07/07/2023
Company Registration in Bangladesh / How to open Companies in Bangladesh/ Opening Company in Bangladesh -an article by Barrister Imam Hasan
Opening a company in Bangladesh involves several legal and procedural steps. Here is a step-by-step guide to help you navigate the process:
Step 1: Determine the Company Structure: Decide on the type of company structure you want to establish. The most common option in Bangladesh are a private limited company or a sole proprietorship concern.
Step 2: Name Clearance: Propose a unique name for your company and apply for name clearance with the Registrar of Joint Stock Companies and Firms (RJSC). You can do this online through the RJSC website or in person at their office.
Step 3: Memorandum and Articles of Association: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) for your company. These documents outline the company's objectives, internal rules, and regulations. Consult with a lawyer to ensure compliance with local laws.
Step 4: Registration with RJSC: Submit the following documents to the RJSC for registration:
• Completed registration forms (available on the RJSC website)
• Memorandum and Articles of Association
• Form IX (Declaration of Compliance)
• Treasury challan copy showing payment of the registration fees
Step 5: Obtaining Trade License: After company registration, obtain a trade license from the local City Corporation or Municipality where your business will operate. You will need to submit an application along with supporting documents, such as the company's registration certificate, rent agreement, and other relevant documents.
Step 6: Tax Registration: Register your company with the National Board of Revenue (NBR) for tax purposes. You will need to obtain a Tax Identification Number (TIN) by submitting an application to the respective tax circle. Consult with a tax advisor or accountant to ensure compliance with tax regulations.
Step 7: VAT Registration: If your business turnover exceeds the prescribed threshold, register for Value Added Tax (VAT) with the local VAT office. You will need to submit an application and provide supporting documents such as the company's registration certificate, trade license, and other relevant documents.
Step 8: Register with the Board of Investment (Optional): If you plan to avail certain investment incentives or operate in specific sectors, consider registering your company with the Bangladesh Investment Development Authority (BIDA). This step is optional but can provide benefits in terms of tax incentives and other facilities.
Step 9: Opening a Bank Account: Open a company bank account in a local or international bank operating in Bangladesh. Provide the necessary documents, such as the company's registration certificate, MoA/AoA, and identification documents of authorized signatories.
It's important to note that legal and procedural requirements can change, so it is advisable to consult with a local lawyer or business consultant familiar with company registration in Bangladesh to ensure compliance with the latest regulations.
Barrister Imam Hasan
Advocate, Supreme Court of Bangladesh
Head of Chamber, IHB Legal
www.ihblegal.com
