Over the course of the last twenty years, Bangladesh has seen a significant expansion in the field of car Transport Business. Dhaka, a busy metropolitan metropolis, has a continual demand for a variety of transportation systems that facilitate the interchange of products and services. This requirement is a result of the city’s high population density.
GDP of Bangladesh derived from the Transport Business Industry
It is possible to separate the Transport Business industry into two distinct sectors: the movement of people and the movement of products. While the Bangladesh Road Transport Authority (BRTA) is the regulatory authority that governs, regulates, and warrants discipline and safety in the road transport industry in Bangladesh,
the Bangladesh Road Transport Corporation (BTRC) is responsible for providing a nationwide network of bus services. Control is exercised by the BRTA over the issuing of licenses, the issuance of route permits, the registration of vehicles, the issuance of fitness and tax tokens, the establishment of speed limits and signals, the establishment of fares for public Transport Business, and the categorization of vehicles.
Local and international bus services, as well as the movement of motor vehicles within the same area, are all included in the category of passenger transportation, which is mostly conducted on roadways. By offering services like as ride sharing, home services, food delivery, and e-commerce, local and international private companies such as Uber, Pathao, and Shohoz, among others, enter into the Bangladeshi economy.
These services are often limited to the Dhaka area exclusively. By doing so, they want to become the most important players in the logistics business in the nation and, as a result, unleash the potential of the logistics industry in the country.
Traditionally, covered vans and lorries have been and continue to be the most common forms of transportation for products whether it comes to domestic or intra-city and inter-city routes of distribution. What exactly is the relationship between Transport Business and logistics?
In order to make the business operations of the owner and the service provider more manageable, the logistics businesses provide assistance in the process of Transport Business, managing, and storing products and materials, beginning with the beginning of production and continuing until the completion of the production process.
Both of their services are integrated with one another, despite the fact that they are distinct from one another. The integration of these two services results in an increase in the overall performance of the logistics system as well as an improvement in energy efficiency for transportation. Additionally, a strong transportation system has the potential to increase the effectiveness of logistics activities by lowering the costs of operations and boosting the quality of the products.
HOW TO GET A LICENCE AND REGISTER YOURSELF
A Transport Business and logistics firm that is well-run would boost the industry’s competitiveness and inspire an increasing number of investors, both domestic and foreign, to put their money into this area in order to earn a profit. Consequently, it is of the utmost importance to form a legal organization that is in compliance with the rules of Bangladesh. This is true above and above all else. You have the choice of forming a public or private limited business, engaging in solo proprietorship, or forming a partnership.
A business
After the filing of all the necessary paperwork and the payment of the government fees to the Registrar of Joint Stock and Companies (RJSC) at Company House, the company may be established. The RJSC is obligated to provide a certificate of incorporation after it has determined that all of the papers are legitimate and that they are accurate.
The partnership
By completing a partnership deed between the partners and registering the partnership with the Registrar of Joint Stock Companies and Firms (RJSC), it is possible to form a firm for partnership purposes.
Limited Liability Company
A single individual is the sole proprietor of this form of company, and there are no partners involved. Therefore, in order to do business via such a company, one is required to get a trade license from the local corporation that is applicable.
In addition, after the choice of entity has been made, there are a range of licenses that need to be secured, and these licenses vary according to the kind of services that the company intends to provide to its consumers. The following list of licenses is not complete; the licenses that are given below vary based on the kind of service that is being supplied.
1. Obtain TIN (Tax identification number) Certificate from National Board of Revenue (NBR)
2. Obtain Trade License
3. Obtain Vat Registration Certificate from NBR
4. Obtain Driving license from BRTA (this is applicable for those individuals who are willing to drive vehicles in the public roads)
5. Obtain Permission for public Transport Business from BRTA
6. Obtain Conductor license from BRTA (this is applicable for the conductors of the motor vehicles)
7. Obtain Vehicle registration from BRTA
8. Obtain Vehicle fitness from BRTA
9. Obtain Vehicle Tax token from BRTA
10. Obtain Route permit from BRTA
11. Obtain Enlistment Certificate for ride sharing from BRTA (in case of ride sharing service provider such as Uber, Pathao etc. under the Ride Sharing Guidelines 2017)
12. Vehicle enlistment certificate from BTRA (in case of ride sharing service provider such as Uber, Pathao etc. under the Ride Sharing Guidelines 2017).
