Practices of legal aspects of Business

Bangladesh is a combination of competitive market, business-friendly environment and cost structure that can give the best returns. Bangladesh offers a well-educated, highly adaptive and industrious workforce with the lowest wages and salaries in the region. 57.30% of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled workforce catering to investors needs. English is widely spoken, making communication easy. Bangladesh is strategically located next to India, China and ASEAN markets. Bangladesh has proved to be an attractive investment location with its 146.6 million populations and consistent economic growth leading to strong and growing domestic demand. Energy prices in Bangladesh are the most competitive in the region. Bangladesh offers the most liberal FDI regime in South Asia, allowing 100% foreign equity with unrestricted exit policy, easy remittance of royalty, and repatriation of profits and incomes. Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistical support for foreign investors.

1.1. Geography/statistics

Bangladesh is located in the Southern Asia, bordering the Bay of Bengal with the coastline covering 580km between Burma & India with the land boundaries 4,246 km where Burma covered 193 km and India covered 4,053 km. The time difference is GMT+6. The Total area is 147,570sq km and the total population is 164,425,491.The climate of the country is focused as tropical; mild winter (October to March); hot, humid summer (March to June); humid, warm rainy monsoon (June to October). Official language is Bangla (Bengali). English is widely used in Government, Business and Universities. Out of total population, Muslim 89.6 %, Hindu 9.3 %, Buddhist 0.5%, Christian 0.3% and Other 0.3%.

1.2. Economy

The economic position of the country is GDP/PPP (2011 est.): $100 billion; per capita $664, Real growth rate: 6%, Inflation: 11.3%. The Industries are Textiles, Jute, Garments, Tea Processing, Paper Newsprint, Cement, Chemical Fertilizer, Light Engineering, Sugar, Ceramics and Pharmacy. Natural resources are Gas, Timber and Coal. Arable land covered 55.39% and permanent crops covered 3.08% of total land area. Bangladesh exports mainly Ready Made Garments including Knit Wear (75% of exports revenue). Others include: Shrimps, Jute Goods (including Carpet), Leather Goods and Tea. Bangladesh imports mostly Petroleum Product and Oil, Machinery and Parts, Soybean and Palm Oil, Raw Cotton, Iron, Steel and Wheat.

1.3. Currency and banking

Currency of the country is Bangladeshi Taka (Tk). The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-banking financial institutions. The financial system also embraces insurance companies, stock exchanges and co-operative banks. Bangladesh Bank is both the Government’s banker and the banker’s bank, a “Lender of the Last Resort”. Bangladesh Bank, like most of the central banks of different countries, exercises monopoly over the issue of currency and the banknotes.

1.4. Government / Politics

The conventional long form is “People’s Republic of Bangladesh” and the conventional short form is “Bangladesh”. The government type is parliamentary democracy. Capital is Dhaka and the administrative 7 divisions are Barisal, Chittagong, Dhaka, Khulna, Rajshahi, Rangpur and Sylhet. 26 March 1971 is the date of independence and 16 December 1971 is known as Victory Day and commemorates the official creation of the state of Bangladesh.

