Bangladesh

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 189 economies. The most recent round of data collection was completed in June 2013.

Compare Bangladesh to 188 other economies.

  • Standardized Company

  • Legal Form: Private Limited Liability Company
  • Paid in Minimum Capital Requirement: None
  • City: Dhaka
No. Procedure Time to Complete Associated Costs
1 Verify the uniqueness of the proposed company name on the website of the Registrar of Joint Stock Companies and Firms

The search for the availability of a company name was computerized in 2003. After checking that the proposed company name is available for registration, the entrepreneur then applies for name clearance through the Registrar of Joint Stock Companies and Firms (RJSC) website. The status of the application can be checked online and is usually accepted or rejected within 1 working day. If accepted, the company name is reserved for 6 months. A print out of the name clearance certificate must be submitted to the RJSC, along with the other required documents for incorporation.
Less than one day (online procedure) BDT 600
2 Pay stamp duty at a designated bank

Payment of stamp duty is made to the account of the Treasury at the BRAC Bank.
For an authorized share capital of up to BDT 1,000,000, the total stamp duty fees are BDT 2,500. These include BDT 2,000 for affixing stamps on the Articles of Association, and BDT 500 for stamps on the Memorandum of Association.
1 day BDT 2500
3 Register at the Registrar of Joint Stock Companies and Firms

To register a company, the following documents must be submitted to the registrar:
(1) Name clearance certificate
(2) Memorandum and Articles of association
(3) Forms I (Declaration on the registration of the company); Form VI (Notice of the registered office); Form IX (Consent to act as directors); Form X (The list of persons consenting to act as directors); and Form XII (Particulars of the Directors, Managers, and Managing Agents)
(4) Proof of payment (i.e. receipt from the designated bank) for Treasury Stamps

The registration fees payable at a designated bank are as follows:
i. For filing 6 documents (5 filled in forms and the memorandum & articles of association, the fee is BDT 200.00 per document): BDT 1,200.00
ii. For an authorized share capital of up to BDT 20,000, the fee is BDT 360.
An additional fee of BDT 180 is applicable for every BDT 10,000 or part from the first BDT 20,000 up until BDT 50,000
An additional fee of BDT 45 is applicable for every BDT 10,000 or part from the first BDT 50,000 up until BDT 1,000,000
1 day BDT 3645 registration fees + 1200 registration filing fees
4 Make a company seal


1 day BDT 30-50
5 Obtain a Tax Identification Number

In order to start business operations, every company must register for taxes at the appropriate taxation authority (Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and obtain a tax identification number.
4 days no charge
* 6 Register for VAT

For VAT purposes, companies register with the Customs, Excise, and VAT Commission under the National Board of Revenue. The company's VAT is regulated by the Customs, VAT and Excise Department of the region in which it operates.

3 days, simultaneously with procedure 5 no charge
7 Obtain a trade license

Companies obtain a trade license from the City Corporation. Recently, the City Corporation (Dhaka) was divided into 2 zones: the North Zone and the South Zone. The proposed company will have to file its application at the nearest City Corporation.

The trade license filled-in application form must be accompanied by the following documents:
(1) A certified copy of the memorandum and articles of association
(2) A copy of the certificate of incorporation
(3) Tax Identification Number certificate
(5) A copy of the lease agreement of the registered office
3 days BDT 5,000
* Takes place simultaneously with another procedure.

Explore Economy Data


- OR -

OTHER OPTIONS