Law Issues
Even while Transport Business and logistics seem attractive, there are several hurdles. One should enter this field cautiously since work dangers like irresponsible driving might cause fatalities. Based on news from 22 national dailies, 10 regional newspapers, and eight online news portals and news agencies, the Reporters Forum (SCRF) reported that 2,329 people, including 291 women and 381 children, were killed and 4,361 injured in 2,159 road accidents across Bangladesh from January to June 2019. The Road Transport Act 2018 now punishes transport workers more harshly.
BRTA reported in February 2017 that Bangladesh had over 2.9 million registered automobiles, but only 1.9 million had driver’s licenses. As a result of transport drivers’ negligence, BRTA fined them up to BDT 25000 for driving without a license.Under the Road Transport Act 2018, transport workers can be fined up to TK 10,000 for driving with a fake license, driving without a seatbelt, parking illegally, driving on the wrong side, speeding, breaking traffic signals, and riding a motorbike without a helmet.
Also, speeding has distinct penalties. Transport Business drivers must follow the speed limit on every road and violating it risks 3 months in jail or 10,000 taka in fines under the Road Transport Act 2018. In penalty, the transport driver will lose one of the 12 points on his driving license under the Road Transport Act 2018.
Due to the casualties, BRTA established a financial support fund for road accident victims to provide medical aid or compensation under the Road Transport Act 2018. The BRTA will set the rate and mechanism for vehicle owners or corporations to make yearly or one-time contributions to that fund based on vehicle classification.
To protect oneself, car owners or corporations should insure their vehicles.
Individual legal difficulties occur when ride sharing service providers like Uber and Pathao violate the Ride Sharing Guidelines 2017. Uber and Pathao simplified public Transport Business, yet they have legal requirements. The Ride Sharing Guidelines 2017 require the Ride Sharing Service Provider and vehicle to have enlistment certificates. Transport personnel must be educated to download and utilize the service provider’s software, which must be BRTA-approved before usage. The program must display the car’s name, location, registration number, and estimated fare when a consumer accepts a ride. After the journey, the consumer must get the entire charges and mileage.
As a safety precaution, ride sharing services must maintain drivers’ NIDs, phone numbers, and addresses. One of the cornerstones of “trust” between the Ride Sharing service provider, Transport driver, and Customer is secrecy. The ride sharing service provider cannot disclose driver or client information unless requested by law police or BRTA.
The Bangladesh Labour Act 2006 applies to all employees of the Transport Businessand Logistics Industry and ride sharing service providers. As a result, no transport owner may hire a driver under 21.
Introduce FMA and its offerings
FM Associates is a renowned Bangladeshi legal practice with professional attorneys and Barristers. Their business has departments for employment law, corporate law, commercial law, property law, and more, overseen by attorneys and barristers specializing in each discipline.
FMA is Bangladesh’s greatest legal company due to their dedication and hard work. The company prioritizes client interests.
FMA may provide help with the whole incorporation process, from preparing the AOA and MOA and other paperwork to getting name clearance and submitting all documents to RJSC. If needed, FMA helps enterprises renew Trade Licenses and Name Clearances.
Bangladesh’s labor laws are labor-friendly, therefore service providers must protect themselves from industrial conflicts since any discrimination will bother Transport Business workers. Due to their years of employment law experience, FMA’s legal team can draft and review employment agreements/appointment letters for such entities and represent employers and employees in Labour Courts in the event of an industrial dispute.
