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Corporate & Commercial

Preparing a Due Diligence Report for a Business / Company in Bangladesh

Why legal due diligence matters, what it examines, and the licences and records reviewed before a transaction in Bangladesh.

Overview

Following company registration in Bangladesh, businesses must maintain legal compliance through regular due diligence and reporting. Due diligence involves the thorough examination of documents and records before entering transactions with other parties. The process aims to identify essential information and potential liabilities within an entity.

How due diligence helps businesses stay current

Modern commercial operations involve complex legal structures and various liabilities stemming from debts, leases, warranties, contracts, pending lawsuits and agreements. Due diligence serves as a protective mechanism at transaction stages.

Legal due diligence reveals genuine benefits and risk factors, often confirming assumptions about other companies. This enables confident decision-making regarding transactions. With the prevalence of proprietary rights sales, investigating intellectual property has become mandatory.

Such investigations examine governing laws, relevant rules and regulations comprehensively. Thorough document inspection during due diligence reveals the true business picture — particularly important during mergers or acquisitions.

Types of business licences required in Bangladesh

  • Company Registration
  • Branch Office Registration
  • Liaison / Representative Office
  • Environment Clearance License
  • Export Registration Certificate
  • Import Registration Certificate
  • Factory Establishment Licenses
  • Fire License
  • Trade License
  • Tax Identification Number (TIN) Registration Certificate

FM Associates' due diligence services

Our legal team conducts in-depth research examining both current and prospective business risks. Investigation covers company incorporation documents, memoranda, shareholder agreements and various contracts including customer, supply and operating agreements.

The team examines potential asset transfer risks, building code requirements, environmental liabilities, restrictive covenants, loan agreements, guarantees and litigation history. Financial analysis includes tax structure evaluation, financial sustainability assessment and profit forecasting.

Speak with our legal team

Whether you are entering the Bangladesh market or resolving a complex dispute, our lawyers are ready to help.