Trustworthy Company Registration Services
Incorporating or registering a corporation in Bangladesh is explained in this guide. According to the Companies Act of 1994, there are various ways to company registration in Bangladesh. The process also varies based on whatever type of company registration a person chooses.
Pre-Registration: Important Information
Company Name: The name must have approval (clearance) before the firm may be incorporated in Bangladesh.
Directors: There must be a minimum of two directors. Directors may be domestic or international. Directors must be at least 18 years old and have no prior convictions for malpractice or bankruptcies. A director is required by law to own the qualifying shares listed in the articles of association. A nominee director may be chosen by a shareholder who is not a natural or legal person (a firm, for example).
Shareholders: In Bangladesh, a private limited company registration could have a minimum of two shareholders and a maximum of 50. A shareholder and a director are two different roles that can coexist. A person or the other legal entity, such as another business, can be a shareholder. In the majority of sectors, 100% locally or internationally ownership is permitted. Once the Bangladeshi business has completed the incorporation process, shares may be issued at any time or may be transfer to another individual.
Licensed Capital: The Memorandum of Association and Articles of Association both need to specify the allowed capital. It is the highest number of shares that can be issued (allocated) to shareholders by the company. The capital that has been authorized may not all be issued. Bangladesh does not have a minimum or maximum permissible capital amount.
Capital Paid Up: 1 Taka is the required minimum paid-up capital to company registration in Bangladesh. Following the company’s incorporation, the paid-up capital, also called as share capital, may be increased at any time.
Address on file: A local address must be given as the company’s registered address in order to company registration in Bangladesh. The registered address cannot be a P.O. Box and must be a physical location (it may be either a residential or business address).
Memorandum and Articles of Association: The organization that will be incorporated must draft its articles of association (AoA) and memorandum of association (MoA) .
Company Registration With The Bangladesh Investment Development Authorities (BIDA):
Foreign investment facilitation in Bangladesh is the responsibility of the Bangladesh Investment Development Authority (BIDA). The duties of BIDA include providing work visas for foreign workers, foreign investor visas, processing loans from foreign sources, approving the remittance of royalties and technical fees, helping to obtain manufacturing plots, enabling utility connections, approving foreign loans, approving supplier credit, and providing assistance and advice on numerous investment-related issues. When a limited company is formed, foreign investors having industrial projects are highly encouraged to register with BIDA. However, company registration with BIDA is not necessary for commercial or trade companies. It typically takes 7 to 10 business days to receive company registration.
Relevant Information For Foreign Investors Of Company Registration
Foreigners who want to start a business in Bangladesh must examine the following factors:
- The permitted share capital determines how much it will cost company registration, in general.
- Shelf businesses are not allowed; the corporation must have a physical location in Bangladesh.
- The forex regulations in Bangladesh permit the full repatriation of gains and investments.
- Foreign nationals may work with locals at a ratio of 20:1, provided they have the required work permits.
- FDI investments may be made at 100%, with very few exceptions.
- Directors may be from abroad or locally.
- Standard corporate income tax rates range from 25 to 45 percent, depending on the industry and type of business. For some industries and regions, the tax break is offered for 5-7 years.
- For investment in Special Economic Zones, there are also additional financial benefits.
Why BPO Bangladesh Will Be The Perfect Choice?
In our company registration service, for example, strict ethical guidelines govern how we do business with our customers. We want you to know that we treat our customers as family, so we work hard to produce the results you want, alleviate the uncertainty of finding an outsourcing company, and provide you with reliable advice and expertise.
Legal Entities That Can Be Registered In Bangladesh
There are two types of limited companies are available in Bangladesh for company registration
1. Private Limited Company
Private limited corporations make up a sizable portion of registered businesses in Bangladesh (LLC). LLCs in Bangladesh are permitted to have 100% foreign ownership, and liability is restricted to the shared capital of stockholders. Anyone above the age of 18 may register a business. The law also stipulates that there must be two directors and a couple shareholders, with a maximum of 50. Be aware that you can create a partnership with a local organization to pool your resources and lower your risks.
2. Public Limited Company
A public limited corporation, on the other hand, is typically registered on a stock market and can encourage the people to hold shares. A public limited corporation must have a minimum of seven shareholders and three directors, with really no upper limit. Any legal entity or a person who is at least 18 years old and meets the requirements under Bangladeshi law may be one of its shareholders. The general public may donate money to it. It should adhere to the Securities & Exchange Act 1993.
Franchise With Regional Marketers
Franchise agreements are also permissible in Bangladesh for foreign-owned businesses. You can grant local marketers access to your brand through a franchise, support them technically, and charge a fee or commissions for their work. A franchise operation adheres to the terms of the licensing and purchase agreements.
The term “registered office” describes a company’s principal location of business or official correspondence address. All communications from the company will be sent to the registered office address.
A minimum amount of authorized or paid-up capital is not necessary to register a corporation. However, the various slabs of the company’s authorized capital determine the registration charge that must be paid to the company registrar.
The Ministry of Corporate Affairs, Government of Bangladesh, assigns a CIN to any company that registers in India.
A CIN is a 21-digit number that includes details such as the Status (listed or unlisted), NIC code of the company activity, State of registration, Year of registration, Private or Public, and the Registration Number in the relevant state.
The term “subscribed capital” describes the sum of money that the company’s shareholders have promised to invest.
The amount of cash that the company’s shareholders have actually contributed is known as its “paid up capital.”