{"id":8565,"date":"2024-10-21T15:26:48","date_gmt":"2024-10-21T09:26:48","guid":{"rendered":"https:\/\/recombd.com\/?p=8565"},"modified":"2025-05-06T14:38:06","modified_gmt":"2025-05-06T08:38:06","slug":"set-up-a-company-in-bangladesh","status":"publish","type":"post","link":"https:\/\/recombd.com\/zh\/set-up-a-company-in-bangladesh\/","title":{"rendered":"How to Set Up a Company in Bangladesh?"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Starting a company in Bangladesh offers significant opportunities to local and foreign entrepreneurs. With its rapidly growing economy and business-friendly regulations, Bangladesh has become an attractive destination for investment. This guide will walk you through the step-by-step process of set up a company in Bangladesh, ensuring compliance with all legal and procedural requirements.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Choose Your Business Structure for Set Up a Company<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The first step in establishing a company in Bangladesh is selecting the appropriate business structure. The <\/span><b>type of company<\/b><span style=\"font-weight: 400;\"> you choose will determine your legal obligations, taxation, and how you manage your company. The main types of business entities in Bangladesh include:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sole Proprietorship<\/b><span style=\"font-weight: 400;\">: A simple structure for small businesses owned and managed by one individual.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Partnership: A company with two or more owners who share profits and duties.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Private Limited Company (Ltd.)<\/b><span style=\"font-weight: 400;\">: Bangladesh&#8217;s most common business structure limits shareholders&#8217; liability to the amount invested.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public Limited Company (PLC)<\/b><span style=\"font-weight: 400;\">: Typically used for larger businesses intending to raise capital through public stock offerings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Branch Office<\/b><span style=\"font-weight: 400;\">: A foreign company&#8217;s extension that operates in Bangladesh.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liaison Office<\/b><span style=\"font-weight: 400;\">: A non-revenue-generating foreign office used for research or communication purposes.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Most entrepreneurs opt for <\/span><b>Private Limited Companies<\/b><span style=\"font-weight: 400;\">, as they offer a balance of control, limited liability, and tax benefits.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Choose a Unique Company Name<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Selecting a <\/span><b>unique name<\/b><span style=\"font-weight: 400;\"> for your company is a critical step. The name should not be similar to any existing company name in Bangladesh and must adhere to the Registrar of Joint Stock Companies and Firms (RJSC) guidelines. It is recommended that you check the availability of the name before proceeding with registration.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The name must also comply with the <\/span><b>Company Act 1994<\/b><span style=\"font-weight: 400;\">, meaning it should not be misleading, identical, or too similar to any other registered company.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Appoint Directors and Shareholders<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A <\/span><b>Private Limited Company<\/b><span style=\"font-weight: 400;\"> in Bangladesh must have a minimum of two directors and two shareholders. The directors can be Bangladeshi citizens or foreign nationals. They are responsible for overseeing the company&#8217;s operations and must be at least 18 years old.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Shareholders own the company and can be individuals or entities, either local or foreign. Each shareholder must purchase a minimum of <\/span><b>one share<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Prepare the Necessary Documents to Set Up a Company<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">To successfully register your company with the RJSC, you will need the following documents:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Memorandum of Association (MOA)<\/b><span style=\"font-weight: 400;\">: This document outlines the company\u2019s objectives, business scope, and its interactions with external entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Articles of Association (AOA)<\/b><span style=\"font-weight: 400;\">: This details the company&#8217;s internal management, including the responsibilities of directors, shareholders, and the management team.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Forms IX and X<\/b><span style=\"font-weight: 400;\">: These forms contain information about the directors and shareholders of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Valid Identification<\/b><span style=\"font-weight: 400;\">: Copies of passports or national IDs of the directors and shareholders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Registered Office Address<\/b><span style=\"font-weight: 400;\">: Every company must have a registered address within Bangladesh.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">All documents must be drafted by the <\/span><b>Company Act 1994<\/b><span style=\"font-weight: 400;\"> and submitted in English or Bengali.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>Register Your Company with the RJSC for Set Up a Company<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Once you have gathered all the necessary documents, you can proceed to register your company with the <\/span><b>Registrar of Joint Stock Companies and Firms (RJSC)<\/b><span style=\"font-weight: 400;\">. The process typically involves the following steps:<\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Name clearance<\/b><span style=\"font-weight: 400;\">: Obtain approval for your company\u2019s name from the RJSC.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Submission of Documents<\/b><span style=\"font-weight: 400;\">: Submit the MOA, AOA, Forms IX and X, and other required documents online.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payment of Fees<\/b><span style=\"font-weight: 400;\">: Pay the government registration fee, which is based on the company\u2019s authorized capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Certificate of Incorporation<\/b><span style=\"font-weight: 400;\">: After approval, the RJSC will issue a Certificate of Incorporation, officially recognizing your company as a legal entity in Bangladesh.