Foreigners are welcome to Bangladesh to establish a business in preferrable nature. To let you know that local Bangladeshi citizen is not required to setup a new business, by law. Non resident entrepreneurs can start a business with 100% ownership of the shares of a limited liability company (LLC).

Summary of business establishment 

1. Expected cost
2. Expected time line
3. Expected business licensing

Serial as requirements	Licensing	Expected time	Type of entities
One	Incorporation of a business	Seven days	Service, export import and manufacture
Two	Trade license	Seven days	Service, export import and manufacture
Three	TIN	Two days	Service, export import and manufacture
Four	VAT	Two weeks	Service, export import and manufacture
Five	Export Import	2 to 3 weeks	Only export import and manufacture
Six	Fire	Three to four weeks	Only Manufacture
Seven	Factory	One to two weeks	Only Manufacture
Eight	Environment	Three to four weeks	Only Manufacture

 

Expected costs of setting up a service company: 70000 (in Taka)

Expected costs of setting up a export import business: BDT 130000

Expected costs of establishment a manufacture/ factory setup business:  BDT 220000

Note: Professional fee is excluded.

Business setup process:

1. Limited Liability Company with shares own by a person
2. Limited Liability Company with shares own by foreign entity
3. Branch office open of a foreign entity
4. Enterprise/ sole proprietorship business (only for local Bangladeshi citizen)
5. Other business licenses (Trade, export import, fire, factory setup, environment and other officials)

Limited Liability Company with shares own by a person

Shares of a new company can be fully own by foreign investors as its allow by Company Act. Let discuss on key points to know the steps:

Proposed business name

To commence a new business 3 proposed names are recommended to submit by the directors as checking of names availability. The registered name is keep valid till thirty days only. It can be extended before expire making payment of certain fees.

Proposed bank account

A proposed business account is opened with approval of business name before fully a company is incorporated. Foreign entrepreneurs must make a remittance order from home country to the proposed account in Bangladesh. The reason of remittance is to ensure of remitter who is purchasing shares of the company.

Address

A commercial address is required to register a new company and other business licenses, later on. As business cannot register and run using residence address, by law.

Number of share holders

As Company Act, there is minimum two shareholders needed and the same shareholders will be the directors automatically. One of them shall act as chairman and the other one is Managing Director and they will perform duties by Company Act.

Business merger and embodiment

A limited liability entity shall embodiment or acquisition through a licit process from a registrar office. Require documents shall be lodged by a lawyer or expertise, wait for 2 days for an update. Keep in mind that a bank letter against remittance is lodged while processing and the said letter is verified by 2-3 days through courier.

Regular Bank Account

Now, after completion of all procedure for embodiment or merger, documents submit to the bank for regular the account to operate.

Required time frame

Requirements for establishment a new business one week starting days from the date of lodgment.

1. Expected total time lines for a service nature of business setting up: 20 days
2. Expected total time lines for a service nature of business setting up: 4-6 weeks
3. Expected total time lines for a service nature of business setting up: 2-3 months or longer.

Contact us

MIRPUR, DOHS shopping Complex, Dhaka

Location