Foreign Company Formation

Foreign Company Formation: An entrepreneur has to follow nine specific procedures and legal steps to set up a business in Bangladesh. At the very first, the entrepreneur has to apply to the 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 a 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 a TIN Certificate and registering with the Customs, Excise, and VAT Commissioner-ate. Finally, the investor requires to apply to the Bangladesh Investment Development Authority (BIDA) for registration.

Name Clearance Certificate for Foreign Company Formation

The first step is to apply to the Registrar of Joint Stock Companies and Firms (RJSC) for receiving a name clearance certificate for Foreign Company or any Company. 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 the RJSC website. The RJSC office will check the database and issue name clearance if it does not closely match or resembles any of the existing names. It will be valid for the next 30 days. An applicant will have to apply for registration within this timeline. Legal Basis of the Certificate, the Companies Act- 1994 Responsible Agency, Registrar of Joint Stock Companies and Firms (RJSC)

Process Step for Foreign Company

Step 1: Applicant fills in the online application
Step 2: Opening an E-account an RJSC website
Step 3: Preliminary name search on the RJSC website
Step 4: Payment of fees to the designated Bank
Step 5: Submits the money receipt
Step 6: Obtain the name clearance certificate

Required Documents

A print out of the name clearance certificate
Original copy of Money Receipt

PROCEDURE 02

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 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.

Legal Basis of the Registration, the Companies Act- 1994

Responsible Agency, Registrar of Joint Stock Companies and Firms (RJSC)

Process Step for Foreign Company

Step 1: Preparing Memorandum of Association (MOA) and Articles of Association (AOA) as appropriate to the entity type Step 2: Visiting RJSC website to apply for company registration Step 3: Filling in Name Clearance Submission number and letter number Step 4: Filling in the prescribed forms Step 5: Attaching the MOA and AOA Step 6: Submitting the Registration Application Step 7: Depositing the required fee & receiving the payment slip form designated bank Step 8: Uploading document in online Step 9: Printing the uploaded documents and Submitting those documents & payment slip to RJSC office Step 10: Receiving a Certificate of Incorporation from the RJSC Office

Required Documents for Foreign Company Formation

Name clearance certificate
Memorandum and Articles of association
Filled in Form I: Declaration on Registration of Company
Filled in Form VI: Notice of Situation of Registered Office and of Any Change therein
Filled in Form IX: Consent of Director to act
Filled in Form X: List of Persons Consenting to be Directors
Filled in Form XII: Particulars of the Directors, Manager and Managing Agents and of any change therein Evidence of Name Clearance
Proof of payment (i.e. receipt from the designated bank) for Treasury Stamps
TIN Certificate of all Directors

PROCEDURE 04

Make a Company Seal

Business founders can make a company seal at the Seal maker for BDT 100-200

PROCEDURE 05

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. In order to register for VAT, the company must first open a bank account. Detailed procedures should be discussed with the Bank.

PROCEDURE 06

Obtain a Trade License

Getting a trade license is one of the important steps of starting a business in Bangladesh. An entrepreneur needs to receive a 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 07

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 08

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.

PROCEDURE 09

Registration with the Bangladesh Investment Development Authority (BIDA)

A foreign investor is required to be registered with BIDA. It is essential to obtain any 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 plots 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.

Process Step

Step 1: Collect a local investment registration form from Registration & Investment Division of BIDA
Step 2: Deposit the Registration fee, as per fee schedule from any scheduled bank in favor of Bangladesh Investment Development Authority and collect a pay order/bank order
Step 3: Submit the completed application form with supporting documents to the concerned section
Step 4: BIDA reviews the application and documents
Step 5: If the application is approved, the Registration Certificate will be issued

Required Documents

Application in duly filled in the prescribed form
Trade License
Certificate of Incorporation along with Memorandum of Association (MOA)
Partnership Deeds
Deeds of the proposed land
Project profile, if the total project cost exceeds BDT 100 million
Background of the proprietors in officials letterhead pad
Pay Order/Bank Order for applicable registration fee in favor of Bangladesh Investment Development Authority
TIN Certificate
Investing in Bangladesh: Incentives

The BIDA offers a range of valuable business-related services to the international and national investment community. The office helps prospective investors and promoted firms in obtaining official permits and documents required for conducting business, including visas, work permits, and permanent residency permits. The BIDA also assists investors in gaining access to utilities such as water, electricity, gas, land, and telecommunications.

Information on Investment Opportunities

The Investment Services Center maintains comprehensive information on investment opportunities in Bangladesh, both by sector and by district. Information and investment advice is readily available to both Bangladeshi and foreign investors at no charge.

One-Stop Service Center

The BIDA coordinated the establishment of a One-Stop Service Center for

Trade License from respective city corporations and local government bodies are given within 48 hours, assuming all required documents are provided. Bangladesh Investment Development Authority with local government division insures this service.
Company registration from Joint Stock Register’s office company registration complete within 48 hours.
Registration of Bangladesh Investment Development Authority is complete within a day, assuming all required documents are provided.
Electricity connection’s results are given within 10 days after receiving the application from BIDA where a representative of power development board authority is working.
Environmental certificates are given within 10 days from BIDA where a respective officer from the Environment Department is working.
From Bangladesh Investment Development Authority representative of Titas Gas Authority, the result of gas connection is given within 10 days from the date of application received.
Foreign loan borrowing application disposed within 30 days assuming all required documents are provided.
The tax-related complication is taken from BIDA by respective National Board of Revenue officers after getting an application from the entrepreneur and results are given within 10 days.
Online services also provided by BIDA.
Assistance for Land acquire is supported by BIDA.

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Foreign Company Formation

Name Clearance Certificate for Foreign Company Formation

Required Documents for Foreign Company Formation

Required Documents

Information on Investment Opportunities

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