1.5. Legal system

Bangladesh seceded from Pakistan in December 1971. The British-era legislation applied in Pakistan after 1947 and post-partition legislation enacted in Pakistan continued to form the basis of Bangladeshi personal status laws, but legal developments since 1972 have been distinct. Constitution adopted 4 November 1972. Amended in 1977 to remove principle of secularism included in Part II entitled Fundamental Principles of State Policy. After the emergence of Bangladesh in 1971, a rigid constitution has been adopted which came into force on 16 December 1972. The basic law of Bangladesh is the constitution of the People’s Republic of Bangladesh, 1972 as amended from time to time. Till 2010, fifteen amendments to the constitution have been made. All laws of the country are subordinate laws made by the elected Sangsad (the legislature consists of 350 members) conforming to the tenets of the Constitution. The laws enacted by the legislature and now in operation regulate almost all spheres of life. Ordinarily executive authorities and statutory corporations cannot make any law, but can make by-laws to the extent authorized by the legislature. Such subordinate legislation is known as rules or regulations. Unless found ultra vires of the parent law, such rules or regulations are also enforceable by the court like the laws made by the legislature. Important laws of the country may be classified under some broad heads such as land and property laws, personal laws, commercial laws, labour and industrial laws, election laws, law of crimes, service laws, fiscal laws, press laws and laws relating to the remedies. All laws, rules or regulations made by the competent authority are applied in the Courts and Tribunals. The Courts can be classified into two class’s viz. the Supreme Court and; Subordinate Courts and Tribunals. The Supreme Court of Bangladesh is the apex court with its two divisions, the High Court Division and the Appellate Division. As the apex court the high court division has been vested with the power to hear appeals and revisions from subordinate courts, and also to issue orders and directives in the nature of rights to enforce fundamental rights and to grant other reliefs available under the writ jurisdiction. There are civil courts presided by Assistant Judge to try the suits of civil nature and criminal courts presided by judicial magistrate to try the criminal cases. In addition, there are various other laws on different subjects regulating different fields and spheres of activities of national life. To seek remedy a person has to file a case before the appropriate court or authority. Claims regarding money, property, compensation etc is to be filed before the civil court presided over by the assistant judge or subordinate judge according to value of the claim, and complaint against commission of crime is to be filed either with the local police station or in the criminal court of the magistrate of the first class of the locality. The police investigate the cases lodged with the police station and produces witnesses before the court during trial. On the other hand, it is the responsibility of the complainant to produce witnesses before the court in the cases in which magistrates take cognizance on the basis of a written complaint. There are other authorities before which remedies may be sought by an aggrieved party. Those authorities are administrative authorities or tribunals. Except in respect of enforcement of fundamental rights, admiralty, company matters and writ petitions, relief cannot be sought directly from the high court division which mainly deals with appeals and revisions from the decisions of the

subordinate courts. One of the notable features of the legal system of Bangladesh is that the legislature can enact any special law for any particular purpose and thereby can form special courts or tribunals. For example, there are labour courts and labour appellate tribunals to decide labour disputes, administrative tribunals and administrative appellate tribunal to decide service disputes of public servants, income tax appellate tribunal to decide income tax disputes, custom, excise and VAT Appellate tribunal to decide disputes regarding custom and excise duties and VAT, court of settlement to decide disputes about abandoned properties, special judges to try corruption cases against public servants, special tribunals to try criminal cases under the Special Power Act 1974 and Nari-o-Shishu Nirjatan Daman Adalats to decide cases of crimes committed against children and women. To decide election disputes the election tribunals are constituted with judicial officers. Family courts have been constituted with assistant judges to decide family disputes. To decide money claims of the banks and other financial institutions Artha Rin Adalats have been set up presided over by judges, and insolvency courts have been set up presided over by district or additional district Judges to declare defaulting borrowers as insolvent. To try offences committed by children below the age of 16 years, juvenile courts have been formed with the magistrates and sessions judges, and juvenile courts follow the special procedure laid down in the children’s Act.

Chapter 2: Forms of business enterprise

2.1. Sole proprietorship

a) Definition:

In the sole proprietorship, known alternatively as sole tradership, the proprietor is to take all risks. Some of the favourable characteristics of a sole proprietorship business are the ease of initiation, low cost of commencement, freedom in keeping liability to certain limits, right to control, ease of winding up, minimum legal restrictions, liberty in making quick decisions and the like. The sole trader bears unlimited liability. A sole trader-ship business has no legal identity other than that of its owner. Most sole proprietors conduct small businesses such as retail shops that sell stationary, groceries, cloth, medicines, handicrafts, books, confectioneries, spare parts, and tyre/tube, wholesale stores. Many operate amusement business, and service marketing such as hotels, restaurants, guesthouses or tailoring, hair dressing, road, and water transportation. Sole trader-ships in Bangladesh are usually classified as small, medium and large depending on the size of capital employed.

b) Principle legislation

All the laws related to an individual are applicable to a sole proprietorship.

c) General requirements to start a sole proprietorship business:

i. Trade license from city corporation/municipality/union council (local government bodies)

ii. Taxpayer’s Identification Number (TIN)

iii. VAT Registration (in the cases where applicable)

iv. IRC (in the case of business related to import)

v. ERC (in the case of business related to export)

vi. License/permission from the authorities according to the nature of business/profession

vii. Bank account

Membership of trade body

As per publication of Board of Investment (BOI), local investor you may setup a business under several organizational structures such as single proprietorship, partnership and limited company. In the case of a foreign investor, one may establish its business only under limited company.

