‘Russel & Partners’ has worked with a variety of businesses and venture capital firms. We engage in a variety of areas, including joint venture projects, foreign company setups in Bangladesh, opening representatives and branch offices, and offshore industry establishment, among others, while assisting our clients in effectively launching and expanding their businesses. At present starting a business in Bangladesh is a common source of revenue and employment. We, Russel & Partners, are frequently and meticulously working with entrepreneurs to assist them in starting their businesses and successfully go into other businesses. We regularly attempt to provide our clients with the best advice we can to help them avoid legal complications with their business, protect their assets, and continue on their path to success as entrepreneurs.
Startup in Bangladesh:
The major objective and mission of any start-up is to attract venture capital investments that inspire innovation while also contributing to Bangladesh’s economy. With the increasing economy, the benefits of the country’s large workforce, and rapid globalisation, the young generation is being encouraged to establish their own business and go into many fields of the concerned issue effectively. The government is also attempting to provide many avenues for young entrepreneurs to advance.
Many successful entrepreneurs started their companies from the scratch and brought their company to higher levels with innovation, such as Foodpanda, Uber, Pathao, The Tech Academy, Sheba.xyz, Moar, PRISM and so on. There are some basic business setup options in Bangladesh, such as sole entrepreneurship, partnerships, limited liability company, public limited company, investing in existing companies, liaison offices, branch offices and e-commerce.
Laws governing Startup:
In Bangladesh, most laws are based on the English common law and the judicial system largely follows the adversarial model. There are no specific laws for the startup however, it covers different sectors of laws. These include the Company Act 1994, Contract Act 1872, Bangladesh Labour Act 2006, Foreign Exchange Regulation Act 1947, Income Tax Ordinance 1984, Competition Act 2012, Patent and Design Act 1911, Information Communication Technology act 2006, Digital Security Act 2018 and Consumer’s Right Protection Act 2009.
Apart from these Acts and Regulations, there are more areas of laws regarding the startup of any company depending on the nature of the business
Legal Challenges with Startup:
There are some legal issues that every individual encounter during startup:
Firstly, investors are always keen to invest in and provide money to someone they can trust. However, many new ideas and enterprises are occasionally rejected owing to ineffective legal structures. As a result, they require the services of a legal counsel who can provide them with the proper framework for their ideas and initiatives, allowing them to save money while preserving their assets.
Secondly, failure to comply with the requirements may result in the owners losing their licence. As a result, the owners want professionals to assist them in obtaining the essential permits to continue operating their businesses.
Thirdly, when it comes to raising funding, the most prevalent obstacle that entrepreneurs encounter is intellectual property. Patents, designs, logos, and even business concepts are examples of intellectual property that have no substance yet are valuable. While raising funds, entrepreneurs may discuss their ideas and reveal their trademarks with investors, sometimes posting them on public websites, putting their ideas and trademarks in danger of being stolen. They can, however, sue for copyright infringement if their brand is legally registered.
When startups have legal counsel, they may often avoid any copyright-related legal action. As a result, they must register their patents and trademarks to prevent legal issues.
Non-compliance with formalities prior to commencement is a typical legal concern, therefore it’s important to figure out what kind of records and other papers should be prepared and preserved, as well as the laws that apply to the specific firm.
Finally, many additional regulations must be followed in addition to the above-mentioned legal concerns that each face prior to starting and funding; thus, consulting with a lawyer or expert to ensure seamless continuity and prevent any legal issues is a sensible decision.