Must-Know Things About Company Registration
As business is growing rapidly in Bangladesh, more and more entrepreneurs are inquiring about the company registration process here. Company registration is an essential step for any business looking to operate legally and effectively.
From legal requirements and registration procedures to compliance and tax implications, there are many factors to consider when registering a company. In this blog post, we will highlight some must-know things about company registration to help businesses navigate the process successfully.
About The Registration of Company
Bangladesh’s Registrar of Joint Stock Companies and Firms (RJSC) is the sole authority for registering companies.
In a recent survey, ICT and IT-based businesses are Bangladesh’s fastest-growing companies. There are primarily three types of business structures that are still in use here. The three options are Limited Company, Partnership Firm, and Sole Proprietorship. There are two types of limited companies: private limited companies and public limited companies.
Focus Point Of Company Registration Process:
1. Whether starting a new business or relocating an existing one, the majority of Bangladeshi companies are private limited companies.
2. A person of any nationality (foreign or local) over the age of 18 can register a business in Bangladesh, according to the Companies Act of 1994.
3. Export registration certificates are required for export companies, whereas import registration certificates are required for import companies.
4. The majority of firms in Bangladesh maintain Bangladesh’s industry digital plan and require a VAT registration certificate. To start any kind of business, a license will be required.
The Advantages Of A Bangladeshi Company Registration
1. Investing From Abroad:
Most sectors allow foreign investment to be 100 percent. As a result, international corporations enjoy a lot of flexibility.
2. Repatriation is permitted:
You can send any gains or money you make in Bangladesh back to your home country.
3. There Is No Requirement For Minimum Capital Investment:
Various formats are available for registering a business in Bangladesh. Minimum capital is not required.
4. Entrepreneurial Tax Exemptions:
Tax exemptions are available for different types of businesses. Tax exemptions include interest on loans, a set level of capital gains tax on sectors, and remuneration for overseas services in specific industries.
Compared to other South Asian countries, Bangladesh has improved its performance throughout time. Bangladesh has a consistent growth rate of 6% that is increasing.
Pre-Requisites For Registering A Business In Bangladesh
1. Name of the Organization
A company’s name must be approved for use before it may be incorporated in Bangladesh.
The Companies Act of 1994 requires that businesses have a minimum of two directors. This is a prerequisite for private limited companies. Public limited companies must have more directors.
3. Minimum Number of Shareholders
Corporations registered in Bangladesh must have a certain number of shareholders. A minimum of two shareholders is required. Up to 50 stockholders are permitted.
4. Capital Requirement Authorized
It is necessary to state the amount of capital subscribed to the Memorandum and Articles of Association. There is no minimum capital requirement.
5. Registered Address
The company must have a registered office when it is incorporated. To do this, an address must be provided.
Procedure Of Registration For A Company
In order to register a business in Bangladesh, you must follow the steps below:
1. Name Clarification
First and foremost, the applicant must request clearance of his or her name.
2. Bank Account For Corporations
This step is only required if the company is a foreign corporation with a Bangladeshi registration. This stage would take into account the company’s holdings.
3. Registration Of a Business
This is the final step in the company registration procedure in Bangladesh. All information has to be submitted online on the RJSC website. In addition to this information, a bank slip showing the payment due must also be submitted.
Requirements For Post-Registration
1. The RJSC would issue the certificate of incorporation. In addition, the MOA and AOA would be provided.
2. Aside from that, the business must apply for a trade license, VAT registration, and various other types of registrations.
3. If the company does any import or export operations, an Import Registration Certificate or an Export Registration Certificate must be obtained.
4. The Company’s Annual Meeting must be held 18 months following its incorporation.
5. Aside from the foregoing, the corporation must file regular returns.
Documents Required For Registering a Business In Bangladesh
In order to register a corporation in Bangladesh, you’ll need the following documents:
1. RJSC Memorandum of Association (MOA) and Articles of Association Name Clearance Certificate (AOA)
2. All schedules pertaining to the objects clause must be completed.
3. Information on subscribers and directors must also be presented Company Registration Process.
4. mTIN information about the business’s registration address (Taxation Identification Numbers)
5. Information on Shareholders: If a shareholder is a foreign national, their passports must be presented.
In terms of financial, technological, and capital hubs, Bangladesh is one of the fastest-growing in the world. The textile industry is a major export of this country, which is one of the top centers for various types of investment.
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