Company Formation in Bangladesh

Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Bangladesh are as mentioned below:

• Limited Liability Company (LLC)
• Public Limited Company (PLC)
• Branch Offices
• Representative Office
• Time Frame for Incorporation of Company in Bangladesh varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in Bangladesh to be completed is 17-20 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Bangladesh:

• Tax rebates, subsidies, tax holidays and other incentives are provided by the government to manufacturing and export oriented businesses.
• Tax exemptions are enjoyed by entrepreneurs in Bangladesh
• Foreign entities can easily repatriate their profits from resident companies in Bangladesh to their home country
• 100% foreign ownership
• No minimum capital requirement
• Socio-political stability

Tax Registration and Filing

Companies resident in Bangladesh are subject to income tax on their worldwide income while non-resident companies are taxed only on income derived from a permanent establishment in Bangladesh. Below are some crucial points in relation to taxation rates in Bangladesh.

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject.  Bangladesh has entered into double tax treaties with the following countries: Belgium, Canada, China, Denmark, France, Germany, India, Indonesia, Italy, Japan, Korea, Malaysia, Mauritius, Netherlands, Norway, Pakistan, Philippines, Poland, Romania, Saudi Arabia, Singapore, Sri Lanka, Sweden, Switzerland, Thailand, Myanmar, Turkey, U.A.E., U.S.A., U.K. and Vietnam.

Trademark registration

Trademark registration in Bangladesh is performed through the Department of Patents, Designs, and Trademarks (DPDT).  Any person claiming to be the proprietor of a trademark already in use or proposed to be used in Bangladesh may apply in writing for registration of a Trademark in the prescribed manner. An applicant should file an application for the registration of a trademark to the Trademark Registry Wing of the DPDT.

The Trademark Registration in Bangladesh is valid 7 years from the date of filing trademark and is renewable for similar periods of 10 years.  It takes approximately 6-8 months from first filing to registration

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Bangladesh for your business. For assistance or advice in the matter of the trademark registration in Bangladesh or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Bangladesh:

• Companies must obtain VAT registration and Tax Identification Number
• Companies must also register with the Registrar of Joint Stock Companies and Firms
• The number of Board meetings held during the year and attendance by each should be included in the shareholder’s report.
• The CFO and the Company Secretary of the companies shall attend the meetings of the Board of Directors, provided that the CFO and/or the Company Secretary shall not attend such part of a meeting of the Board of Directors which involves consideration of an agenda item relating to their personal matters

Accounting Services

The Institute of Chartered Accountants of Bangladesh follows accounting standards based on Bangladesh Financial Reporting Standards.  Financial statements must be filed annually for public and private companies.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Bangladesh Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

LLCs, PLCs, Branch offices and Representative offices are required to have an assigned auditor.  LLCs and PLCs are required to submit audited financials to the authority.

YourGlobalPro professionals provide auditing services as required by your business in Bangladesh.

Banking

Opening an account in a bank is quite easy in Bangladesh. The documentation requirement differs from Bank to Bank and needs to comply for the Bank account opening.

The major banks in Bangladesh are HSBC, Sonali Bank, Islami Bank Bangladesh Limited, Dutch Bangla Bank Limited, State Bank of India and Habib Bank Limited.  All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitate all the paper work in relation to banking need and can assist you in an opening bank account for your business plan in Bangladesh.

Legal and Compliance

In Bangladesh, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Bangladesh legal and compliance requirement to be followed by incorporated entities:

• LLCs in Bangladesh require at least 2 shareholders and 2 directors, who can be an individual or legal entity of any nationality.
• LLCs are required to provide audited annual financials to the Bangladesh Income Tax Authority (BITA)
• PLCs are required to have at least 7 shareholders and 3 directors, who can be an individual or legal entity.
• PLCs can trade public securities.
• PLCs must have their books audited on an annual basis.
• Branch offices must register with the Board of Investment (BOI) and the BITA.
• Branch offices are required to have their books audited.
• Representative offices are required to register with the BOI, Bangladesh Bank and Registrar of Joint Stock Companies and Firms

YourGlobalPro professionals can assist you in Bangladesh Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Bangladesh:

• There is no limit for the terms of labor contracts.
• Companies should overtime work is a premium of 100% of hourly pay.
• Paid annual leaves regardless years in tenure is 17 days.
• Visas are required for all countries except the nationals of following countries Bhutan, Barbados, Cyprus, Fiji, New Zealand, Western Samoa, Canada, Singapore, Tonga, Leone, Lesotho, Zambia, Tanzania, Malta, Nigeria, Kenya, Somalia, Nauru, Bahamas, Grenada, Papua New Guinea, Seychelles, Trinidad, Tobago, Ghana, Sri Lanka (Stay not exceeding One Month), Ireland, Tunisia, Vatican, Gabon And Spain
• Work permit is mandatory for every foreign national seeking employment in Bangladesh.
• For private sector industrial enterprise, branch office and liaison office, outside of Export Processing Zone (EPZ) visa is issued by Bangladesh Investment Development Authority (BIDA).
• For employment of foreign national in the EPZ visa is issued by Bangladesh Export Processing Zones Authority (BEPZA).
• For employment of foreign national in any NGO visa is issued by NGO Affairs Bureau.

Country Statistics