4 Steps To Be Followed For A Small Business Registration
This is a tutorial that describes how to form and register a business in Bangladesh. According to the Companies Act of 1994, company registration in Bangladesh takes a variety of forms and procedures. The procedures differ according to the type of business registration available in Bangladesh.
According to statistics, the total number of company registration under the Company Act by the end of 2020 was 1,387,919, up 7,734 from the previous year’s figure (January 20).
According to the Companies Act of 1994, there are three primary categories of businesses:
- Limited by shares
- Limited by guarantee
- Limited by guarantee with unlimited liability
The Companies Act of 1994 does not provide a detailed procedure for founding a company in Bangladesh, as this is generally handled by the Registrar of Joint Stock Companies and Firms (RJSC) at Bangladesh Company House.
1. The process of formally organizing and bringing a business into existence is known as company registration.
2. The legalities must be written and the shareholders must be listed to register a company.
3. Limited liability describes the separation of a corporation’s profits and cash flows from those of its owners and investors to register a company.
Follow The Steps For Small Business Registration In Bangladesh
Step 1: Get A Name Clarification Letter
RJSC must receive a request for name clearance together with the following items:
- Application Form
- Name Suggestion
Step 2: Complete Documentation
1. Drafting of the Memorandum and Articles of Association, as well as other necessary papers
2. The Board of Directors’ decision to establish a new business in Bangladesh;
3. Obtaining and completing the following documents for company registration with RJSC:
Form I: Declaration of Company Registration;
Form VI: Notification of the status of the registered office;
Form IX: Director’s permission to act;
Form X: List of people who agree to serve as directors;
Form XII: Finer details of the directors, manager, and managing agents.
Step 3: Formalities For Bank Accounting
1. Members shall open a provisional bank account in the proposed Company’s name with any scheduled bank, subject to the account being regularized after the Company is legally registered with Company House.
2. Deposit of funds into a bank account.
3. A bank encashment document stating that the appropriate capital contributions has been duly sent in the proposed organization’s temporary bank account.
Resolution of the foreign company’s board of directors. Copies of the representatives’ shareholders’ passports, as well as bank account establishing forms.
Step 4: Document Submission To RJSC
- Trade License
- Tax Identification Number (TIN)
- Vat Registration Certificate
- Fire Certificate
- Environment Clearance Certificate
Time Duration Of Incorporate A Company In Bangladesh
RJSC typically issues the certificate of registration (Company registration certificate) within 6-8 business days after the aforementioned processes are completed. From the time all of the documentation is submitted to RJSC, it generally takes 2-3 weeks to set up a company.
Is There A Fee For Company Registration?
The quantity of authorized capital determines the government fees for company registration. The government will charge BDT 1000 for the issue of an incorporation certificate.
The Bottom Line
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