The Ultimate Beginner’s Guide! Start a Business in Bangladesh
Start a Business in Bangladesh
Learn step-by-step to start a business in Bangladesh. It feels like climbing a mountain at first while going to start a business in Bangladesh. It’s also like a game of Jenga how to start a business somewhere. As you try to build and grow and you may often feel that all the pieces are about to topple over it’s a delicate and tense. The sum of bureaucratic red tape can come as a shock for many while you’re in the process.
But, above all of the difficulties, it’s much easier to start a small business in Bangladesh. In the business and education among the upper and middle classes, English is used as a second language. Other than, Bengali is the official and main language of the country. Besides, it’s referred to by the acronym BDT of the currency of Bangladesh, Taka.
Want to Start a Business in Bangladesh? The Ultimate Beginner’s Guide
It’s carried out by the Registrar of Joint Stock Companies and Firms under the provisions of the Companies Act 1994 to incorporation or registration a company. It can save time and energy to understand how to start a business in Bangladesh from the start from registering a company for paying staff. We’ll know the processes to start a small business in Bangladesh with small capital. Now, let’s see the steps of the small investment business in the country.
The Steps are in Summary
- Unique Company Name as Step #1
- Special Adhesive Stamps as Step #2
- Document Filing with RJSC as the Step #3
- Making a company seal is the Step #4.
- Registering with tax authority as the Step #5
- Register with the VAT authority as the Step #6
- Getting a Trade License as Step #7
Unique Company Name as Step #1
Registering with the Joint Stock Companies and Firms, you have to verify the uniqueness of the proposed company name. You need some specific documents with the hard copy of the application to file the company name. These include the resolution approved by the promoters or sponsors of the proposed company about the proposed corporate name.
Also, you need to submit the names of the proposed chairs/directors/shareholders that have agreed to subscribe to shares in the proposed company and authorized share capital to be paid in. This is verified and confirms the availability of the proposed name for a newly registered company.
The result of the reserved and rejected company names on a daily basis by the authority. Moreover, you can visit the government website (http://roc.gov.bd) if you want to know about the details. In 2003, the search for a company name was computerized.
Special Adhesive Stamps as Step #2
For the memorandum and articles of association, you have to buy an adhesive stamp from the Treasury. It must be affixed to the memorandum of association regardless of the company’s authorized capital with the special adhesive stamps of the value BDT 500.
The Treasury for the production of receipt of payment to the Bangladesh Bank provides the Special adhesive stamps. The time required to obtain adhesive stamps from the Treasury has increased owing to stronger enforcement of the stamp verification procedure since 2006.
The stamp verification procedure requires the time to obtain adhesive stamps from the Treasury has increased owing to stronger enforcement. The Treasury checks with the Accountant General, who sends notice to the RJSC when the applicant requests the stamps according to internal processes.
Document Filing with RJSC as the Step #3
With the RJSC for registration, you have to file the required documents. The company pays fees based on the company’s authorized capital for filing the memorandum and articles of association. The cost is BDT 3,315 for a company with capital of BDT 318,320, for example, where BDT 1,200 in registration filing fees + BDT 2,115 in registration fees. For different capital, there are different slabs of fees. You have to submit the following documents when paying the fees:
- Name clearance certificate
- 3 copies of the memorandum of association
- 3 copies of the articles of association
- Forms I, VI, IX, X, and XII
- For non-resident subscribers: Encashment certificate
- For resident subscribers: Tax identification number (TIN)
Making a company seal is the Step #4.
This is a simple step to start a business in Bangladesh by making a company seal with company name and some specific details.
Registering with tax authority as the Step #5
It’s time to register your company with the tax authority of Bangladesh. The NBR (National Board of Revenue) is responsible for the tax registration with the Zonal Taxation Department for the new company to commence business.
Get Business ideas in Bangladesh: 50 Bangladesh Based Business Ideas and Opportunities.
Register with the VAT authority as the Step #6
Another important step is to register your company with the VAT authority. Companies may be registered separately with the Customs, Excise, and VAT Commission (under the NBR) for VAT purposes. While operating the business will be regulated by the NBR Customs Department and VAT and Excise Department, the various VATs incurred.
Getting a Trade License as Step #7
The final step is to obtain the trading license of your proposed company. The City Corporation of the specific area is responsible for the trade license of the company. When you have the following documents, you can apply for the trade license to the city corporation:
- Company’s articles and memorandum of association’s certified copy – one
- Certificate of incorporation’s copy – one
- Statement of bank solvency of the company – one copy
- TIN certificate of the company’s – one copy
- The rent agreement for the company’s office – one copy
- Photographs of the owner of the company – Three copies
- Details of the person in charge of the main corporate functions
If you’re familiar with tax issues or have difficulty processing legal jargon, starting a business in Bangladesh is easy. You can help to reduce costs and stress significantly when you cleverly use of the resources and benefits available to you. Getting the admin right at this stage is just as important as developing your business idea, which is important to remember.