Bangladesh does not have a single statute dedicated to equipment leasing or hire purchase. Leasing companies are regulated as finance companies under the Finance Company Act 2023 and Bangladesh Bank directions, while banks offering lease products are regulated under banking law. The rights between lessor and lessee come mainly from the contract, read with the Contract Act 1872, the Transfer of Property Act 1882 and asset-specific registration rules. That makes drafting particularly important: the asset finance documents must do much of the work that a dedicated statute might do elsewhere. Careful drafting fills the gaps.

In a finance lease, the lessor owns the asset and the lessee pays rentals for its use, usually over most of the asset's economic life, with an option to buy at the end or a residual value arrangement. In hire purchase, the customer hires the asset and becomes owner automatically or on paying a nominal sum once all instalments are paid. The difference affects accounting, tax, VAT, registration and enforcement. Bangladeshi finance companies offer both, and Islamic banks use ijarah and HPSM. We help clients choose the structure that matches their objectives.

A lessor that retains ownership of the asset is generally in a stronger position than an unsecured creditor, provided ownership is clearly documented, the asset is identifiable and any required registration has been completed. Problems arise where assets are mixed with the lessee's own equipment, moved without consent or not marked. Charges over company assets must be registered with the RJSC. Guarantees and security over other assets add protection. We review asset finance documentation and registration practice so that lessors can establish ownership quickly if winding up or restructuring proceedings begin.

Yes, but cross-border leases need careful planning. Depending on the structure, Bangladesh Bank approval or reporting may be required for foreign currency rental payments and related borrowing, and the equipment must be imported through customs with appropriate documentation. Withholding tax on rentals paid abroad, VAT and treaty relief all affect the cost. The foreign lessor will also want comfort that its title will be respected and that it can recover the equipment if necessary. We advise on approvals, payment mechanics and local enforcement, working with the lessor's offshore counsel. Timing should be planned early.

The documents usually give the lessor a contractual right to repossess on default, but exercising it must be done lawfully. Using force, intimidation or entering premises without consent can expose the lessor and its agents to civil and criminal liability. In many cases, negotiated surrender, a court order or an Artha Rin Adalat process is the safer route. We advise lessors on lawful repossession procedures and on documenting each step, and we advise lessees whose assets have been taken improperly. Notices and any handover should be recorded in writing.

Vessel finance typically involves a loan or lease secured by a registered ship mortgage under the merchant shipping legislation, with assignments of insurances, earnings and charter income. Inland vessels and ocean-going ships are registered in different ways. Foreign lenders financing Bangladeshi-flagged ships, or Bangladeshi owners acquiring vessels abroad, must also consider foreign exchange approvals and flag registration issues. Vessel arrest under admiralty jurisdiction may be available to enforce claims. We coordinate the Bangladesh-law aspects of these asset finance transactions with shipping counsel abroad. Asset finance for vessels is specialised.

The lessee should understand the total cost, including rentals, fees, insurance, taxes and any rate adjustment provisions, as well as maintenance obligations, use restrictions, termination sums and what happens at the end of the lease. It should check whether it needs board or lender consent, whether the lease breaches existing loan covenants and how the transaction will be treated for tax and accounting purposes. Default provisions, cross-default clauses and personal guarantees deserve close attention. We review asset finance proposals for businesses and negotiate changes before commitments are made.

Leasing and finance companies collect substantial personal data about customers, guarantors and drivers for credit assessment, onboarding, recovery and credit information reporting. The Personal Data Protection Act 2026 is relevant to how that data is collected, used, shared with agents and recovery firms, stored and transferred abroad. Portfolio sales and outsourcing arrangements also involve data transfers. We review onboarding forms, privacy notices, recovery agency contracts and data sharing practices so that asset finance operations meet the new requirements alongside Bangladesh Bank's existing rules. Asset finance data practices deserve review.