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\"><b>Open a Corporate Bank Account<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Once your company is registered, you must open a <\/span><b>corporate bank account<\/b><span style=\"font-weight: 400;\"> in the name of the company. This account will be used for managing company funds, including the share capital and operational expenses.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Foreign investors must <\/span><b>remit their initial investment<\/b><span style=\"font-weight: 400;\"> from abroad into this account if they intend to set up a Private Limited Company. Most major banks in Bangladesh offer services to foreign-owned companies and require the following documents:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certificate of Incorporation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MOA and AOA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Directors\u2019 and shareholders\u2019 identification documents<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Board resolution to open a bank account<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>\u00a0Obtain a Trade License<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Before commencing any business activities, you must apply for a <\/span><b>Trade License<\/b><span style=\"font-weight: 400;\"> from the local municipal authority where your business is located. The trade license is required for both local and foreign businesses. The cost of <a href=\"https:\/\/recombd.com\/how-to-get-trade-license-in-bangladesh-2024\/\">obtaining a trade license<\/a> varies depending on the nature of your business and its location.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The documents required for a Trade License include:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certificate of Incorporation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MOA and AOA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax Identification Number (TIN)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lease agreement for the business premises<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Register for Tax and VAT<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">All companies in Bangladesh must obtain a <\/span><b>Tax Identification Number (TIN)<\/b><span style=\"font-weight: 400;\"> from the National Board of Revenue (NBR). This is required to pay corporate taxes and file tax returns. Additionally, if your company\u2019s annual turnover exceeds BDT 3 million, you must register for <\/span><b>Value Added Tax (VAT)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The process of obtaining a TIN and VAT registration involves:<\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>TIN Registration<\/b><span style=\"font-weight: 400;\">: Complete the application form and submit it to the <a href=\"https:\/\/nbr.gov.bd\/\" target=\"_blank\" rel=\"noopener\">NBR<\/a> along with a copy of the Certificate of Incorporation and director\/shareholder identification.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>VAT Registration<\/b><span style=\"font-weight: 400;\">: Apply for VAT at the local VAT office, submitting necessary documentation and filling out Form VAT 2.1.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\"><b>Secure Additional Licenses or Permits<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Depending on the industry and nature of your business, you may require additional licenses or permits to operate legally in Bangladesh. For instance:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Import\/Export Business<\/b><span style=\"font-weight: 400;\">: You will need an <\/span><b>Import Registration Certificate (IRC)<\/b><span style=\"font-weight: 400;\"> or <\/span><b>Export Registration Certificate (ERC)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Foreign Employee Hiring<\/b><span style=\"font-weight: 400;\">: Companies hiring foreign nationals must obtain a <\/span><b>Work Permit<\/b><span style=\"font-weight: 400;\"> from the <\/span><a href=\"https:\/\/bida.gov.bd\/\" target=\"_blank\" rel=\"noopener\"><b>Bangladesh Investment Development Authority (BIDA)<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Comply with Post-Registration Formalities<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">After registering your company, certain post-registration formalities must be completed, including:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual Return Filing<\/b><span style=\"font-weight: 400;\">: Every year, companies must submit an annual return to the RJSC, detailing changes in shareholdings, directors, or registered office address.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee Registration<\/b><span style=\"font-weight: 400;\">: If your company has employees, you must register them with the <\/span><b>Bangladesh Employees&#8217; Provident Fund<\/b><span style=\"font-weight: 400;\"> and ensure compliance with labor laws.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">By following these steps, you can successfully establish a business in Bangladesh and begin your operations. Setting up a company in Bangladesh may require careful planning, but the growing market and government support make it a viable option for entrepreneurs.<\/span><\/p>\n<p style=\"text-align: justify;\">","protected":false},"excerpt":{"rendered":"<p>Starting a company in Bangladesh offers significant opportunities to local and foreign entrepreneurs. With its rapidly growing economy and business-friendly regulations, Bangladesh has become an attractive destination for investment. This guide will walk you through the step-by-step process of set up a company in Bangladesh, ensuring compliance with all legal and procedural requirements. Choose Your [&hellip;]<\/p>","protected":false},"author":6,"featured_media":8566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-8565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expatriate-management-services"],"_links":{"self":[{"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/posts\/8565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/comments?post=8565"}],"version-history":[{"count":0,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/posts\/8565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/media\/8566"}],"wp:attachment":[{"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/media?parent=8565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/categories?post=8565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/recombd.com\/zh\/wp-json\/wp\/v2\/tags?post=8565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}