Formation of a Project Company in Bangladesh

Another option, albeit a restricted one, open for foreign entities is to form a project company in Bangladesh known as special purpose vehicle or SPV having advantage of separate balance sheet from mother company. The business of the project company will be limited to the particular project for which it was established depending on the company objectives. The same company is normally formed as per requirement of Tender if Company intend to participate in any tender. Once the particular project is completed or for some reason terminated, the project company will have to close its business in Bangladesh by liquidation. The documents required is similar to those for formation of a Private Limited Company described below