Starting a Business in
Bangladesh
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bangladesh. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.
| Year | New business density | Number of new limited liability companies |
|---|---|---|
| 2011 | 0.10 | 9,405 |
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Verify online the uniqueness of the proposed company name with the Registrar of Joint Stock Companies and Firms The application for the name clearance of the company is now done on-line. There is no need anymore to provide an application on plain paper with a promoters' resolution proposing the corporate names. The proposed name needs to be sent on-line and clearnace certificate is provided via e-mail by the Deputy Registrar (Name Clearance), RJSC. A print out of the name clearance certificate is to be submitted to the RJSC alongwith the other documents and forms required for the incorporation of the company. The search for the company name was computerized in 2003. | 1 day | BDT 100 |
| 2 | Pay adhesive stamp fees at a designated bank Until recently, special adhesive stamps of value was affixed to the memorandum of association regardless of the company’s authorized capital. Provision of Pay order in lieu of stamp was passed on 20 January 2010 (SRO # 21-Law) under The Stamp Duty (Additional Modes of Payment Act 1974). Applicants do not need anymore to buy physical special adhesive stamps. Payment can be made to the designated bank accounts of the Treasury. Previously all the fees were supposed to be deposited only in selected branches of Sonali Bank. RJSC has now allowed one of the leading private sector banks with extensive national coverage - the BRAC Bank -to collect fees. For an authorized capital of between BDT 100,000 to BDT 1.000,000 the adhesive stamps of total value BDT 2,000 is required - BDT 500 is required for the memorandum of association and BDT 1,500 for the articles of association. | 1 day | BDT 2,000 |
| 3 | File documents with the Registrar of Joint Stock Companies and Firms for registration For filing the memorandum and articles of association, the company pays fees based on the company’s authorized capital. For a company with a capital of BDT 564,011, the cost is BDT 4,125 (BDT 2,925 registration fees + 1,200 registration filing fees). The fees are paid at the designated banks. The following documents are submitted to the registrar: (a) name clearance certificate; (b) memorandum of association; (c) articles of association (d) forms I, VI, IX, X, and XII; (e) proof of payment (i.e. receipt from the designated bank) for Treasury Stamps; (f) encashment certificate (for nonresident subscribers); and (g) tax identification number (for resident subscribers). | 1 day | BDT 2,925 registration fees + 1,200 registration filing fees |
| 4 | Make a company seal | 1 day | BDT 30-50 |
| 5 | Register with the tax authority To commence business, every company must register itself with the appropriate taxation authority (Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and procure a tax identification number for the new company. | 9 days | no charge |
| * 6 | Register for VAT For VAT purposes, companies may be registered separately with the Customs, Excise, and VAT Commission (under the NBR). The various VATs incurred while operating the business will be regulated by the area NBR Customs Department and VAT and Excise Department. | 7 days, simultaneously with procedure 5 | no charge |
| 7 | Obtain a trade license Companies may obtain a trade license from the City Corporation. The trade license application must be accompanied by the following documents: (1) a certified copy of the company’s articles and memorandum of association, (2) a copy of the certificate of incorporation, (3) the company’s statement of bank solvency, (4) the company’s tax identification number certificate, (5) a copy of the rent agreement for the company’s office, (6) three photographs (copies) and (7) particulars of the person in charge of the main corporate functions. | 6 days | BDT 5,000 |
---------------info collected from: http://www.doingbusiness.org --------------------
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