There are many ways to set up a business under Company Act 1994 in Bangladesh, i.e. Private Ltd Company, Public Ltd Company, proprietorship, branch office, liaison office, etc. This article focuses on how to set up a Private Ltd company in Bangladesh. The following must be followed in order to set up
Step 1- Name clearance
Firstly, the applicant must apply for name clearance to the Office of the Registrar of Joint Stock Companies and Firms (RJSC). This can be done online using the following link – http://app.roc.gov.bd:7781/psp/rjschome (See screenshot below)
The government fee for name clearance is 200 Taka + (15%) = 230 Taka. It usually takes about 2 days to receive the name clearance certificate. Further, after getting the name clearance certificate, the company must be formed within 1 month.
After getting the name clearance, the objectives of the company has to be provided. In the meantime, the Articles of Association and Memorandum of Association have to be drafted. This is like the constitution of the company. Therefore, it is advisable to use qualified and experienced lawyers for drafting a well defined Articles of Association and Memorandum of Association. As per Bangladesh Company law, at least two directors is required to form a company in Bangladesh.
After finalizing the Articles of Association and Memorandum of Association of the company, applicant needs to file Form XII, Photo of shareholders, office address etc to Registrar of Joint Stock Companies And Firms (RJSC).
Thereafter, the government fee needs to the designated Bank. Government fee depends upon the amount of authorized capital. For example, the government fee for authorized capital BDT. 5,00,00,000 will be BDT. 49,570 + 15% VAT. Similarly, the government fee for authorized capital BDT. 1,00,00,000 will be BDT. 17,570 +15% VAT.
As per RJSC Rule, after receiving the money, the RJSC authority will issue the incorporation certificate or reject the application within 28 days from the date of depositing the government fees. However, attempts can be made for pursuing to complete the process within 7 (Seven) working days from the date of depositing the government fee.
After getting the incorporation certificate, application for Tax Identification Number (TIN) of the Company has to be made. Certificate will be issued within 1 day.
Application for trade license has to be made by submitting the relevant papers and government fees. Hopefully, the trade license will be issued within 3- 5 working days from the date of application. If you want to know more about trate license please visit.
Thereafter, the incorporation certificate, trade license along with board resolution has to be submitted to the Bank for opening a bank account under the name of the company. Thereafter, one can start their business!
Company formation at CLP
The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients through the entire process relating to formation of a company in Bangladesh. For queries or legal assistance, please reach us at:
Phone: +8801700920980 | +8801947470606
Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.