Repatriation of Sales Proceeds by the Non-Residents in Bangladesh.

Foreigners can now remit money home after selling their shares in a company. LegalSeba.com offers comprehensive services to facilitate the transfer of shares and repatriation of sales proceeds for non-resident investors in private and public limited companies not listed on stock exchanges. The process involves strict compliance with guidelines set forth by the Bangladesh Bank, particularly to ensure that all transactions are conducted smoothly and within the regulatory framework.

Compliance with FEID Circular

LegalSeba.com ensures strict adherence to the working procedures outlined in FEID Circular No. 1. This includes applying the prescribed valuation approaches for the repatriation of sales proceeds of non-resident equity investments in non-listed companies. Our services ensure that clients meet all requirements specified in these guidelines.

Valuation and Documentation

We provide expert assistance in determining the fair value of shares through the Net Asset Value (NAV) approach, using the latest audited financial statements and tax returns. Our detailed services in this area include:

  • Undertaking Preparation: We assist in preparing necessary undertakings from target companies, which must be countersigned by auditors. This ensures that no revalued assets, intangible assets, or expenses/losses are reflected as assets.
  • Impairment Adjustments: We ensure that any impairment of assets has been correctly adjusted in the financial statements.
  • Growth Verification: We verify that there has been no abnormal growth in total assets over the past three years, ensuring the valuation is based on accurate and stable financial data.

Remittance Processing

LegalSeba.com facilitates the remittance of sales proceeds following specific guidelines:

  • Up to Tk 10.00 million: No permission from Bangladesh Bank is required, nor are independent valuation reports needed.
  • Above Tk 10.00 million and up to Tk 100.00 million: We assist in determining the fair value using prescribed valuation methods and ensure that post facto reports detailing the transactions are submitted to the Foreign Exchange Investment Department at Bangladesh Bank within 30 days of remittance.

Ensuring Compliance with GFET

We ensure that the target company complies with Paragraph 2(A) and 2(B), Chapter 9 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Volume-1. Our services in this regard include:

  • Pre-Transaction Verification: Verifying compliance before executing transactions.
  • Post-Transaction Reporting: Completing the usual reporting routines and preserving transaction records for five years for inspection purposes.

Single Execution and Subsequent Deals

LegalSeba.com ensures that outward remittances under the authorized deal are executed as a single transaction. For any subsequent deals, we provide guidance as per FEID Circular No. 1/2018 and seek opinions from Bangladesh Bank if there are any inconsistencies.

Compliance with Foreign Exchange Regulation Act

We ensure that all transactions comply with Section 3(4) of The Foreign Exchange Regulation Act, 1947 (Amended up to 2015) before the execution of any remittance. This ensures that all remittances are legally compliant and that the interests of both the foreign investor and the company are protected.

Banking Practice

Before remitting funds to the foreign investor’s account, 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. They must also comply with regulations pertaining to the payment of taxes and other related obligations.

By offering these comprehensive services, LegalSeba.com ensures that the transfer of shares and repatriation of sales proceeds for non-residents are handled efficiently and in strict compliance with Bangladeshi laws and regulations. This meticulous approach ensures a secure and transparent process for foreign investors looking to repatriate their investment proceeds from Bangladesh.

 

Why Choose LegalSeba.com?

  • Expertise in Foreign Exchange Regulations: Our team is highly knowledgeable about the complex regulatory framework governing share transfers and repatriation of sales proceeds for non-residents.
  • Comprehensive Services: From valuation to compliance and remittance, we offer end-to-end services to ensure a smooth process.
  • Efficiency and Timeliness: We streamline processes to reduce administrative burdens and ensure timely submissions and approvals.
  • Personalized Solutions: We provide tailored solutions 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 the transfer of shares and repatriation of sales proceeds for non-residents in Bangladesh, please contact us at:

Let LegalSeba.com be your trusted partner in ensuring compliance and facilitating smooth share transfers and remittance processes in Bangladesh.