Company Registration in Bangladesh: Step-by-Step Process
Step 1: Name Clearance: To start the Company Registration in Bangladesh, you must have needed permission for the name of your company from the Registrar of Joint Stock Companies and Firms (RJSC).
Step 2: Collection of Documents: After finishing name registration from the company register office, you must prepare a preliminary version of the draft copy of the Article of Association (AoA) and the Memorandum of Association (MoA). You have to submit these documents to RSJC in addition to other RSJC-demanding documents.
Step 3: Opening of a Bank Account: After that, the third number step is to open a bank account under the name of your company and prepare an incoming remittance statement of at least US$ 50,000 if you want to recruit foreign employees.
Step 4: Submission of documents to the RJSC: In this step, you will be needed to submit the essential documents to the RJSC and give payment of the registration fee of the company. You can get with the RJSC for the incorporation certificate within the standard process.
Step 5: Additional Licenses and Registrations: After getting the incorporation certificate of company registration, you have finished all the procedures mentioned above and get the certificate of incorporation, Articles of Association (AoA), and Memorandum of Association (MoA), you have completed the Company Registration Process in Bangladesh and got a registered company in Bangladesh.
You must have needed to get some additional licenses and registrations, including –
- Trade License
- Tax Identification Number (TIN)
- VAT Registration Certificate
- Fire Certificate
- Environmental Clearance Certificate (if required)
Business Opportunities for Foreign Company Registration in Bangladesh.
If you are thinking of Business Opportunities in Bangladesh, Today, Bangladesh may be one of the lucrative places for foreign direct investment. For low-cost competitive advantage of the business and low labor cost benefits, foreign companies have a strong desire to increase their business size in Bangladesh. Bangladesh ensures a business-friendly environment for foreign investors to invest in various industries except for the defense, mining, nuclear energy, mining, and forest plantation industries. The geographic position of Bangladesh is the best suited for global trade. It has a very convenient communication system, having international air and sea routes. Bangladesh is filled with heavenly blessed with an available in large quantities of natural gas, water, and fertile soil. A few business opportunities for foreign company registration in Bangladesh to start a business are given below –
- ICT and business services
- Garment and textiles
- Light Engineering
- Leather goods
- Real Estate Business
- Power Industry
- Electronics
- Foreign foods
- Ceramics
- Agribusiness
- Life Science
- Digital Service
- Manpower
Here is a comprehensive guideline on beginning a startup business in Bangladesh with the documents needed and other essential requirements.
Benefits of Starting a Business in Bangladesh
Bangladesh has appeared as a stunningly attractive country, especially for foreign direct investment. Establishing a company in Bangladesh has numerous benefits. One of the most attractive benefits is low labor costs. Besides this, there are other benefits such as
- Rapidly growing economy
- A strategic location
- Availability of young and skilled workforce
- Profitable investment opportunities for foreigners
- Multiple trade agreements
Necessity for starting foreign company registration in Bangladesh.
- The legal documents for foreign company registration in Bangladesh are mentioned in the list below:
- Approval of the RJSC.
- A bank account in Bangladesh.
- Trade license issued by the local authority.
- Business Identification Number and Tax Identification Number.
- Rent an office in a non-residential location.
- Prepare a blueprint and the map of the business for factory setup permission.
- A copy of the Import or Export license.
- Fire certificate for factory setup or corporate office.
- Get approval from the respective authority for telecommunication business approval from BTCL permission.
Types of Business Structures in Bangladesh
There are only three types of business structure
- Private Limited Company
- Branch Office
- Liaison Office
Private Limited Company
This organization that has legal rights and obligations is considered separate from its owners. The Private Limited Company is considered as an independent like “legal person” that can –
- Buy assets.
- Incur liabilities and profits & losses.
- Hire & fire employees.
- Perform contracts.
- Sue individuals/institutions and can be sued as well Pay taxes.
- To acquire the advantages of appointing foreign employees, a minimum of US$60,000 is reserved. The PLCs reserve a minimum of two and a maximum of 50 shareholders whose financial liabilities are limited to the amount of capital that they have invested. two and a maximum of 50 shareholders whose financial liabilities are limited to the amount of capital that they have invested.
