Company Formation & Entity Structuring in Bangladesh

by Barrister Tahmidur Rahman | Sep 8, 2026

Corporate & FinanceThe right entity from day one8 min read

Company Formation & Entity Structuring in Bangladesh

Company formation and entity structuring advice for Bangladeshi founders, family businesses and foreign investors, from choosing between a private company, one person company, branch or liaison office to incorporation with the RJSC, share structures, investment registration, tax and the licences needed to start trading lawfully.

Overview

Company formation and structuring for local and foreign investors

Choosing the right vehicle at the start saves cost and difficulty later. A structure that suits a two-founder start-up may not suit a foreign subsidiary, a family group or a joint venture with a state-linked partner. Our company formation work begins with the commercial plan: who will own the business, how it will be funded, whether foreign investment is involved, which licences the activity needs and how profits will eventually be returned to shareholders. We then design and register the entity accordingly. This work forms part of the firm's wider corporate and finance practice in Bangladesh.

Most businesses in Bangladesh are incorporated under the Companies Act 1994 with the Registrar of Joint Stock Companies and Firms (RJSC). The usual choices are a private limited company, a one person company for a single individual owner, or a public limited company where wider share ownership or a future listing is planned. Foreign companies may instead open a branch or liaison office with permission now granted through Invest Bangladesh, the agency that has handled investment registration since 23 August 2026. Partnerships, trusts, co-operatives and societies are also available for particular purposes, each with its own rules and limitations.

Incorporation is only one step. After the certificate of incorporation is issued, a new company usually needs a bank account, an e-TIN with the National Board of Revenue, a trade licence from the local city corporation or municipality, VAT registration and, depending on its activity, sector licences, fire, factory or environmental approvals. Where shareholders are foreign, share capital must arrive through banking channels with the right documentation so that it is recorded as foreign investment and can later be repatriated. We manage these steps as one coordinated company formation programme rather than a series of disconnected filings.

Entity structuring also covers what sits above and around the Bangladesh company. Foreign investors often hold their local subsidiary through an intermediate company in Singapore, the UAE or elsewhere, and need to consider double tax treaties, withholding tax, the Finance Act 2026 changes on interest paid to non-residents, and the governance relationship between parent and subsidiary. Family groups may want separate companies for different businesses, or a holding company for succession. We work with tax advisers and with counsel in the UK, US, UAE, China, India and Singapore so the whole structure is coherent and properly documented from the start.

Barrister Tahmidur Rahman advises on investment and transaction structuring, and Barrister Remura Meheruba Mahbub advises on corporate, banking and foreign investment matters, including entry structures for overseas groups. Our team prepares the constitutional documents, shareholder agreements and board resolutions, and deals with the RJSC and other offices on the client's behalf. If you are planning to set up a business in Bangladesh or to restructure an existing group, please contact our Dhaka office with a short outline of the proposal so we can recommend a structure and a realistic company formation timetable.

01 · What we handle

Core workstreams

  • Choosing the right entity
  • RJSC incorporation
  • Foreign investment registration
  • Branch and liaison offices
02 · How it runs

Four clear stages

  1. 01Plan the structure
  2. 02Prepare the documents
  3. 03Incorporate and register
  4. 04Launch and maintain
03 · Start here

Talk to a partner

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

Book →
How we help

What our company formation work covers

Workstream 01Corporate & Finance

Choosing the right entity

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
Workstream 02Corporate & Finance

RJSC incorporation

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
Workstream 03Corporate & Finance

Foreign investment registration

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
Workstream 04Corporate & Finance

Branch and liaison offices

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
Workstream 05Corporate & Finance

Shareholder and group arrangements

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
Workstream 06Corporate & Finance

Post-registration compliance

  • Plan the structure
  • Prepare the documents
  • Incorporate and register
  • Launch and maintain
01

Choosing the right entity

We compare a private limited company, one person company, public company, branch, liaison office, partnership and other vehicles against the client's plans for ownership, liability, funding, tax and exit. For foreign investors we also consider sector restrictions, local partner requirements, licensing rules and whether an economic zone, export processing zone or hi-tech park location changes the regulatory picture or available incentives. This choice shapes every later step of company formation, so we explain it carefully.

02

RJSC incorporation

We handle name clearance, the memorandum and articles of association, subscriber and director details, and the online filing and payment of fees with the RJSC. We draft articles that reflect how the company will really be run, including share classes, transfer restrictions, board composition and reserved matters, rather than relying on standard forms that later need amending at extra cost. Careful drafting at company formation also reduces disputes between shareholders later.

03

Foreign investment registration

For foreign-owned companies we advise on registration with Invest Bangladesh, or with BEPZA or the Hi-Tech Park Authority where relevant, on the inward remittance of share capital through a local bank and the documents needed to evidence it, and on later reporting. We also explain how dividends, loan repayments and sale proceeds can be repatriated, so the entry structure supports a clean exit. Getting this right at company formation protects the investor's ability to repatriate.

