Bangladesh has developed into a desirable investment location because of its strong economic expansion. This article will provide a comprehensive guide on things to know about incorporating a company in Bangladesh.
THINGS TO CONSIDER WHEN INCORPORATING A COMPANY IN BANGLADESH
Choose the right type of company
In Bangladesh, there are several types of companies that can be incorporated, including a private limited company, a public limited company, a limited liability company, and a foreign company. It is important to choose the right type of company based on your business needs, as each type of company has different rules and regulations.
Know the requirements for incorporation
To incorporate a company in Bangladesh, you will need to complete a number of formalities and meet certain requirements. This includes having a minimum of two directors and two shareholders, having a registered office, and having a memorandum of association and articles of association.
Register with the Registrar of Joint Stock Companies and Firms
Once you have met all the requirements for incorporation, you will need to register your company with the Registrar of Joint Stock Companies and Firms.
This is a government agency responsible for overseeing the registration of companies in Bangladesh. The registration process can take up to three weeks and requires you to submit a number of documents, including the memorandum of association and articles of association.
Obtain a Tax Identification Number
Once your company is registered, you will need to obtain a Tax Identification Number (TIN) from the National Board of Revenue. This is a unique number that identifies your company for tax purposes and is required for all companies operating in Bangladesh. You will need to provide proof of your company’s registration and other relevant documentation when applying for a TIN.
Register for VAT
If your company is engaged in taxable activities, you will need to register for Value Added Tax (VAT) with the National Board of Revenue. This is a tax on the value added to goods and services during production and distribution and is a significant source of revenue for the government of Bangladesh. You will need to complete a VAT registration form and provide proof of your company’s registration and TIN.
Obtain a Trade License
To operate a business in Bangladesh, you will need to obtain a Bangladesh trade license from the local city corporation or municipality. This license is required for all businesses, regardless of size or type, and must be renewed annually. The trade license application process requires you to provide proof of your company’s registration, TIN, and VAT registration.
Obtain a Work Permit for Foreign Workers
If your company employs foreign workers, you will need to obtain a work permit for each individual. This permit is issued by the Ministry of Home Affairs and requires you to provide proof of your company’s registration, TIN, and VAT registration, as well as proof of the foreign worker’s qualifications and experience.
Comply with Labor Laws
In Bangladesh, there are several labor laws that companies must comply with, including the Labor Act of 2006, the Minimum Wage Act of 2012, and the Occupational Safety and Health Act of 2005. These laws cover issues such as minimum wage, working hours, and health and safety in the workplace. It is important to understand and comply with these laws to ensure the well-being of your employees and to avoid legal penalties.
Keep Accurate Records
Finally, it is important to keep accurate records of your company’s financial transactions, including invoices, receipts, and bank statements. This will help you stay organized and ensure that you are in compliance with all tax and financial regulations. You may also be required to submit financial reports to the government on a regular basis.
Overall, incorporating a company in Bangladesh can be a complex process, but with the right information and guidance, it can be made much simpler.
By understanding the requirements for incorporation, registering with the appropriate government agencies, obtaining the necessary licenses and permits, and complying with labor laws, you can ensure the success of your business in Bangladesh.
Reach out to us, if you require additional information on Bangladesh company registration.