Sovereign immunity in the sense applied to foreign states does not prevent the Government of Bangladesh or its bodies from being sued in their own courts. Domestic law instead sets procedural conditions, such as the statutory notice required before suing the Government, rules on how the Government is named, and special provisions in particular statutes. Government bodies can also challenge jurisdiction on other grounds. We check these requirements early so that a claim is properly constituted and not delayed on a technical point. The correct government office to receive notices should be confirmed before filing.

In many jurisdictions, agreeing to arbitrate is treated as a waiver of immunity from court proceedings relating to the arbitration, such as enforcement of the award. It does not usually waive immunity from execution against property, which normally requires a separate, express waiver and may still be limited for certain kinds of assets. The position varies by country. We draft clauses that address both aspects expressly and consider where enforcement is most likely, because the same words can be read differently by different national courts. A separate execution waiver is strongly advisable. Local enforcement law must also be checked.

Not necessarily. A company owned by the Government but incorporated under the Companies Act 1994, or a statutory corporation with its own legal personality, is usually a separate legal person from the state. That separation cuts both ways. The entity may not be entitled to the same sovereign immunity as the state itself, but its assets may also not be available to satisfy a claim against the Government, and vice versa. We confirm which entity holds the obligations and the assets before a contract is signed. Corporate structure charts help here. We map the entities at the outset.

This is one of the most common defences raised by state-linked parties. If required approvals were missing, the counterparty may argue that the contract is void or unenforceable against it. Remedies may still exist, for example in restitution or under a treaty, but they are harder to pursue. Prevention is the better approach: obtain certified copies of enabling approvals, a legal opinion from the entity's counsel where possible, and conditions precedent that make funding or performance depend on proof of authority. Sovereign immunity issues can then be addressed separately. Copies should be kept on file.

Possibly, but it is complex. Bangladesh gives effect to foreign arbitral awards under the Arbitration Act 2001 and the New York Convention, but enforcement against a foreign state also raises questions of sovereign immunity and diplomatic protections. Embassy premises and diplomatic property are strongly protected under the Vienna Convention on Diplomatic Relations. Commercial assets used for business purposes may be in a different position, depending on the applicable rules and any waiver. We analyse the asset, its use and its legal owner before any application. Sovereign immunity analysis is fact-specific.

The choice should reflect where enforcement is likely, the neutrality the parties need and what the state party will accept. A foreign seat with a supportive arbitration law and New York Convention enforcement is often preferred by investors, while public bodies may prefer Bangladesh law and a Dhaka seat. Some state contracts cannot depart from mandatory provisions. We advise on a realistic compromise, including institutional rules, the number of arbitrators and a clear sovereign immunity waiver, so the clause works if it is ever tested. Clarity is worth negotiating for. The commercial balance matters too.

The Invest Bangladesh Act 2026 merged those bodies into Invest Bangladesh, which has operated since 23 August 2026. Existing contracts and approvals generally need to be read together with the transitional provisions of the new Act. Practical questions include where notices should now be sent, who can grant consents and amendments, and how dispute mechanisms that name the old bodies will operate. We review each contract against the Act and advise on any confirmations or amendments worth obtaining. Updated notice details are a sensible first step. Counterparties usually welcome early clarity.

Lenders should confirm the borrower's or guarantor's legal identity, statutory powers, borrowing limits, internal and government approvals, and any foreign exchange or Bangladesh Bank requirements. They should review dispute clauses, sovereign immunity waivers, governing law and the location of assets that could be reached on default. Where a sovereign guarantee or comfort letter is offered, its legal effect must be checked carefully, because not every letter creates an enforceable obligation. We prepare a clear risk summary for credit committees. Credit approval then rests on documented facts. Updates follow any change in structure.