Business in Bangladesh: Company Registration in Bangladesh in Five Simple Steps
Bangladesh is one of the promising emerging markets in the world. In fact, it has attracted many investors who are now considering company registration in Bangladesh to establish businesses in various industries. Some of the things attracting investors into the country include competitive labor costs, rapid economic and social growth, and policies favoring foreign investments.
If you are keen on starting any business in Bangladesh, then it is essential that you understand the various types of legal entities you can start in Bangladesh. Also, you need to know the procedures for business incorporation. If you are a foreigner, or if it is going to be your first time attempting to register a business in Bangladesh, you may find the whole process to be long, tedious and even confusing.
But you don’t have to worry or get wary about the process of company registration in Bangladesh. This is because at 3E Accounting, it is our business to help investors like you set up very successful ventures in Bangladesh. We have the experience, skills, and expertise needed to guide and advise you on your preferred entity, and also walk with you throughout the registration process. Get in touch with us for any incorporation service you may need in Bangladesh.
Types of Legal Entities in Bangladesh
The following are some of the legal entities available in Bangladesh:
Private Limited Company
Most of the companies in Bangladesh are registered as private limited companies. Well, it is one of the best business entities for foreign investors in the country. With this type of body, they can be fully foreign-owned by individuals above 18 years of age. However, there must be a minimum of two and a maximum of 50 shareholders. Additionally, it must have at least two directors, who can also be the two shareholders.
Public Limited Company
In Bangladesh, a minimum of seven members and three directors are necessary to start a public limited company. Further, the shareholders can be legal persons above the age of 18 years, or as qualified by the Bangladesh laws. Public limited companies can invite the public to hold shares. Moreover, it is one the ways they normally use to raise funds.
A branch office is simply an extension of a parent company abroad. It is a separate legal entity, and for it to be registered in Bangladesh, special approval must be obtained from BIDA. Its operations also have boundaries, which the authorities carefully monitor.
Opening a representative office in Bangladesh will also require BIDA’s approval, and its activities in Bangladesh have limitations and must not include any profit-generating activity. It can serve as a coordination or communication instrument between Bangladesh and the parent company.
Form a Company in Bangladesh in 5 Simple Steps
Company registration in Bangladesh can be possible in the following five steps:
Step One: Name Clearance
You will start by getting approval for the name of your company from the Registrar of Joint Stock Companies and Firms.
Step Two: Document Drafting
You will draft all the required documents including Articles of Association, and Memorandum of Association. It is also at this stage when you will complete and submit all the forms provided by the RSJC for compliance.
Step Three: Opening a Bank Account
You will have to open a bank account in the proposed name of your company. You will also need to deposit at least $50,000 if you intend on hiring foreign employees in your company.
Step Four: Document Submission to RSJC
You will have to submit all the duly filled forms to the RSJC and pay the required registration fees.
Step Five: Post-registration Compliance
You will have a newly-registered company in Bangladesh after you get the certificate of incorporation. After this, however, you will still need additional licenses and registrations, including:
- Trade License
- Fire Certificate
- Tax Identification Number
- Environmental Clearance Certificate
- VAT Registration Certificate
Get in Touch with Us
Contact us today if you need help with company registration in Bangladesh. We have the right professionals to help you through all the steps of forming your business. Whether you need help with drafting the articles or opening the business bank account, we are always ready to help you out. Contact us for more information.