By Barrister Liton Sarkar, Supreme Court of Bangladesh
Under the Companies Act 1994, the incorporation of a limited liability company in Bangladesh is a rigorous statutory process governed by the Registrar of Joint Stock Companies and Firms (RJSC). As a practitioner at the Supreme Court of Bangladesh, I present this definitive commercial guide to elucidate the mandatory codified provisions concerning Name Clearance, the drafting of the Memorandum of Association (MoA) and Articles of Association (AoA), and the certification of statutory forms.
Incorporation Process Roadmap
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<text x="525" y="125" fill="white" text-anchor="middle" font-family="sans-serif" font-size="14" font-weight="bold">3. Statutory Forms</text>
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<text x="710" y="125" fill="white" text-anchor="middle" font-family="sans-serif" font-size="14" font-weight="bold">4. Incorporation</text>1. RJSC Name Clearance (Section 11)
Pursuant to Section 11 of the Companies Act 1994, a company shall not be registered by a name identical to that by which a company in existence is already registered, or so nearly resembling that name as to be calculated to deceive. The RJSC Name Clearance is a prerequisite 30-day reservation of the proposed corporate nomenclature. It is imperative that the proposed name does not violate any provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950.
2. Drafting the MoA & AoA (Sections 6-20)
The Memorandum of Association (MoA) is the supreme constitutional document of the company. Under Sections 6 to 10, it must definitively state the company's name, registered office jurisdiction, principal objects, liability of members, and authorized share capital. The Object Clause must be drafted with precision to ensure ultra vires doctrines are not breached during commercial operations.
The Articles of Association (AoA), governed by Sections 17 to 20, prescribe the internal regulations, management protocols, and the rights of shareholders. For companies limited by shares, the AoA may adopt all or any of the regulations contained in Schedule I of the Act. Custom drafting is highly recommended to address specific corporate governance mechanisms, pre-emption rights, and dispute resolution frameworks.
3. Statutory Form Certifications
Incorporation mandates the submission of specific statutory forms, duly certified and executed. These forms validate the consent, particulars, and declarations of the proposed directors and subscribers.
| Statutory Form | Statutory Purpose under Companies Act 1994 | Mandatory Signatories |
|---|---|---|
| Form I | Declaration of compliance with the requirements of the Companies Act on registration. | Advocate of the Supreme Court, or a Director/Manager/Secretary named in the AoA. |
| Form VI | Notice of the situation of the registered office and of any change therein (Section 77). | Director or Authorized Signatory. |
| Form IX | Consent of Director to act (Section 92). | Each proposed Director. |
| Form X | List of persons consenting to be Directors (Section 92). | Applicant / Subscriber. |
| Form XII | Particulars of Directors, Managers, and Managing Agents (Section 115). | Director or Authorized Signatory. |
Conclusion
Strict adherence to the Companies Act 1994 is non-negotiable. Any procedural lapse in RJSC Name Clearance, ambiguity in the MoA/AoA, or defective certification of statutory forms can lead to the rejection of the incorporation petition or future ultra vires liabilities. Professional legal counsel is indispensable in navigating this codified framework.
Frequently Asked Questions
How long is an RJSC Name Clearance valid in Bangladesh?
Under the current RJSC regulations, an approved Name Clearance is valid for 30 days from the date of approval. If the company is not incorporated within this period, the clearance expires, and a fresh application must be submitted.
Can a company operate outside the objects mentioned in its MoA?
No. Pursuant to the doctrine of ultra vires under the Companies Act 1994, any act or contract entered into by the company that falls outside the scope of the Object Clause in its Memorandum of Association is void and legally unenforceable.
Who is legally authorized to sign Form I for company registration?
Form I (Declaration of Compliance) must be signed by an Advocate entitled to appear before the Supreme Court of Bangladesh, or by a person named in the Articles of Association as a Director, Manager, or Secretary of the proposed company.
◆ Related Statutory Guides & Practice Insights
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