Company registration in Bangladesh has become a huge topic for both locals and foreigners. The emerging market has made company registration in Bangladesh a necessary task for everyone who wishes to do business in Bangladesh. Bangladesh is slowly becoming a hub for different forms of investment. As one of the largest exporters in the textile industry, Bangladesh has a lot of potential for growth.
How to Start a Business in Bangladesh
When you think about starting a business you must consider some necessary steps. The basics of starting a business start with dedication. You must have a strong dedication to starting the business.
You cannot expect to have profit right after you are done with your initial investment. You must first prepare yourself for a long-term mindset.
This article will give you an extensive idea of how to start a business in Bangladesh. You might also be interested in starting a business in Malaysia. Company Registration in Malaysia is similar to the process in Bangladesh. Only the steps are different.
Initial Step for Starting a Business in Bangladesh
Bangladesh has a good economy. If you have the mindset to grow your business, you can do so. The only hard part is the initial investment. It can be high, seeing the current condition in Bangladesh. This article will provide you with a complete guide on How to start your business in Bangladesh. Furthermore, I will cover all the pre-registration tasks and the process to register your business in Bangladesh.
The Marketing Mix
No matter where you go, the marketing mix will be like every business and market. For every business, it requires a lot of planning and research. No business in the world has made a profit right after the day of investment. A lot of time and patience must be invested for a business to hit the breakeven point and start to produce revenue.
However, If you are a business student or have any experience in the marketing or business industry, then you might be familiar with the marketing mix. Basically, the idea behind this is the planning and market research you must conduct to get an idea of the market and competitors before starting your business.
Business in Bangladesh
There are endless possibilities in Bangladesh. For a successful business, you must conduct market research. Decide the product with which you will do your business. Then you must decide the place you want your business to establish. Having thorough market research, you can easily determine these variables. Next comes the pricing of your product. To get competitive pricing, you must know what your competitors are selling at.
Following this, you must promote your product to the mass market. Do you want to target a single market or the mass market? It depends on you. Is your product fit to be used by the mass public? Or is your product or service is used by a limited population?
All these variables and information can be determined by market research.
The 4 P’s for Business in Bangladesh
Product
In this article, I will give an example of a restaurant business. Every type of business will follow the same principle. For a restaurant business, your main product will be food. In the marketing mix, first, you must choose a suitable location for your restaurant. If you do market research, you will find that the most profitable restaurants are situated near or inside residential areas.
These people depend on these restaurants as their main source of daily food. You must choose a location near these places.
Price
Next comes the actual earning part. For your customers to come to your restaurant you must set competitive pricing. If you charge 500 taka for a dish but the restaurant beside you charges 200 taka for the same dish, you will not get a lot of customers. Market research will allow you to be more competitive when it comes to setting the pricing on your products and dishes.
Place
We have discussed briefly before about the place of your business in Bangladesh. The place is the important factor if your business requires a physical location, and you interact with your customers. Choosing a suitable place requires thorough market research. Depending on your business, you must choose the best place for your business.
Promotion
If you think that you have set up your business in the perfect place with the best price and have the best product then you are wrong. There is no profit if you have the best things, but no one knows about the product. Promotional activities or advertisements will allow your business to reach the mass market. This will let your customers or potential customers know that your business is available with the best products and the best pricing.
This process is a long-term process. If you continue promoting your business, you can easily reach a lot of customers. The potential is endless. Maybe your business will reach the international market. Your demand will raise the price which will ultimately mean more profit.
Types of Companies in Bangladesh
I have discussed the initial steps of starting the business above. By now you must have an idea of how to choose the best business in Bangladesh. Now I will discuss about the actual business registration. After that, you have made up your mind about your business, you must know the companies that are available to you that you can register in Bangladesh. The types of companies are:
- Private Limited Company in Bangladesh
- Public Limited Company in Bangladesh
- Subsidiary Company
- Branch Office
- Representative Office
Private Limited Company in Bangladesh
This is the most common type of company in Bangladesh. The liability in this company is limited. 100% foreign ownership is possible in this type of company in Bangladesh. Only 2 members or shareholders can start this company in Bangladesh.
Company Registration in Bangladesh
The guideline provided by RJSC suggests the following documents to be present:
- General information of the shareholders as in passport
- Pre-board meeting resolution which must contain share allocation, position, bank signatory, objective clauses.
- Inward remittance letter from the bank
- Shareholder’s photo
- Signed form of share allocation
- Signature of the directors as the proof of the address and shareholding
- Bank solvency for import company formation
The Process of Company Registration in Bangladesh
For company registration in Bangladesh, you must follow the steps suggested by the government. The initial step of company registration in Bangladesh is name clearance. This can be done online on the government website. There is a fee which needs to be paid. After the payment, the official clearance will be issued by the RJSC website.
After successful name clearance, you must then open a bank account. The account must open in the proposed name of the company. For foreign employee recruitment, you must have an inward remittance of 50000 USD. After the successful opening of a bank account, the bank will issue an encashment certificate. This certificate will be required for the process of company registration in Bangladesh.
After following the bank opening process, your registration will begin. This is the final step of Bangladesh company registration. The required documents must be submitted online on the RJSC website. The bank slip must be also attached. A fee will be charged for the process. After successful submission, you are entitled to a certificate of incorporation.
Conclusion
Finally, Company registration is the most important part of starting a business. You can register a company in Bangladesh by following some steps. All the steps are described elaborately in this article. We here at S&F Consulting provide the best service for company registration in Bangladesh.
The process is straightforward. If you have the basic idea, you can easily have the idea of the company formation procedure in Bangladesh. Market research is very important. This gives you an idea of the current market and the profitability of a business in the long term.