Decide on the Type of Company:
- If you wish to run your business as a sole proprietorship, partnership, limited liability partnership (LLP), or private limited company (PLC), it is vital to choose the business structure that is most appropriate for your firm. This is true regardless of whether you also want to conduct your company as a limited liability partnership (LLP). On the other hand, each of these company forms comes with its own set of benefits and drawbacks.
Name Clearance:
- In order to ensure that the name you have selected for your business is not only unique but also eligible for trademark registration, it is essential to get name clearance from the Registrar of Joint Stock Companies and Firms (RJSC). This is the only way to ensure that the name you have chosen is suitable for trademark registration.
Memorandum and Articles of Association (MoA and AoA):
- The Memorandum of Association (MoA) and Articles of Association (AoA) should be established in order to offer an explanation of the company’s goals, rules, and regulations. It is advised that this action be taken.
Registration with RJSC:
- The RJSC must receive all of the necessary papers, including as the MoA, the AoA, and the application forms, in order to complete the business registration process.
- You are required to pay the registration fees and stamp taxes at the rates that have been authorized.
Obtain Trade License:
- You should submit an application for a trade license to the local government body or municipal corporation in the area where your operation will take place.
- Please provide the essential papers, including the certificate of registration for the firm, the memorandum of association, the agreement of association, and proof of address.
Tax Registration:
- In order to properly identify your business, you need get a Tax Identification Number (TIN) from the National Board of Revenue (NBR).
- If the turnover of your firm is more than the level indicated by the NBR, you are required to register for the Value-Added Tax (VAT).
Open a Bank Account:
- In Bangladesh, you need open a corporate bank account in the name of your firm with a bank that is recognized in the country.
- You are needed to provide the necessary paperwork, which include a certificate of business registration, a letter of agreement, an AoA, and a TIN certificate.
Obtaining Necessary Permits and Licenses:
- You should secure any extra permissions or licenses that are necessary from the appropriate authorities, such as environmental clearance, import-export license, or industry-specific permits, depending on the type of your firm.
Compliance with Labor Laws:
- Verify that all employment contracts, pay, working hours, and safety regulations in the workplace are in accordance with the applicable labor laws.
- In the event that it is relevant, file a registration with the Department of Inspection for Factories and Establishments.
Post-Registration Formalities:
- Publish a notice of company incorporation in a widely circulated newspaper and submit a copy to the RJSC.
- Maintain statutory books and records, including minutes of meetings, registers of members, directors, and share certificates.
- File annual returns and financial statements with the RJSC and other regulatory authorities as required by law.
Seek Professional Assistance:
- Consider seeking professional assistance from legal advisors, chartered accountants, or company secretaries to ensure compliance with all legal and regulatory requirements.
By following these steps and fulfilling the necessary requirements, you can successfully open a company in Bangladesh and embark on your entrepreneurial journey.
