A Complete Guide on How to Setup Healthcare Business in Bangladesh (Private Company)
On This Page
- How to Setup Healthcare Business in Bangladesh (Private Company)?
- What Are the Required Documents and Information for Registering a Healthcare Business in Bangladesh?
- What Are the Required Activities for Registering a Healthcare Business in Bangladesh?
- Necessary Activities to Do After Setting Up a Healthcare Business in Bangladesh
- How Much Time Does It Take to Register a Healthcare Business in Bangladesh?
- How Much Does It Cost to Register a Healthcare Business in Bangladesh?
With people’s increasing health awareness and government initiatives to improve the healthcare sector, the market is favorable for healthcare ventures in Bangladesh.
So, a healthcare business in Bangladesh has great potential with its rapidly growing population and evolving healthcare scenario.
But how to setup healthcare business in Bangladesh? You have to go through some essential steps which include market research, careful business planning, business registration, collection of required licenses, location selection, infrastructure setup, staff recruitment, operations and management, and more.
The healthcare sector is a crucial sector for the well-being of Bangladesh. An effective investment in this sector can simultaneously give you a big return and contribute to people’s healthcare needs and the economy of the country.
So, keep exploring to thoroughly learn the setup process. Also, get valuable insights that can aid you in making the right plan and decision.
Get an Appointment Today!
Whether you are an entrepreneur, an investor, or a healthcare professional, this journey can be challenging. So, from initial research to legal formalities, you should know about the necessary steps to begin a pleasant journey.
It is a bit complex and time-consuming (may require 2-3 weeks) to set up a healthcare business in Bangladesh. So, you have to pay some attention to accurately complete the required steps.
Let’s discuss the steps involved in setting up a healthcare venture in Bangladesh.
1. Business/Market Research and Analysis
Do deep market research to fully understand the aspects including the issues and opportunities of the private healthcare business in Bangladesh.
You can hire a consultancy firm or research professional if you are not skilled or you don’t have enough time for the research.
2. Business Planning
Make the right business plan using the data and information found from your research. Consider your capability and goal.
3. Company Registration
According to the Companies Act 1994, you have to register a company to start a healthcare business or any other business in Bangladesh. But how can you register a company in Bangladesh?
A private (limited or joint stock) company registration or formation in Bangladesh involves a lot of essential documents and activities. You should arrange and complete them before you progress.
Below are the required documents and information for registering a healthcare business in Bangladesh.
- Copy of name clearance certificate of the proposed company. Approve a company name and get a name-clearance certificate from the RJSC (Registrar of Joint Stock Companies and Firms).
- Copy of Memorandum of Association (MoA).
- Copy of Articles of Association (AoA).
- Director’s information.
- Shareholder’s information.
- Copies of the National ID of the directors and shareholders (for Bangladeshi nationals).
- Copies of TIN certificates of the directors and shareholders (for Bangladeshi nationals).
- Copies of passports of the directors and shareholders (for foreigners).
- Passport-size photographs of shareholders and directors.
- A business plan or map for business setup permission.
- Business activities of the company.
- Form I, VI, IX, X, and XII.
- Bank encashment certificate (for foreign shareholders).
- Receipt of payment of the registration fees.
Below are the required activities described briefly for registering a healthcare business in Bangladesh.
- Have a local physical address in a non-residential location as your company’s official/registered address.
- Have a minimum of 2 directors.
- Have 2 to 50 shareholders (a director can also be a shareholder).
- Open a temporary bank account for your intended Company in any permitted bank in Bangladesh.
- Remit the paid-up capital from each foreign shareholder account to the company’s bank account (for foreign shareholders only).
- Collect the encashment certificate for all foreign transactions from the bank (for foreign shareholders only).
Read this article to know more details about all the information and activities.
After you have done the name clearance, opened a temporary bank account, and remitted the share capital (if applicable), finalize all the documents and the registration forms.
Draft and sign the Memorandum of Association and Articles of Association. Mention authorized capital and paid-up capital in the Memorandum of Association and Articles of Association.
Document the director’s decision.
Collect, fill, and sign the forms I, VI, IX, X, and XII.
