What is Real Estate in Bangladesh?: In our everyday lives, we use real estate in some way; We use real estate resources to provide shelter, comfort, convenience, and privacy, the workplace, recreational facilities, and related services.
In one estimate real estate represents more than 40% of national wealth. Therefore, the way resources of this magnitude are used has a significant impact on the well-being of our people, the success or failure of business firms, and the general prosperity of the country.
Commonly used real estate has two meanings:
1) It is a name given to the commodity “reality”, which includes not only lan but all human improvements placed on the land
2) Businesses engaged in it. The name is given by individuals who make commercial transactions in real estate.
The basic component of reality island. This means not only the surface of the earth but also property rights and interests that are associated with the ownership of reality, including subsurface minerals.
Thus immovable property means the acquisition of land and buildings which is called inherent right. Men who own property, users, producers, financiers, or marketers have certain rights to the property.
Real Estate in Bangladesh
Registration and License Process in Bangladesh
There are several ways by which an investor can set up an entity to start a business in the real estate industry, ie. Sole Proprietorship, Partnership Business, and Private Limited Company. The first two options are not available to foreign investors.
Sole proprietorship
In Bangladesh, a sole proprietorship does not constitute a separate legal entity and therefore, it is not separate from the owner/owner. If any liability arises during the business, the business owner will be personally accountable for all liabilities.
Registration process
To establish a sole proprietorship business in Bangladesh, the following steps need to be followed:
Step 1- Proposed Business Name in Bungalow
Step 2- Obtaining Business License.
General license
Business license – This is a basic requirement for ownership. This can be obtained by making an application to the concerned Municipal Corporation / Local Government along with the documentation of the lease/rent of the office space of the business.
Units working in the commercial sector and entities working in the industrial sector will have to apply for commercial business licenses and industrial business licenses respectively.
TIN Certificate – The application has to be made through the online portal of the National Board of Revenue (NBR).
VAT Certificate – The application has to be made through the online portal of the National Board of Revenue (NBR).
Partnership business registration process
A partnership business must be registered with the Registrar of Joint Stock Companies and the Firm of Bangladesh.
Step 1- Selection of partnership name
A name approval for the proposed name of the partnership business must be obtained from the Registrar of Joint Stock Companies and Firms (RJSC).
Step 2 – Prepare a Partner
As per the Stamp Act, the partnership deed should be written on the stamp paper, and all the partners should sign it and be notarized later.
Step 3- Registered Partner with RJSC
The filled-in form is partnered with which I should file with the RJSC. RJSC officials will review the documents and issue registration certificates.
Timeline – It usually takes about two weeks to obtain a certificate of registration from the RJSC after submitting the document according to STEP 3.
General license
TIN Certificate – The application has to be made through the online portal of the National Board of Revenue (NBR).
Business license – The application requires the lease/rent deed of the office space of the business along with the business documents at the concerned city corporate office / local government officials, along with the appropriate government fees. Units working in the commercial sector and entities working in the industrial sector will have to apply for commercial business licenses and industrial business licenses respectively.
VAT Certificate – The application has to be made through the online portal of the National Board of Revenue (NBR).
Exclusive License / Approval
Import Registration Certificate (IRC) – Entities requiring the import of goods and/or machinery for manufacture must obtain an IRC. The requirement to apply for IRC should be with the Chief Controller of Office and Office, unit incorporation document, TIN certificate, business license, Bank’s Chamber and Commerce membership certificate with Solvency certificate, and relevant government fees. Both certificates need to be renewed annually.
Real Estate Developer Registration
To conduct real estate business in a particular area, each real estate developer will obtain registration from the concerned authority. The said real estate developer will have to register with the government to conduct real estate business all over Bangladesh.
Step 1- Every real estate developer has to apply to the government or, as the case may be, a copy of the following documents to the authorities in the form prescribed by the rules for registration, namely: –
1) Trade License
2) TIN (Tax Identification Number) certificate
3) VAT registration number
4) (i) Knowledge of project formulation and implementation
(ii) Declaration of qualification of technical persons
5) a certificate of incorporation, including the memorandum of association and the articles of association;
6) Proof of registration of members of the Real Estate and Housing Association of Bangladesh (REHAB) or Land Developers Association if any.
Step 2– After receiving the application, within 60 days (sixty) of verifying or sorting the information received by the Government or as the case may be, the authority, if it is satisfied-
- If the applicant can meet the conditions laid down for the implementation of the real estate development project, he will approve the application within that time and it will be communicated to the applicant in writing; or
- If the applicant is unable to fulfill the above conditions, the application will be rejected stating the reason, and will inform the applicant in writing.
Step 3- If the application is granted, the Government or, as the case may be, the Authority shall issue a certificate of registration to the applicant for 5 (five) years, subject to collection of applicable fees, within 30 (thirty) days of the applicant. To. in written form. The notification data can be renewed every year.
Step 4 – A list of registered developers will be maintained and published in the manner prescribed by the concerned authority.
Step 5 – The Developer’s registration can be renewed, canceled, and amended in the prescribed manner.
