Seamless Business Registration Process in Bangladesh by Jural Acuity

California – October 9, 2023 – Bangladesh offers one of the most flexible Foreign Direct Investment Policy in South Asia. Foreign investors intending to invest in Bangladesh have multiple options to incorporate their business in Bangladesh, out of which the most preferable and easiest option is to set up an LLC. 

LLC registration process can be completed remotely through the lawyers and investors are not required to visit Bangladesh. Furthermore, no local nominee shareholders or directors are required to complete the registration including the bank account and Jural Acuity as a law firm having expertise in FDI can offer all required services to the investors. 

The first step for any investors to start the registration process is to obtain a name clearance of the proposed company from the RJSC website, which can be done digitally within a few minutes. A name clearance certificate will be used for all further processes for company registration, once name clearance is obtained. After obtaining name clearance, Jural Acuity will prepare and draft necessary statutory documents including a Memorandum and Articles of Association. These documents will be sent over email to the investors. Investors need to sign those documents manually and send a scanned copy of the scan to the lawyers. Lawyers then open a bank account for the proposed company and investors as per the Forex laws of Bangladesh are required to remit the requisite paid-up capital in the said Bank Account.  

It is to be noted that Bangladesh does not have any minimum paid-up capital requirement, but in case the investors are desirous to set up the industrial unit and desire to employ foreign nationals, they must invest USD 100,000. On the other hand, if the proposed business is commercial ( i.e. consultancy, service, trading); the minimum investment is USD 50,000 should the foreign investors intend to employ foreign nationals. Once paid-up capital is received in the Bank Account, encashment certificates will be issued by the Bank and the lawyers shall submit that encashment certificate along with the other signed documents to the RJSC server.  

A registration fee needs also to be deposited in the bank account and RJSC upon verification of the documents will register the company within 7-10 working days. Upon registration, RJSC will provide digital registration documents which can be verified by QR Codes. Upon registration, the investors need to obtain a Trade License which is issued by the local government office where the company intends to operate its registered address. Jural Acuity also provides virtual registered addresses to foreign investors. Upon obtaining a trade license, the investors are also required to register with the Tax Authorities by obtaining a tax registration number as well as obtaining a VAT registration certificate. 

It is to be noted that as per the Foreign Investment Protection Act 1980, the government ensures equal treatment of foreign investment and protection from nationalization. Bangladesh has a corporate tax rate between 20%-45% depending on the type and nature of business. Bangladeshis a signatory to a double taxation agreement and as such, foreign investors from several countries enjoy preferential tax benefits. Foreign employees can also be easily employed in Bangladeshi companies. 

With the completion of these formalities, foreign investors can operate the company in Bangladesh. In case the company operates any specialized business, the company will be required to take further necessary licenses as required by law. In case the company operates an industrial undertaking, the Company will also be required to obtain registration with the Bangladesh Investment Development Authorities. Jural Acuity as an experienced law firm provides one-stop solutions for investors to set up LLCs or other types of businesses in Bangladesh.  

“We are your Trusted Partner for Legal Excellence and Business Success in Bangladesh’s Vibrant Corporate Landscape. Says Sakib Sikder, the spokesperson for Jural Acuity “To gain further insights, we encourage you to read more about Company Registration in Bangladesh, or go through our website https://juralacuity.com/.”

About Jural Acuity: 

Jural Acuity is a top law firm in Dhaka, Bangladesh, specializing in corporate legal services. They offer a wide range of practice areas, including intellectual property, telecommunications, and broadcasting law, litigation services, business setup, property valuation, banking and financial matters, labor and employment law, commerce law, taxation, alternative dispute resolution, family law, and corporate and foreign direct investments.