A subsidiary is a company controlled directly or indirectly by another authority, the parent or holding company. These owners own more than 50% of the subsidiary voting stock. In that
case, he can control its operations and strategic decisions.
Subsidiary registration in Bangladesh is necessary for local and foreign businesses looking to establish a presence in the country.
What are the types of Subsidiary Businesses in Bangladesh?
Private Limited company
In this type, there can be a minimum of 2 and a maximum of 50 shareholders as per Bangladeshi law. Another rule is that two directors can run that corporation.
Foreign companies have a significant opportunity to start a business in the country.The minimum paid-up capital is Taka 1 for locals and USD 50000 for foreign-owned companies.
Public Limited Company
As per Bangladeshi law, a Public Limited Company can be formed by at least 7 members. That corporation must register its name on the Dhaka Stock Exchange DSE.
A parent or holding corporation controls its legal entity. Foreign investors can invest up to 51% to 99%. Two or more Subsidiaries can be controlled by the same group called sister companies.
List of Subsidiary Registration Documents.
Here is the required list of subsidiary documents:
● Name Clearance Certificate from RJSC
● Information of directors
● Business Address register
● TIN Document ( Taxation Identification Number)
● Information of Shareholders
● Information of foreign shareholders with passports.
● All the partners must sign Magor statements.
● Information about the principal place of the corporation.
How to set up a Subsidiary in Bangladesh?
Companies or businesses must follow these to set up a subsidiary in Bangladesh.
All companies must require a unique name. To check the availability, reserve a unique name with the Register of Joint Stock Companies and Firms (RJSC).
Opening a corporate bank account is essential for the subsidiary. And the name of that account must be the same as the association name.
Benefits of Setting up a Subsidiary Company in Bangladesh.
Here are the benefits of setting up a subsidiary in Bangladesh:
● Foreign investors are allowed to invest in the country.
● Business profits can be transferred to the home country.
● Minimum capital is not required to set up.
● Skilled and low-cost labor.
● growing market
● strategic location
Setting up a corporation entity in Bangladesh provides a platform for businesses to capitalize on the country’s economic opportunities, diverse markets, and favorable business environment.
However, companies must conduct thorough market research, adhere to legal requirements, and adapt their strategies to the local context to maximize the benefits of establishing a
subsidiary in Bangladesh.
If you want to register a company in Bangladesh, simply refer to this company registration guide.