Technology Venture Formation in Bangladesh

by Barrister Tahmidur Rahman | Sep 10, 2026

Technology, IP & DataBuilt right from day one8 min read

Technology Venture Formation in Bangladesh

Legal advice for founders and investors setting up a technology venture in Bangladesh: choosing the entity and holding structure, founder and shareholder agreements, IP assignment, ESOPs, licences, foreign investment and exchange control, and getting ready for the first institutional funding round with confidence.

Overview

Forming a technology venture in Bangladesh

The decisions founders make in the first months of a technology venture are the ones investors examine most closely later. Who owns the shares, who owns the code, how decisions are made and where the holding company sits all shape what the business can raise, whom it can hire and how founders eventually exit or bring in a strategic buyer. Our technology venture work covers founders, early employees, angel investors, corporate venture teams and foreign entrepreneurs and we advise on forming technology businesses in Bangladesh, as part of our technology, IP and data practice and alongside our corporate team.

Most Bangladesh technology venture founders choose a private limited company incorporated under the Companies Act 1994 with the Registrar of Joint Stock Companies and Firms, and one person companies are also available. Incorporation is the easy part. Before filing, founders should agree the share split, vesting, roles, decision rights and what happens if someone leaves. The articles of association and a shareholders' agreement should reflect those decisions and anticipate investment, including pre-emption rights, transfer restrictions, preference shares and investor protections. After incorporation come the trade licence, tax registrations and any sector licences the product needs.

Intellectual property must belong to the company, not to the people who created it. Code, designs, content and know-how created by founders before incorporation, by employees and by freelancers will not automatically belong to the technology venture under the Copyright Act 2023 and related laws. We prepare founder IP assignments, employment and contractor terms with clear ownership and confidentiality clauses, and register key trade marks with the Department of Patents, Designs and Trademarks. Investors routinely check this chain of title, and gaps found during due diligence often delay a funding round or reduce the valuation investors are prepared to offer.

Many technology venture founders ask whether to hold the business through an overseas company in Singapore, Delaware, the UAE or elsewhere. A foreign holding structure can make it easier to raise international venture capital, but it raises Bangladesh exchange control questions, because outbound investment by Bangladeshi residents is restricted and generally needs approval. Moving existing IP or shares offshore can also have tax consequences. Foreign investment into a Bangladesh company must come through proper banking channels and be documented for later repatriation, and some investments need registration with Invest Bangladesh, which replaced BIDA in August 2026.

Regulation depends on what the technology venture does. Fintech, e-commerce, healthtech, edtech, telecom-related services and platforms handling personal data each face specific licensing, registration or compliance requirements, including the Personal Data Protection Act 2026, which affects product design, vendor choices and data flows from the start. Tax incentives for certain software and IT-enabled businesses may also be available, subject to conditions in each year's finance legislation. We work with counsel in the UK, US, UAE, China, India and Singapore on cross-border structures. To discuss formation or a first funding round, contact our Dhaka office.

01 · What we handle

Core workstreams

  • Entity and holding structure
  • Incorporation and registrations
  • Founder and shareholder agreements
  • IP assignment and protection
02 · How it runs

Four clear stages

  1. 01Plan the structure
  2. 02Form and register
  3. 03Document the team
  4. 04Prepare for funding
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

How we help founders build the venture

Workstream 01Technology, IP & Data

Entity and holding structure

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
Workstream 02Technology, IP & Data

Incorporation and registrations

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
Workstream 03Technology, IP & Data

Founder and shareholder agreements

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
Workstream 04Technology, IP & Data

IP assignment and protection

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
Workstream 05Technology, IP & Data

ESOPs and early hires

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
Workstream 06Technology, IP & Data

First funding round readiness

  • Plan the structure
  • Form and register
  • Document the team
  • Prepare for funding
01

Entity and holding structure

We compare a Bangladesh private company, a one person company and foreign holding structures for the venture's funding plans, customer base and founder residence. We explain the exchange control, tax and regulatory consequences of each option and the approvals that an offshore structure would require, so that founders choose a structure they can actually implement lawfully and maintain as the business grows and raises further capital. Technology venture founders get a written comparison.

02

Incorporation and registrations

We prepare the memorandum and articles of association, handle incorporation with the RJSC, and coordinate the trade licence, tax registrations, bank account opening and any sector licences or registrations, such as those needed for e-commerce, payments or telecom-related services. We also set up statutory registers, board processes and basic compliance calendars so that the technology venture starts with clean corporate records. Filings are tracked to completion.

03

Founder and shareholder agreements

We draft founder agreements and shareholders' agreements covering equity splits, vesting and leaver provisions, roles and time commitments, decision-making, reserved matters, deadlock, transfer restrictions, drag and tag rights and confidentiality. Clear terms agreed early reduce the risk of founder disputes, which can destroy value quickly in a young company and are a common concern for investors reviewing an early-stage team. Templates are adapted to each team. Each agreement says how deadlock, a founder's exit and valuation of departing shares will be handled.

