How to Start a Business
An entrepreneur has to follow nine specific procedures and legal steps to set up a business in Bangladesh. At the outset, the entrepreneur has to apply to Registrar of Joint Stock Companies and Firms (RJSC) for Name Clearance Certificate. After receiving the certificate, the next step is to pay stamp duty at a Designated Bank and again apply to RJSC for registration. Then the company makes seal and open a bank account and then apply for trade license to respective City Corporation or Municipal Corporations. After completing all those procedures, the entrepreneur has to approach to the National Board of Revenue (NBR) for receiving TIN Certificate and registering with the Customs, Excise, and VAT Commissionerate. Finally, the investor requires to apply to theBangladesh Investment Development Authority (BIDA) for registration.
Following is the summary of those procedures:
Procedure 1: Name Clearance Certificate for Company
The first step is to apply to Registrar of Joint Stock Companies and Firms (RJSC) for receiving name clearance certificate. This is a pre-requisite for registration of a new company (other than Foreign Company and Partnership firms) or a society or a trade organization. An applicant needs to apply via RJSC website. The RJSC office will check the database and issue name clearance if it does not closely match or resembles with any of the existing names. It will be valid for next 180 days. An applicant will have to apply for registration within this timeline.
Procedure 2: Pay Stamp Duty at a Designated 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.
Procedure 3: Register at Registrar of Joint Stock Companies and Firms (RJSC)
The promoters of a new entity (having name clearance, where applicable) apply for registration with necessary documents, prescribed forms & schedules and fees, as appropriate to the entity type. The promoters prepares Memorandum/Articles of Association as appropriate to the entity type, submit the registration application through website and Pay the registration fee at the designated Bank. RJSC issues a Certificate of Incorporation upon satisfaction that the promoters obtained name clearance of the proposed entity prior to the registration application, submitted the registration application the Memorandum & Articles of Association & prescribed forms and provided applicable fees.
Procedure 4: Make a Company Seal
Business founders can make a company seal at the Seal maker for BDT 100-200
Procedure 5: Open a Bank Account
A company must first open a bank account In order to register for VAT. An entrepreneur will go to the concerned Bank and open a Bank account.
Procedure 6: Obtain a Trade License
Getting a trade license is one of the important steps of starting business in Bangladesh. An entrepreneur needs to receive the trade license from City Corporation or City Council of the respective business area. The trade license filled-in application form must be accompanied by the required documents.
Procedure 7: Obtain a Tax Identification Number (TIN) Certificate for Company
In order to start business operations, every company must receive TIN Certificate from NBR. An entrepreneur can apply in online filling out prescribed online form and obtain TIN Certificate instantly. Alternatively, the entrepreneur can 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.
Procedure 8: VAT Registration
For VAT purposes, companies register with the Customs, Excise, and VAT Commissionerate 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 Trade License, Bank Solvency Certificate, TIN Certificate, Copy of BOI Registration & Deed of Agreement.
National Board of Revenue (NBR)
Segun Bagicha, Dhaka-1000
Procedure 9: Registration with the Bangladesh Investment Development Authority (BIDA)
A foreign investor is required to be registered with BIDA . It is essential to obtain many licenses and permits such as Import Registration Certificate, Export Registration Certificate, Bond License, etc to run business in Bangladesh. The BIDA registration is also mandatory for obtaining an industrial plot in the special economic zone. The investor needs to collect the application form from BIDA and submit the filled up form along with supporting documents to the respective department of BIDA.
Location of the BIDA
Bangladesh Investment Development Authority (BIDA)
Prime Minister’s Office
JibanBima Tower (19th Floor)
10 Dilkusha C/A, Dhaka-1000, Bangladesh
PABX: +880 2 957 7271-2, Fax: +880 2 956 2312
Email : [email protected], Website : www.boi.gov.bd