04

Branch and liaison offices

Some foreign companies prefer a branch to carry on business or a liaison office to promote and coordinate without earning local revenue. We advise on which activities each may undertake, the permission process now administered through Invest Bangladesh, the opening of bank accounts, tax registration, annual renewals and reporting, and the conditions that apply to funding the office and remitting money back to the parent. We also compare a branch with full company formation where the activity is expanding.

05

Shareholder and group arrangements

We prepare shareholder agreements, subscription agreements, founder vesting arrangements and joint venture terms, and we design holding and subsidiary structures for groups. That includes intra-group service and loan arrangements, management fee and royalty documentation, transfer pricing awareness and clear governance protocols, so the relationship between companies in the group is clear and defensible to tax authorities and lenders. Group documents are prepared alongside company formation so they apply from day one.

06

Post-registration compliance

After incorporation we help obtain the e-TIN, trade licence, VAT registration, sector licences and any work permits for foreign directors and staff. We prepare a compliance calendar covering annual general meetings, annual returns to the RJSC, tax filings and licence renewals, and we can provide ongoing company secretarial support so the new entity stays in good standing from its first year. A compliance handover closes each company formation file, with clear next steps.

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.

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

Meet the firm →
01

How long does company formation take in Bangladesh, from name clearance to trading?

Incorporation with the RJSC itself can be completed quickly once the name is cleared and the documents are ready, because the process is largely online. The longer part is usually what follows: opening a bank account, bringing in capital for foreign-owned companies, obtaining the e-TIN, trade licence and VAT registration, and securing any sector licences. The overall timetable therefore depends heavily on the business activity and on how quickly shareholders can sign and provide documents. We give each company formation client a step-by-step plan with realistic estimates, rather than a single headline figure that rarely survives real circumstances.

02

Can a foreign national or foreign company own 100% of a Bangladesh company?

In most sectors, yes. Bangladesh generally permits full foreign ownership of a private limited company, and foreign investors are common shareholders. Some sectors have restrictions, caps or special licensing rules, for example in certain areas of telecommunications, financial services, media and security-related activities, so the sector must always be checked first. Foreign shareholders also need to bring in share capital through proper banking channels and register with the relevant investment authority. We confirm the position for the proposed activity before any company formation documents are filed, so there are no surprises later.

03

Should our company formation be a private company, a one person company or a branch office?

A private limited company is the usual choice where there are two or more shareholders and the business will earn revenue in Bangladesh. A one person company suits a single individual owner who wants limited liability with simpler governance. A branch is an extension of a foreign company rather than a separate legal person, so the parent bears its liabilities directly, and its permitted activities and remittances are subject to approval conditions. We compare liability, tax, governance, funding and exit for each option, and recommend the structure that best fits the client's plans and risk appetite.

04

What documents are needed for company formation in Bangladesh?

Typical documents include the cleared name, memorandum and articles of association, details and identity documents of subscribers and directors, the registered office address and, for corporate shareholders, board resolutions and constitutional documents of the parent. Foreign documents usually need notarisation and attestation or apostille arrangements accepted in Bangladesh, which can take time. After incorporation, further documents are needed for bank accounts, tax and licences. We prepare a tailored checklist at the outset so documents can be gathered in parallel and signed once, rather than in several rounds that delay the whole process. Accuracy matters at every stage.

05

Is there a minimum share capital requirement for company formation in Bangladesh?

The Companies Act does not set a general high minimum capital for an ordinary private company, but the amount chosen still matters. Banks, licensing authorities and investment registration rules may expect capital that reflects the planned business, and some regulated sectors impose their own minimum capital requirements. For foreign-owned companies, the capital brought in also affects work permit applications and the ability to repatriate funds later. We advise on a sensible authorised and paid-up capital, and on whether some funding should be provided as shareholder loans instead, taking tax and foreign exchange rules into account.

06

Do foreign directors need to live in Bangladesh or hold a work permit?

A company can have foreign directors who live outside Bangladesh, and board meetings and resolutions can often be arranged to accommodate them. A foreign director or employee who will actually work in Bangladesh, however, usually needs an appropriate visa and a work permit from the relevant authority, which depends on whether the company is registered with Invest Bangladesh, BEPZA or the Hi-Tech Park Authority. Tax residence and personal tax obligations may also follow. We advise on director arrangements as part of the company formation plan, including how documents will be signed from abroad.

07

How should a foreign investor structure ownership of a Bangladesh subsidiary?

Direct ownership by the parent company is simple, but some investors use an intermediate holding company in a treaty jurisdiction for tax, financing, governance or exit reasons. The right answer depends on the parent's home tax rules, the double tax treaty position, substance requirements, withholding tax on dividends and interest, and the likely way the investment will be sold. Structures purely designed to avoid tax carry risk. We work with tax advisers in the relevant countries so that the holding structure is commercially justified, compliant and clearly documented from the start of company formation.

08

What ongoing obligations does a new Bangladesh company have after incorporation?

