Company Formation Procedures and Requirements

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    Simplified Company Formation Procedures & Requirements With Us

    NetworkBD is the world’s foremost authority in cross-border company formation, with services to assist with company creation all over the world. Our comprehensive services are offered by seasoned teams of local specialists that can provide you with insider knowledge of more than 80 jurisdictions throughout the world.


    The formation of a new company or the relocation of an existing firm in Bangladesh, with the caveat, that the majority of Bangladeshi businesses are registered as private limited companies (commonly known as private limited companies). In Bangladesh, a private limited company is a separate legal entity, and stockholders are only liable for the amount of share capital they contributed to the firm. According to the Companies Act of 1994, any person (foreign or local) above the age of 18 can start or register a business in Bangladesh following the company formation procedures and requirements.


    We offer complete business creation and registration services, which may include the following:

    1. Consultation on formal incorporation and entity type on a local level.
    2. Articles of Incorporation and any other legal documents required for registration are prepared.
    3. Creating and submitting a registration application to the appropriate Trade Registry
    4. VAT, CIT, and Intra-Community Operators Registry registration at fiscal authorities (RIO)
    5. If a specific business license is necessary, it must be registered.
    6. Share capital and a current bank account must be registered (s)
    7. Information on any modifications to the company’s legal compliance.
    8. Representation in front of the authorities on a local level.

    Our 6 Approach On Company Formation Procedure

    1. Company Name: 


    Before forming or incorporating a company in Bangladesh, the name must first be approved (cleared).

    2. Directors:


    Second, the presence of at least two directors is required. Directors can be either domestic or international. Directors must be at least 18 years old, have never been bankrupt, and have never been convicted of any sort of fraud.


    A director is required by law to own the qualification shares specified in the Articles of Association. A nominee director can be chosen by a shareholder who is not a natural person (i.e. a corporation).

    3. Shareholders:


    Thirdly In Bangladesh, a private limited corporation can have a minimum of two shareholders and a maximum of fifty. A director and a shareholder may or may not be the same person. A person or another legal body, such as a corporation, can be a shareholder.


    In most sectors, 100 percent local or foreign ownership is permitted. After the Bangladeshi company has gone through the incorporation process, new shares can be issued or existing shares can be transferred to another person at any moment.

    4. Capital Authorized:


    The allowed capital must be stated in the Memorandum of Association and Articles of Association. It is the maximum amount of share capital that a firm can issue (allocate) to shareholders.


    A portion of the allowed capital can be issued again. In Bangladesh, there is no minimum or maximum amount of allowed capital.

    5. Paid-up Capital:


    After the business is formed, the paid-up capital (also known as share capital) can be increased at any moment.

    6. Registered Office:


    In order to register a business in Bangladesh, you must use a local address as the company’s registration address. A physical address must be used as the registered address (can be either a residential or commercial address).


    Articles of Association and Memorandum A memorandum of association (MOA) and articles of association must be prepared by the firm to be incorporated (AOA).

    Get Legal Procedure Of Foreign Company Formation

    Foreigners who want to start a business in Bangladesh should examine the following factors:


    1. You must register a bank account in the proposed company’s name and deposit the initial paid-up capital, as well as acquire name clearance from the Registrar of Joint Stock Companies and Firms (RJSC), i.e. the registrar of companies. This is a requirement for forming a business in Bangladesh.


    2. All of the necessary company formation procedures can be completed without your needing to travel to Bangladesh. The sole exception, depending on the bank you choose, could be opening a bank account.


    3. Foreigners may serve as all directors and shareholders.


    4. If you only wish to form a private limited company and have no plans to relocate to Bangladesh, you do not need to obtain a special Bangladesh visa. You are free to run your business from anywhere in the world, and you are also free to visit Bangladesh on a business visa whenever you need to attend to business matters on a short-term basis.


    5. If you intend to relocate your business to Bangladesh, you must first secure a work permit.

    Documents Required For Company Formation

    The following information is required by the company registrar for the purpose of company creation or company incorporation in Bangladesh:


    Name of the company: It is necessary to secure a name clearance.


    Articles of Association and Memorandum of Association: The object clause in the MOA must be under 400 words and contain seven clauses, according to RJSC.


