Foreign Company Registration in Bangladesh

Bangladesh is seeing an increasing number of foreign companies adopting free industrial policy by providing many ample opportunities for foreign investors. Therefore, Bangladesh is one of the centers of foreign investment. With sustained growth of over 6% over the last decade and a large local consumer base, the economy is an attractive destination for investment in a wide range of sectors.

Unlike some emerging economies, Bangladesh allows 100% foreign companies. A wholly foreign-affiliated company (WFOE) can enter into trade agreements with other parties in Bangladesh, both inside and outside Bangladesh, and carry out business, manufacturing, and revenue-generating activities as separate legal entities. .. Rules.

The Companies Act of 1994 deals with legal requirements for the establishment and subsequent management of a company. The statutory bodies under the law are company registration companies and joint-stock companies (RJSC), which provide detailed guidelines from name approval to establishment.

According to customary international law, there are two types of companies that can be registered in Bangladesh: joint-stock companies and private equity companies. The type of foreign investor usually chooses private restrictions. The procedure for registering a limited liability company in Bangladesh is as follows.

Obtain Name Clearance

The name of the proposed company must be approved before establishing a company in Bangladesh. A name approval request must be submitted to RJSC with a completed request form and a suggested name.

Documentation

In order to establish a business, you need to create and edit the following documents.

a) Basic Articles of Incorporation (MOA) and Articles of Association (AOA)

b) Decision of foreign promoter to start a business in Bangladesh

c) Get and execute the following form:

• Fill out Form I: Declaration of company registration.

• Fill out Form VI: Notification of registered office status.

• Fill out Form IX: Director's permission to act.

• Fill out Form X: A list of people who agree to become directors (minimum of two directors required).

• Filled Form XII: Details of Directors, Managers, and Management Agents.

Bank Account

Promoters must open a temporary bank account in the name of the business proposed to the planned bank, provided that the account is settled once the business is properly registered at the company's home. Once the account is created, the capital contribution must be sent to the temporary account and a collection certificate must be obtained from the bank indicating that the amount required for the capital contribution has been properly repaid and received.

Submission of the Documents to the Registrar

Finally, the application must be submitted to RJSC, along with all documents carried out as described above and government costs. After examining all the documents, RJSC will register the business and issue a certificate of the establishment.

Post Registration Compliance

Once the registration process is complete, the limited liability company must obtain some or all of the following documents:

a) Investment Registration Committee

b) Commercial license of the legal entity in the corresponding city.

c) Tax Revenue Identification Number (TIN) of the National Revenue Board (NBR)

d) NBRBAT registration certificate

e) Fire certificate from Bangladesh Fire Department and Civil Defense Department (for industrial enterprises)

f) Environmental approval certificate from the Environment Bureau when the company is involved in an industrial project (in the case of an industrial company)

g) Investor visas, work permits, employee visas for foreigners