparation: LegalSeba.com prepares and submits applications to the Foreign Exchange Investment Department (FEID) of Bangladesh Bank, ensuring all necessary documentation is in place.
  • Court Order Endorsement: The company assists in obtaining and endorsing the court order that specifies the distribution amount to shareholders.
  • Certification Assistance: LegalSeba.com helps secure certificates from liquidators or official receivers, confirming that all liabilities and statutory payments have been fulfilled.

Voluntary Winding Up

For companies opting for voluntary winding up, LegalSeba.com offers a structured approach to comply with all regulatory requirements:

  • Document Compilation: LegalSeba.com gathers all necessary documents as per Annexure-A. These documents include:
    • Certificate of Incorporation
    • Memorandum & Articles of Association
    • Return of Allotment (Form-XV)
    • Latest annual summary of share capital and list of shareholders/directors (Schedule-X)
    • Instrument of Transfer of Shares (Form-117)
    • Encashment Certificate
    • Import permit and related documents for shares issued against capital machinery
    • Intimation of share issuance/transfer as per relevant guidelines
    • Latest audited financial statements
    • Certified copies of Form VIII evidencing special resolution for voluntary liquidation
    • Liquidator’s certificates confirming full payment of liabilities and compliance with the Companies Act
    • Winding up documents in accordance with the Companies Act
    • Certification of overdue export proceeds and unmatched bill of entry
    • Tax clearance certificate
    • Police Clearance Certificate (where applicable)
    • CIB report
    • List of non-resident shareholders to whom proceeds are payable
    • Liquidator’s undertaking regarding ineligible remittance amounts
    • Obtaining any Clearance Letter from the Bangladesh Financial Intelligence Unit

Liaison with Authorized Dealers (ADs)

LegalSeba.com also acts as a liaison with Authorized Dealers (ADs) to ensure thorough compliance verification and seamless remittance processes:

  • Compliance Verification: Ensuring that the target company complies with Paragraph-2(A)(c) & 2(B), Chapter-9, Volume-I of the Guidelines for Foreign Exchange Transactions-2018 or similar guidelines.
  • Permission Requests: Forwarding permission requests for remittance to FEID only after thorough compliance checks.

Timeline and Banking Practice

The entire process of winding up and remittance can take approximately 9-11 months. Once all required documents are submitted, the designated bank will transfer the remaining funds to the foreign investors’ bank accounts in their respective countries of residence.

Before remitting funds, Authorized Dealers (ADs) must exercise due diligence in accordance with Know Your Customer (KYC) protocols, Anti-Money Laundering (AML), and Counter Financing of Terrorism (CFT) standards. Additionally, they must ensure compliance with regulations pertaining to the payment of taxes and related obligations.

By offering these comprehensive services, LegalSeba.com ensures that the winding-up process and subsequent remittance of funds are handled efficiently, transparently, and in full compliance with Bangladeshi laws and regulations. This enables foreign shareholders to receive their residual funds smoothly and without undue delay, ensuring a secure and compliant exit from the Bangladeshi market.

 

Why Choose LegalSeba.com?

  • Expertise: Our team is well-versed in Bangladeshi corporate and foreign exchange regulations, ensuring expert guidance through every step of the winding-up process.
  • Efficiency: We streamline the process, reducing the administrative burden on your company and ensuring timely submission and approval of all necessary documents.
  • Compliance Assurance: We provide comprehensive compliance checks, ensuring that all regulatory requirements are met, minimizing the risk of delays or rejections.
  • Personalized Service: Our tailored services meet the specific needs of each client, providing dedicated support and personalized solutions.

Contact Us

For more information on how LegalSeba.com can assist you with your company’s exit strategy and compliance in Bangladesh, please contact us at:

Let LegalSeba.com be your trusted partner in navigating the complexities of company winding up and foreign shareholder remittance compliance in Bangladesh.