The Legal Framework for Bangladesh Company Formation is Very Promising to Foreigners
As you strive to create your business empire, you might want to consider conducting Bangladesh company formation. You really should do so, because you can benefit from its vibrant market. Now, the process begins by first getting your business name approval and reservation with the Registrar of Joint Stock Companies and Firms (RJSC). This can be done either through the online platform or visiting their offices. You need to know that the name clearance lasts for 180 days and you must ensure that you’ve deposited a nominal fee in the bank set by the RJSC electronic portal.
The RJSC Requirements You Must Submit
You must present the following documents to RJSC for their endorsement:
- Memorandum and Articles of Association
- a resolution by the shareholders to incorporate the company,
- filled-in Form I (declaration on company registration),
- a filled-in Form IV (notification of location of registered office)
- completed Form IX (accord of director to act),
- completed Form X (listing of persons according to be directors)
- Form XII (personal details of the directors and the managing agents)
When incorporating a company, you must have a minimum of two directors who can be both local and foreigner. The law prescribes that a director should possess shares as stipulated on the Articles of Association. For a Private Limited Company, you must have at least two (2) shareholders and not more than fifty (50) shareholders. Note that in this case, a shareholder can be a person or a different legal entity such as another company. The minimum paid-up capital for registration of a company is Taka 1 subject to a raise at any given time.
As part of a smooth transition, you must have a registered address which can be a physical address but not a P.O. Box. It’s important that you register for your employees for Social Security according to the labor laws governing the welfare of the employees.
Other Things to Accomplish
After securing the requirements for your Bangladesh company formation, you must then have a bank account as part of the formalities. The shareholders will be required to open a momentary bank account bearing the name of the purported company with the assurance of account regularization the moment it’s duly registered. Again, you must ensure that you acquire the encashment certificate from the corporate bank that stipulates the remitted amount in the momentary bank account needed for a capital contribution. The registration will only be complete when you have paid up the registration fee and the stamp duty at the stipulated bank of the RJSC.
Remember, the determination of the fee depends on the verified share capital of the purported company. The moment that is complete, you’ll be issued with a certificate of incorporation from the RJSC.
One thing to remember while Bangladesh company formation is that every company is under the obligation of complying with the tax laws. Therefore, you must register for tax compliance to get your Tax Identification Number (TIN). The TIN will assist you to file your annual returns and return for any change in the entity. Again, you must ensure that you obtain your VAT certificate during that process.
There are so much to know about the Bangladesh company formation and business registration process. Contact us if you need assistance for these procedures.