2.2. Partnership firm

a) Description:

Partnership Business a form of business organization created through voluntary agreements of minimum two and maximum 20 persons (the maximum is 10 in the case of banking business), with the intention of making and sharing profits among themselves. A partnership can arise only as a result of an agreement or contract, expressed or implied, between the partners. In Bangladesh, a partnership firm is to be formed under the provisions of the Partnership Act 1932. By definition, a partnership is illegal if it consists of more than 20 persons in case of a general business and more than 10 persons in case of business in banking. A non-profit making association is not a partnership in law of Bangladesh. In general, institutions or associations cannot be a member of a partnership. The Partnership Act 1932 does not require a partnership deed or agreement to be registered. The registration of such firm is optional. But if registered, a partnership firm can enjoy some legal rights and facilities. A partnership deed includes the name of the firm, nature of business, the capital and property of the firm, the capital of individual partners, term of partnership, provision for salaries, and drawings on account of profit, rate of interest (if any) on partners’ capital, advances and drawings, rights and duties of individual partners, provision for accounts and audit, division of profits and losses (capital and revenue), powers of admission and expulsion of a partner, termination of agreement by insolvency, death, etc., valuation of goodwill and share of assets on sale or death, and an arbitration clause. If a partnership business is not registered, a partner of the firm can not bring a suit to enforce a right arising from a contract or conferred by the Partnership Act against the firm or his co-partners. Also, an unregistered firm can not file a suit, or take other legal proceedings, to enforce a right from a contract, or to claim a set-off in any suit filed against it. However, the non-registration of a firm does not affect the right of an unregistered firm to bring a suit to enforce a right arising otherwise than out of a contract and the power of an official assignee or receiver to realise the property of an insolvent partner.

b) Principle Legislation

 The Partnership Act, 1932;

c) General Requirements to Start a Partnership Business:

i. The Partnership Deed;

ii. Minutes of Partners’ Meeting;

iii. Trade License from City Corporation/Municipality/Union Council (Local Government Bodies);

iv. Taxpayer’s Identification Number (TIN)

v. VAT Registration (in the cases where applicable)

vi. IRC (in the case of business related to import)

vii. ERC (in the case of business related to export)

License/Permission from the authorities according to the nature of business/profession

ix. Bank Account

x. Membership of Trade Body

2.3. Limited partnership firm

In Bangladesh, limited partnership firm in Bangladesh is not realistically available.

2.4. Branche/liasion/representative of foreign companies

a) Description:

A company expands its business by opening up its branch offices in various parts of the domestic country as well as in other countries. A branch office refers to an establishment which carries on substantially the same business and activity as is carried out by its Head Office. Branch offices help in expanding the size of the market for a company’s product by attracting more customers; widening the scope of its trading and manufacturing activities as well as bringing more opportunities and opening unexplored avenues for it. Thus, these offices help to fuel the growth of the company and enhance its profitability on a sustained basis.

The activities of Branch/Liaison/Representative office of a foreign entity shall remain confined to those as set forth in the permission of BOI. The said offices shall strictly follow the foreign exchange regulations of the government of Bangladesh. Generally, no outward remittance of any kind from Bangladesh sources by the said offices is allowed except the cases permitted by the foreign exchange regulations. The Branch/Liaison/Representative office of a foreign entity shall have to be submitted income tax return to the competent income tax authority of Bangladesh. Security clearance is required to be obtained from Ministry of Home, government of Bangladesh. Such offices shall have to bring inward remittance at least USD 50,000 within 2 (tow) months from the date of the issue permission letter as establishment cost and 6 months operational expenses.

b) Principal Legislation

i. The Investment Board Act, 1989;

ii. Rules & Regulations of Board of Investment (BOI);

iii. The Companies Act, 1994;

iv. The Foreign Exchange Regulation Act, 1947

c) General Requirements to Open Branch/Liaison/Representative Office of Foreign Companies:

Foreign companies not registered in Bangladesh can set up a place of business in Bangladesh in the form of a Branch Office or a Liaison Office. An investor can close a Branch Office/Liaison Office/ Representative Office in Bangladesh by an application with audit report, updated tax payment certificate, NOC from Bangladesh Bank etc. and required formalities with RJSC shall have to be performed. An investor can change the address of a Branch Office/Liaison Office/Representative Office in Bangladesh by an application with certified copy of rent deed and board resolution supported by a treasury chalan of specific amount. For to waiver the condition of BOI Branch Office/Liaison Office/Representative Office the company have to apply for the specific condition to waive in BOI.