A company must hold annual general meetings, maintain statutory registers, file annual returns and other notices with the RJSC, keep proper accounts and have them audited, file tax returns and VAT returns, and renew its trade licence and any sector licences. Foreign-owned companies have additional reporting to the investment authority and the central bank. Missing filings can lead to fines and complicate later bank finance, licence renewals or share transfers. We provide a compliance calendar and, if wanted, ongoing company secretarial support so nothing important is missed. Keep each filing receipt, as banks and auditors often ask for them.

How a matter runs

From first call to resolution.

  1. 01

    Plan the structure

    We discuss ownership, funding, activity, licences and exit plans, then recommend an entity and group structure with a clear explanation of the reasons, the main alternatives and the regulatory approvals each option would involve. Costs and timing are estimated at this stage.

  2. 02

    Prepare the documents

    We clear the company name, draft tailored articles and any shareholder agreement, and prepare a checklist of signatures, attestations and supporting papers so that local and overseas shareholders can sign efficiently in one round. Translations are arranged where needed.

  3. 03

    Incorporate and register

    We file with the RJSC, receive the certificate of incorporation, and then coordinate the bank account, capital inflow, investment registration, e-TIN, trade licence and VAT registration in the right order. Each company formation filing is tracked.

  4. 04

    Launch and maintain

    We obtain sector licences and work permits, hand over the statutory registers and a compliance calendar, and remain available for company secretarial support, share issues and structural changes as the business grows. We remain the first point of contact.

“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.

Who registers companies in Bangladesh, and who handles company formation for foreign investors?
Companies are registered by the Registrar of Joint Stock Companies and Firms (RJSC) under the Companies Act 1994. The RJSC also registers partnerships and certain societies and keeps records of company filings such as annual returns and changes of directors. Investment registration for foreign-owned businesses is a separate step, handled by Invest Bangladesh or, for zone-based businesses, BEPZA or the Hi-Tech Park Authority, depending on the location and the activity of the business. We manage both steps together.
Can company formation be completed without visiting Bangladesh?
In many cases, yes. Name clearance and incorporation filings are made online, and foreign shareholders and directors can sign documents abroad with notarisation and attestation or apostille arrangements accepted in Bangladesh. Some steps, such as bank account opening, may require additional verification. We coordinate the process remotely and tell clients early if any in-person attendance is likely to be needed, so travel can be planned well ahead. Couriers and secure electronic copies keep things moving.
What is a one person company, and when is it the right company formation choice?
A one person company is a company with a single natural person as its only shareholder, introduced into the Companies Act 1994 by amendment. It gives a sole owner limited liability with simplified governance, but it has its own requirements, including a nominee to take over on the owner's death or incapacity. It is generally not suitable for corporate investors or for businesses planning to bring in several shareholders soon. We help sole founders weigh it against a private company.
Can a company change its structure after formation?
Yes. Companies can issue new shares, create share classes, convert between private and public status, change objects and amend articles, subject to the Companies Act and filing requirements. Group restructurings and mergers are also possible but can involve court sanction, tax and regulatory approvals. Getting the initial company formation right is still cheaper than restructuring later, so the long-term plan is worth discussing at the start. We can review an existing structure and suggest practical, staged changes.
Does a liaison office pay tax in Bangladesh, and is it an alternative to company formation?
A liaison office is not permitted to earn revenue in Bangladesh and is funded by its parent, so it does not normally have business income to tax in the usual sense. It must still register for tax, deduct tax from salaries and certain payments, and file returns and reports. Breaching the limits on permitted activities can create tax exposure and put the office's permission at risk at renewal. Where revenue is planned, company formation is usually better.
How are profits taken out of a Bangladesh company?
Foreign shareholders usually receive profits as dividends after tax, subject to withholding tax and banking documentation. Other routes include interest on properly approved shareholder loans, royalties and service fees, each with its own tax and foreign exchange rules. Planning these routes at the company formation stage helps avoid trapped cash and disputes with the tax authorities or the bank later. We explain each route in plain terms, with the documents the bank will expect to see.
Can TRW act as the registered office or company secretary?
We provide company secretarial support, including preparing board and shareholder resolutions, maintaining registers and making RJSC filings. Arrangements for a registered office address depend on the client's needs and the applicable rules, and we will discuss the practical options at the start of the engagement, including how statutory notices and official correspondence will be received and passed on. Fees are agreed in advance and set out clearly.
How do we begin company formation with TRW?
Send our Dhaka office a short note covering the proposed business, the shareholders and their countries, the expected investment and any timing pressures. We will confirm the information we need, propose a structure and a fee basis, and set out a step-by-step company formation plan before any documents are signed or filed with any authority. Most initial enquiries receive a response within a few working days.

Start your Bangladesh business on the right footing

Speak with the partners about company formation in Bangladesh or across borders.

Book a consultation →
company formation: TRW & Co, Dhaka
Call the Dhaka office+880 1708 000660WhatsApp · message usMessage our team
Message TRW on WhatsApp