How to Setup Real Estate Business in Bangladesh - 14 Inevitable Steps
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The real estate sector of Bangladesh offers ample opportunities for you to thrive with the ever-expanding demand for housing and commercial spaces. While a real estate business in Bangladesh can be gratifying, it is also challenging to start and setup.
To start and setup a real estate business in Bangladesh, you must complete a series of tasks step-by-step. These tasks include market research, business planning, choosing a business type/structure, company registration, tax registration, land acquisition, obtaining required approvals from related authorities, ensuring legal compliance, and more.
Yes, a real estate business setup also includes a lot of other minor activities. But the activities required to start the business nicely should come first. Later, we will also give you valuable insights into how you can do good management, networking, marketing, etc.
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Essential Steps to Start A Real Estate Business in Bangladesh
From market analysis to legal requirements, you should have the knowledge and tools necessary to kickstart your journey in the dynamic world of real estate entrepreneurship.
let’s discuss the essential steps and considerations involved in launching a real estate venture in Bangladesh.
Step 01: Conduct Proper Market Research & Analysis
Conduct proper market research to have a clear understanding of the aspects of the real estate market in Bangladesh to create a proper business plan.
It will be easy for you to develop a proper business plan after researching and analyzing relevant metrics.
The important aspects/metrics include market trends, demand, property prices, competition, demand-supply dynamics, scopes, etc.
You can perform superior market research and analysis using real estate analytical tools, online platforms, databases, areas, etc.
Step 02: Develop A Business Plan
Now develop a proper business plan based on the findings of your market research and analysis.
If you have diligently conducted market research and analysis, you can identify opportunities, calculate financial projections, choose marketing strategies, set your goals, and position your real estate business for success.
Step 03: Choose A Business Type
Now choose which one is your real estate business type among these three:
- Sole Proprietorship Business
- Partnership Business
- Private Limited Company
You have to choose the right legal structure for your business according to your business plan and goals. I would recommend you should consult with a professional to calculate the option for you.
Note: The first two business types are not available for foreign investors in Bangladesh.
Step 04: Register Your Business
With all the research and planning done, it’s time to register your business.
The registration processes of Sole Proprietorship Business, Partnership Business, and Private Limited Company differ.
If you are a Bangladeshi citizen, go to https://app.roc.gov.bd. Then follow the steps below to complete an online registration:
- Click on ‘Create New User (General)’ of the ‘Online User Access’ options.
- Fill out the ‘User Creation’ form by giving all required information correctly.
- Verify your email address by using the received
verification code and complete the ‘User Creation’. - Now click on the ‘Home’ tab above. Click on ‘Apply for Registration’ of the ‘Registration’ options.
- Login here with your user credentials used during the ‘User Creation’.
- Choose your ‘Entity Type’ and click on ‘Click here’ under the ‘Single Process Registration Company’ menu.
- Submit the required information and document and complete the registration.
- It may take 3 to 4 weeks for the RJSC office to issue your certificate.
Note: If you are a foreign investor, go to https://bidaquickserv.org. Then follow the instructions there to complete your registration:
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The Required Documents for Online Business Registration in Bangladesh:
- A filled-up Form IX with consent to act as directors of your company.
- Memorandum & Articles of Association of your company.
- A filled-up Form XII with detailed information about the directors, shareholders, managers, and managing agents.
- A bank encashment certificate.
- Government fee payment receipt.
- Passport-size photograph of the directors.
- Copy of National ID for Bangladeshi directors, shareholders, etc.
- Copy of passport for foreign directors, shareholders, etc.
- A detailed statement of the activity of your company.
- Office address of your company.
Step 05: Complete Your Tax (TIN) Registration
Now do an easy online registration to obtain a Tax Identification Number (TIN). You can do the registration within 10 minutes from NBR’s website (https://secure.incometax.gov.bd/Registration).