2.4.1. Board of Investment (BOI)

Permission will be required from the BOI in order to open up a Branch Office and shall submit application in the prescribed form along with the following documents:

i. Prescribed Application From, duly filled in, signed and stamped;

ii. Memorandum of Association (MOA) and Articles of Association (AOA) of the Principal Company;

iii. Certificate of Incorporation;

iv. Name and Nationalities of the Directors/Promoters of the Principal Company;

v. Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh;

vi. Audited Accounts of the last financial year;

vii. Proposed organogram of the office;

List of activities of the proposed office

All papers/documents must be attested by the Bangladesh Embassy/High Commission of the country of origin. Embassy/High Commission of the applicant’s country of origin or Apex Chamber of Commerce of the country of origin.

2.4.2. Bangladesh Bank (BB)

Afterwards, permission is sought from Bangladesh Bank for opening branch/liaison Office in Bangladesh by foreign entities including airlines, companies, firms under Section 18B of the Foreign Exchange Regulation Act, 1947.

2.4.3. Registrar of Joint Stock Companies (RJSC)

Foreign Combines which establishes a place of business in Bangladesh shall, within one month of the establishment of the place of business, deliver to the Registrar of RJSC for registration—

(a) A certified copy of the charter or status or memorandum and articles of the company or other instrument constitution or defining the constitution of the company; and if the instrument is not written in Bengali or English Language, a certified Penally or English translation there of;

(b) The full address of the registered or principal office of the company; Chartered Accountants

(d) The name and address or the names and addresses of one or more persons resident in Bangladesh, authorized to accept on behalf of the company service of process and any notice or other document required to be served on the company;

(e) The full address of the office of the company in Bangladesh which to be deemed its principal place of business in Bangladesh.

3. Limited companies

Description

Limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be further divided into public companies and private companies. Business in Bangladesh may be carried on by a company formed and incorporated locally or by a company incorporated abroad but registered in Bangladesh. The incorporation or registration is done by the Registrar of Joint Stock Companies and Firms under the provisions of the Company’s Act 1994. Companies could be classified in following categories:

a. Company Limited by Shares

i. Public Limited Company and

ii. Private Limited Company

b. Company Limited by Guarantees

a) Private Limited Company:

i. Restricts the rights to transfer the shares.

ii. Limits the number of its members to minimum 2 and maximum 50 excluding the persons employed in the company;

iii. Prohibits any invitation to the public to subscribe for the shares or debentures of the company and

iv. Entitles to commence business from the date of its incorporation.

b) Public Limited Company:

May issue invitation to the members of the public to subscribe the shares and debentures of the company through a prospectus which complies with the requirements of the Companies’ Act 1994, the Securities and Exchange Ordinance, 1969 and the Securities and Exchange Commission Act, 1993 as amended from time to time.
Has minimum 7 members but there is no maximum limit.
Have at least 3 Directors.
May a private company converted into a public company.

General Requirements to Set Up a Company:

Registrar of Joint Stock of Companies and Firms (RJSC)

To register a company with the Register of Joint Stock Companies and Firms, promoters have to undertake activities in following steps:

i) Selection of the company name:

The name should not be identical with or closely resemble to the name of an existing company. An application in plain paper along with nominal required fees is be submitted to the RJSRF for verification and clearance of the proposed name.

ii) Memorandum of Association (MOA):

MOA states the name of the company, whether it is public or private limited and the location of the registered office at the company. The MOA should clearly spell out the main objectives, the authorized capital, the divisions of this capital into shares of fixed amount and liability of its members.

iii) Articles of Association (AOA):

The AOA are the regulations governing the internal management of the affairs of the company and the conduct of its business. These articles are subordinate to and controlled by MOA.

iv) Registration Application:

Prescribed Application Form for registration has to be filled in, signed and submitted to the Registrar of the Joint Stock Companies and Firms.

5. Chief Inspector of Factories and Establishment

Any manufacturing company employing 10 (ten) or more workers is required to be registered under the Labour Act, 2006 with the office of the Chief Inspector of Factories and Establishment. The act is primarily to regulate working conditions and to ensure safety in the factory.

