What are the legal requirements when starting a business in Bangladesh?
Updated: Mar 5
Starting a business in Bangladesh can be a daunting task, especially when it comes to legal requirements. This article will provide an overview of the legal requirements for starting a business in Bangladesh.
1. Business Registration:
The first step in starting a business in Bangladesh is to register the business with the Registrar of Joint Stock Companies and Firms (RJSC). All types of business entities, including sole proprietorships, partnerships, and limited liability companies, must register with the RJSC. Business owners must fill out the necessary forms and submit them to the RJSC along with the required documents.
2. Trade License:
After registering the business with the RJSC, the business owner must obtain a trade license from the local government authority. The license must be renewed annually. The application for a trade license must include the business registration certificate, rent agreement or property ownership documents, and an application fee.
3. Tax Registration:
Business owners must register for tax purposes with the National Board of Revenue (NBR) within 45 days of commencing business operations. The registration process involves obtaining a Tax Identification Number (TIN) and VAT registration. The business owner must also obtain a Business Identification Number (BIN) from the RJSC.
4. Environmental Clearance Certificate:
Businesses that may have an impact on the environment must obtain an Environmental Clearance Certificate (ECC) from the Department of Environment. The application for the ECC must include a project proposal and an environmental impact assessment report.
5. Work Permit for Foreigners:
If a foreigner plans to work in Bangladesh, they must obtain a work permit from the Bangladesh Investment Development Authority (BIDA). The work permit is valid for one year and can be renewed annually.
6. Bank Account:
Business owners must open a bank account in the name of the business. This account will be used for all financial transactions related to the business.
Business owners must obtain insurance for their business. Insurance may include fire insurance, liability insurance, and business interruption insurance.
8. Labor Law Compliance:
Business owners must comply with labor laws in Bangladesh. The laws include minimum wage requirements, working hours, leave entitlements, and workplace safety regulations.
9. Intellectual Property Rights:
Business owners must protect their intellectual property rights. This includes obtaining patents, trademarks, and copyrights.
In conclusion, starting a business in Bangladesh requires compliance with several legal requirements. Business owners must register the business, obtain a trade license, register for tax purposes, obtain an ECC if applicable, obtain a work permit for foreigners if necessary, open a bank account, obtain insurance, comply with labor laws, and protect their intellectual property rights. Business owners should consult with legal and accounting professionals to ensure compliance with all legal requirements.