How to register a business in Bangladesh as foreigner ? Though law and FDI rules are seems to complex but to secure financial information as government side is correct. Business incorporation from outside as non resident in Bangladesh is described below:
- Business incorporation from Registrar of Joint Stock Companies & Firms (RJSC) with preparing MoA & AoA, supply require documents (encashment), Forms as Company Law 1994
- Sometimes make confusion how to obtain income tax without being registered a business or ownership of a business. But as policy foreign entrepreneurs are permitted to get income tax providing their original passport copy, photos, contact number, visa copy from NBR (National Board of Revenue)
- How to get a trade license? Apply for a trade license where your business is located from Union Porishad/ City Corporation office providing Income tax certificate, registered copy of MoA, AoA, incorporation certificate, form XII and rental deed of office
- How to get a VAT certificate? Supply all abobe documents to local VAT office where business is located, seek VAT office suppounding your business area.
- How to open bank account/ when can you open a bank account as foreign entrepreneur? Before process of incorporation as sl no.1 above collected encashment certificate from bank. Now contact the bank again to open bank account as company name supplying all above obtained documents (Incorporation certificate, MoA & AoA, Form XII, Trade License, Income Tax Certificates, VAT certificate). Additional papers are Board Meeting copy, photos, rental deed and signature of bank copy before the banker for authentication.
- When can you open a personal bank account as director ? As sl no. 5 , all papers have to supply and permission letter of PI visa have to supply, How to get PI visa shall be discussed below. Until PI (private investor) visa or E (employee) visa is earned shall not be permitted to open personal account.
- How many permissions are required for a general trading business ? Above mentioning permissions/ documents are enough to start a general business as foreign investor.
- Can foreign investor start a business without PI visa in Bangladesh? Yes they can, they can start a business without VISA.
- Why PI visa is required? PI visa is required to remit part of profit, dividend to parent country. Besides PI visa helps to carry on business within proper way obliged by law.
- How to obtain PI visa and work permit in Bangladesh? Visit the link please.
- What are documents/ permissions are required to set up a project / industry in Bangladesh? All documents as mentioning above and additional documents are given:
- Fire license, environment certificate, export import license, membership from chamber of commerce, Project plan, ensure good location of factory, labor safety deceleration, permission from BOI (board of investment), PI visa, permission from concern authority if required, like health ministry, commerce ministry, cloth-BOSTRA ODHIDOPTAR , BGMEA, FBCCI etc.
12. What is income tax rate of foreign investors/ foreign business? Income tax of foreign business is 37.5 % or 35 % + 10 % tax on dividend of income of the business.
13. How expatriate remit money to their own country? After deduction of income tax and permission from Bangladesh bank foreign investors can remit the profit to mother country.
14. How to get income tax exemption / incentive? Income tax is exempted for 3 to 7 years as policy of BEPZA (tax free zone) on certain limitation of year to year. 100% tax free is allowed , see link of BEPZA.
15. What is office rental cost in Bangladesh? It vary area to area, commercial or non commercial place. Business in non commercial area is NOT allowed by law but most of small businesses are taken place within non commercial area due to considering cost. Giving idea of rental cost start from Taka 15,00 to 90,000 non commercial area, Taka 2000 to 5000 per square fit for commercial area.
16. Company set up cost / fees in Bangladesh? This is difficult to answer , because cost or fees depend upon number of permissions/ documents, authorized & paid up capital and unofficial expenses. Professional fees depend vary consultants to consultants. Experienced firms may ask for some more cost than new comer . Experience advisers/ consultants who knows all FDI policy may do ask for good fees and it is most important to set up business as law of country. So professional/ service fees should not important for the foreign investors but have to have all set up according to law and right way. Business is not for a short period but life time. Expected cost may start from USD 1500 to USD 8000 including all fees.
17. How longer is require to complete whole process including PI visa ? Expected period 15 days to 60 days or may be extended to 90 days.