6. Registration with Board of Investment

i. Application Form

ii. Trade License

iii. Limited Company

iv. Certificate of Incorporation

v. Memorandum and Articles of Association

vi. Name and address of other shareholder/director(s) of the project

vii. Additional documents for projects in certain sectors

Copy of rental agreement or lease deed for premises or land purchase document

ix. TIN Certificate

x. Registration Fee (Bank Draft)

7. Objective of the study:
7.1. Primary objective:

The first and most important objective of the assignment is to gather knowledge about Practices of legal aspects of Business. Then to know about how to make trade license, its benefits and drawbacks of not having trade license. The ways of getting trade license is also an important matter.

7.2. Secondary objective:

a) Help students acquire knowledge and skills needed to carry out their responsibilities and rights.
b) Help students increase their thinking skills and decision making process.
c) Information and ideas.
d) Apply questions to decision-making situations.
e) Increasing student’s vocabulary.
f) Help students to use skills in finding, comprehending, organizing, and communicating with people.

8. Practices of legal aspects/ formalities:

As we have surveyed about the legal formalities of business and found some important things from different points of view. From our survey we learned that due to easy rules & regulations most of the business firms maintained the legal formalities that mean they have the trade license. According to the trade license law of our country all fee’s including tax are paid at a time. That’s why they don’t need to worry about other formalities. There are some advantages of making trade license. These are given below…

8.1. Advantages of licensing:

A license allows a company to take a product to market without the expense of setting up locally and all the risks and costs associated with that.
A larger and more powerful licensee in a new market can provide instant market access and deter competitors and imitators.
A license can be used to enable products to be supplied locally where there is no opportunity to manufacture in the locality.
It is possible with the right kind of license and overseas business partner to create an extensive market presence very early on in the product’s life cycle. This will help make maximum profits for the licensor.
In certain circumstances it is possible to divide up a particular market so that different companies can license the same product but apply it in different areas. For example, it is possible to take disinfection kits and divide up the market into human and animal markets then find different companies with the right market presence.
It is possible to work with a licensee in a foreign market and learn from them. For example, it may be possible to improve products or to adjust them so that they meet local market needs. This can often be done early on in the product’s life cycle to help achieve better market coverage.
An overseas licensee may well save a lot of expense in terms of research and development. For example, reciprocal licensing in the car and telecommunications industries enables companies to exploit the fruits of research carried out by one company alone.
Where well known brands are licensed overseas, the local licensee can take advantage of an established brand with a known name and goodwill. It is very important for the licensor to ensure that brand standards are maintained in an overseas market.
It is possible to negotiate further income streams from support services and training.

8.2. Disadvantages of licensing:

It is important for the company to find the right partner to license with in a local situation. Understanding what an overseas partner can do is essential to making licensing a success.
UK Trade & Investment can help in finding the right individual or company.
It is important to ensure that there are proper control provisions in the license. It is especially important with licensing to have a well-drafted license drawn up by experts. The license should contain things such as full audit provisions and as licensor it may be important to police those audit provisions.
In the long term, royalty payments from a license may not provide the maximum for a licensor. It could be that setting up locally can generate better profits in the long run.
It is absolutely key to the success of the license for it to be properly negotiated and drafted. Licensing can be a complex arrangement and it is important for a licensor to be properly guided in terms of royalty payments, audit provisions and minimum sales.
The licensor is often required to provide technical assistance and training in brand standards etc. depending upon where the licensee is based. This will need to be factored into the licensing arrangements.
The licensor must be satisfied that the licensee can make a local market from the products. Some products are more popular in some cultures than in others.

9. Forms of taxation

9.1. Sales tax/vat

i. VAT is imposed on goods and services at stages of import stage, manufacturing, supply, and trading;

ii. VAT is imposed on services provided in Bangladesh and also on the services rendered from the outside Bangladesh;

iii. A uniform VAT rate of 15% is applicable for both goods and services;

iv. A registered person is entitled to claim back the VAT paid on purchase of inputs subject to compliance with the provisions of VAT laws;

v. 15% VAT is applicable for all business or industrial units with an annual turnover of Tk. 60 million and above, except in the cases specified;

vi. Turnover tax at the rate of 3% is liveable where annual turnover is less than Tk. 60 million;

vii. Truncated rate also applied in the cases specified by VAT laws which has been determined on the basis of assumed percentage of value addition;

Supplementary Duty (SD) is applicable as per 3rd Schedule of the VAT Act, 1991;

ix. Exemption of VAT or imposition of VAT @0% is regulated by Section 3 (Export or Deemed Export), Section 14 (goods/service declared by the government), 1st and 2nd Schedule of the VAT Act, 1991.

