Initial step of forming a company is to decide what type of company you want to form. Most common type of business entities are Private Limited companies, Public companies, Sole Proprietorships, and Partnerships. Each of them has their pros and cons and each of them are chosen for their specialties.
If you have chosen Private Limited Companies, the liabilities of the company will be limited to the company.
First and foremost, you have to ensure the whitelisting of your company name that is you must check at the Registrar of Joint Stock Companies and Firms (RJSC) website that the name you chose for your company is non-identical to other companies which are already registered.
Now that you have chosen a Name for your Company; it is time to officially register the Company under the laws of Company Laws of Bangladesh- The Companies Act 1994.
You must provide a local address as the registered office for the company, if it is a Private Limited company, you must ensure the number of shareholders does not exceed seven people. Each of the elected shareholders must have Tax Identification Number(TIN) and documents related to Income Tax Return.. It is necessary to collect necessary information and documents of directors and shareholders, including their names, addresses, nationality, and occupation. The next step is to establish the amount of Authorized Capital (The number of shares a company is legally allowed to issue based on its Memorandum of Association.) and Paid-Up Capital (The number of shares issued by the company to its shareholders).
The most important documents are Memorandum and Articles of Association; the Memorandum of Association defines the objective of the company, the relationship of the company with its shareholders, the policies, regulations complimentary with the Labor Laws of the country and etc. Whereas the Article of Association lays out how the tasks are to be accomplished within the business entity, which includes the process for appointing directors and the handling of financial records.
Now that you are aware of Memorandum and Articles of Association, the next step is to open a Bank Account for your company and have compliance with the Corporate Taxation.
If you are commencing a business which needs any special business license, make sure to take all the necessary permission from the Authorized Bodies. Such as if the operation of the organization requires environmentally friendly compliance; taking ENVIRONMENTAL CLEARANCE CERTIFICATE is obligatory. If you are intending to start a Cross Border Business or International Business and inviting Foreign Investment then obtaining approval from Bangladesh Investment Development Authority is mandatory. Always ensure that you are protecting the intellectual properties of your company by registering the trademarks, patents and/or copyrights.
About the Author:
Shawon Priya is passionate about Immigration Law, International Law and policies. This is a small attempt to share a glimpse of the world of French Student Scholarships. Which will help a lot of people to decide more precisely about their immigration plan.
IF YOU FIND THIS HELPFUL, PLEASE FOLLOW US AT @Migration Pathway FOR MORE CONTENT ON IMMIGRATION POLICIES AND OTHER DIFFERENT SUBJECTS.
IF YOU NEED ONE-ONE LIVE CONSULTATION, YOU CANWhatsapp us at +8801721827641