To register a limited liability Company in Bangladesh you must follow steps as:
Step 1: Company Name approval from RJSC after submission by online paying Taka 600/, valid is for 3 months only.
Step 2: Open temporary bank account by name approval and draft copies those are submitted to RJSC by online
Step 3: Let the directors remit paid up capital against purchase of the shares of the company.
Step 4: Collect remittance letter from bank and submit to RJSC with other documents
Step 5: Submit all documents to RJSC with fee
Step 6: Let the officer of RJSC verify the remittance letter
Step 7: Collect approval copy in your email
Other licenses steps:
Step 1: Apply for Trade License as this is must for any nature of business
Step 2: Obtain corporate income tax and VAT certificate
Step 3: Obtain membership from chamber of commerce (for export import business)
Step 4: Apply for Import export license
Step 5: Apply for the permission of BIDA
Step 6: Obtain Fire, Environment, and Manpower etc. permission additionally in terms of factory setup.
Taxation for Company Registration
All foreign shareholding companies must pay taxation 30 percent in Bangladesh and unable to take money out unless prior permission from tax department, Central bank and BIDA permission. You can remit profit money not more than 6 percent of sales volume of previous year. Technical foreign employees can get advantages of tax exemption for 3 years.
When parent company hold shares of local company whether full or partial is called subsidiary company. Parent company may hold majority shares of Bangladeshi company, but 2 representatives must appoint from 2 companies. Subsidiary company might hold full percent of shares, as no issue from law of Bangladesh.
Foreign company may apply for opening branch/ representative / liaison office in Bangladesh by BIDA. As No shares are hold and no businesses can do so it is free from Taxation. The procedure of branch office registration is submission an application to BIDA along with supporting documents as like MoA, financial statement, board resolution etc. from parent company. Generally, meeting of BIDA is hold twice or once in a month where all applications are placed to review.
Local, Bangladeshi any person who is eligible can register sole proprietorship business by obtaining Trade License only. As local entrepreneurs RJSC (LLC) is not compulsory whereas foreigners are not permitted to apply of sole proprietorship. One person is all in all to make any decision to run the business. Trade license, TIN and VAT certificate are sufficient to form sole proprietorship business.
- To complete incorporation procedure by RJSC might require 7-10 days
- To obtain trade license might need 5-7 days
- Income tax certificate for the company might take 1-2 days
- VAT certificate might take 7-10 days
- Membership from chamber of commerce might require 7-30 days, depend on association.
- Import and export license might require another 15-30 days, unless fall in big queue.
- Environment certificate, might require 7-10 days
- Fire license obtaining duration 10-15 days.
- Manpower permission might obtain 3-5 days.
- Work permit obtaining expected time is required 30-45 days.
- Submit annual tax return by the time frame although 6 months’ time is expended as practice.
- Submit annual return filing to RJSC once tax filing is completed.
- Prepare financial accounts and submit to auditor to audit the accounts.
- Renew trade license yearly basis from local authority.
Registration LLC Company in Bangladesh is bit difficulties but doable. Starting business in Bangladesh as local and foreign promoters are profitable considering labor and office costing. Income tax is 30 percent and profit margin taking us of country is a complex process but doable. PI visa and/ or work permit is required to take profit in your country upon terms and conditions.
Minimum 2 partners
There is no limitation, but we recommend showing US$ 10,000/- equivalent taka.
This is not a capital but FDI law that promoters must remit USD 50,000 to their business account in Bangladesh to apply for them. And the same amount must remit every time to renew the permission, condition is that if the amount, US$ 50,000 is available in bank account is not compulsory to remit again.
No, they cannot do unless present physically in Bangladesh to open bank account. Without temporary bank account company registration is not possible.