    Particulars of Shareholders: (If the shareholder is a Bangladeshi, provide his or her national ID.)


    Director Information: (Including Tax Identification Number)


    Subscriber Page and Signed Form IX: It will be necessary to submit a scanned copy in pdf format.


    For foreigners: A copy of the shareholder’s and director’s passports.

    Our Guidance On Procedures and Requirements


    To begin the process of forming a corporation, you must first receive name clearance for the desired company name. To get started, go to and register an account. After that, you’ll be able to apply for a name change. You will receive a bank payment slip after submitting your application for name clearing, on which you must pay BDT 600 to the chosen bank. You must log in to your account on the RJSC website after making the payment in order to receive the name clearance. A name that has been approved will be held for one month from the date of clearance. You can keep the name if you file an extension request before it expires.


    Second, if the proposed firm has foreign shareholders, this step is only applicable.


    You must open a bank account in Bangladesh in the proposed company’s name with any scheduled bank. After you’ve opened the account, you’ll need to deposit money equal to the number of shares owned by the foreign shareholder from outside Bangladesh. RJSC requires an Encashment Certificate for the establishment, which the Bank will provide.


    Third, fill out the RJSC website with all of the essential information. It is also necessary to upload Form IX and the Subscriber Page. After you’ve completed all of the steps, you’ll be sent a bank payment slip to pay the registration costs and stamp duty.


    You’re finished once you’ve made the bank payment. You must now follow up with the RJSC in order to receive the incorporation certificate. Officials from the RJSC will examine the documents and information. They will issue the digitally signed document if they are satisfied.


    i) Certificate of Incorporation


    ii) MOA and AOA, as well as


    iii) XIIth Form.


    These materials will be sent to the email address listed on your RJSC account.


    In some situations, if the shareholders or directors are of a certain nationality, the incorporation process may be delayed. This is, however, a rare occurrence. The authorities may request extra information in such circumstances.

    Get 5 Special Benefits of Choosing NetworkBD?

    1. Economy Focused on Growth


    Bangladesh has improved its performance in comparison to other South Asian countries throughout time. It has a consistent growth rate of 6% that is increasing. This is due to the efforts of several sectors working together.


    2. Foreign investment is permitted


    In most industries, 100 percent foreign investment is permitted. As a result, international corporations have a lot of leeways to operate. Foreign shareholders are allowed to control the corporation even when it comes to ownership.


    3. Repatriation is permitted


    Any gains or money made in Bangladesh can be sent back to the place of origin.


    4. No requirement for minimum capital investment


    In Bangladesh, there are a variety of structures that can be used to register a business. There is no requirement for any kind of minimum capital, though.

    5. Entrepreneurial Tax Exemptions


    Different types of tax exemptions are available for different types of businesses. Interest on loans, a set level of capital gains tax on sectors, and remuneration for performing overseas services in specific industries are all examples of tax exemptions.

    FAQ For Company Formation Procedures and Requirements

    1. What are the advantages of starting a business in Bangladesh?

    Bangladesh is a safe haven for dreamers. Expat investors have been taken into account when federal legislation and regulations have been developed. Bangladesh, as one of the world’s fastest-growing cities, can assist your business in expanding. Starting a business or company formation in Bangladesh or opening a branch office there could be transformative for your company.

    2. Can you tell me how much it will cost to open a branch office in Bangladesh?

    The cost and other expenses of opening a branch office or branch company formation in Bangladesh are determined by a number of factors, including the type of branch office you want to open, and so on. You can contact us to discuss it further.

    3. How long does it take to establish a company in Bangladesh?

    In Bangladesh, starting a business or company formation can take anywhere from three days to three weeks. If you work with a reputable and experienced agency, the process will be completed quickly.

    4. How long does a company have to be a resident of Bangladesh?

    Status of residency. If a person stays in Bangladesh for 182 days or more in any income year, or 90 days or more in any income year if they have previously resided in Bangladesh for more than 365 days in the previous four years, they are considered a resident of Bangladesh.

    5. What is the cost of company formation in Bangladesh?

    In Bangladesh, the cost of forming a business or company formation  is $3990. The total cost includes legal document preparation, company registration, and payment of all taxes and fees due at the time of registration, as well as the company’s legal address (a year).

    Gain Success With Our Legal Company Formation Services