Note: All the shareholders must sign the registration forms before submitting the documents.
Submit all the required documents and registration forms to the RSJC office. Pay the required fees while submitting the documents.
Now, wait a few days (usually 5 to 6 working days) to obtain the registration certificate.
4. Collection of Required Licenses or Permits - Legal and Regulatory Compliance
Licensing: You have to collect the following required licenses or permits for healthcare operations and the extension or scope of your business.
- TIN Certificate
- Trade License
- Directorate General of Health Services (DGHS) Health License
- Environment Clearance Certificate
- Fire License
- Factory License
- Factory Layout Approval
- Registration of Industrial Investment Project
- Trademark Registration Certificate
- Import Registration Certificate (if applicable)
- Export Registration Certificate (if applicable)
- VAT Registration Certificate
Accreditation: Obtain accreditation from relevant healthcare bodies.
Compliance: Ensure compliance with healthcare regulations.
5. Location Selection
For a successful healthcare business or any other business, you must have to set up your business in a suitable location. Area or location is equally important to the service quality.
A good location for your customers means easy access to your services. So, choose a location that is easily accessible and convenient for patients.
6. Infrastructure Setup
After choosing the right location and purchasing your required land, you have to build the required infrastructure.
In this case, you should hire a quality builder who specializes in building healthcare infrastructures and facilities.
The infrastructure setup also includes:
- Purchasing necessary medical equipment and technology
- Implementing IT systems
- Office furnishings
7. Staff Recruitment
Recruit staff for the following key roles:
- Medical Staff: Doctors, physicians, nurses, specialists, technicians, etc.
- Administrative Staff: Office managers, receptionists, billing specialists, etc.
- Support Staff: Cleaners, security personnel, etc.
8. Financial Management
Secure proper financial management for:
- Funding: Secure funding through loans, investors, or grants.
- Insurance: Obtain professional liability insurance and business insurance.
Billing Systems: Set up billing and coding systems for patient invoicing and insurance claims.
9. Operations and Management
Ensure smooth operations and management with:
- Standard Policies and Procedures: Develop standard operating procedures (SOPs) for all aspects of operations.
- Quality Assurance: Implement continuous quality improvement programs.
Performance Monitoring: Use KPIs and other metrics to monitor and improve performance.
So, setting up a healthcare business in Bangladesh requires careful planning, a solid understanding of regulations, infrastructure setup, and precise execution of a lot of relevant tasks.
By completing all the above steps, you can establish a healthcare business. But meeting the goals of your business is a different thing.
Here are the things to do after starting a healthcare business in Bangladesh:
- Understand the local market dynamics and develop marketing strategies. You can use digital marketing, community outreach, and partnerships.
- Develop a strong brand identity through branding campaigns.
- Build a network of reliable partners.
- Build partnerships with other healthcare providers.
- Establish vendor and supplier relationships.
- Implement quality assurance programs.
- Ensure patient privacy and security measures.
- Encourage patient engagement and satisfaction.
- Implement patient portals and feedback systems to enhance patient satisfaction.
- Regularly update and maintain equipment and facilities.
- Create emergency and risk management plans.
- Train staff on policies and procedures.
- Set up insurance and liability coverage.
- Stay updated with healthcare regulations and trends.
- Monitor and evaluate business performance.
- Implement feedback and improvement systems
Finally, you should rely on continuous improvement through:
- Feedback: Regularly collect and act on feedback from patients and staff.
- Training and Development: Invest in continuous education and professional development training for staff.
- Technology Upgrades: Keep up-to-date with the latest healthcare technologies and practices.
How Much Time Does It Take to Register a Healthcare Business in Bangladesh?
The RSJC takes 1 to 3 working days to approve the name clearance certificate.
Opening the temporary bank account and transferring the paid-up capital may take up to 7 working days.
The RSJC usually takes 3 to 6 working days to approve a company registration.
So, the whole process of registering a healthcare business may take 2-3 weeks overall.
How Much Does It Cost to Register a Healthcare Business in Bangladesh?
The cost to register a healthcare business in Bangladesh is determined based on the amount of Authorized Capital.
