How To Do The Company Registration In Bangladesh
When thinking about establishing a new business in Bangladesh or moving your current one there, keep in mind that the majority of Bangladeshi businesses are established as private limited liability corporations (commonly known as private limited companies).
You should be aware that a One Person Company provision exists (OPC in short). However, due to several limitations, we do not suggest that our clients create an OPC.
In the first nine months of 2021, a record-breaking 1,396,800 applications to create new firms expected to recruit people have been submitted, which is a 41% increase over the same period in 2019. (including non employers, all business applications are up by 58%).
The rate is even 22% higher than the extraordinary amount filed up through September 2020, when over 1.1 million applications had been totaled amid an unanticipated surge in potential firm formation.
- Both domestic and foreign investors can easily register a company in Bangladesh. The most typical sort of entity is a private limited corporation with share-based liability restrictions.
- In Bangladesh, a private limited company is a distinct legal entity, and its shareholders are alone responsible for the share capital they have invested.
- A shareholder or prospective shareholder makes a large investment in machinery and other equipment in a company that is incorporated in Bangladesh.
New Company Formation Facts: Necessary Information And Steps
We have compiled some information on the facts you need to know before registering a corporation due to the abundance of internet information and the number of misleading websites.
1. The Necessary Fundamental Details.
- You will need the following details to create your company:
1. A distinctive business name that is not previously taken
2. The company’s registered office is located in the UK.
The appointment of a sole director
A shareholder must own a minimum of one share of the corporation.
There must be a minimum of two directors. Directors may be domestic or international. Directors must be at least 18 years old and have no prior convictions for malpractice or bankruptcies. A director is required by law to own the qualifying shares listed in the articles of association.
In Bangladesh, a private limited corporation can have a minimum of 2 shareholders and a maximum of 50. A shareholder and a director are two separate roles that can coexist. In the majority of industries, 100% local or foreign shareholding is permitted.
4. Licensed Capital:
The Memorandum of Association and Articles of Association both need to specify the allowed capital. It is the maximum number of shares that can be issued (allocated) to shareholders by the firm. The capital that has been approved may not all be issued. Bangladesh does not have a minimum or maximum permissible capital amount.
5. Finished Capital:
The minimum paid-up capital required to register a business in Bangladesh is one Taka. After the business has been incorporated, the paid-up capital may be raised at any moment.
6. Registered Address:
A local address must be given as the firm’s registered address in order to form a company in Bangladesh. The registered address needs to be a real place.
Business formation appears to be on a record setting pace in 2021
Registration Procedure Of Company Registration In Bangladesh
In Bangladesh, the process of registering a company is partially automated. The process for setting up a business in Bangladesh consists of the following three steps: Name clearance, creating a bank account and bringing the paid-up capital into Bangladesh, and company registration are the first three steps.
Step 1: Clearance of Names
Getting name authorization for the proposed business name would be the first step in creating a Bangladeshi firm.
- One must first create a login on www.roc.gov.bd before applying for name approval.
- After submitting an application for name clearing, you will receive a bank payment slip, along with which you must transfer Tk. 600 to the specified bank.
- The name clearance may be received on the RJSC website after completing the payment.
Step 2: Opening a bank account and depositing the paid-up capital
Only if the prospective firm has foreign shareholders is this step appropriate.
- Any scheduled bank in Bangladesh will need to create a bank account in the suggested business name.
- After the account has been opened, funds from outside Bangladesh equivalent to the shares that the foreign shareholders are required to possess must be deposited.
- The Encashment Certificate, which the RJSC will need for formation, will be issued by the Bank.
Step 3: The Company’s Registration
- The final step is to enter all the necessary data on the RJSC website.
- After submission, a bank payment slip for the registration costs and stamp duty will be sent.
- The application for registration procedure is concluded after the bank transaction.
- For the purpose of receiving the Certificate of Incorporation, RJSC must be regularly followed up with.
- Officials from RJSC will examine the paperwork and data. They will issue the Certificate of Incorporation if they are pleased.
Our Company’s Services For The New Company Formation
- All Expenses Are Covered By Our Corporate Structures.
All expenditures are included in our company formation fees when starting a business online with SFS. This includes our fees, vat, and the government cost to Companies House. No unpleasant add-on fees or hidden prices.
- Re-Submissions Are Free.
We can help you resubmit the application if Companies House rejects your firm for any reason. Resubmitting businesses and assisting you in appropriately filling out the information is free of charge. Free assistance and free counsel.
- Company Formation Only Takes 2 or 3 hours.
Most of the limited businesses that we create are finished in under three hours. When you order a company from SFS, we instantly file the incorporation. The processing period is then reliant on Companies House and occasionally subject to delay.
- Get All Your Legal Documents.
Avoid being duped by low-cost company formation agents that fail to provide all of your legal documentation. All of your legal paperwork are included in our formation packages. Get the following documents, please:
1. A declaration of incorporation
2. Articles of Association
3. Association Bylaws
4. Register of Combined Companies (Statutory Books)
5. First moments
6. Certificates for shares
The quantity of Authorised Capital determines the government fees for the Company’s registration. Governmental fees for the granting of an incorporation certificate shall be BDT 1000. Our business will assist you in receiving the best advice for forming a new company in Bangladesh. For more information on our new business creation services, get in touch with us now.