Investors are increasingly recognizing Bangladesh as a viable new market due to its advantageous location close to two significant seaports for exports, its low cost to launch a business, and its ongoing rapid expansion. It also provides tax holidays and exemptions, economic zones, and an easier way to import machinery and raw materials, which makes it even more appealing for foreign investment. Bangladesh has distinct regulatory standards for establishing and running foreign-owned businesses. What you need to know about this procedure is provided here.
Key factors to take into account while opening a business in Bangladesh
There are a few things you should think about before starting your business. To utilize your registered address, for instance, you must offer a local location. This needs to be a real address. Opening a company bank account and funding it with your initial paid-up capital are additional requirements. For foreigners, forming a business in Bangladesh is now much simpler. Directors and stockholders may all be foreign nationals. Additionally, you do not need to travel to Bangladesh to finish the company incorporation process.
To incorporate a business in Bangladesh, no specific visa is required. Obtaining a business visa should be sufficient if you plan to travel frequently. However, you’ll need to get a work permit if you wish to move here. Getting your company incorporated in Bangladesh can be very confusing due to the massive amounts of paperwork, legal requirements, and other formalities involved.
Clearance of the company name
Before doing anything further, you must have the Office of the Registrar of Joint Stock Companies and Firms approve (clear) your company name. For starters, go to their website.
Since all good things have a price, you’ll receive a payment slip (from the bank BRAC) after submitting your application asking for a “prescribed charge” of BDT (Bangladeshi Taka) 200 to pay your invoice.
Differential documentation drafting
The following documentation, which may vary depending on the sort of company you are intending to register, is required to register your business in the glorious country of Bangladesh.
Establish a new bank account
The last and easiest step is to register a brand-new bank account in Bangladesh with any of the scheduled banks under the desired company name. Keep in mind to send the funds in amounts equal to the shares the foreign shareholder owns if there is one.
The cause? An “Encashment Certificate”, which is needed by the RJSC to complete your registration, will then be issued by the bank.
A collection of effective submissions
Don’t stop now, the finish line is almost in sight. The fourth and last step of the registration process is uploading all the necessary paperwork to the RJSC website. Once your company name has been cleared and you have all the required paperwork and forms, you must ensure that your documents, including the articles of association and the memorandum, adhere to the format specified on the RJSC website.
The Procedures following registration
Although it doesn’t constitute a crucial stage in the registration procedure, this phase contains several procedures that must be completed after your company registration is complete. To operate as a Limited Company (private and public), you must possess:
- A trade permit issued by the appropriate city corporation submitting an application
- A Tax Identification Number (TIN) was obtained from the National Board of Revenue’s (NBR) suggested website.
- A VAT registration certificate online.
- A certificate of fire safety issued by the Bangladesh Fire Service and Civil Defense Authority
- Environment Clearance Certificate (if involved in an industrial project of any way or form).
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Breakdown of Bangladesh company registration fees and expenses