Agreements/contracts frequently include anomalies, which worries entities. FMA helps organizations examine and design service agreements between service providers and vendors that need Transport Business and logistics facilities for their products, as well as ride sharing service provider-vehicle owner agreements.
Effect of COVID-19
Novel coronavirus has devastated Bangladesh. The Transport Business and logistics industry has suffered from this illness. In order to flatten Covid 19, the government enforced social separation via lockdown and stopped all transit in Bangladesh. Only emergency vehicles are allowed to drive due to the nationwide lockdown. Transporting and logistics of medicine, food, and gasoline will remain in demand, while passenger transit has plummeted. Limited transportation and lockdown have halted mega infrastructure projects like power plant projects, bridge construction, etc. due to restrictions on raw material transfer and people movement.
All industry service providers were surprised by the coronona virus epidemic. If the firm closes, service suppliers and employees—drivers, supervisors, and everyday workers—face substantial financial losses. Service providers, like Pathao, are starving workers by not paying them or cutting their salaries to withstand this loss. However, layoffs or retrenchment are the right approach. Under the layoff arrangement, workers with at least one year of service will get half of their basic income and full housing allowances. If businesses want to fire workers, they may use redundancy. For basic Transport Business and logistics, they may keep a small number of staff.
Taxation
Bangladesh’s general tax rate is 32.5%. A local limited company must report to NBR: Opening a TIN, Monthly Tax deduction statement, Half Yearly Withholding Tax statement, Yearly statement related to employee tax return submission, Yearly statement related to salary disbursed from company to employees. Quarterly advance tax deposition, annual tax return filing, company-required appeal/hearing session, monthly VAT return, etc. FMA may advise and help with regulatory compliance to keep the firm running smoothly.
Conclusion
Recent government efforts have changed Transport Business infrastructure, like as the Dhaka-Chattogram highway, which has cut transit time and enhanced supply chain efficiency for commodities along this route. The government is also exploring this market and may soon provide additional ride services while supporting public transit like Dhakar Chaka, Gulshan Chaka, etc. Pathao, Shohoz, and other new logistics firms compete with long-standing providers like Sundarban and S.A Paribahan. They want to cover groceries, medication, laundry, etc.
This number may rise, which is good for logistics and shipping. Logistics partners with sophisticated logistics and warehousing facilities such warehousing, Transport Business modes, packaging and material handling, security, database management, online tracking, and more are in demand.
The road Transport Business sector in Bangladesh is a very lucrative and thriving industry for prospective entrepreneurs. Transport efficiency boosts a nation’s GDP. Dhaka has over 20 million people and a 3.56% yearly population increase, hence this industry has exploded.
Road transport consists both passenger and freight mobility. Passenger transportation comprises buses, ride sharing services like Uber, Pathao, and Shohoz, while products and commodities are moved by lorries, vans, and trucks. Logistics and Transport Business have “interlinked relationships” that improve each other. Transportation is a key part of the logistics chain because it’s needed from production to distribution, and logistic services are needed to manage, handle, store, load, and unload goods and materials.
Service providers may register a firm with the RJSC by providing all required paperwork and payments. Only a trade license, VAT certificate, and TIN are needed to start a single proprietorship, therefore RJSC registration is not required.
To operate Transport Business, service providers must obtain TIN Certificate, Trade License, VAT Certificate, Driver License, Vehicle registration license, route permit, vehicle fitness certificate, Ride sharing enlistment certificate, vehicle enlistment certificate, etc. from the relevant government authority.
Among Bangladesh’s top legal firms is FM Associates, an international business. They have helped numerous customers form a business and secure Transport Business and logistics permits. FMA has extensive expertise reviewing and/or creating service contracts between vendors and transportation and logistics carriers and ride sharing service providers and vehicle owners. They also have a Bangladesh employment team.
The invisible Corona Virus-Covid 19 has destroyed Bangladeshi lives in terms of casualties and financial incapacities, as movement restrictions have hampered Transport Businessand logistics, RMG, health, export and import, trading, construction and infrastructure, and tourism.
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