How to Open a Company in Bangladesh
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2025 is the perfect time to become an entrepreneur and start a company in Bangladesh. With exciting development projects like the Chattogram Bay Terminal, Karnaphuli Tunnel, and Payra Thermal Power Plant underway, there are huge business opportunities for new startups.
Are you feeling overwhelmed by the legalities and complexities of starting a business in Bangladesh? Read this article developed by Law Advisor BD to get all the essential information about how to open a company in Bangladesh!
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Common Requirements for Opening a Company In Bangladesh In 2025
If you want to open a company in Bangladesh, you need to follow these requirements:
Select Company Type
You need to define the legal structure of your company. The most common types in Bangladesh include:
- Private Limited Company: It requires at least two shareholders and two directors with limited liability.
- Public Limited Company: This is suitable for large-scale businesses planning to raise capital through public shares.
- Branch Office or Liaison Office: They are used by foreign companies to operate in Bangladesh without full incorporation.
Minimum Paid-Up Capital Requirements
Private limited companies need to declare a minimum paid-up capital at the time of registration. Many companies do not have a fixed minimum capital requirement. However, specific industries like banking or businesses owned by foreign investors often have different rules.
Banking Requirements
Opening a corporate bank account in a Bangladeshi bank is mandatory. For companies with foreign ownership, you must remit the initial paid-up capital through this account as per Bangladesh Bank regulations. Additionally, you need to follow Anti-Money Laundering guidelines.
Digital Signature Certificate (DSC)
To complete your company registration with RJSC, you may need a Digital Signature Certificate. This electronic signature is required for signing and submitting forms online.
BOI Registration for Foreign Investment
If you are a foreign investor, you need to register your company with the Bangladesh Investment Development Authority. This is an important step to get work permits and send profits back to your home country.
How to Open a Company in Bangladesh
Here is the step-by-step procedure to open a private limited company in Bangladesh:
Step 1: Choose a Company Name
The first step is to pick a name for your company. It must be unique and not similar to any existing registered company in Bangladesh. You can check the availability of your desired name through the Registrar of Joint Stock Companies and Firms website.
Step 2: Prepare the Required Documents
Memorandum of Association: It is a legal document that outlines the details of a company such as the company’s name, its objectives, the location of its registered office, and the liability of its members.
Articles of Association: This document outlines the rights, responsibilities, and procedures for the company’s directors and shareholders.
You must prepare legal documents like the Memorandum of Association and Articles of Association. These documents outline your company’s objectives and the rules for running the business.
You will also need to provide details of the shareholders, directors, and the company’s registered office address. You can consult a legal advisor or company secretary to ensure these documents comply with the Companies Act, 1994.
Step 3: Register Your Company with RJSC
You need to register a company with RJSC to make it legally valid. You can submit your application and documents online through their website. After the registration is complete, you will receive the Certificate of Incorporation.
Step 4: Obtain a Trade License
Every company in Bangladesh requires a trade license from the local city corporation, municipality, or union council. Here’s how you can apply:
- Visit the relevant office based on your business location.
- Submit the application form along with your Certificate of Incorporation, MOA, AOA, and address proof.
- Pay the license fee. Remember, the fees will vary based on your business type and location.
Step 5: Acquire a Tax Identification Number
Tax Identification Number: A Tax Identification Number is a unique number assigned by the tax authorities to individuals and businesses for tax purposes.
You need a Tax Identification Number to comply with tax regulations in Bangladesh. To apply:
- Visit the National Board of Revenue website or a regional tax office.
- Provide your Certificate of Incorporation, business address, and director details.
You do not need to pay any fees as this process is free in Bangladesh.
Step 6: Register for VAT if Applicable
If your business provides goods or services subject to VAT, you must register for a VAT Identification Number with the NBR. For example, if you operate a manufacturing unit, VAT registration is mandatory as per Bangladeshi tax laws.
Step 7: Open a Corporate Bank Account
You must open a corporate bank account in the company’s name to deposit the initial paid-up capital and manage your financial transactions. For foreign companies, the paid-up capital must be remitted to this account as per Bangladesh Bank guidelines.
Tips for Entrepreneurs After Launching a Company in Bangladesh
- Do market research regularly because over 30% of startups in Bangladesh fail within the first three years due to poor market understanding.
- Focus on online marketing in social media platforms like Facebook and Instagram. This is because they are the most popular for businesses in Bangladesh.
- Learn about tax regulations so you can submit your VAT returns every month and avoid penalties.
- Offer discounts during festivals like Eid and Pohela Boishakh because retail sales go up by over 50% during these times.
- Join trade fairs like the Dhaka International Trade Fair to promote your products and connect with new customers.
Approximate Cost of Company Formation in Bangladesh
Here are the approximate costs of forming a company in Bangladesh. Remember, the actual cost may vary based on different factors.
Expense | Estimated Cost (BDT) | Details |
200 (for each proposed names) | Fee for reserving your company name with the RJSC. | |
Memorandum of Association | 1000 | Legal fees for drafting the company’s MOA. |
Articles of Association | 3,000 to 20,000 (depends on the authorized capital) | Legal fees for drafting the company’s AOA. |
50 to 1000(depends on the nature of the business and authorized capital) | Registration fee for company incorporation based on authorized capital. | |
Trade License | 100.00- 40,000 (depends on the nature and type of business.) | Fee for obtaining a trade license from the local municipality or city corporation. |
BIDA Registration (for foreign investors) | 5,000 to 100,000 (depends on the amount of proposed investment) | Registration fee for foreign investors with the Bangladesh Investment Development Authority |
Renting Office | 50,000 to 30, 0000 | Monthly rent for a commercial office in Dhaka. |
FAQs
No, a foreign company does not need a local partner to open a company in Bangladesh. In Bangladesh, a business can be fully foreign-owned without requiring a local partner. However, certain sectors may need local partnerships to ensure legal compliance.
Yes, you will need to register with the Export Promotion Bureau and obtain an export license before you can export goods from Bangladesh.
Yes, you can open a company remotely by appointing a local agent to handle the registration process on your behalf.
To convert your private limited company into a public limited company, you need to amend your company’s Memorandum and Articles of Association, submit an application to the RJSC, and meet the requirements for issuing shares to the public.
