Learn Everything You Need To Know About Foreign Company Incorporation
This is a step-by-step guide to forming or registered foreign company in Bangladesh. According to the Companies Act of 1994, foreign company incorporation in Bangladesh takes a variety of forms and procedures. The procedures vary depending upon the type of foreign business registration available in Bangladesh.
|Cost of Registration||Second Year’s Cost||Number of Directors||Corporate Tax Rates||Charter Capital Cost||Financial Statements|
|$ 3990.00||$ 1990.00||02||25.00%||1.00||Yes|
Bangladesh is governed by a unified parliamentary constitutional republic. The country is a member of the United Nations, Commonwealth of Nations, World Trade Organization, World Bank, International Monetary Fund (IMF), Organization of Islamic Cooperation (OIC), International Civil Aviation Organization (ICAO), and many more organizations. The Companies Act 1994 and the Securities and Exchange Commission Act 1993 control the legal framework in Bangladesh. The Registrar of Joint-stock Companies and Firms (RJSC), the Companies House of Bangladesh, is the entity responsible for company-related operations in Bangladesh.
Did you know? Bangladesh has some of the cheapest labor expenses in Asia. Bangladeshi garment workers earn between $70 to $100 per month on average. That’s why Bangladesh is the best place for a registered foreign company.
Important Reminders For International Investors:
1. Shelf corporations are not permitted, and a registered foreign company must have a physical presence in Bangladesh.
2. Bangladesh Forex Regulations allow for complete profit and investment repatriation for an overseas registered company.
3. With the exception of a few restricted regions, 100% FDI investment is permitted for foreign business registration.
Why Invest In Bangladesh?
Bangladesh has the world’s longest sea beach and the world’s largest mangrove forest, and it has experienced consistent annual economic development in recent years. It is thought to be one of the world’s greatest water transportation networks, allowing the country to be less reliant on neighboring countries and simplifying the delivery of business products all over the world.
Bangladesh is a part of the ICAO (International Civil Aviation Organization), and as a result of its membership, the airspace under its jurisdiction now meets the convention’s current requirements. So foreign business registration in Bangladesh is not a risk anymore.
Foreign Company Registration: Requirements
- Memorandum and Articles of Association; Certificate of Incorporation.
- A Private Limited Company must have at least two shareholders and directors.
- A Public Limited Company must have at least seven investors and three directors.
- There is no requirement for a minimum share capital.
- Copies of passports that have been notarized.
- A resolution by the company’s promoters.
- Declaration of Registration.
- Register of Directors and Shareholders.
- Tax Certificate for an overseas registered company.
- Legally Registered Contact and Location.
Bangladesh’s Top Five Foreign Investors
According to these figures, China is Bangladesh’s largest foreign investor. China invested $1030 million in the Bangladeshi market in 2021-22. The Netherlands, on the other hand, invested $690 million and came in second place. An Overseas registered company from the United States, the United Kingdom, Singapore, and other countries are increasingly interested in investing in Bangladesh.
Do you think before investing? The cost of foreign business registration is mostly determined by the company’s authorized capital. For a capitalization of $125,000, the typical cost is between $1200 and $1500.
Foreign Company Registration: Pros Vs Cons
|Political||Pro- business climate||Corruption and political instability|
|Economical||Low labor cost||Soaring GDP growth|
|Social||Falling poverty rates||Potential language barrier|
|Legal||Expanding business laws||Slow judicial process|
|Technological||Second largest supplier of online labor||Poor infrastructure|
The Bottom Line
If you want to register and incorporate a business in Bangladesh, email or give us a call right now to take your company to the next level! Nowadays, many other countries all over the world show interest to invest in Bangladesh and we are here to help them out from the start to finish. Our professionals are taking this thing to a new height. To know more about us, please read our blogs.