Do you want to know the way of business setup in Bangladesh as foreigner / nonresident? 100% foreign ownership company, subsidiary company, branch office open is allowed as law of Bangladesh. RJSC permission, BOI approval, income tax and VAT license, bank account opening, remittance of $ 50,000 for work permit, enjoy tax free zone area to setup business and setup factory or garments business in Bangladesh have different policy from each other.
It’s not so easier and similar of others states. Although many foreign investors like to invest in many sectors considering good return within short time due to many causes for example; labor cost, raw materials, similar industry, easy to manage government, old machinery use permission, tax rebate and some more issue. We shall discuss in detail point by point as follows:
Process of Business Setup in Bangladesh
The process of company registration in Bangladesh or business setup in Bangladesh are shown below:
- RJSC approval
- Temporary bank account opening formalities
- Trade License from local government office where business is located
- Income tax for personal and business (TIN and BIN)
- Rent office in non-resident building
- Become member of concern business association
- Export and/ or import license application with supporting papers
- Permission from concern government authority (for example; telecommunication business approval from BTCL, etc)
- Plan and MAP of business in case of garment or factory setup permission
- Fire license for factory setup or corporate office
- Miscellaneous permission (vary case to case) for business setup in Bangladesh;
How to Register a Company in Bangladesh?
Shareholders or directors: Minimum two shareholders are required to meet with law open a company in Bangladesh and no local shareholders/ directors are required. Same shareholders will act as director of the company.
Capital: There is NO limitation of investment capital to start a business in Bangladesh as foreigner unless need to apply for work permit or E visa.
Joint venture or merger: Foreign entrepreneurs may merge business with other business and or start joint operation and
Bangladesh Company Registration Steps
Let share information of Bangladesh company registration steps:
Temporary bank account:
All banks are not familiar to open account of foreign ownership companies. Very limited banks are expert in this field, if you keen to open new company in Bangladesh is requested to contact us.
It’s a law that all business will be situated in commercial building at any place of Bangladesh.
Unless have bank certificate and office in commercial place VAT license is not given by the VAT authority.
Business License Requirement to Start
Business in Bangladesh
- Incorporation certificate with MoA and AoA and Form XII unless require other certificate as 1st spep of Bangladesh company registration.
- Tax certificate (individual and corporation).
- Another Value Added Tax number for the business.
- Export/ import license if need but not necessary for others who has no export/ import business.
- Factory permission and man power hiring permission.
- BOI or BEPZA approval for work permit.
- Fire, Trade license and other licenses require too.
License authority of Bangladesh
All below mentioning authorities approve business license:
- City Corporation
- VAT office
- Export authority
- BOI/ BEPZA
- KOL Karkhana