The company registration process and its benefits differ from country to country. We know the economic condition is not the same around the world. Thus, activities concerning them are not similar too. Like, the company registration process in Bangladesh is different from the process in Italy. Bangladesh is one of the fastest-growing countries in South Asia. Today we will see what are the company registration procedure and benefits in the country.
Prerequisites of registration:
What are the requirements for a foreign company?
The country is not rigid about foreign proprietorship. That is why it welcomes a hundred percent foreign proprietorship in the majority of the sectors. However, both local and foreign proprietors have restrictions for some specific sectors. For instance, both foreign and local proprietors enjoy similar facilities, for instance, buying land under the company’s name to receive tax incentives.
What are the capital requirements?
This segment is also very flexible in Bangladesh. There is no threshold amount of starting a business. However, if a company wants to hire local and foreign employees, it should have an excellent inward cash flow. As an owner, you will like to keep profit in your hand after covering the expenses.
Types of companies:
There are two types of companies in Bangladesh.
Private limited company:
Private limited companies are familiar in Bangladesh. A foreign proprietor can completely own a private limited company. However, it will be wise if he finds some local to invest with him conjointly. Hence, if the business goes through a downfall, the foreign proprietor will not be the only one carrying its burden. According to the law of Bangladesh, you can have two to fifty shareholders in your company. Besides, your company cannot have more than two directors.
Public limited company:
Unlike private limited companies, public limited companies have no limitations on the number of shareholders. That is because public limited companies are usually enrolled under the stock exchange market. They can invite the general public to hold shares. Anyone above eighteen can buy these shares and be a shareholder of public limited companies. In a public limited company, you can have three directors and seven members.
The procedure of company registration:
If you are a business-oriented individual with handsome capital, you can start a business in Bangladesh. However, to run that business smoothly without any legal issues, you will need to register it. Let us go through the procedure thoroughly.
Name authorization: You will need your company’s name authorized from the RJSC. RJSC stands for The Registrar of Joint Stock Companies and Firms.
Preparing the necessary documents: You will need an Article of Association and a Memorandum of Association for your company. Prepare those along with the forms that the RSJC asked you to fill.
Bank account for the company: I am sure you have your bank account. However, if you want to register your company, you will have to open a bank account in your company’s name too.
Submitting the papers to RJSC: After finishing the formalities, you will have to give in the papers to RSJC along with the registration fees. After a while, you will receive the incorporation certificate from RSJC.
Aftermath: When you have your Article of Association, Memorandum of Association, and incorporation certificate, you are a registered company. However, even after being registered, you will need to have some other document. They are as following:
- Trade license
- Tax Identification Number
- VAT certificate
- Fire certificate.
You may need up to sixty days to fulfill the registration process.
The first and most essential benefit is you will have no legal obligation. You will be able to run the business operation smoothly with your registered company. If your company is registered, you can apply for loans, and there is a high chance you will get them. You can also have shareholders and partners. You can have insurance for your company if it is registered. In this way, you will be able to ensure coverage after any sorts of accidents. Besides, benefits or no benefits, whatever you do, you should do it right. The right way of running a company is registering it.
I believe it is a courageous decision to open your own company. When you do any such thing, you should make sure you do it flawlessly. Now you know about the company registration procedure and its benefits. Nothing can stop you now!