Branch Office
The branch office will conduct business activities in Bangladesh that are coordinated with the parent company’s business guidelines. However, BO’s (Branch Office) are not permissible to be involved in manufacturing and production activities. They must subcontract these activities to a Bangladeshi manufacturing company. The branch offices take the approval of BIDA or BB (Bank of Bangladesh)n and can increase the branch’s outside profit net of applicable taxes subject to BIDA/BB permission. If foreign companies show interest in involving in manufacturing and trading activities abroad, They can set up BOs in Bangladesh for the following purposes:
- Exporting/importing goods, and carrying out research work associated with the parent company.
- Acting as a buying/selling agent and representing the parent company located in Bangladesh.
- Offering professional or consultancy services.
- Promoting financial and technical collaborations between the parent company and Bangladesh companies.
- Providing any technical support to the products supplied by the parent company.
- Providing services to develop software and information technology in Bangladesh.
Liaison Office
The liaison office is a coordinator for communication between the principal office of business and other entities in Bangladesh. This is a reasonably priced option for companies to take part in the Bangladesh market. A liaison office cannot be engaged in any commercial activity directly or indirectly. Hence, it cannot earn income in the country. Recently, LOS (Loan Organization System) has been involved in the following activities:
We are conducting market research for a foreign registration company in Bangladesh
For contributing any information about the company or its products to the prospective buyers of Bangladesh. Boosting the head office’s undertaking through different meetings and events can eventually drive business in the later stages. For technical or financial alliance between the parent company and local companies. For setting up a liaison office in Bangladesh, the company must get permission from the Bangladesh Investment Development Authority (BIDA) and the Central Bank of Bangladesh (BB). There is no limitation capital requirement to start a Loan Organization in Bangladesh. The cost for starting a LO is BDT 25,000, along with an inward remittance of US$60,000. This payment must be driven to the office’s account from the Parent Company into the designated Bangladeshi bank account of the LO within two months of receiving the permission. Once the documents are submitted, it takes around four to eight weeks to get approval to set up the LO.
what is the cost of incorporating a company registration in Bangladesh?
The approximate cost of registering a company in Bangladesh is $4,000 per year. This cost includes expenses like composing legal documents, company registration, legal address for the company, and requisite taxes and fees.
What are the Requirements for Foreigners on Specific Passes to Start a Business in Bangladesh?
Foreign investors can set up, own, and operate different business entities in Bangladesh. However, some sectors are explicitly restrained from government investment.
The four Forbidden sectors are –
Arms and guns, bullets and shells.
Forest plantation & mechanized extraction
Production of nuclear energy
Security printing and many more
Generally, there are no major limitations on foreign investment except for some sectors, which are controlled by the administrative licensing processes. The sectors that need approval from a responsible authority are –
Large-scale construction projects such as flyovers, elevated expressways, in-place container depots, or container freight stations.
Investigation, withdrawal, and providing of natural gas, oil, coal, and other mineral resources
Medium and large industries utilizing natural minerals and gas as raw materials
Deep-sea fishing
Industries using heavy minerals withdraw from the seashore
Private-sector insurance companies
Private sector banks & financial institutions
Telecommunication services (mobile/cellular and land phone)
Private sector generation, distribution, and supply of power
Crude oil refineries
Satellite channels
Sea-bound ship transport
Cargo/passenger aviation
VOIP/IP telephony
Industries using heavy minerals withdraw from the seashore
Seaports/deep sea ports
How can Braverman help a new business start?
Braverman is the best business consultancy firm in Bangladesh, Starting a business in new in Bangladesh can be complicated, but our business consultancy firm in Bangladesh is here to help .. We assist foreign clients with every step of the process of starting a new business, from understanding local laws to handling all necessary paperwork. Our team ensures that you follow all the rules and regulations, making your entry into the Bangladeshi market smooth and stress-free. By working with our business consultancy firm in Bangladesh, you can focus on building your business while we take care of the details. Let us help you set up and grow your business successfully in Bangladesh.