Check the registration fee on the official website of the Registrar of Joint Stock Companies and Firms of Bangladesh.
Yes, you need to consult a business lawyer in Bangladesh before a business formation, be it a healthcare business or anything else.
You should consult a business lawyer because your lawyer:
- Guides through obtaining necessary licenses and permits.
- Advises on the best legal structure.
- Ensures compliance with healthcare laws and regulations.
- Drafts and reviews contracts with vendors, employees, and partners.
- Secures trademarks, copyrights, and patents.
- Ensures compliance with employment laws and regulations.
- Advises on data protection.
- Provides strategies for handling legal disputes.
- Identifies and mitigates potential legal risks.
- Provides advice on tax implications and strategies.
- Establishes proper governance policies and procedures.
- Establishes protections against potential liabilities.
- Assists in obtaining appropriate insurance coverage.
Who Offers the Best Business Consultation Services in Bangladesh?
At Law Advisors BD, we offer the best business consultation services in Bangladesh.
Our expert and experienced business consultants can guide you in setting up a healthcare business efficiently.
How Law Advisors BD Can Help You Set Up a Healthcare Business in Bangladesh?
Law Advisors BD can help you set up a healthcare business in Bangladesh in the following ways:
- Our legal advisors can assist you with the most practical guidelines.
- We can prepare and draft all documents, deeds, and agreements.
- We can help you find the best location for your business establishment.
- We can draft lease agreements, prepare for the purchase of land, land registration, etc.
- We can pay necessary government fees and collaborate with relevant authorities to obtain necessary documents.
- We have good connections with government offices, so we can obtain any certificate/license easily.
- We can obtain or renew any type of license.
- We can manage and satisfy the legal compliances to ensure the smooth operation of your company.
- Our wise legal advisors can assist you in setting up any type of business in Bangladesh.
What Are the Problems or Challenges Associated with Healthcare Business in Bangladesh?
There are many challenges associated with the healthcare business in Bangladesh. A study by the World Health Organization in 2015 found the following challenges:
- Shortage of skilled health workers
- Inadequacy of health resources
- The complexity of the mixed health systems
- Poor governance
- Misuse of resources
- Low health budget
- High health expenditure etc.
Most of the above challenges are common in the public and private sectors.
What Is the Scope and Future of Healthcare Business in Bangladesh?
Despite having many problems, Bangladesh is considered a role model for developing countries for providing affordable health services.
Also, the private healthcare sector in Bangladesh has been witnessing steady growth in revenue over the last few decades.
So, the scope of the healthcare business in Bangladesh is blooming and the future of the healthcare business in Bangladesh is bright!
You can do a healthcare business as a:
- Hospital
- Clinic
- Physician
- Therapy center
- Nursing home
- Mental health center
- Diagnostic center
- Pathology laboratory etc.
The private healthcare sector is a supplement to the public health sector. But you can do better than a public hospital.
In Bangladesh, there are a lot of examples. Here, many private hospitals have gained immense popularity among the public for a long time.
Many of these private healthcare providers are considered far better than the best public hospitals regarding the quality and reliability of healthcare services.
Conclusion
We understand that the healthcare business in Bangladesh is not just about capitalizing on a suitable market, it’s about contributing to the nation’s economy and the quality of life of millions.
So, we have shared a practical guide describing the essential steps to establish a healthcare business in Bangladesh. We tried to help you pass through the difficulties involved in setting up a healthcare business.
Whether you are a seasoned investor or a new entrepreneur, this guide can lead you to the right way! We hope you can start your journey and achieve the best success in Bangladesh’s healthcare market.
FAQs
Get the best answers to some of the most frequently asked questions regarding the healthcare business in Bangladesh.
It is very big! The need for healthcare services in Bangladesh is rising, vastly after the COVID-19 pandemic. Currently, the healthcare market equals over $6.5 billion in Bangladesh and it is increasing rapidly.
Over the past few decades, Bangladesh has made remarkable improvements in the healthcare sector. Average life expectancy has increased from 47.50 years in the 1970s to 73.82 years now. Maternal mortality has reduced by 67% since 1990, and infant mortality has reduced to 1.9% down from over 9% in 1981.
