Expanding your business operations to Bangladesh can be a strategic move to tap into the South Asian market. To establish this, foreign companies need to go through a registration process. This guide provides a complete overview of the foreign company registration process in Bangladesh.
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- Eligibility and Compliance Check
- Business Structure
- Name Reservation
- Prepare Document
- Necessary Approvals
- RJSC
- TAX
- Bank Account
- Labor Law
- Trade License
- VAT
Step 1: Eligibility and Compliance Check
Before the registration process, make sure that your company meets the eligibility criteria set by the Bangladesh government. For example, the nature of the business, legal structure, compliance with local law, etc.
Step 2: Business Structure
These companies can operate through different structures, including a liaison office, branch office, or a wholly-owned subsidiary. Each of these structures has different requirements and implications, so choose the one that goes with your business goal.
Step 3: Name Reservation
Before opening a new business, you need to select a unique and approved business name. Applicants must submit the company name to the Registrar of Joint Stock Companies and Firms (RJSC) for approval. Ensure that other local companies have not taken your chosen name.
Step 4: Prepare Documents
Prepare the necessary documents, including:
- Financial statements and proof
- TIN Certificate
- Trade License
- Value Added Tax (VAT)
- Company Name Clearance Certificate
and many more.
Step 5: Obtain Necessary Approvals
Certain business activities require specific approvals from government agencies. For example, telecommunications or energy need clearance from the respective authorities.
Step 6: Registration with RJSC
For Foreign companies, applicants must submit the required documents to the Register of Joint Stock Companies and Firms (RJSC). Requirements of documents are forms, paying the requisite fees, and obtaining a Certificate of Incorporation. This will serve as legal proof of the company’s existence in Bangladesh.
Step 7: Tax Registration
All companies are required to get a Tax Identification Number (TIN) from the National Board of Revenue (NBR). This is crucial for fulfilling tax obligations and conducting financial transactions in Bangladesh.
Step 8: Open Bank Account
Establish a business bank account in a local bank authorized by Bangladesh Bank. These bank accounts are important for conducting financial transactions, paying taxes, and managing day-to-day operations.
Step 9: Labor Laws
Ensure compliance with local labor laws, including obtaining work permits for foreign employee benefits.
Step 10: Trade License
A trade License is required in Bangladesh for trading business like exports or imports. Getting a business license from City Corporation is important.
Step 11: VAT Registration
Bangladesh’s National Board of Revenue (NBR) governs VAT. The VAT Act requires businesses to register for VAT if their taxable sales exceed the prescribed threshold. VAT applies to the supply of goods and services in Bangladesh.
For comprehensive tax legal services, our expert tax lawyer in Dhaka, Bangladesh, can provide the guidance and support you need to navigate complex tax laws effectively.
In conclusion, the foreign company registration process in Bangladesh requires careful planning and legal requirements. Getting help from local experts can speed up the process and make sure that entering the Bangladeshi market goes smoothly.
If you need assistance obtaining foreign company registration licenses, the Jural Acuity team will be pleased to help. We can be contacted @+880170710800 or [email protected]
