Type of Business Structures in Bangladesh

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Choose Right Business Structure in Bangladesh with Network BD

NetworkBD helps to choose the Right Business Structure in Bangladesh for any entity. It is determined by factors such as ease of doing business, compliance requirements, scalability, tax rates, liabilities, ease of transferring shares, investors queries & expectations, among others when forming a company in Bangladesh. Even the most experienced business owners find it challenging to choose the right business structure for the needs of the company in the present and the future. The viability, growth, and future expansion of a business may be affected by it.

Type of Business Structures in Bangladesh

We Assist Clients To Overcome This Choosing Dilemma

The entrepreneurs can start their Bangladeshi companies as Sole Proprietorships, Private Limited Companies, or Partnerships. It is first necessary to consider the advantages, disadvantages, and nature of each of these business structures before deciding whether to use them. NetworkBD is the trusted corporate services providers who assist their clients with this dilemma.


NetworkBD’s skilled team will assist you in choosing the right business structure for your business. 

Any Entrepreneurs Can Choose Their Desired Business With NetworkBD

Local or foreign individuals over the age of 18 years can form a Bangladesh company. It is a simple and fast process. The structure of your Bangladeshi company should be determined by the scope of the business idea (whether it is a product or a platform), the scope of the business plan, and the scale of the intended activities. 


It is also important to determine your liability, tax obligations, and the value of your business assets before deciding what structure to incorporate. We are experts in the following types of business incorporating.

1. Company Limited by Liability (LLC)

Bangladeshi Limited Liability Companies limit the liability of shareholders to the amount they invested in the company. There are several types of LLCs in Bangladesh, including the private limited company, the public limited company, and the public limited company by guarantee.


1. Private Limited Organization 

Bangladeshi entrepreneurs prefer private limited companies as their structure of choice. They are similar to private limited companies. 


2. Public Ltd Company

Limited liability companies with stock exchange listings are types of LLCs. Public investors can buy their shares or debentures. 

2. Ownership Of A Sole Proprietorship

Bangladesh Company Law does not consider a sole proprietorship to be a separate legal entity from its owner or proprietor. Although it is not incorporated, it is considered a business firm. For this reason,


  1. Owners of businesses are liable for debts and losses incurred in the course of their operations.
  2. Real estate or properties cannot be purchased by a sole proprietorship.
  3. They must be in the name of the owner, who must pay property tax from their own pockets.
  4. Tax is due on its income as if it were owned by its owner. When compared to corporate income tax, it is more expensive.
  5. Additionally, the proprietor finds it difficult to raise funds for the expansion of the business.

Partner With Two Or More Companies When Choosing Right Business Structure

Bangladesh Company Law allows two or more entities to form a partnership. The business structure allows the business owners with complementary skill sets to work together & earn a profit. The number of members can be between 2 and 20. The partnership members must pay personal income tax on the income they receive from their business activities. There are three types of partnerships, those are:

1. The General Partnership

Similar to a sole proprietorship, a general partnership is a business entity. All of these firms share the same disadvantage when it comes to personal risk and liability arising from their business activities. Partnerships with this type of liability hold all partners accountable for losses or debts, irrespective of their involvement.

2. Limited Partnerships

There are two types of limited partners in a limited partnership: general partners and limited partners. There is no limit to the number of partners it can have, but it must have at least one general partner and one limited partner. The liability of limited partners is limited to the amount specified in the partnership agreement.

3. The Limited Liability Partnership (LLP)

Entrepreneurs prefer LLPs over any other type of partnership Right Business Structure. An LLP combines the characteristics of a partnership and a company. This type of partnership is created by two or more individuals with complementary skills. The liability of its owners is determined by the actions or inactions of its owners.


  1. Legally, the LLP and its owners are separate entities.
  1. Its owners must pay personal income tax (0%-22%) on the income they receive from it.
  2. They chose this form since it limits their liability somewhat, much like a private limited company.
  3. Partners have attributed the partnership’s debts or losses due to their carelessness, actions, or inactions that led to the partnership’s losses.
  4. Uninvolved partners don’t bear any responsibility.

Incorporate Your Right Choosing Business With NetworkBD

Bangladesh’s entrepreneurial culture also attracts foreign businesses in addition to individual entrepreneurs. Several SMEs want to expand their horizons by incorporating a Bangladesh company. The differences in legal business structures should be understood before choosing a structure.


 1. Company that is a subsidiary


Limited liability companies are a type of subsidiary company. They are preferred by foreign companies in Bangladesh for setting up their business there. 


2. The Branch Office


Establishing a branch office in Bangladesh is another option available to foreign corporations. These offices are not considered local companies.


3. The Representative’s Office


A foreign corporation likes to survey and research new markets before committing resources to establish a presence there. 

How NetworkBD Helps To Form Your Business Structure?

The first step in starting a new company is deciding on Right Business Structure. You’ll need to create a business plan once you’ve decided how your company will operate. Because each form of business structure has various tax reporting duties, NetworkBD can help you figure out the best method to make sure you meet all of the deadlines. You’ll want to take advantage of the tax advantages that come with your specific Right Business Structure.

FAQs For Type of Business Structure in Bangladesh

How many types of business are there in Bangladesh?

 According to the Companies Act 1994, companies are mainly of three types: companies limited by shares, companies limited by guarantee; And. Companies with unlimited liability.

What is a company and what is the type of company?

A company is a body corporate or a corporate business registered under the Companies Act. It can be a limited or unlimited company, a private or a public company, a limited company by guarantee or a company or a community interest company with share capital.

How many types of companies are there?

 Based on the number of members / shareholders of the company; The 3 types of companies are (1) public limited company, (2) private limited company and (3) one-person company.

What are the main types of business?

There are 4 main types of business entities: sole proprietorships, partnerships, corporations and limited liability companies, or LLCs.

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