Strategically located in South Asia, Bangladesh is a country that has a large, skilled, and inexpensive labour force. The Bangladeshi government has issued various business-friendly policies especially for foreign investors, allowing Bangladesh to become a popular outsourcing and production hub worldwide. Now that we have understood some of the reasons why you should incorporate your business in Bangladesh, you must also understand how to register company in Bangladesh. In this article, we highlight the company registration process in Bangladesh for you.
Why should I register my company in Bangladesh?
- Bangladesh is an optimum location to set up your business in for the following reasons:
- The government allows foreign business owners to have complete ownership over their business in most sectors.
- There is no minimum capital required to do business in Bangladesh.
- The government has issued various business-friendly policies including Intellectual Property (IP) protection, regulations to prevent money laundering, and more.
- In order to attract foreign investment to Bangladesh, the government has provided businesses with various incentives including tax holidays, tax exemptions, and more.
- The literacy rate in Bangladesh in 2020 was 74.70%, and it continues to rise. Therefore, there is an availability of a skilled labour force.
- Bangladesh has also established strong relationships with various organisations including the World Trade Organisations and has signed various agreements including the Asia Pacific Trade Agreement (APTA), Group of Eight Developing Countries’ Preferential Tariff Arrangement.
- According to the World Bank Report, Bangladesh continues to improve the ease of doing business by reducing registration fees, developing basic amenities in the country, and more.
How to carry out the company registration process in Bangladesh?
- In order to complete your business registration in Bangladesh, you must understand the steps that need to be undertaken by your business. It is imperative for you to understand these steps in order to ensure a smooth and hassle-free process.
Steps to complete company registration process in Bangladesh
[ps2id id=’step1′ target=”/]Step 1: Planning and Strategising
- Before you begin the Bangladesh company registration process, you must first select a suitable legal entity for you.
- Tetra Consultants will first understand your business activities, business requirements, and long-term goals before recommending a suitable business entity for you.
- Some of the business entities available in Bangladesh that you can choose from include:
- Limited Liability Company (Private Limited Company)
- Public Limited Company
- Branch Office
- Representative or Liaison Office
- Tetra Consultants will explain to you the different requirements of these entities that you will need to meet including the minimum number of shareholders and directors, the minimum paid-up capital, and more.
[ps2id id=’step2′ target=”/]Step 2: Meeting all the pre-registration requirements
- Tetra Consultants will check for the availability of your preferred business name and apply for name clearance with the Registrar of Joint Stock Companies and Firms (RJSC).
- Our team of experts will proceed to draft the Article of incorporation, Memorandum of Association (MoA), Power of Attorney, and any documents needed for incorporating the business.
[ps2id id=’step3′ target=”/]Step 3: Opening a corporate bank account
- It is compulsory for all foreign investors and business owners to open a corporate bank account in Bangladesh, in the proposed name of the company.
- Tetra Consultants will leverage our existing banking network to assist you in opening a corporate bank account for your business.
- Some of the banks we have previously worked with include the HSBC, Sonali Bank, and Standard Chartered Bank.
- Once your corporate bank account is opened, Tetra Consultants will collect and courier the banking documents, banking token, and access codes to your preferred address.
- You will be required to deposit a certain amount as paid-up capital in order to receive the Encashment Certificate which is needed during the business incorporating process.
- If you wish to employ foreign workers, you need to deposit at least US $50,000 into the bank account.
[ps2id id=’step4′ target=”/]Step 4: Registering your business
- Tetra Consultants will proceed to set up the business on your behalf with the Registrar of Joint Stock Companies and Firms (RJSC) by submitting the application form (form xii), the relevant documents along with the required registration fees which depend upon the paid-up capital of your business.
- For a Branch Office or a Representative Office, businesses need to get the approval of the Bangladesh Investment Development Authority (BIDA) and our team at tetra Consultants will assist you in obtaining the same.
- Once registration is completed, we will receive the Certificate of Incorporation, Article of Association, Memorandum of Association, and any additional documents and courier it to your preferred address.
[ps2id id=’step5′ target=”/]Step 5: Applying for Business Licenses
- In order to conduct business in Bangladesh, you need to obtain certain business licenses depending on your business activity.
- Tetra Consultants will inform you of the licenses you will require to start business operations and assist you in obtaining the same.
[ps2id id=’step6′ target=”/]Step 6: Registering for Tax
- You will be required to register your business for tax with the National Board of Revenue to obtain a Tax Identification Number (TIN).
- You will also be required to have a Value Added Tax (VAT) Registration Certificate in order to conduct business.
- Tetra Consultants will assist you in obtaining the same.
[ps2id id=’step7′ target=”/]Step 7: Staying compliant with government regulations
- Once registration of your business is completed, you can proceed with conducting your business. However, you need to remain compliant with the government policies.
- For this reason, Tetra Consultants assists our clients even after registration is completed to ensure their compliance with the government rules including timely preparation of the firm’s financial statements, filing annual corporate tax returns, and more.
- Now that we have understood the process to set up a new business in Bangladesh, you must also know the time this would take and the cost. The business registration process in Bangladesh should take approximately 2 weeks upon engagement and receipt of all the due diligence documents needed by our team. Following this, the bank account opening should approximately take 4 weeks. All in all, your business in Bangladesh will be operational within 6 weeks upon engagement.
- Throughout the setting up process of your business, you will not be required to travel to Bangladesh for any of the procedures. The same is true for the opening of a corporate bank account with certain reputable banks. If, however, you are required to travel to Bangladesh, a representative of Tetra Consultants will accompany you to the meeting with the bank. As an alternative to this, our team will request the bank for an online meeting instead.
- The total cost of setting up your business in Bangladesh depends on various factors including the services you require from us, your business activity, your choice of business entity, and more. Our total engagement fee charged from you includes the government registration fees. We will discuss the costs in more detail before we start the registration process.
How we can help you proceed with the company registration process in Bangladesh
With Tetra Consultants by your side, the incorporation process of your business in Bangladesh will be straightforward. Our comprehensive service package includes the following:
- Planning and Strategising with our clients to select a suitable business entity
- Registering the business so that our clients can focus their time and energy on their operations
- Ensuring business’s compliance with the government regulations to prevent any problems in the future
Contact us to find more information on the company registration process in Bangladesh and our dedicated and experienced team will revert within the next 24 hours.