If you want to follow a comprehensive guide, here is how to get a tin certificate in Bangladesh.
Step 06: Learn About Land Acquisition
If your business plan includes purchasing and selling lands, learn the legal requirements for these actions. Ensure that you have understood all the terms, rules, and complexities clearly.
Step 07: Obtain Required Permissions
Secure the requisite authorizations and clearances from local authorities and pertinent government entities of Bangladesh.
The approvals and permissions may include a clearance from the Department of Environment (DOE) or approval from the local office of municipal.
Step 08: Ensure Legal Compliance
You must ensure that your real estate business completely complies with the Real Estate Development and Management Act, 2010 of Bangladesh.
Also, check compliance with all other relevant laws and regulations to avoid any future hassle.
You should understand regulatory factors. So familiarize yourself with zoning laws, building regulations, and other legal aspects impacting the real estate business in Bangladesh.
Crucial Activities to Do After Starting A Real Estate Business in Bangladesh
You can start a real estate business in Bangladesh by completing the above steps. But how to setup real estate business in Bangladesh? How to do a successful real estate business in Bangladesh?
I can’t abstain from sharing some valuable tips to help you experience a successful real estate journey.
The crucial activities to do after starting a real estate business in Bangladesh are as follows:
1. Business Management
You have to ensure a proper business management system, including financial management, operations management, human resources management, risk management, etc.
2. Marketing and Advertizing
To develop your business, proper marketing and advertizing are vital. So, develop and implement useful strategies and promote products to attract customers and increase sales.
3. Networking and Communication
Connect with local real estate agents, developers, investors, and other professionals in the real estate industry to gain firsthand knowledge and insights. Improve the relationships gradually with them and keep learning.
4. Risk Management
You should take proper risk management as a crucial consideration.
The risk management process includes the identification, assessment, and mitigation of potential risks regarding legal, financial, operational, and reputational aspects.
5. Use of Technology
Integrate and increase the use of technology in your business. You can use employee management software, work management software, financial transaction and management software, etc.
You can streamline processes, improve efficiency, and stay competitive in the marketplace by leveraging technology into your business.
6. Customer Support
Try to provide excellent customer support. It will help build satisfaction, trust, loyalty, and retention among your existing and potential customers. So, your real estate business can grow with their recommendations.
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How Much Does It Cost to Register a Business in Bangladesh?
The cost or fee to register a business in Bangladesh depends on the amount of Authorized Capital.
Check the registration fee on the website of the Office of the Registrar of Joint Stock Companies and Firms, Bangladesh.
The Scope and Future of Real Estate Business in Bangladesh
The scope and future of real estate business in Bangladesh are prosperous.
According to Statista’s analysis and prediction, the total value of the real estate market in Bangladesh will increase by 7.13% during 2024-2028 and reach a total volume of US$3.53 trillion by 2028.
The demand for affordable housing in Bangladesh is increasing rapidly due to fast urbanization and population growth.
Thus, the real estate business in Bangladesh is experiencing a good time now. And the market is expected to grow very big and bright in the future.
Conclusion
Whether you are a seasoned investor looking to expand your portfolio or a new entrepreneur entering the real estate sector for the first time, this guide will serve as your roadmap.
I have shared practical advice to help you navigate smoothly through the initial complexities. So start your journey to capitalize on the opportunities in Bangladesh’s burgeoning real estate market.
Also, you may need quality assistance from an expert like Law Advisor BD to plan and execute everything smoothly.
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FAQs
Here are the answers to some of the questions you will often hear regarding a real estate business in Bangladesh.
The total value of the real estate market in Bangladesh was US$0.53 billion by 2020. According to Statista, the total value of the real estate market in Bangladesh is predicted to hit US$2.68 trillion by 2024.
Very good. The demand for affordable housing (medium-sized flats between 1000 and 1500 square feet) has increased significantly in the previous five years. This business is flourishing in Dhaka and Chittagong.
