Dhaka: Bangladesh Bank (BB) has issued guidelines for operations of business in Bangladesh by Joint Ventures or Consortiums or Associations (JVCA) having foreign partners to enhance transparency and accountability in their operations. The central bank's initiative aims to streamline the processes involving reporting activities, cross-border transactions, financial preparations, and various other aspects of JVCA operations within the country. According to Bangladesh Sangbad Sangstha, the circular issued by the central bank highlights that JVCAs engaged in government development projects have displayed varied practices in their operational activities. These include issues related to transactions with branch offices, profit remittances, tax payments, and return submissions. To address these inconsistencies, Authorized Dealers (ADs) are instructed to follow the newly established guidelines, ensuring that their customers adhere to these regulations meticulously. As detailed in the guidelines, JVCAs with non-resi dent partners must obtain permission from the Bangladesh Investment Development Authority (BIDA) before commencing operations. A valid contract among the partners of the JVCA entity is also required, aligning with the concerned project office's stipulations. Furthermore, the activities of JVCAs are restricted to those outlined in the BIDA permission letter. The guidelines mandate that JVCA entities possess the necessary TIN, BIN, or VAT certificates as per the rules of the National Board of Revenue (NBR). Regular submission of income tax returns is also required. Each JVCA entity must maintain a bank account with an AD branch of a scheduled bank in Bangladesh, with the AD branch acting as the nominated AD for all transactions. All inward and outward remittances, as well as international payments, must be executed through this nominated AD and reported to Bangladesh Bank accordingly.
