Bangladesh is rapidly emerging as a hub for entrepreneurship and innovation, with a growing number of startups and small businesses sprouting up across the country. For entrepreneurs looking to establish their own company in Bangladesh, one of the most common business structures is the private limited company.
Opening a private limited company in Bangladesh can be a complex process, but it is an essential step for many entrepreneurs looking to establish their business. According to data from the World Bank, it takes an average of 19 days to register a business in Bangladesh, and there are a number of legal and regulatory requirements that entrepreneurs must fulfill.
So, what exactly do entrepreneurs need to know when opening a private limited company in Bangladesh? Here are some key steps to keep in mind:
Company Name: Choose a name for your company that is not already registered with the Registrar of Joint Stock Companies and Firms (RJSC). Check the availability of your desired name through the RJSC website.
Registered Office: Provide the address of your company’s registered office, which must be a physical address in Bangladesh.
Shareholders: Provide the names, addresses, and nationalities of at least two shareholders who will own the company’s shares.
Directors: Provide the names, addresses, and nationalities of at least two directors who will manage the company’s affairs.
Memorandum and Articles of Association: Draft a Memorandum and Articles of Association that outline the purpose, objectives, and activities of the company. These documents will need to be approved by the RJSC.
Form IX and Form VI: Submit Form IX, which is a declaration of compliance with the Companies Act, and Form VI, which provides information about the directors and shareholders of the company.
Registration Fee: Pay the registration fee to the RJSC, which is based on the authorized share capital of the company.
In addition to these requirements, entrepreneurs may also need to obtain clearances or approvals from various government agencies, depending on the nature of their business. Seeking professional advice can help ensure that all necessary requirements are fulfilled.
It’s important to note that the ideal time to open a private limited company in Bangladesh may vary depending on the industry and market conditions. However, with the country’s growing economy and increasing opportunities for entrepreneurs, now may be a good time to consider taking the leap and starting a business in Bangladesh.
Opening a private limited company in Bangladesh can be a challenging but rewarding process for entrepreneurs. By following the necessary legal and regulatory requirements and seeking professional advice, entrepreneurs can establish their own business and contribute to the growth of Bangladesh’s startup ecosystem.