Company Registration in Bangladesh

Company Registration in Bangladesh

When beginning the process of forming a Company Registration in Bangladesh, it is necessary to comply with all of the requirements and restrictions that are imposed by the law. The purpose of this book is to give entrepreneurs with the information they need to successfully navigate this venture by providing a detailed overview of the process of registering a business in Bangladesh.

Understanding Company Registration in Bangladesh

Legal Framework and Authorities

The Companies Act, which is subject to the supervision of the Registrar of Joint Stock Companies and Firms (RJSC), is the law that governs the process of company registration in Bangladesh. It is the responsibility of the RJSC, which functions under the Ministry of Commerce, to regulate business companies that will be operating inside the nation.

Types of Companies

Private limited businesses, public limited companies, and partnership firms are the three types of corporations that may be established in Bangladesh. Each of these types of companies has its own rules and laws. The most typical alternative for small to medium-sized businesses is to establish a private limited company because of the flexibility and convenience of operation that Private Limited Companies provide.

Key Steps in the Registration Process

Generally speaking, the following procedures are associated with the process of registering a corporation in Bangladesh:

  1. Name Reservation: Select a unique name for your company and submit it to the RJSC for approval.
  2. Drafting of Memorandum and Articles of Association: Prepare the company’s Memorandum and Articles of Association, outlining its objectives, structure, and internal regulations.
  3. Submission of Documents: Compile and submit the necessary documents, including incorporation forms, identification proofs, and registration fees, to the RJSC.
  4. Verification and Approval: The RJSC will verify the submitted documents and, upon satisfaction, issue a Certificate of Incorporation, officially recognizing the company’s legal existence.

Requirements for Company Registration

Eligibility Criteria

To register a company in Bangladesh, the following eligibility criteria must be met:

  • At least two shareholders and directors (for private limited companies).
  • Minimum paid-up capital as per legal requirements.
  • Registered office address within Bangladesh.

Documentation

The following documents are typically required for company registration:

  • Memorandum and Articles of Association.
  • Declaration of Compliance.
  • Form IX (Declaration of the Authorized Capital).
  • Form VI (Particulars of Directors).
  • Form XII (Notice of the Location of the Registered Office).

FAQs (Frequently Asked Questions)

What is the minimum capital requirement for company registration in Bangladesh? The minimum paid-up capital requirement varies depending on the type of company. For private limited companies, the minimum capital is typically BDT 1,00,000.

Can foreign nationals register a company in Bangladesh? Yes, foreign nationals can register a company in Bangladesh by following the prescribed procedures and obtaining necessary approvals from relevant authorities.

How long does the company registration process take in Bangladesh? The company registration process in Bangladesh usually takes approximately 10-15 working days, subject to the timely submission of required documents and approvals.

Are there any restrictions on foreign ownership of companies in Bangladesh? While foreign ownership is allowed in many sectors, certain industries may have restrictions or require special permissions from regulatory authorities.

What are the ongoing compliance requirements for registered companies in Bangladesh? Registered companies in Bangladesh are required to fulfill annual compliance obligations, including filing annual returns, maintaining financial records, and attending shareholder meetings.

Can I change the name or structure of my company after registration? Yes, changes to the company name or structure can be made after registration by following the prescribed procedures and obtaining approvals from the RJSC.

Conclusion

In order to successfully navigate the process of registering a business in Bangladesh, it is necessary to pay close attention to the legal requirements, documents, and compliance processes. Entrepreneurs may confidently begin on their company initiatives if they have a thorough awareness of the essential stages and requirements that are given in this book. This will ensure that the creation of their firms is carried out in a manner that is both legally compliant and easy.

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