In Bangladesh, businesses can be structured in various ways depending on the nature of the business, the number of owners, and the degree of liability protection required. This page will guide you through the different types of business structures, including non-profit organizations, to help you make informed decisions when setting up your business in Bangladesh.

Business Structures and Types in Bangladesh:

1. Sole Proprietorship:

A sole proprietorship is a business owned and operated by a single individual. This structure is easy to set up and requires minimal formalities. However, the owner is personally liable for the business’s debts. Learn More

2. Limited Company: Learn More>

• A private limited company (PVT LTD) is a company with limited liability, meaning the shareholders’ personal assets are protected. This structure is common among small to medium-sized businesses.
• Public Limited Company: A public limited company (PLC) can raise capital by issuing shares to the public. The company is subject to more regulatory requirements and is typically suited for large businesses.

3. Partnership

A partnership is a business owned by two or more individuals who share profits and liabilities. It is relatively easy to set up, but partners are personally liable for the business’s debts. Learn More>

4. Joint Venture (JV)

A joint venture (JV) is an agreement between two or more businesses to collaborate on a specific project or business venture. In Bangladesh, foreign and local companies often enter into joint ventures to tap into the local market. Learn More>

5. One Person Company

A One Person Company (OPC) is a new business structure introduced under the Companies Act, 1994, that allows a single person to own and operate a company with limited liability. Learn More>

6. Incorporation Options for Foreign investors 

Foreign investors may own one hundred percent of Bangladeshi subsidiaries; therefore, Bangladeshi shareholders and directors are not required. However, Bangladeshi subsidiaries must obtain a variety of clearances or licenses, non-resident employees must obtain work visas in order to enter the country, and certain business sectors require special permits from the relevant government agencies. If you plan for a new business, or want to expand your existing business in Bangladesh, you must consider the incorporation structures:

• Fully Owned Foreign Subsidiary offers total control, as the company can be completely owned by foreigners or the parent company. Learn More>
• Joint Venture – You can enter into a Joint Venture agreement with a local partner, sharing ownership and resources. Learn More>

With some limited setup resources and investments, investors may wish to consider:

Bangladesh Branch Office and Liaison or Representative Office:

• A Branch office is essentially a part of the parent company with limited functionality, whereas Liaison or Representative Office is only permitted to perform local research. Learn More>

Other opportunities include:

• PPP – Public-Private Partnerships in Bangladesh.
• Franchise operations – Renowned brands can have their presence in Bangladesh.
• Engagement of Agents or Distributors – Companies can appoint Bangladeshi companies as exclusive agents, or nonexclusive agents, or distributors.

7. Types of Non-Profit Organization

There are three major types of non-profit organization structures in Bangladesh, along with several other options for registering a non-profit or a social business:

• Non-Governmental Organization (NGO) or International Non-Governmental Organization (INGO) – Registered under the NGO Affairs Bureau
• Association, Foundation, and Society – Registered under the Societies Registration Act
• Non-Profit Company – Registered under the Companies Act, 1994
• Trusts – Registered under the Trusts Act, 1882
• Voluntary Social Welfare Organization – Registered with the Department of Social Welfare
• Waqf – Registered under Waqf laws
• Cooperative Society – Registered under the Cooperative Societies Act

Why Choose LegalBD for Business Formation?

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