What does it Cost to Start a Business in Bangladesh?

What does it Cost to Start a Business in Bangladesh?

What does it Cost to Start a Business in Bangladesh

What does it Cost to Start a Business in Bangladesh

Do you want to start your own business in Bangladesh? It’s the most important part of a business plan the costs of the business implementation. If you know the amount, you can measure your ability. And you can proceed to start a business with the amount what it requires and what you have.

According to the rankings of the World Bank’ ‘Ease of the Doing Business’, Bangladesh positioned 122 among 183 countries. It means that doing business in Bangladesh isn’t so friendly and the coming days are getting worse. As we know that the business is the one of the largely beholden of a country’s economy. Motivating the growth of small and medium-sized enterprises is difficult for the critical business-friendly environment. But, the government is paying very little heed to the concern.

An Overview of the Costs to Start a Business in Bangladesh

You must think hard about the likely costs before you pass go when starting a new business. You can avoid expensive surprises if you think about it prior to starting a business. Whether you’re a fast-moving start-up or still weighing the pros and cons of chucking in the day job, estimating costs and income is a great factor for any new business.

If your business is viable or not, and show you a quicker path to breaking even and long-term profitability, these numbers will help you decide. It’ll vary greatly from business to business and to stay in the business of the money it needs to start a business. There are some unforeseen bills or price rises can quickly add up and it’s a good idea to add 20-30% for costs you haven’t thought

The cost to start a Business in Bangladesh

Analyze your own expenses is the first thing that you should do before of starting a small business in Bangladesh. Along with a fine-tooth comb, you have to go through the personal expenditure. Also, include your mortgage or rent, discretionary, bills, and food spending.

Go for a search if there is something that you can incise. The early days, in particular, can be a financial squeeze because running a business can be incredibly fulfilling. It’ll help you avoid financial disaster when you’re realistic and honest with yourself. With a detailed summary of the bureaucratic and legal hurdles, the costs to start a business in Bangladesh are as follow.

Cost of Company Name Verification via Online

Predictable costs: BDT 100

Time: 1 day

When you’ll send the proposed name via online, you’ll get an email from RJSC (the Deputy Registrar (Name Clearance). The other documents and forms required for the incorporation of the company when the name clearance certificate is to be submitted to the RJSC. This is a simple but initial step to start a business in Bangladesh.

Cost of the adhesive stamp at the designated bank

Predictable Costs: BDT 2000

Time: 1 day

Your business venture obligated to get the special adhesive stamps of value were affixed to the memorandum of association regardless of the company’s authorized capital until recently.

Under The Stamp Duty (Additional Modes of Payment Act 1974), the provision of Pay order in lieu of stamp was passed on 20 January 2010. It doesn’t require buying physical special adhesive stamps by the applicants.

You have to make payment to the designated bank accounts of the Treasury. Although the BRAC Bank collects all fees, it was done by the Sonali Bank previously. Here is the rate of the authorized capital fees:

  • BDT 100,000 to BDT 1,000,000 fees BDT 2000
  • For the memorandum of association BDT 500
  • For the articles of association BDT 1500

Cost of File documents with the RJSC

Predicted Costs: BDT 4125 (it may vary)

Time: 1 day

The company pays fees based on the company’s authorized capital for filing the memorandum and articles of association. Here is the rate of fees for the company and the ranges:

  • The capital of the company BDT 318320 cost BDT 4125 (BDT 1200 Registration Filing Fee and BDT 2925 Registration fee).

 

You have to pay them at the designated banks of Bangladesh. To get the registration, you must submit the following documents:

  • Certificate of name clearance
  • memorandum of association
  • forms I, VI, IX, X, and XII
  • articles of association
  • receipt from the designated bank as proof of payment for Treasury Stamps
  • for nonresident subscribers: encashment certificate
  • for resident subscribers: tax identification number

Cost of Making a Company Seal

Predicted Costs: BDT 40-50

Time: Less than 1 day

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Cost of Registering with the tax authority

Predicted Costs: No charge

Time: 9 days

With the appropriate taxation authority NBR (the National Board of Revenue), your business venture is obligated to register itself. Here the Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) is designated for the duty.

Cost of Registering for VAT

Predicted Costs: No charge

Time: 5 days

Your business venture obligated to register itself with the Customs, Excise, and VAT Commission (under the NBR). The various VAT incurred while operating the business will be regulated by the area NBR Customs Department and VAT and Excise Department for VAT purposes.

Cost of obtaining a trade license

Associated Costs: BDT 5000

Time Duration: 6 days

Your business venture obligated to take a trade license that comes from the City Corporation office of the designated area. What you need to apply for the trade license are as follow:

  • Company’s articles and memorandum of association’s certified copy
  • certificate of incorporation’s copy
  • statement of bank solvency of the company
  • TIN certificate
  • rent agreement for the company’s office copy
  • 3 photographs of the person in charge of the main corporate functions