Foreign-owned or controlled industrial enterprises in Bangladesh can now access short-term, interest-bearing loans from their parent companies or shareholders abroad, as governed by Paragraph 9, Chapter 15 of the Guidelines for Foreign Exchange Transactions-2018, Volume 1. This provision allows these enterprises to meet urgent business needs with greater financial flexibility. LegalSeba.com provides comprehensive services to ensure compliance with these regulations and streamline the borrowing process.

Securing Short-Term Loans

LegalSeba.com facilitates the acquisition of short-term loans, offering guidance and assistance to secure interest-free loans for up to one year from parent companies or shareholders abroad. These loans are specifically designed to address urgent short-term business needs, excluding input procurement, for which local working capital financing is not yet arranged. By leveraging our expertise, businesses can quickly secure the necessary funds to maintain operational stability.

Interest Payment Compliance

Ensuring compliance with interest payment regulations is crucial for businesses. LegalSeba.com assists in managing interest payments on short-term loans, adhering to the following guidelines:

  • Interest Payment in Taka: Interest on the Taka proceeds of the loan is payable in Taka at the prevailing 3-month interest rate for Taka term deposits, as applied by the Authorized Dealer (AD) on the loan encashment date.
  • Accrued Interest Calculation: We ensure accurate calculation of accrued interest on the short-term loan, ensuring it aligns with regulatory requirements.

Repayment and Repatriation

LegalSeba.com streamlines the repayment and repatriation process to ensure compliance and efficiency:

  • Conversion and Repatriation: We manage the conversion of principal and accrued interest into the currency of the source country at the prevailing exchange rate and facilitate their repatriation accordingly.
  • Tax Compliance: We ensure that all applicable taxes and duties are deducted and paid in accordance with regulatory requirements before the repatriation of funds, ensuring full compliance and minimizing any potential legal issues.

Loan Facility Duration and Renewal

Managing the duration and renewal of short-term loan facilities is critical for sustained financial health. LegalSeba.com offers support in:

  • Maximum Duration: We ensure that short-term loan facilities from parent companies or shareholders abroad are utilized for a maximum period of three years from the inception of manufacturing activities.
  • Renewal and Extension: We facilitate the renewal or extension of the short-term loan within the permissible three-year period, ensuring continued financial support and operational continuity.

Ongoing Compliance

Maintaining compliance with all relevant regulations and guidelines is paramount. LegalSeba.com provides ongoing support to ensure adherence to regulatory requirements:

  • Regulatory Updates: We keep our clients informed of any updates or changes in the regulatory framework that may impact their borrowing or repayment processes.
  • Due Diligence: We conduct thorough due diligence to ensure all transactions and processes comply with the relevant regulations, providing peace of mind to our clients.

By offering these comprehensive services, LegalSeba.com ensures that foreign-owned or controlled industrial enterprises in Bangladesh can efficiently manage short-term loans from their parent companies or shareholders abroad. Our expertise in navigating the complex regulatory landscape ensures that all transactions are conducted smoothly and compliantly, allowing businesses to focus on their core operations without the added burden of regulatory compliance concerns.

Why Choose LegalSeba.com?

  • Expertise in Foreign Exchange Regulations: Our team has in-depth knowledge of the regulations governing short-term working capital loans from abroad.
  • Comprehensive Service: We offer end-to-end assistance, from securing the loan to ensuring compliance with interest payments, repayment, and repatriation.
  • Efficiency and Accuracy: We streamline processes to minimize administrative burdens and ensure timely and accurate compliance.
  • Customized Solutions: Our services are tailored to meet the specific needs of each client, ensuring compliance and maximizing efficiency.

Contact Us

For more information on how LegalSeba.com can assist you with short-term working capital loans from abroad and ensure regulatory compliance in Bangladesh, please contact us at:

Let LegalSeba.com be your trusted partner in navigating the complexities of securing and managing short-term working capital loans from parent companies or shareholders abroad in Bangladesh.