How Much Money Do You Need to Start a Small Business in Bangladesh

How Much Money Do You Need to Start a Small Business in Bangladesh

When you’re all set to start a small business in Bangladesh, you may now think about how much money you need to start. This is because money is the main issue while starting a small business anywhere in the world. That’s why, although your cash register probably won’t be doling out angel’s wings the day you open, you can have the best business idea of the century.

Also, it should allow working out the kinks and learning from the mistakes of every new business. We know that time is equal to the money, so you must need money to make money from a business. This is because estimating costs and income is the key to any new business. It’s almost same whether you’re a fast-moving start-up or still weighing the pros and cons of chucking in the day job.

Overview of How Much Money You Need

While starting a small business in Bangladesh, or even in any other country, cash is the lifeblood of it. Your operations will flatline if you run out of cash despite your goal is to actualize your business vision. It’s an exciting venture to start a business. You can create an organization you believe in when you get to channel your talents and ingenuity.

This is easy to say but the process is not as simpler as we’re talking about. It not only requires time and dedication but money as well. And you may not know where to start with your finances if you’re thinking about launching a new business. But, you can plan out your financing and keep your startup budget on track when you’re organized and thorough.

Prediction of How Much Money You Need

It’s good to have an idea of how much money you need to start it if you’re an entrepreneur looking to start a small business in Bangladesh. Now, we’ll learn about how much money you need to start for various business ventures in Bangladesh. Here we’re going to figure out how much money you need for various types of businesses.

Types of Businesses in Bangladesh

When you’re going to look for types of business in Bangladesh, you’ll find here several types of businesses. We’ll learn about them and this will also provide you the idea about how much money you need to start. Some of the business types in Bangladesh are below:

• Limited Liability Company (LLC)
• Public Limited Company (PLC)
• The Bangladesh Branch
• The Bangladesh Representative Office

Limited Liability Company (LLC) in Bangladesh

Minimum Paid Amount: US$1

Total Bangladesh Business Setup Costs: US$13, 710

One of the most ideal legal entities choose by entrepreneurs setting up businesses in Bangladesh is the Limited Liability Company (LLC). For this type of business you need at least two shareholders and two directors, who can either, are individuals or legal entities. They can be from any nationality and it doesn’t need to be resident in Bangladesh who is the directors and shareholders. The responsible authority is the Bangladesh Income Tax Authority where your LLC must submit annual audit reports.

Public Limited Company (PLC) in Bangladesh

Minimum Paid Amount: US$1

Total Bangladesh Business Setup Costs: US$16, 620

It requires either from individuals or corporate of a minimum of 7 shareholders where least 3 directors who can be of any nationality and do not need to be residents in Bangladesh. They must register with the Dhaka Stock Exchange and they can publicly trade on the Bangladeshi securities market. The responsible authority is the Bangladesh Income Tax Authority where your LLC must submit annual audit reports.

The Bangladesh Branch

Minimum Paid Amount: US$50, 000

Total Bangladesh Business Setup Costs: US$15, 590

It’s allowed foreign entities looking to do business in Bangladesh to set up a branch office in Bangladesh by the Bangladesh Companies Act. They are bound to comply with its regulations after registering with the Bangladesh Board of Investment (BOI). The BOI Authority where you must submit annual audit reports along with a statutory auditor.

The Bangladesh Representative Office

Minimum Paid Amount: US$50, 000

Total Bangladesh Business Setup Costs: US$18, 380

For the Bangladesh Representative Office, it neither considered a legal entity nor is it allowed to carry out any commercial activities in Bangladesh.

The market research and promote products and services of the parent company within Bangladesh is the job of the representative office. What you need to do for this type of business is to be registered with the following authorities:

• The BOI
• The Bangladesh Bank and
• The Registrar of Joint Stock Companies and Firms

Factors Influence How Much Money You Need

The above information is the basic costs of how much money you need to start a business in Bangladesh. Apart from these, there are some factors that can influence your costs. Now, let’s know about some of them below:

Capital Expenditures

Offering experience gathered from years of working with businesses similar to yours, a reputable supplier can be a worthy ally to a startup.

As you need to ask a lot of questions, be prepared to make multiple calls. You must have a vendor to help you understand your equipment needs.

So, you need to consider whether gently used machinery, fixtures, furniture, or other equipment will serve your needs as well as gleaming new ones if you’re among the majority of entrepreneurs watching every penny.

Operating Expenses

You can deal with the happy problem of financing the supplies you need if your sales skyrocket. While making a pragmatic plan for the worst-case scenario, it’s often more helpful at the outset. In this case, you must ensure up front how you will weather a month or two or three without sales.

Professional Services

From the bookkeeper sales rep, marketing manager, designer, and CEO to janitor, small business owners wear a lot of hats. When you’ll understand that you need to get the professional help, it has to be weighed against the boost it may give to your business.

You may hasten the day when your enterprise turns a profit if you have funding to bring in a pro to help with marketing. There are some other factors that can increase your cost to set up a business in Bangladesh. These include Personal Finances, Persistence Pays Off etc. So, these jointly make the sense of how much money you need to start a business.