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Starting a Business in

Bangladesh - Dhaka

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bangladesh - Dhaka . It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 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 190 economies. The most recent round of data collection was completed in June 2016.

Compare Bangladesh - Dhaka to 189 other economies.

  • 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

    Agency: 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. In addition to the BRAC Bank, the name reservation fee may be paid at the following designated banks: One Bank and Mutual Bank.

    Less than one day (online procedure) BDT 600 (paid at a designated Bank)
    2

    Pay stamp duty at a designated bank

    Agency: BRAC Bank

    Payment of stamp duty is made to the account of the Treasury at the BRAC Bank. According to the Stamp Act 1899 as amended on June 30th, 2012, for an authorized share capital of up to BDT 1,000,000, the total stamp duty fees are BDT 4,000. These include BDT 3,000 for affixing stamps on the Articles of Association, and BDT 1,000 for stamps on the Memorandum of Association. In addition, a certified copy of each document costs BDT 50.

    1 day BDT 3,000 for the Articles of Association + BDT 50 for a certified copy; and BDT 1,000 for the Memorandum of Association + BDT 50 for a certified copy
    3

    Register at the Registrar of Joint Stock Companies and Firms

    Agency: 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 400.00 per document): BDT 2,400.00
    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

    Less than one day (online procedure) BDT 4,005 registration fees + 2400 registration filing fees
    4

    Make a company seal

    Agency: Sealmaker

    Business founders can make a company seal at the Seal maker for BDT 30-50.

    1 day BDT 30-50
    5

    Obtain a Tax Identification Number

    Agency: National Board of Revenue

    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. Obtaining TIN number can now be done online in less than one day.

    Less than one day (online procedure) no charge
    * 6

    Open a Bank Account

    Agency: Bank

    In order to register for VAT, the company must first open a bank account.

    1 day (simultaneous procedure) no charge
    7

    Apply for VAT registration

    Agency: National Board of Revenue

    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.

    When an enterprise submits a VAT Registration application to the VAT authority an application must accomplish or enclosed the following papers & Documents:
    - Fill-up an application form.
    - Enterprise Trade License.
    - Bank Solvency Certificate.
    - Owners 02 photograph.
    - National ID/Passport copy of owners.
    - IRC/ERC if enterprise dong import and Export Business.
    - Article & Memorandum (if enterprise is Limited Company.)
    - TIN Certificate.
    - Location MAP of Enterprise premises.

    1 day no charge
    8

    Receive physical inspection of the business premises by a government agent and Obtain the VAT registration certificate

    Agency: National Board of Revenue

    As of 2010, businesses receive physical inspection by a government agent in order to verify that the company is real before obtaining their VAT registration certificates.

    7 days no charge
    9

    Obtain a trade license

    Agency: City Corporation

    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

    7 days BDT 2,700

    * Takes place simultaneously with previous procedure.