Complete Guide to Partnership Firm Registration in Bangladesh

Hence looking to get in business with your mates, are you? Perhaps you are trying to create a partnership firm? In such a situation, you will have to get yourself registered for the partnership firm registration Bangladesh.

In this article, I am going to share with you all you need to get started and walk through the registration process. Make the registration process easy and trouble-free by following our guide.

What is a Partnership Firm?

A partnership firm is a type of business in which two or more individuals manage and operate, without incorporation – it by law takes responsibility for the same. These firms are governed by the Partnership Act 1932 in Bangladesh which provides partners with their rights, duties and liabilities.

The Different Kinds of Concerns in Partnership and Their Definition

General Partnership: Each partner in a general partnership has equal responsibility for the management of the business and joint unlimited liability (the debts to pay).

Private equity limited partnerships (comprised of general and limited partners) General partners run the business and have personal responsibility for its debts, limited partners don’t actually make management decisions on a daily basis but contribute capital and also share profits (that can be negotiated), they are not personally liable.

What are the advantages of partnership firm registration?

Below the Line Responsibility: with partners working together in this structure, everyone shares some of the work and management responsibilities

• Increased Capital: Pooling resources leads to a greater access to capital, and hence increasing business opportunities.
• Tax Advantage:Profits are taxed only once as opposed to corporations which have double- taxation.
• Portability: Business operation can be modified with esteemlective partners.
• Decision Making: Allows quick and efficient decision due to low regulations.

Follow the steps to how you can register a partnership firm in Bangladesh.

1. Choose a Partnership Name

• Name of partnership firm:- The name you select and use for your partnership matters a lot. Ensure the name:
• Nothing is same as other pre-existing company/firm.
• Does not have words like Government, Municipal or any such word denoting government patronage
• Is not offensive or illegal.

2. Draft the Partnership Deed

• Partnership Deed is essentially a written and signed agreement on behalf of the partners to formulate, operate administer procedures effectively. Key elements to include are:
• Name and Address of the firm : ————– all partners.
• Details of Business to be conducted (the “Business”)
• Duration of the partnership.
• For Each Partner – Capital Contribution
• Profit and Loss Sharing ratio Point to remember
• Managerial Roles and Responsibilities of the partners.
• Conditions of Dissolution if the partnership

3. Additional Documents to Prepare

• Apart from the Partnership Deed – Read more on Medium, join our LinkedIn group YourStory provides a platform for…
• National IDs of all partners.
• Proof of Address (the business location)
• Photographs of partners.
• Financial transactions by Bank Account Details

4. Registration of the Firm with Registrar

• Partnership firm registration in Bangladesh is mandatory, the business owner who operates a partnership get to register his/her firm with registrar of firms in Bangladesh. Follow these steps:
• Application to Be Sent: Go and file Form I with the Registrar of Firms.
• Supporting Documents: You have to provide the Partnership Deed, national IDs (of each Partner), address proof, photographs and other documents.
• Pay registration fee: Pay the relevant registration fees, differing based on work type and number of partners.
• Confirmation: The Registrar will confirm that the documentation is indeed correct and request further information if necessary.
• Certificate of Registration – When the registration process has been successfully verified, a Certificate of Registration is issued by addl.

5. Get Trade Licence and Other Licenses

Trade License from local municipal authority after being registered You will also need other types of licenses or permits relying on your business type.

6. Open a Bank Account

Make payments into an account belonging to the firm Certificate of registration, partnership deed and identification conformation for who are partners to the bank.

7. Register for Tax Identification Number (TIN).

Collect a Tax Identification Number (TIN) from National Board of Revenue (NBR). To ensure your tax compliance and conducting a legal business in Bangladesh.

Partnership Firm Registration Process in Bangladesh:

To begin with, the name of your business needs to be chosen first when you are initiating partnership firm registration. Also check if the name is taken by calling officials of Registrar joint stock companies and firms (RJSC). You must register an account with that name if it is available and validated. The website guides you through the process and gives information on branch where needed fees for your desired name should be paid.

After determining the unofficial name of a firm, partners have to prepare Deed of Partnership. We will discuss it later.

Prepare a Deed of Partnership on 4000 taka non-judicial stamp.

Register the Deed of Partnership in front of a Notary Public, who is usually an Advocate

Then you need to pay the registration fee on registration RJSC for your business.

In addition to the registration fee, you will also need:

• Duplicate Deed of partnership
• Partners’ national ID cards
• Photos of the partners
• Proof of name chosen
• Payment evidence for registration
• Other Documentation necessary based on your Business piece

Deed of Partnership in Firm Registration in Bangladesh

The Deed of Partnership is one of the most crucial pieces of document that must be created with careful considerations. You will require assistance of skilled business setup lawyers to ensure all the key parts are covered and noted. The partners and the lawyers should discuss every part and make adjustments. This will ensure future conflicts are less likely and business operates smoothly.

The deed will also have the following:

• Firm name and address.
• Names and addresses of partners.
• Type and nature of the business.
• Capital amount, Interest on Capital, Drawings, Interest on Drawings.
• Profit-sharing ratio.
• Partner salaries.
• Accounting period.
• Recording methods and safekeeping of books.
• Audit procedures.
• Start date of partnership, duration, and dissolution methods (if applicable).
• Bank account regulations.
• Procedures for admitting new partners or dealing with partner death.
• Dispute resolution.
• Meeting rules and bylaws.

Cost of Partnership Firm Registration in Bangladesh

The total cost of partnership firm registration in Bangladesh will vary. Here is an accurate estimate of how much you need to pay:

• Name Clearance fee: 575 taka
• A deed of Partnership by an expert advocate starts from 10,000 taka
• Non Judicial stamp (120 Taka X 40) : 4800 taka
• Printing + Notary fee: 2500 to 5000 taka
• Transport and others: 1000+ taka
• RJSC Govt. Fee: 5750 taka
• Misc. expenses: 5000 taka

Conclusion

This type of business partnership can be extremely profitable if and only when it is written down LEGALLY! We have covered all details on partnership firm registration in Bangladesh therefore you will find it less difficult to use, if followed properly.

To those ends, there are several aspects of partnership in Bangladesh that you should understand and adhere to for the best interests. Also, have the best business lawyers in Bangladesh draft your Deed of Partnership or any business documentation. If you don’t then watch out, you or partners can end up in hot waters.