Simple steps for forming a private limited company in Bangladesh. This article has focused on how to form a company and the Company Registration process and registration, the cost of a limited company, and the post-registration process. This article has focused on a simple method of starting a business by forming a limited company, the cost of name clearance and registration, and post-registration legal compliance issues such as TIN, VAT, and Trade License for foreign and Bangladeshi nationals and entities.

This article will provide information on forming a private limited company in Bangladesh as well as its tax obligations. There are several ways to start a business in Bangladesh, and one of the most popular and practical is to incorporate a private limited company in Bangladesh. As a result, this article will concentrate on the process of forming a private limited company in Bangladesh. Furthermore, the legal compliances of a private limited company in Bangladesh after incorporation will be reflected in this article.

Company datas around the world

Methods of Firm Formation Course of in Bangladesh

There are five ways of doing business in Bangladesh. They are as follows:

• Private Limited Company
• Public Limited company
• Branch office
• Liaison Office
• Proprietorship

Why is a private limited company a popular business structure in Bangladesh?

It is less difficult and less expensive than forming a public limited company. Furthermore, when compared to a branch office and a liaison office, a private limited company is a full-fledged way to generate income. Furthermore, unlike a private limited company, a proprietorship does not create a legal entity.

The steps to forming a private limited company in Bangladesh

Name clearance

The first step in forming a private limited company is to come up with a unique name for the company. Following the selection of a name, the applicant must apply for name clearance in order to obtain the name approval certificate from the Registrar of Joint Stock Companies and Firms (RJSC). The certificate is usually delivered within 1 to 2 days. The government fee for name clearance is currently 230 BDT (3 USD). It should be noted that there are some distinctions between Bangladeshi nationals and foreign nationals/entities when it comes to forming a limited company in Bangladesh. You can request name clearance here.

Under is a pattern title clearance Certificates 

Drafting Memorandum of Affiliation (MoA)

Creating an Memorandum of Association (MoA)

A limited company's Memorandum of Association (MOA) essentially includes the company's objectives. You can include as many objectives as you want. However, it should be noted that prior approval from the relevant authority is required in order to start a business in banking, finance, school, or hospital. In addition to a company's objectives, a MOA includes the company's authorized capital.

Drafting Article of Assocation (AOA)

The company's constitution is its Articles of Association (AOA). An AOA contains all of the rules for how a limited company will be run, including who will be the company's Managing Director, Chairman, and Directors. An AOA also specifies how the company's bank account will be operated, how decisions will be made among shareholders, and what the minimum quorum for making a decision will be.

Checking account opening (for overseas nationals or entities)

At what point can a foreign national or entity open a bank account, and how does this differ from Bangladeshi nationals? In the case of foreign nationals/entities, the signatory of the bank account will go to the bank and deliver the following documents in order to open a provisional bank account in the name of the company after receiving the name clearance certificate.

Documents needed:

• a photocopy of the certificate of name clearance
• AOA and MOA drafts
• Passport photocopy (application for foreign nationals)
• C1 Form
• Following receipt of the aforementioned documents, the bank will open a provisional account in the company's name.

After receiving the above-mentioned paperwork, the financial institution will open a provisional account within the title of the corporate.

Depositing share money (for foreign nationals or entities)

After opening the provisional bank account, a share money deposit will be sent from the country of the foreign shareholder to the provisional account. The money is required to be sent from the person or entity account of the shareholder. After receiving the payment, the bank in Bangladesh will issue an encashment certificate.

Registration to RJSC:

After receiving the encashment certificate, a few documents need to be submitted to the RJSC namely AOA, MOA, and encashment certificate along with all other necessary information. After receiving all the necessary documents and information, RJSC will generate an invoice to be paid to the recognized bank.

Required documents and information for company formation.

The documents and information required for company formation are as follows:

• Particulars of Directors i.e. name, parent’s name, passport number, email ID, mobile number
• Name of Managing Director
• Name of Chairman
• NID (if Bangladeshi national)
• TIN (if Bangladeshi national)
• Limit of paid-up capital
• Limit of authorized capital
• Photo of all shareholders (1 copy)
• Address of company
• Signatories of the bank account

Government cost for Company registration:

It depends upon the authorized capital of the company. For instance, if the authorized capital is 50lakh, the government fee will be BDT 13570 or USD 160 along with 15% VAT. You can calculate your cost here

Incorporation certificates:

RJSC will verify all of the information in the AOA and MOA, as well as the encashment certificate, after receiving all of the above-mentioned documents. After reviewing all of the information, the RJSC will issue an incorporation certificate in the company's name.

