The Bangladeshi economy has emerged as a hub for finance, capital and technology. This nation is not only ranked as one of the top textile exporters, but it is also among the largest investment hubs across different sectors. Therefore, it would be plausible to consider various investment opportunities in the country.
Bangladeshi companies are required to increase the minimum paid up capital they have in their Memorandum of Association in order to register. It is usual for most companies formed in a country to be private limited companies.
Bangladesh allows about 100% foreign investment in different sectors. The government must, however, approve only a few sectors in advance. Both foreign investment and local investment are included in such investments. Any form of property can be purchased in the name of a corporation. The company would receive tax incentives through this method.
Company formation in Bangladesh is subject to the following criteria:
Structure Type
For company registration in Bangladesh, the applicant must select an appropriate structure. It is imperative that the applicant carefully analyzes all the advantages and disadvantages.
Capital Requirement
According to the Bangladesh Companies Act, a company registered in the country must have a capital of USD 1 to subscribe to its memorandum of association. As well as public companies, this would also apply to private companies. Applicants who intend to employ foreign workers or foreign employees must, however, provide a remittance of USD 50,000.
Number of Shareholders
The required number of shareholders is usually appointed before the company is officially formed. If a private limited company has two shareholders, there needs to be seven for a public limited company.
For the registration of a company in Bangladesh, the following procedures must be followed:
Name Clarification
First and foremost, the applicant must apply for name clearance. Bank slips are needed for the process of name clearance. Once the payment has been made, an official clearance will be issued by the RJSC website.
Banking for Corporations
The company must take this step only if it is a foreign company registered in Bangladesh. For this step, the shareholding of the company would be considered. In order to recruit a foreign employee, the company or the applicant must remit USD 50,000 inwards. The bank would then provide an encashment certificate after this step is completed. A certificate of incorporation would be required by the RJSC.
Companies Registration
A company registration in Bangladesh is completed with this step. All information must be submitted online on the RJSC website. This information must be submitted along with the bank slip indicating the payment to be made. The payment of stamp duty must also be considered. A document must pass a thorough review by the RJSC once the above steps have been completed. The certificate of incorporation will be granted if there are no issues related to the company registration in Bangladesh.
A company can be incorporated in Bangladesh by following the steps below:
Name of the Company
In Bangladesh, a company’s name must be approved before it can be used.
Company Directors
Under the Companies Act of 1994, companies must have at least two directors. The requirement pertains to private limited companies. Public limited companies must have a larger number of directors. There must be at least 18 years of age among the directors and they can’t have been bankrupted or criminally convicted.
Ownership
A company registered in Bangladesh must have a minimum number of shareholders. At least two shareholders must be present in the company. The maximum number of shareholders is 50. Directors and shareholders can be the same person or entity. The company has 100% foreign ownership allowed.
Regulatory Capital Requirement
The amount of capital that is subscribed to the Articles of Association and Memorandum of Association must be stated. The minimum amount of capital is not stated. Shareholders may receive some of the capital. The applicant must, however, provide USD 50,000 in the authorised capital of the company for the hiring of a foreign employee or worker.
Capitalization
A company incorporated in Bangladesh needs a paid up capital of 1 Taka for a local company, and 50,000 USD for a foreign owned company.
As such, it would be considered as the share capital of the company that is increaseable.
Registration of the Company
The Company must have a registered office when it is incorporated. It must be a physical address.
It is RJSC’s responsibility to issue the certificate of incorporation. We would also provide a MOA and AOA along with this.
Submission of Form XII is required. The following is a list of directors.
The company must also apply for a trade license, VAT registration, and other forms of authorization.
Once the registration process is completed, the MOA and AOA will be issued.
An Import Registration Certificate or an Export Registration Certificate must be obtained if the company conducts business involving import and export.
After incorporation, the company has to hold its annual meeting 18 months after the date of incorporation. In addition, over 15 months will pass before the next meeting.
Besides the above, regular company returns must be filed.
Bangladesh offers the following services for company registration:
Economic Growth
When compared with other countries in South Asia, Bangladesh has improved its performance over time. It has steady growth of 6%, which is accelerating. As a result, various sectors have worked together.
Foreign Investment Allowed
In most sectors, foreign investment is allowed at 100%. This makes it very easy for foreign companies to operate in the country. The company can have foreign shareholders even though they do not own it.
Repatriation Allowed
You can repatriate any profits you make in Bangladesh back to your home country.
There is No Minimum Capital Requirement
Bangladesh uses a variety of structures for company registration. A minimum capital requirement is not required, however.
Entrepreneurial Tax Exemptions
Different types of entrepreneurs are eligible for different types of tax exemptions. This exemption would be applicable to interest on loans, capital gains tax specific to sectors, and foreign service compensation in particular sectors.
We Can Help You to Open a Company Registration in Bangladesh
Would you like to register an entity in Bangladesh? Call CallCenterBD for more information. The company registration process in Bangladesh is handled by our consultants. Come to Bangladesh and grow your business.We will contact you within a few working hours.
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