Company incorporation FAQ in Bangladesh
Frequently Asked Questions on Company Incorporation in Bangladesh
- What are the different types of companies I can incorporate in Bangladesh?
The most common types of companies for foreign investors are:
Private Limited Company (PVT LTd): This is the most popular choice, offering limited liability protection for shareholders.
Public Limited Company (PLC): This allows public trading of shares, but has stricter regulations.
Limited Liability Company (LLC): Similar to a PLC but with more flexibility in internal governance.
Representative Office: This is a liaison office for foreign companies, but cannot conduct business directly.
- What are the minimum requirements for incorporating a company in Bangladesh?
Minimum of two shareholders and directors (at least one resident director for foreign companies).
Minimum share capital (usually symbolic, 1 Taka per shareholder).
Registered office address in Bangladesh.
- What is the process for incorporating a company in Bangladesh?
The general steps involve:
Name clearance: Checking for name availability with the Registrar of Joint Stock Companies and Firms (RJSC).
Preparing documents: Drafting the Memorandum of Association (MoA) and Articles of Association (AoA).
Opening a bank account (for foreign companies): Depositing the paid-up capital in a temporary Bangladeshi bank account.
Submitting information and documents electronically to the RJSC.
Verification and incorporation: Receiving the official Incorporation Certificate from the RJSC.
- Do I need any additional registrations after incorporation?
Yes, depending on your business operations, you might need:
Trade License: Obtained from your local City Corporation or District Council.
Tax Identification Number (TIN): Registered with the National Board of Revenue (NBR).
VAT Registration: Required if your annual turnover exceeds the threshold.
- Can I use a nominee director service?
Yes, foreign companies can use nominee director services to fulfill the resident director requirement.
- How long does it take to incorporate a company in Bangladesh?
The process typically takes 3-4 weeks, subject to verification by the RJSC.
- What are the costs associated with company incorporation?
Costs include government fees, legal fees (if using a lawyer), and nominee director service fees (if applicable).
- Do I need a lawyer to incorporate a company in Bangladesh?
While not mandatory, using a lawyer can ensure smooth processing and compliance with regulations.
- What are some resources for learning more about company incorporation in Bangladesh?
Registrar of Joint Stock Companies and Firms (RJSC) website: https://roc.gov.bd/
National Board of Revenue (NBR) website: https://www.nbr.gov.bd/
Bangladesh Investment Development Authority (BIDA) website: https://www.bida.gov.bd/