04

IP assignment and protection

We prepare assignments of pre-incorporation work from founders, employment and contractor agreements that vest IP in the company, open source policies and confidentiality procedures. We register the core brand as a trade mark and, where relevant, advise on copyright registration, design or patent protection, and domain names, so that the technology venture owns and controls the assets on which its valuation depends. Ownership is documented before investors ask.

05

ESOPs and early hires

We design employee share option and share incentive arrangements within the Companies Act framework, including option pools, vesting, exercise mechanics, leaver rules and tax treatment, and prepare employment contracts and policies for early hires. Where the structure includes a foreign holding company, we address how Bangladesh-resident employees can participate lawfully, including any exchange control approvals that may be required. Option paperwork is kept simple for staff.

06

First funding round readiness

We prepare the company for angel and seed investment, review term sheets, and negotiate subscription and shareholders' agreements, including valuation mechanics, liquidation preferences, anti-dilution, board rights and information rights. We handle the corporate approvals, share issuance and filings, and the documentation required for foreign investment inflows, so that money arrives on time and investors receive clean title to their shares. A technology venture closing checklist keeps everyone aligned.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Technology, IP & Data matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

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01

What is the best structure for a new technology venture in Bangladesh?

For most early-stage ventures with Bangladeshi founders and customers, a private limited company incorporated in Bangladesh is the simplest and most practical starting point. It can issue different classes of shares, accept foreign investment and be restructured later if needed. A foreign holding company may suit ventures targeting international investors or customers from day one, but it involves exchange control approvals, tax analysis and higher running costs. We compare options against the venture's funding plan, market and timeline, rather than copying structures used in other countries without checking whether they work here. Restructuring later is possible but costly.

02

Can Bangladeshi founders set up a Singapore or Delaware holding company?

It is possible, but Bangladesh residents generally need approval to invest abroad, and transferring shares or IP of a Bangladesh company to a foreign holding company raises exchange control and tax issues. Some founders have used structures that were not properly approved, which can create problems in later funding rounds or exits. We advise on the approval route, the sequence of steps and the documents needed, and coordinate with counsel in the holding company's jurisdiction. In some cases, particularly at seed stage, a Bangladesh company with foreign investors is a better option for the technology venture at its stage.

03

How should technology venture founders split equity and handle vesting?

There is no standard split. Founders should consider contributions to date, future roles, time commitment and the capital each brings. Vesting, under which founders earn their shares over time, protects the company if a founder leaves early and is widely expected by investors. Good and bad leaver provisions define what happens to unvested and vested shares when someone departs. We help founders discuss these points openly, document the agreement in the articles and a shareholders' agreement, and make sure the mechanics work under the Companies Act 1994 and are enforceable in practice. Founders should revisit terms after funding.

04

Who owns the code our founders wrote before the company was incorporated?

Usually the founder who wrote it, not the company, unless it has been assigned in writing. The same applies to work by freelancers and agencies, and to some work by employees. Under the Copyright Act 2023, ownership does not automatically follow payment or involvement in a technology venture. We prepare founder IP assignments covering pre-incorporation work, and contractor and employment agreements that vest future work in the company. Investors check these documents during due diligence, and missing assignments are one of the most common issues delaying seed and Series A rounds. Confirmatory assignments fix this quickly.

05

Can a Bangladesh private company offer ESOPs to its employees?

Employee share incentives are possible, but Bangladesh does not have a detailed statutory framework for private company option schemes, so they must be designed carefully within the Companies Act 1994, the articles of association and tax law. Options can be structured through a reserved pool, board approvals, vesting conditions and exercise mechanics, or through alternatives such as phantom shares. Where shares are held by a foreign holding company, Bangladesh-resident employees may need exchange control approvals to participate. We design schemes that motivate staff and remain workable when the technology venture raises funding or is sold.

06

How does foreign investment into a Bangladesh technology venture work?

A foreign investor can generally subscribe for shares in a Bangladesh private company, subject to any sector restrictions. Funds must arrive through banking channels, with the bank issuing documentation that supports later repatriation of dividends or sale proceeds. Share pricing and transfers between residents and non-residents are subject to foreign exchange rules. Some investments require registration with Invest Bangladesh, the authority that replaced BIDA, BEZA and the PPP Authority in August 2026. We handle the corporate approvals, filings and banking documentation so the investment is properly recorded from the start. Delays at the bank are common without it.

07

Which licences and registrations does a technology venture need?

Every company needs a trade licence, tax registrations and, where applicable, VAT registration. Beyond that, requirements depend on the business. E-commerce platforms may need registration under digital commerce rules, payment and fintech services may need Bangladesh Bank licensing or partnership with a licensed provider, telecom-related services may need BTRC licences, and health and education services may face sector rules. Data protection obligations under the Personal Data Protection Act 2026 apply to most platforms. We map the requirements against the product roadmap so the venture launches lawfully and avoids enforcement surprises. Requirements change, so we confirm them before launch.

08

Are there tax incentives for a technology venture or startup in Bangladesh?

