Disinvestment and Share Sale Proceeds in Bangladesh: FERA and Bangladesh Bank Route

Important boundary: This is a legal-audit guide only. LegalBD does not execute remittances, value shares, approve transactions or provide financial services through a LexBangla API. A current valuation, tax position and authorised-dealer review are transaction-specific.

ID: 521 1,200 words

Source & verification

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Record ID: 521

Important: This is general information, not legal advice. For your situation, consult a qualified lawyer and verify the official publication.

At a glance

Executive summary

Important boundary: This is a legal-audit guide only. LegalBD does not execute remittances, value shares, approve transactions or provide financial services through a LexBangla API. A current valuation, tax position and authorised-dealer review are transaction-specific.

Practice area corporate rjsc
Reading time About 6 min
Latest date Review pending

Important boundary: This is a legal-audit guide only. LegalBD does not execute remittances, value shares, approve transactions or provide financial services through a LexBangla API. A current valuation, tax position and authorised-dealer review are transaction-specific.

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Verified legal architecture

LayerWhat must be checked
Company lawAuthority to transfer, articles, register of members, instrument and RJSC filings.
FERAThe Foreign Exchange Regulation Act, 1947 regulates foreign exchange, securities and certain payments; permission and authorised-dealer rules may apply.
Bangladesh BankGFET and later circulars govern outward remittance. An authorised dealer handles applications and reports; some purposes require prior approval.
Tax and valuationCurrent income-tax, withholding and valuation rules must be obtained from a tax professional and the relevant authority.

Non-executing audit checklist

  1. Identify resident/non-resident sellers and buyers and the source of title.
  2. Review the articles, shareholder approvals, transfer instrument and corporate resolutions.
  3. Obtain an independent valuation and tax memorandum; do not use a generic rate.
  4. Ask the authorised dealer which documents and forms are required and whether Bangladesh Bank approval is needed.
  5. Maintain the sale agreement, register updates, returns, tax evidence and bank correspondence.

Frequently Asked Questions

Does a share sale automatically permit remittance?

No. Corporate completion and foreign-exchange permission/reporting are separate gates.

Can LegalBD calculate the sale value?

No. The article identifies legal checkpoints; a qualified valuer must assess value.

Who submits a prior-approval request?

Bangladesh Bank guidance commonly routes required applications through the authorised dealer, not directly from the customer.

Is FERA the only applicable law?

No. Company, tax, investment, securities and sector rules may also apply.

Can this platform move money?

No. LexBangla use is limited to library and RAG/RAGC research; no financial API or payment execution is permitted.

Which sources were checked?

FERA 1947, Bangladesh Bank GFET and the Companies Act.

Tailored Legal Counsel

Need direct legal advice on this matter?

Consult with our senior advocates and corporate practice specialists to evaluate your compliance requirements and legal strategy.

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