Entity/Business Incorporation/Registration in Bangladesh is a procedure by which a business is established in Bangladesh. Before finding out how to register or incorporate a business in Bangladesh it is noteworthy to consider Bangladesh as one of the most preferred destinations for Foreign Direct Investment and a good choice for registering a business, which results in high numbers of entities/businesses being incorporated or registered in Bangladesh. The Government of the Peoples’ Republic of Bangladesh has established several organizations such as the Registrar of Joint Stock Companies and Firms, Bangladesh Investment Development Authority (BIDA), Bangladesh Bank, and Bangladesh Securities and Exchange Commission to assist foreign investors in registering an entity in Bangladesh and smoothly run its businesses. Similarly, while following the provisions of the Companies Act 1994, these institutions have several laws and regulations which must be abided by.
In recent times, it has transpired that a lot of business registration in Bangladesh is being made by foreign companies or investors who are willing to incorporate an entity in Bangladesh due to the government’s beneficial provisions for foreign investors.
Foreign Direct Investment in Bangladesh | Registration of Foreign Business in Bangladesh
Bangladesh offers one of the most liberal foreign direct investment climates in South East Asia due to which registering a foreign business in Bangladesh has become widely common. The Foreign Private Investment (Promotion and Protection) Act 1980 ensures equal treatment for local and foreign direct investors for business registration in Bangladesh as well as to conduct almost any business. In terms of costs, inputs, human resources, market access, facilitation, etc Bangladesh offers a competitive location for doing business. Foreign Direct Investment in Bangladesh is an appropriate sector that would potentially yield higher returns than most other competing locations, with lesser risks. Concerned authorities in Bangladesh make all possible efforts to reduce the costs of doing business in Bangladesh and minimize risks and uncertainties.
How to Incorporate/Register an Entity/Business in Bangladesh
To understand the procedure as to how to incorporate/register an entity/business in Bangladesh one must give due adherence to the several modes or structures by which an investor can incorporate an entity in Bangladesh. The particular mode of entity incorporation in Bangladesh depends on the need of the clients and the type of business the client is engaged in. Hello Bangladesh Consulting International is one of the prominent service providers in Bangladesh incorporating RJSC (Company House) and also Bangladesh Investment Development Authority. Along with our legal division, which is a leading law firm in Bangladesh, namely, Hello Bangladesh Associates, we do provide 360-degree end-to-end professional services.
Therefore, the followings are the mode and types of entity/business formation/incorporation in Bangladesh by which one can initiate a proper course of business.
Private Limited Company
Most of the companies are running their businesses through the incorporation of a private limited liability company in Bangladesh. A private limited company is a separate legal entity where shareholders are only liable for the debts of the company up to the share capital they have contributed.
Public Limited Company
In our country, incorporation of a public limited company in Bangladesh has to have a minimum of 7 up to unlimited shareholders/Directors limited by shares. Public limited companies can offer public shares if listed by any stock exchanges. Public limited companies can declare dividends too.
Joint Venture Company Incorporation
In Bangladesh, several foreign entrepreneurs can set up a joint venture company by collaborating with at least one or more Bangladeshi entrepreneurs. At this moment, The Register of Joint Stock Companies & Firms (RJSC) is the only authority to register Joint Venture companies in Bangladesh.
Liaison Office
One of the options to start investing and setting up business in Bangladesh is opening a liaison office. Approval from Bangladesh Investment Development Authority (BIDA) is needed to set up a liaison office. The key difference with the branch office concept is that being a liaison office would have no local source of income in Bangladesh, all setup and operational costs have to be borne by a foreign parent company.
Branch Office
In Bangladesh, a foreign entity/company can engage in commercial activities by opening a Branch office with prior permission from Bangladesh Investment Development Authority (BIDA). A branch office is generally bound by the rules set up by BIDA regarding where its business is confined, needs a renewal of branch office license for thperiodod mentioned and approved by BIDA, etc.