Business Setup in Bangladesh:
In recent days Business Setup in Bangladesh is not a complex matter as it was before. Bangladesh Government has taken some positive initiatives to make the procedure more easier and to attract more foreign investors. As a result Bangladesh progresses 8 notches up in the Ease of Doing Business Report-2020 and has been recognized as a Top-20 improver and secured a ranking of 168th position in Doing Business Report-2020. Therefore now a days foreign investors are interested to know the business setup procedure in Bangladesh.
Business Setup Procedure in Bangladesh:
To setup a business in Bangladesh an entrepreneur has to follow nine specific or mandatory procedures and legal steps. Which are given below:
- Name Clearance Certificate from Register of Joint Stock Companies and Firms (RJSC)
- Payment of Stamp Duty
- Registration at Register of Joint Stock Companies and Firms (RJSC)
- Making Company Seal
- Opening a Bank Account in the name of the Company
- Obtaining Trade License
- Obtaining Tax Identification Number (TIN) Certificate
- VAT Registration
- Registration at Bangladesh Investment Development Authority (BIDA)
For More Details:
According to the Companies Act, 1994 Registrar of Joint Stock Companies and Firms (RJSC) is the responsible authority for name clearance. For name clearance:
- Visit RJSC official website
- Open an E-Account
- Making an online Application
- Name Search at RJSC website
- Payment of BDT 200 through Mobile Banking or at Designated Banks for the proposed name
- Submit the money Receipt
- Download the Name Clearance Certificate
According to the Stamp Act 1899 an Applicant have to pay BDT 4,000 as stamp duty at designated Banks for an authorized capital of up to BDT 1,000,000. Stamp Duty includes:
- For the Article of Association BDT 3,000
- For the Memorandum of Association 1,000
- For each certified copy BDT 50
In this stage Applicant have to prepare the following documents and submit the same along with an online application through RJSC Website. Registration Process:
- Prepare Memorandum of Association (MOA) and Articles of Association (AOA)
- Visit RJSC website and Apply for registration
- Upload the required documents
- Print all the submitted documents for official use
- Collect the Certificate of incorporation form RJSC office
Applicant is required to have a company seal for official use. It can be made form any seal making shop.
For VAT Registration of the Company, the Applicant must have to open a Bank Account in the name of the company in any public or private Bank in Bangladesh.
In this stage Applicant is require to obtain a Trade License from the City Corporation of the respective business area. Such as for Dhaka, Applicant have to obtained it from Dhaka South City Corporation/Dhaka North City Corporation. For Trade License:
- Have to collect the prescribed Application form and submit the same after completing the form.
- Deposit the required fees
- Inspection by Licensing Supervisor
- Collect Trade License
In this stage the Applicant have to apply online and obtain a Tax Identification Number (TIN) Certificate for the company from the National Board of Revenue (NBR), Bangladesh.
Applicant have to apply through prescribed form obtain a VAT Registration Certificate form the National Board of Revenue (NBR), Bangladesh. To provide VAT Registration Certificate NBR officials shall verify the submitted documents and also the physical existence of the company.
It is mandatory for Foreign Investor to be resisted with Bangladesh Investment Development Authority (BIDA). For BIDA Registration:
- Apply for registration through Prescribed form
- Submit the form with required registration fees and required documents
- Collect BIDA Registration Certificate
Besides that, depending the nature of your company you may have to obtain some other Certificates or Approvals to run your business such as:
- Export (ERC)/Import License(IRC)
- Environment Certificate
- Fire License
- Plan or Map of Business for factory setup
- Permission form concern Government Authority etc.