9.2. Stamp duty

Stamp duty is one of the main sources of Government revenue collection. All matters relating to stamps are regulated through The Stamp Act. 1899 and Stamp Manual, 1931.

Stamp duties are applicable on the following:

i. Agreements & contracts

ii. Notes

iii. Certified copies

iv. Documents

v. Land registration, etc.

9.3. Property taxes

A property tax is somewhat similar to a wealth tax. Only a certain portion of an individual’s tangible wealth is taxed at a certain rate, which is often a flat rate, but may vary under different circumstances or jurisdictions. The tax base may include, but is not limited to, a variety of assets such as real estate, land, family home, investment property, and private firms and forests lands.

According to Section 21(1) of the Income Tax Ordinance (ITO), the following income of an assesses shall be classified and computed under the head “Salaries”, namely:-

(a) Any salary due from an employer to the assesses in the income year, whether paid or not;

(b) Any salary paid or allowed to him in the income year, by or on behalf of an employer though not due or before it became due to him; and

(c) Any arrears of salary paid or allowed to him in the income year by or on behalf of an employer, if not charged to income-tax for any earlier income year.

For the purpose of computing the income chargeable under the head “salary”, the value if perquisites, allowances and benefits includable in the said income shall be determined in accordance with the provision of the rule 33A to rule 33J, whichever is applicable? The significant components of salary which are excluded there from for the purpose of tax are as follows:

Where the house rent allowance is receivable by the employee in cash, the amount, if any by which the house rent allowance so receivable exceeds fifty percent of the basic salary or taka 15,000 per month, whichever is less, shall be included in his income.
Where the employee is provided with rent free accommodation, the rental value of the accommodation or twenty five percent of the basic salary of the employee, whichever is less, shall be included in his income.
Where no conveyance is provided by the employer and the conveyance allowance is receivable by the employee on cash, the allowance so receivable in excess of Tk. 24,000/= shall be included in his income.
Where the conveyance is provided by the employer for the use of the employee partly or exclusively for personal or private purposes, there shall be included in the employee’s income, an amount equal to seven and half percent of the employee’s basic salary.
Where any amount is payable to the employee by way of hospitalisation or medical expenses, the amount, if any, by which the sum receivable by him exceeds the actual expenditure incurred by him shall be included in his income.

Chapter 3: Findings & Recommendations

Findings

After completing the assignment and survey we found some important things. These are-

i. Geographical and economical situation of Bangladesh.

ii. Currency and Banking system, government politics and legal systems of Bangladesh.

iii. Rules and regulations of different types of business

iv. Trade license, TIN, VAT, IRC, and ERC is needed to start a sole proprietorship business.

v. Partnership deed, TIN, VAT, IRC, ERC, License and bank account are needed to start a partnership business.

vi. The branch offices should apply the condition to waive in Board of Investment (BOI).

vii. To open branch office permission will be required from the BOI.

The advantages of having trade license.

ix. Disadvantages of not having trade license.

x. Different form of tax.

xi. Importance of paying tax for the development of our country.

xii. Ways of paying tax.

Recommendations:

When we surveyed about the legal aspects of business we saw that there are different types of rules and regulations of business. Most of the business man’s are familiar with this rules and regulations and they have trade licenses, they also paid tax in proper time etc. some are willingly avoid this rules. They known about this but they don’t want to involve with this. Some of them made trade license with the help of others. And some of these are fully unfamiliar with this rules and regulations.

i) Duties of the Business man

Business man should know the rules and regulations before starting business.
They shouldn’t deny it thinking unnecessary.

ii) Duties of the customers

Customers should judge whether the business is legal or illegal before making transaction.
If the business is illegal they should boycott it.
They also should inform the legal forces about any kind of illegal business.

iii) Duties of the authority/government

Government should make easy the way of paying taxes and making licenses.
Government has started income tax fair for last 3 years; but it should be spread out whole through the country.
Advertising can play an important role in this case.
People those who escape tax they should be treated as national enemy.