How to Register an Online Business in Bangladesh: Steps and Costs

The world of online business is growing rapidly, and Bangladesh is no exception. As more entrepreneurs and startups look to tap into the digital market, registering an online business in Bangladesh has become an attractive opportunity. The government’s push toward digitalization, along with the country’s growing internet penetration, makes Bangladesh a promising destination for starting an online business.

In this article, we’ll guide you through the steps involved in registering an online business in Bangladesh, the costs involved, and what you need to consider as an entrepreneur looking to establish an online presence in the country.

Why Bangladesh Is Ideal for Online Businesses

Before diving into the registration process, it’s important to understand why Bangladesh is an ideal destination for online businesses.

Growing Digital Economy: Bangladesh has witnessed a significant digital transformation in recent years. With over 100 million internet users, there’s an increasing demand for online services, e-commerce, digital marketing, and fintech solutions.
Government Support: The government has been actively supporting the digital ecosystem through initiatives like Digital Bangladesh, which promotes digital infrastructure and services across the country.
Young, Tech-Savvy Workforce: Bangladesh boasts a young and tech-savvy population. With many skilled workers in IT, digital marketing, and e-commerce, the country offers an ideal labor force for businesses in the online sector.
Affordable Costs: The cost of starting and running an online business in Bangladesh is lower than many other countries. This makes it an attractive option for entrepreneurs looking to maximize profitability.

With these factors in mind, let’s now look at the process of registering an online business in Bangladesh.

Steps to Register an Online Business in Bangladesh

Step 1: Choose the Type of Business Structure

The first step in registering an online business in Bangladesh is choosing the right business structure. The most common types of business structures for online businesses in Bangladesh include:

Private Limited Company (Ltd.): This is the most common structure for online businesses. A private limited company is a separate legal entity, offering limited liability protection to shareholders.
Sole Proprietorship: This structure is suitable for individual entrepreneurs running small online businesses. However, a sole proprietorship does not offer limited liability protection.
Partnership: A partnership structure can be adopted if there are two or more individuals involved in running the business.

For an online business, a Private Limited Company is usually the preferred option because it provides legal protection and makes it easier to attract investors.

Step 2: Register the Business with the RJSC (Registrar of Joint Stock Companies and Firms)

Once you’ve decided on the type of business structure, you need to register your online business with the Registrar of Joint Stock Companies and Firms (RJSC). This is the official body responsible for registering companies in Bangladesh.

Here’s how to go about it:

Company Name: Choose a unique name for your online business. You will need to check the availability of your business name through the RJSC’s online portal.
Documents Required:
- Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the business purpose and structure.
- Director’s Information: You will need to provide details of the company’s directors and shareholders.
- Proof of Address: A utility bill, lease agreement, or any document showing your business address in Bangladesh.
- Copy of Passport/ID: Proof of identity for the business owners and directors.
- TIN (Tax Identification Number): You will need a TIN from the National Board of Revenue (NBR) for tax registration.
Submit the Application: You can submit your application online or in person at the RJSC office. The registration process usually takes around 3-5 business days for a Private Limited Company.

Step 3: Obtain a Trade License

Once your company is registered with the RJSC, you must apply for a Trade License from the local City Corporation or Municipal Corporation. A Trade License is required to operate your business legally.

For an online business, you will need to provide:

A copy of your Company Registration Certificate.
Proof of Address (for your office or place of business).
A Bank Statement showing your business’s financial status.
Your TIN (Tax Identification Number).

You can obtain a Trade License within a few days if all documents are in order.

Step 4: Register for VAT (Value Added Tax)

If your business generates annual revenue above a certain threshold (BDT 36 Lakhs or approximately USD 42,000), you will need to register for VAT with the National Board of Revenue (NBR).

To register for VAT, you will need:

Company Registration Certificate.
Trade License.
TIN.
Bank Statement.
Proof of business activity.

Once registered, your online business will need to comply with VAT collection and remittance as per Bangladesh’s tax regulations.

Step 5: Open a Corporate Bank Account

To operate your online business and accept payments from customers, you will need to open a corporate bank account in Bangladesh. This account will be used to manage the business’s financial transactions, receive payments, and handle expenses.

Most banks in Bangladesh offer corporate banking services. To open a corporate account, you will need to provide:

Company Registration Certificate.
Trade License.
TIN.
Proof of Address.
Passport/ID of the company’s directors.

Once the account is opened, you can easily start processing payments, including payments through local and international payment gateways like PayPal, Stripe, and others.

Step 6: Set Up Accounting and Record-Keeping Systems

Once your business is set up and operational, maintaining proper accounting records and financial statements is crucial. This ensures that your business complies with tax regulations and can help in making informed business decisions.

You may choose to hire an accountant or use accounting software to keep track of your finances. Proper bookkeeping is necessary for tax reporting, financial transparency, and any potential audits.

Step 7: Apply for Other Licenses and Permits (if Required)

Depending on the nature of your online business, you may need additional licenses or permits. For example, if you’re selling regulated goods, such as electronics or pharmaceuticals, you will need additional permits. Similarly, if you’re running a large-scale e-commerce operation, there may be other compliance requirements you’ll need to follow.

Costs Involved in Registering an Online Business in Bangladesh

The costs associated with registering an online business in Bangladesh vary based on the type of company, its size, and the nature of its business. Here is an overview of the typical costs involved:

Company Registration: The cost of registering a company with the RJSC typically ranges from BDT 10,000 to BDT 20,000 (approximately USD 120 to USD 240), depending on the company’s structure.
Trade License: The cost for obtaining a trade license can range from BDT 5,000 to BDT 10,000 (approximately USD 60 to USD 120), depending on your business location and type.
VAT Registration: There may be no direct cost for VAT registration, but you will need to account for the cost of compliance and maintaining VAT records.
Bank Account Setup: Corporate bank account setup fees can vary by bank but generally range from BDT 5,000 to BDT 15,000 (approximately USD 60 to USD 180).
Miscellaneous Costs: These include costs for legal documents, notary services, and any third-party consultants or accountants you may hire to ensure compliance with local regulations.

How B2B Hub Can Help

Navigating the process of registering an online business in Bangladesh can be time-consuming and complex.

B2B Hub offers comprehensive services for company formation in Bangladesh, including registration, licensing, and tax compliance. Whether you’re setting up a small e-commerce platform or a large online service, B2B Hub can help streamline the process and ensure that your business is fully compliant with Bangladeshi regulations.

B2B Hub offers comprehensive company formation and corporate services in any jurisdiction of your choice.

For inquiries, please contact us at +44 770 018 3107, visit our website at b2bhub.ltd, or send us an email at reg@b2bhub.ltd. Let us guide you through the process of starting your online business in Bangladesh and help you succeed in this rapidly growing market!