Bangladesh has offered tax incentives for certain software, IT-enabled services and digital businesses, and has introduced measures aimed at startups, but eligibility depends on the type of activity, registration and conditions such as receiving export income through banking channels. Incentives are set and revised through tax legislation, including the annual finance act, so the position should be checked each year. We work with tax advisers to identify relevant incentives and structure contracts and invoicing so the technology venture can claim them, while avoiding structures that could later be challenged. Records should be kept carefully.

How a matter runs

From first call to resolution.

  1. 01

    Plan the structure

    We discuss the product, founders, market, funding plans and residence of the team, then recommend an entity and holding structure, identify approvals needed and agree a formation timetable and budget with the founders. Founder priorities shape the plan. The timetable allows for bank account opening and any foreign investment steps, which often take longer than incorporation.

  2. 02

    Form and register

    We prepare constitutional documents, incorporate the company with the RJSC, open bank accounts and complete trade licence, tax and sector registrations, setting up statutory registers and a compliance calendar. Compliance tasks are assigned clearly. Original registers, certificates and filings are handed to the founders in an organised file at the end of this step.

  3. 03

    Document the team

    We put in place founder and shareholder agreements, IP assignments, employment and contractor terms and any ESOP framework, so ownership, control and incentives are clear before outside investment arrives. Technology venture documents are explained plainly. We coordinate signing by all founders and the company, and check that stamping and filing requirements are met.

  4. 04

    Prepare for funding

    We tidy corporate records, register key IP, prepare a due diligence pack and support term sheet and investment documentation, handling foreign investment filings and share issuance at closing. Investor questions are answered promptly. We manage the closing checklist so that conditions, payments and share issuance happen in the right order.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

How long does it take to form a technology venture in Bangladesh?
Incorporating a private company with the RJSC can be completed relatively quickly once documents and name clearance are ready, but the trade licence, tax registrations, bank account and any sector licences take additional time. Foreign shareholders add steps for document legalisation and banking. We give founders a realistic timeline at the start, based on the structure chosen and the documents available, and track each step until the company is ready to trade. Fees are agreed at the outset.
Can a foreigner be a founder or director of a Bangladesh company?
Yes. Foreign nationals can be shareholders and directors of a Bangladesh private company, subject to sector restrictions. Foreign founders will need to bring investment through banking channels and, if they work in Bangladesh, obtain the appropriate visa and work permit. We coordinate corporate, investment and immigration steps for foreign founders and help them understand the obligations of directors under Bangladesh law. Foreign founders should also consider how the technology venture will repatriate profits and capital, which depends on proper documentation.
Do we need a shareholders' agreement if the founders are close friends?
Yes. Most founder disputes arise between people who trusted each other and never discussed difficult scenarios such as a founder leaving, underperforming or wanting to sell. A shareholders' agreement records what was agreed while relationships are good, and investors will expect one. It need not be long or adversarial, but it should cover equity, vesting, decisions and exits. A short, clear agreement prepared at formation costs far less than resolving a dispute later, and investors expect it.
Should we register our trade mark before launching the product?
Yes, ideally before public launch and before significant marketing spend. A clearance search reduces the risk of conflict with an earlier mark, and filing early protects the brand against copycats and squatters. A technology venture expanding abroad should also consider filings in target markets, since rights are territorial. Domain names and social media handles should be secured at the same time. We run clearance searches and handle filings with the DPDT, and coordinate overseas filings.
Can we accept SAFEs or convertible notes from local or foreign investors?
International instruments such as SAFEs and convertible notes do not translate neatly into Bangladesh company and exchange control law, particularly where the investor is foreign. Equivalent outcomes can sometimes be achieved through preference shares or carefully structured agreements, but each case needs analysis. We advise on workable alternatives that protect both founders and investors and can be properly documented and remitted. Getting the instrument right at seed stage avoids difficult restructuring later, when larger investors review the share history.
What ongoing compliance does a new company have after formation?
Ongoing obligations include annual returns and filings with the RJSC, statutory registers and board and shareholder meetings, tax and VAT returns, trade licence renewal, and any sector licence conditions. Data protection obligations apply where the venture processes personal data. We set up a compliance calendar at formation so founders know what is due and when, and can delegate it easily. Missing filings can lead to penalties and complicate due diligence, so records should stay current in every technology venture.
How do investors assess a technology venture's legal position?
Investors review corporate records, share ownership, founder and shareholder agreements, IP ownership and registrations, key customer and supplier contracts, employment terms, licences, data protection compliance and any disputes. A clean, organised data room shortens due diligence and supports valuation. We help founders prepare by fixing gaps before an investor finds them and asks for a price reduction. We can run a legal health check before a round, ranking issues by investor impact. Starting the clean-up several weeks before fundraising avoids rushed fixes in the middle of diligence.
How do we start working with TRW on a new venture?
Send us a short description of the product, the founders and their residence, the target markets and your funding plans. We will recommend a structure, list the documents and approvals needed, and propose a fixed or capped fee for formation work where the scope is clear. Initial discussions are confidential and carry no obligation. We can usually meet within a few working days and give founders a clear plan for the first months. Non-confidential summaries are fine at first.

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