Here is a sample Certificates of Incorporation

After completion of all of the above procedures, your organization shall be registered and integrated as a restricted firm in Bangladesh. if you wish to know extra about please click on here.

Steps to be taken submit Firm registration Compliances 

Firm Tax Identification Quantity (TIN): 

After receiving the incorporation certificates, an software must be made to the Nationwide Board of Income (NRB) for tax identification quantity. Upon receiving the applying, a tax certificates shall be issued below the title of the corporate.

Firm Commerce license

In an effort to get a commerce license an software must be made to the involved metropolis company. Together with the applying, the next info must be submitted:

• Photocopy of AOA and MOA
• Picture of Managing Director or Chairman
• TIN of the corporate
• Rental settlement
• Nature of enterprise

It normally takes 3 to 4 working days to get a commerce license. in an effort to know extra about tips on how to get a commerce license in Bangladesh please click on here.

Opening Financial institution accounts (for Bangladeshi nationals or entities):

In an effort to open a checking account below the title of the corporate, a Bangladeshi nationwide must submit the incorporation certificates, AOA, MOA, TIN, and Board decision to the financial institution. Thereafter, a checking account shall be opened below the title of the corporate and the corporate can begin transactions with the financial institution. 

RJSC Return Filling: 

Each restricted firm is required to file paperwork associated to the administration or operation of the entity to the RJSC in prescribed varieties and schedules. That is referred to as Return Submitting. There are two varieties of return submitting particularly Annual Return Submitting and Returns Submitting for any change in an entity.

What's the Process for return submitting?

1. Returns must be submitted by entities for submitting at RJSC
2. The submitting price must be paid by the entity to the RJSC counter and if relevant have to pay the late submitting price as nicely.
3. If the submission is wrong or incomplete, RJSC will notify the remedial measures to the entity

Varieties of Annual Returns to be submitted

1. Annual abstract of share capital, record of shareholders and Administrators (required to be crammed inside 21days of AGM)
2. Steadiness Sheet (required to be crammed inside 30 days of AGM)
3. Revenue and Loss Account (required to be crammed inside 30 days of AGM)
4. Type 23B Discover by Auditor (required to be crammed inside 30 days of receiving appointment info from the corporate)

Varieties of Returns for change to be submitted

1. Discover for division, sub-division, consolidation, or dialog into the inventory of shares to be crammed in Type III inside 15 days of consolidation and division, and so forth.
2.  Discover of elevated share capital/member to be crammed in Type IV inside 15 days of enhance of share capital or member
3. Discover of any change within the Registered Workplace to be crammed in Type VI inside 28days of change
4.  Particular Decision or Extraordinary Decision to be crammed in Type VIII inside 15 days of the assembly
5. Director’s consent to behave to be crammed in Type IX inside 30 days of appointment
6. Particulars of the Administrators, Supervisor, and Managing Brokers and of any change therein to be crammed in Type XII inside 14 days of appointment or any change
7. Return of allotment to be crammed in Type XV inside 60days of allotment
8. Particulars of mortgages or expenses to be crammed in Type XVIII inside 21 days of the creation of mortgages
9. Instrument of switch of shares to be crammed in Type 117

Worth Added Tax (VAT) Certificates:

In an effort to perform regular enterprise operations in Bangladesh after the formation of a personal restricted firm, it's important that the corporate has a novel Enterprise Identification Quantity (BIN). Regular enterprise operation contains import and export, finishing up banking actions, participation within the tender, and so forth. Due to this fact, to get a Enterprise Identification Quantity, firms are required to have a VAT registration certificates. VAT is regulated by the Customs, VAT, and Excise Division of the Nationwide Board of Income (NBR). Making use of for VAT registration is free

Required paperwork for VAT

1. TIN Certificates
2. Commerce License
3. Import/export Registration certificates
4. Passport sized photographs
5. Deed of Settlement
6. Financial institution solvency certificates
7. BOI registration
8. Memorandum and Articles of Affiliation

Each personal restricted firm must pay the VAT on the 15^th (fifteen) of each consecutive month.

Are you planning to register a personal restricted firm in Bangladesh?

Firm formation and registration at Tahmidur Rahman Remura: The Legislation Agency in Bangladesh:

The authorized staff of Tahmidur Rahman, The Law Firm in BangladeshRemura: The Legislation Agency in Bangladesh are extremely skilled in offering every kind of providers associated to forming and registering a Non-public Restricted Firm in Bangladesh . For queries or authorized help, please attain us at:

E-mail: info@trfirm.com
Telephone: +8801847220062 or +8801779127165

Tackle: Home 410, Street 29, Mohakhali DOHS