Relocating to Bangladesh to Start a Business: What You Should Know
- Jan 9
- 6 min read
Bangladesh, with its rapidly growing economy, large consumer base, and strategic location, is becoming an increasingly attractive destination for entrepreneurs looking to establish new businesses. From its robust labor force to the increasing number of government incentives for foreign investors, the country offers numerous opportunities for those willing to navigate its business environment.
If you are considering relocating to Bangladesh to start a business, there are several key aspects you need to understand. From company formation to navigating local laws and regulations, this article provides a comprehensive guide to starting a business in Bangladesh.
Why Bangladesh Is an Attractive Option for Entrepreneurs
Bangladesh has made remarkable strides over the past few decades in terms of economic growth, industrialization, and development. It has one of the fastest-growing economies in South Asia, and there are several reasons why it is increasingly becoming a hotspot for business expansion.
Strategic Location and Market Access
Bangladesh is strategically located in South Asia, bordering India and Myanmar, with access to the Bay of Bengal. This provides businesses with easy access to both regional and international markets. Additionally, Bangladesh’s proximity to India—a market of over 1.3 billion people—offers excellent trade opportunities.
Growing Economy and Large Consumer Market
Bangladesh is one of the fastest-growing economies in the world, driven by sectors such as textiles and garments, agriculture, construction, and services. The population of Bangladesh exceeds 160 million, offering a significant consumer base. The country is also becoming increasingly urbanized, with many people moving to cities like Dhaka, Chittagong, and Sylhet, which offers a growing market for goods and services.
Young, Dynamic Workforce
Bangladesh has a young and growing workforce, with a large number of workers skilled in various sectors like IT, manufacturing, textiles, and services. The youth population is highly adaptable to new technologies and willing to work in emerging industries, making it an attractive location for startups.
Government Support for Business
The Bangladesh government has taken steps to make the country more business-friendly. There are tax incentives for businesses, especially in export-oriented sectors, and several programs aimed at supporting foreign direct investment (FDI). Additionally, the government is actively working on improving infrastructure, technology, and the business climate.
Steps to Register Your Business in Bangladesh
Starting a business in Bangladesh involves several steps, from choosing the right business structure to navigating the regulatory requirements for foreign investment. Here is an overview of the steps involved in company formation in Bangladesh.
Step 1: Choose a Business Structure
The first decision you will need to make when starting a business in Bangladesh is the legal structure of your business. The most common types of business structures are:
Private Limited Company (Ltd): This is the most popular and flexible business structure for entrepreneurs, offering limited liability protection to its shareholders. The company is considered a separate legal entity from its owners.
Sole Proprietorship: A sole proprietorship is suitable for a single individual running a business. However, it does not offer liability protection for the owner.
Partnership: If there are multiple owners, a partnership can be established. The business partners share profits, losses, and responsibilities.
Branch Office or Representative Office: Foreign businesses can set up a branch office or representative office in Bangladesh to operate without registering a separate legal entity. However, this is limited in scope and does not allow the business to conduct direct sales or generate revenue.
Step 2: Register Your Company with the RJSC
Once you have chosen a business structure, you will need to register your company with the Registrar of Joint Stock Companies and Firms (RJSC). The registration process involves:
Choosing a Company Name: The name of your business must be unique and approved by the RJSC. It must also meet the requirements set by the company law.
Filing Documents: You will need to submit the following documents for company registration:
Memorandum of Association (MOA)
Articles of Association (AOA)
A copy of the National ID/Passport of shareholders and directors
Proof of the business address
Tax Identification Number (TIN) of the company
Certificate of Incorporation: After approval, the RJSC will issue the Certificate of Incorporation, which is the official recognition of your business as a legal entity in Bangladesh.
Step 3: Obtain a Trade License
Once your company is registered, you will need to apply for a Trade License from the local City Corporation or Municipality. This license grants you the legal right to operate your business in the country. You will need to provide the following documents:
Company Registration Certificate
Proof of Address (e.g., lease agreement, utility bills)
TIN (Tax Identification Number)
Passport-sized photographs of company directors
Step 4: Register for VAT
If your business is expected to generate more than BDT 36 lakh (around USD 42,000) in revenue, you will need to register for VAT (Value Added Tax) with the National Board of Revenue (NBR). VAT registration is mandatory for businesses exceeding this revenue threshold. You will need to file VAT returns periodically.
Step 5: Open a Corporate Bank Account
To facilitate financial transactions for your business, you will need to open a corporate bank account in Bangladesh. This account will allow you to process payments, receive funds, and manage business expenses.
Most commercial banks in Bangladesh offer corporate banking services. To open an account, you will need to provide:
Company Registration Certificate
Trade License
TIN (Tax Identification Number)
Proof of Address
Identification documents of company directors
Step 6: Comply with Other Regulatory Requirements
Depending on the nature of your business, you may need additional licenses or permits. For instance, businesses involved in food production, healthcare, or telecommunications will require specific permits. It’s important to familiarize yourself with the industry regulations and comply with any additional requirements.
Costs of Starting a Business in Bangladesh
The costs associated with starting a business in Bangladesh depend on the type of company and the industry in which you operate. Below is an estimate of the typical costs involved:
Company Registration: The registration fees for a Private Limited Company typically range from BDT 5,000 to BDT 10,000 (USD 60–USD 120).
Trade License: The cost for obtaining a trade license varies but is usually around BDT 5,000 to BDT 10,000 (USD 60–USD 120) annually.
VAT Registration: There may be no direct cost for VAT registration, but there are compliance costs for maintaining VAT records and filing returns.
Bank Account Setup: The cost for opening a corporate bank account generally ranges from BDT 3,000 to BDT 7,000 (USD 35–USD 85).
Office Setup: Costs for office rent, utilities, and office supplies will vary depending on the location and size of your business. In cities like Dhaka and Chittagong, rent may be higher.
Legal and Accounting Fees: You may need to hire a lawyer or an accountant to assist with legal and financial compliance. Fees for these services typically range from BDT 10,000 to BDT 20,000 (USD 120–USD 240) per month.
Industries with High Potential in Bangladesh
Some industries in Bangladesh are particularly thriving and offer high potential for entrepreneurs:
Textiles and Garments: Bangladesh is the second-largest exporter of garments globally. Entrepreneurs in the textile sector can tap into the large export market.
Information Technology: With an increasingly tech-savvy population, the IT industry is rapidly growing. Software development, IT services, and e-commerce platforms are seeing rising demand.
Food and Beverage: The growing urban population has increased demand for restaurants, cafes, and packaged foods.
Renewable Energy: With the global push toward sustainability, renewable energy projects such as solar and wind power offer immense growth potential.
Tourism: Bangladesh’s rich history and natural beauty make it an attractive destination for tourism. Businesses in hospitality and travel services are seeing growth.
How B2B Hub Can Help
Relocating to Bangladesh to start a business involves understanding the local business environment, meeting regulatory requirements, and managing logistics. B2B Hub offers comprehensive services for company formation in Bangladesh, assisting with everything from registration to tax compliance.
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 help you establish your business in Bangladesh and make the process smooth and hassle-free.
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