Incorporation Of Foreign Company: Reality In Bangladesh

Is Foreign Company Incorporation A Big Trouble In Bangladesh?

The legal process of forming a foreign corporation or firm is known as foreign company incorporation. The resultant legal entity is a corporation, which separates the company ability and profits from its buyers and shareholders.

Under Article 248 of the Act, a number of 2,38,223 foreign corporation registrations were struck off the official records between 2018 and June 2021.

Do You Believe Bangladesh Is A Good Place To Invest?

The information below will assist foreign and local entrepreneurs in forming a business in Bangladesh. Local entrepreneurs and international entrepreneurs have separate rules and processes for foreign business registration in Bangladesh. Furthermore, fees, additional expenses incurred by government officials, time, and conduct differ from those of local investors. No one gets the permits or passes the documents to set up a business in Bangladesh without the help of government officers, staff, and artificial complexity. Bangladesh is a lovely country since it allows you to do everything you want, especially business registration for foreigners.

Note: There are two types of foreign business registration in Bangladesh such as Public Limited business registration and private limited business registration.

Key Points:

1. Foreign company incorporation is the process by which a company is formally constituted and brought into existence.

1. Incorporation of foreign company entails drafting a policy known as the certificate of association and listing all of the company's shareholders.

1. Limited liability means that the resources and future revenues of the foreign corporation registration entity are kept distinct from those of buyers and shareholders in a company.

General Process Of Foreign Company Incorporation

To start a business or foreign company incorporation in Bangladesh, an entrepreneur should follow nine particular procedures and legal stages. The investor must first apply for a Name Clearance Certificate from the Registrar of Joint Stock Companies and Firms (RJSC). Following receipt of the certificate, pay income tax at a specified bank and reapply for registration with RJSC. The company then creates a seal and opens a bank account before submitting an application for a Trading license to the appropriate City Corporation or Municipal Corporation. After completing all of these steps, the business must apply for a TIN Certificate from the National Board of Revenue (NBR) and register with the Customs, Excise, and VAT Commissioner-ate. Authority (BIDA).

Important: The total stamp duty payments for authorized capital of up to BDT 1,000,000 are BDT 4,000, according to the Stamp Act of 1899, as revised on June 30th, 2012. Stamps on the Articles of Association cost BDT 3,000, whereas stamps on the Memorandum of Association cost BDT 1,000. A certified copy of every documentation costs BDT 50 in addition.

Timeline Of Foreign Business Registration

All of these are required documents for overseas company registers:

License

Timeline

1. Incorporation

3-5 Days

1. Tax Identification Number (TIN)

1 Hour

1. Trade License

3 Days

1. VAT (Value Added Tax)

5-7 Days

Overseas company registers in Bangladesh are no more hassle in this current situation. Foreign company incorporation license’s authority is Registrar of Joint Stock Companies (RJSC) who helps all foreign companies to start business in Bangladesh. TIN and VAT both certificates are provided by the National Board of Revenue (NBR). Another most important documents for overseas company registers are Trade License which is provided by City Corporation.

More: Bangladesh Investment Development Authority (BIDA) registration is required for international investors who need foreign corporation registration. To conduct business in Bangladesh, you must obtain any necessary licenses and permissions, such as an Import Registration Certificate, an Export Registration Certificate, a Bond License, and so on.

Fees Of Business Registration For Foreigners

1. First Stage: The first stage is to invest USD 1000-1200. (Service and trading company)

1. Second Stage: USD 1500-2000 (export import + trading company) for the first and second steps.

1. Third Stage: USD 3000-5000 in the first, second, and third steps (Production base company including trading and export, import)

We provide a complete professional service. To learn more about foreign corporation registration and incorporation in Bangladesh, Click here

Final Words

The act of foreign company incorporation effectively establishes a protective bubble of restricted liability around a company's owners and directors, known as the corporate veil. As a result, incorporated enterprises can accept the risks that allow for growth without exposing investors, proprietors, and boards to personal financial obligations beyond their initial investment on overseas company registers in Bangladesh.

IT and network services- Reliable onsite, offsire IT solutions for businesses We Provide Annual Maintenance Contract (Amc) IT and network services along with troubleshooting and Virus Protection services to our clients.