20 Jun Doing business between Argentina and Bangladesh
Doing business between Argentina and Bangladesh
If you are expanding your business internationally, you may have several questions concerning your business needs. For example, When is the right time for incorporating? Also, What advantages would my business have from expanding through Argentina and Bangladesh? Then, What should I include in my business contracts? Last, How would my company be taxed?
Actually, our law firm works together through the network to conduct transnational operations for clients as well as offering specialist´s knowledge and experience. Indeed, worldwide professionals in various industries and market sectors are also available for consultation.
Whether you seek advice on deciding which is the right business organization form to develop your business or need help in growing your new sole proprietorship, partnership, corporation, or limited liability company (LLC) up and running, our outstanding business attorneys can provide essential guidance through your new business venture. At each step of the business start-up process, your attorney will dedicate his work and knowledge to ensure that your fresh business has the most favorable chance of success.
Take the first step safely
If you hire an attorney to help you throughout this mission, it will save you time and money. Many people make the mistake of waiting until they face serious problems to accomplish important aspects of the incorporating process to hire an attorney.
In fact, this is how we can help:
Protecting all business start-up permits and licenses from local government issues.
Filing all government registration documents
Registering your company name
Drafting all necessary tax forms
Explaining all tax, business liability, management, and start-up cost issues relevant to each business organization form
Opening your mind through any international business matters
To begin with, Bangladesh is an Asian country next to India and a smaller part, by Myanmar and the Bay of Bengal. It is a constitutional republic with multi-party parliamentary democracy, covering a territory of about 147,500 square kilometers.
Below you can see some very important facts:
English is widely spoken in business and is the second language in the country.
There is a high demand for consumer products, technology, and services
Wide variety of imported machinery
Its annual growth rate has been more than 5.3% over the last 17 years
Ready-Made Garment (RMG) export levels quadrupled in 5 years
Serious exchange controls
Law in Bangladesh
Bangladesh has an exchange economy under the Foreign Exchange Regulation Act, 1947. All domestic and international transfers of funds report to the Central Bank of Bangladesh (Bangladesh Bank). Foreign investor rights are protected by the Foreign Private Investment (Promotion and Protection) Act, 1980, guarantying legal protection against expropriation. It also promotes non-discriminatory treatment between foreign and local investment and repatriation of proceeds from sales of shares and profits.
It is important to make a decision about which form of business to choose for operating. If you fail to create a legal entity in Bangladesh, you will be subject to more limitations and obligations under the law.
With regard to local investors, they may choose to set up a business between the following organizational structures:
In the case of a foreign investor, only a limited company is possible.
Argentina is the second largest South American country. It is next to Chile to the west and from Bolivia to the northwest. Brazil, Paraguay, and Uruguay lie on the north and the Atlantic Ocean to the east of the country.
It is a challenging country to spread out your business ideas, but still friendly to foreigners. The local legislation gives foreign investment shelter and an arbitration process for disputes. In addition, Argentina has signed Bilateral Investment Treaties (BITs) and is a member of the Multilateral Investment Guarantee Agency (MIGA), the Overseas Private Investment Corporation, and the International Center for the Settlement of Investment Disputes (ICSID). All of this shows openness to the world’s business.
In fact, the current legislation protects trademarks. In addition, the National Industrial Property Institute processes the registration.
Doing business between Argentina and Bangladesh
Those foreign companies eager to operate in Argentina frequently can choose between acting either through a permanent representation office (a “Branch”) and a local company (a “Subsidiary”). In addition, stock corporations (Sociedades Anónimas or S.A.) are the most common type of Subsidiaries by foreign corporations in Argentina, even though some small businesses chose to operate through limited liability companies (Sociedades de Responsabilidad Limitada or S.R.L.) principally because of their simpler regulatory requirements and lower maintenance costs.
It is essential for those foreign companies intending to be shareholders of a local company or to perform through a branch, to previously registering as either of them with the Public Registry of Commerce.
Subsistence, legitimacy, capacity, function and, in almost every aspect concerning foreign and local companies doing business in Argentina abide by the provisions of the Business Corporations Act No. 19550. Also, provincial jurisdictions apply their own procedural regulations as well.
Frequently Asked Questions
What are the advantages of incorporating?
One of the main reasons is to reduce your personal liability. If you operate as a sole proprietor and were to be sued, every one of your personal assets would be at risk. When you incorporate, you become a separate entity from your business, and your personal assets can never be at risk to pay for business debt as long as you are in compliance with your jurisdiction’s incorporation laws.
When is it the right time to incorporate?
Preferably, you should incorporate previous to launching your business. But if your business is already performing, it is advisable to incorporate as soon as possible so that you can protect your personal assets and your business.
What is the difference between a subsidiary and a Branch?
The most important difference between them is that a Subsidiary is independent and separate from its shareholders; on the other hand, a Branch is a legal extension of its mother company. In other words, the mother company will be exposed to the Branch’s legal responsibilities, and the foreign shareholder will limit its exposure to its share of the Subsidiary’s capital (except if fraud was committed).
Do I Need an Attorney to do business in Argentina and Bangladesh?
There is no legal requirement to have an attorney incorporate your business. But as said, an attorney from our law firm will avoid unpleasant surprises.