Things You Need To Know Before Start A Business In Bangladesh
It is an excellent time to start a business in Bangladesh, as the country is growing rapidly. A lot of small business owners want to start their own company but are stuck for ideas and information.
If you want to establish a new business in Bangladesh, you’ve come to the right place. This article has several tips that could help you to start a new business in Bangladesh.
Starting a business in Bangladesh requires a good understanding of the country’s business and legal environment, market, and competition. Bureaucratic procedures for registering the business and obtaining necessary permits and licenses must also be taken into account. A solid business plan and financial strategy are crucial for success in this developing country.
Key Points:
1. Hire Management Accounting Specialists with a business or management educational background to write the business plan for you, or hire a third-party consulting organization. You can do it if you believe you can.
2. Validate your company idea by talking it over with your loved ones, friends, and business advisory. Inquire about their ideas.
3. Make a goal, a mission, and a vision for yourself.
4. Consider your investment strategy.
5. Choose a good and unique name for your project.
As A First Step Create A Unique Company Name
1. When registering with the Joint Stock Companies and Firms, you must ensure that the proposed company name is unique. To file the company name, you’ll need some required documents together with the hard copy of the application. These include the promoters or sponsors of the proposed company’s resolution on the proposed corporate name.
2. You must also provide the names of the prospective chairs/directors/shareholders who have agreed to subscribe to shares in the proposed firm and have authorized the payment of share capital. This is confirmed and confirms the proposed name for a newly formed company is available.
According to the Companies Act 1994, the Registrar of Joint Stock Companies and Firms is responsible for incorporating or registering a company.
Stamps With A Special Adhesive To Start A Business
1. You must purchase an adhesive stamp from the Treasury for the memorandum and articles of association. It must be attached to the memorandum of association using special adhesive stamps worth BDT 500, regardless of the company’s authorized capital.
2. Special adhesive stamps are provided by the Treasury for the creation of payment receipts to the Bangladesh Bank.
3. Due to enhanced enforcement, the time it takes to get adhesive stamps from the Treasury has increased. In accordance with internal processes, the Treasury consults with the Accountant General, who notifies the RJSC when the applicant requests the stamps.
Note: Since 2006, the time it takes to get adhesive stamps from the Treasury has grown due to stricter stamp verification procedures.
Filing Documents With RJSC To Start A Business
You must file the relevant documentation with the RJSC for registration. For submitting the memorandum and articles of association, the firm pays fees based on its authorized capital. For a business with a capital of BDT 318,320, the cost is BDT 3,315 (BDT 1,200 in registration filing fees + BDT 2,115 in registration fees, for example). There are several fee slabs for different capital. When paying the fees, you must submit the following documents:
1. Certificate of clearance of the name
2. 3 copies of the association’s memorandum
3. 3 copies of the association’s articles of incorporation
4. I, VI, IX, X, and XII are the different types of forms.
5. Subscribers who are not residents of the United States: Certificate of redemption
6. Subscribers who live in the area: Identification number for tax purposes (TIN)
Creating a Business Seal
Making a company seal with the company name and certain unique details is a basic step to take when starting a business in Bangladesh.
Registering With The Appropriate Tax Authority
It’s time to register your business with Bangladesh’s tax department. The National Board of Revenue (NBR) is in charge of tax registration with the Zonal Taxation Service Department in order for a new firm to begin operations.
Become a Member of The VAT Authority
Another crucial step is to register your business with the appropriate VAT body. For VAT reasons, companies can register individually with the Customs, Excise, and VAT Commission (under the NBR). The NBR Customs Department, as well as the VAT and Excise Department, will regulate the operation of the firm and the numerous VATs incurred.
Obtaining a Business License
The final stage is to secure your planned company’s trading license. The company’s trade license is the responsibility of the city corporation in the relevant location. You can apply for a trade license with the city corporation if you have the following documents:
1. Certified copy of the company’s articles and memorandum of association – one
2. One copy of the certificate of incorporation
3. One copy of the company’s bank solvency statement
4. One copy of the company’s TIN certificate
5. One copy of the lease agreement for the company’s office.
6. Photographs of the company’s owner – three copies
7. Information about the person in charge of the company’s primary functions
A Summarizing Statement
If you don’t have difficulty understanding legal jargon or tax issues, it is easy to start a business in Bangladesh. When you use the resources and benefits available to you, you can significantly reduce costs and stress. Remember that getting the admin right at this stage is just as important as developing your business idea.
