RJSC Name Clearance, Share Transfer & Form III Compliance Guide

Source and currentness checkpoint

This existing guide is explanatory, not a consolidated statutory text. Verify the current Companies Act 1994, Stamp Act 1899, RJSC forms and fee schedule, and Bangladesh Bank foreign-exchange guidance before relying on a validity period, duty rate, filing deadline, fee, valuation method or approval pathway.

RJSC publishes the relevant forms and fee tools; Bangladesh Bank publishes current transfer and repatriation guidance. The current source set may change, and the transaction type, company class, resident status and effective date control the result. RJSC forms · RJSC fee calculator · Bangladesh Bank transfer guidance

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<article class="legalbd-article"><div class="statutory-meta-box"><strong>Governing Statutes:</strong> Companies Act 1994, Stamp Act 1899, Income Tax Act 2023, and Foreign Exchange Regulation Act 1947.</div><h2>1. The Statutory Framework of Name Clearance (Section 11)</h2><p>Under Section 11 of the <strong>Companies Act 1994</strong>, the first step in the formation of a company or the change of an existing name is obtaining a Name Clearance certificate from the Registrar of Joint Stock Companies and Firms (RJSC). The Registrar shall not register a company with a name that is identical or too nearly resembles a name already in existence. This is a protective measure for intellectual property and corporate identity.</p><p>The validity, extension and re-application rules for a name clearance must be taken from the current RJSC instruction for the company or name-change category; the older 30-day/180-day summary is not treated as universal here. For foreign investors, ensuring the name does not conflict with global trademarks registered in Bangladesh is a prerequisite for smooth BIDA registration.</p><h2>2. Share Transfer Mechanics and Stamp Duty (Section 38)</h2><p>The transfer of shares in a private or public limited company is governed by Section 38 of the Companies Act 1994. A transfer is not legally effective until an instrument of transfer, duly stamped and executed by both the transferor and transferee, is delivered to the company. The <strong>Stamp Act 1899</strong> (Schedule 1, Article 62) mandates a stamp duty of 1.5% on the consideration value or the face value of the shares, whichever is higher.</p><p>For foreign entities, any transfer of shares from a resident to a non-resident, or vice versa, requires compliance with the <strong>Foreign Exchange Regulation Act (FERA) 1947</strong>. Bangladesh Bank guidance is transaction-specific: permission, valuation, reporting and repatriation depend on resident status, company/listing status, value thresholds and current FEID instructions. NAV, market-value and discounted-cash-flow approaches may be relevant in the applicable route, but no single approach or waiver is universal.</p><div class="svg-infographic-wrap"><svg viewBox="0 0 800 220" class="process-roadmap" xmlns="http://www.w3.org/2000/svg"><rect x="10" y="60" width="150" height="80" rx="10" fill="#0D2826" /><text x="85" y="105" fill="white" text-anchor="middle" font-size="12">Name Clearance</text><path d="M160 100 L200 100" stroke="#0D2826" stroke-width="2" fill="none" marker-end="url(#arrow)"/><rect x="210" y="60" width="150" height="80" rx="10" fill="#0D2826" /><text x="285" y="105" fill="white" text-anchor="middle" font-size="12">MoA/AoA Drafting</text><path d="M360 100 L400 100" stroke="#0D2826" stroke-width="2" fill="none"/><rect x="410" y="60" width="150" height="80" rx="10" fill="#0D2826" /><text x="485" y="105" fill="white" text-anchor="middle" font-size="12">Incorporation</text><path d="M560 100 L600 100" stroke="#0D2826" stroke-width="2" fill="none"/><rect x="610" y="60" width="150" height="80" rx="10" fill="#0D2826" /><text x="685" y="105" fill="white" text-anchor="middle" font-size="12">Form III Filing</text><defs><marker id="arrow" markerWidth="10" markerHeight="10" refX="0" refY="3" orient="auto" markerUnits="strokeWidth"><path d="M0,0 L0,6 L9,3 z" fill="#0D2826" /></marker></defs></svg></div><h2>3. Form III Compliance: Return of Allotment (Section 19)</h2><p>Section 19 of the Companies Act 1994 requires every company limited by shares to file a 'Return of Allotment' in <strong>Form III</strong> within 30 days of making any allotment. This form provides the RJSC with the details of the number and nominal amount of the shares comprised in the allotment, the names, addresses, and descriptions of the allottees, and the amount paid or due and payable on each share.</p><p>Non-compliance with Section 19 can lead to significant penalties for the company and every officer in default. Furthermore, without a certified Form III, a company cannot demonstrate its paid-up capital structure to banks for opening LC accounts or to BIDA for obtaining work permits for foreign employees.</p><h2>4. Statutory Timelines and Fee Structures</h2><table class="statutory-table"><thead><tr><th>Process</th><th>Authority</th><th>Timeline</th><th>Fee/Duty Range (BDT)</th></tr></thead><tbody><tr><td>Name Clearance</td><td>RJSC</td><td>Verify current RJSC instruction</td><td>Verify current RJSC schedule</td></tr><tr><td>Share Transfer Stamp Duty</td><td>Internal/Treasury</td><td>Immediate</td><td>Verify current Stamp Act schedule</td></tr><tr><td>Form III Filing</td><td>RJSC</td><td>Verify current statutory deadline</td><td>Verify current RJSC schedule</td></tr><tr><td>Annual Return (Schedule X)</td><td>RJSC</td><td>Annually</td><td>Based on Capital</td></tr></tbody></table><div class="bangla-summary" lang="bn"><h3>বাংলা সারসংক্ষেপ ও আইনি দিকনির্দেশনা</h3><p>বাংলাদেশে কোম্পানি গঠন এবং পরিচালনার ক্ষেত্রে আরজেএসসি (RJSC) নাম ছাড়পত্র, শেয়ার হস্তান্তর এবং ফরম-৩ (Form III) দাখিল অত্যন্ত গুরুত্বপূর্ণ আইনি প্রক্রিয়া। কোম্পানি আইন ১৯৯৪-এর ১১ ধারা অনুযায়ী, যেকোনো নতুন কোম্পানি গঠনের আগে নামের ছাড়পত্র নেওয়া বাধ্যতামূলক। এই ছাড়পত্র সাধারণত ৩০ দিনের জন্য কার্যকর থাকে। বিদেশি বিনিয়োগকারীদের ক্ষেত্রে নামের ছাড়পত্র নেওয়ার সময় প্রস্তাবিত নামটি অন্য কোনো নিবন্ধিত ট্রেডমার্কের সাথে সাংঘর্ষিক কি না, তা যাচাই করা শ্রেয়।</p><p>শেয়ার হস্তান্তরের ক্ষেত্রে কোম্পানি আইনের ৩৮ ধারা এবং স্ট্যাম্প অ্যাক্ট ১৮৯৯-এর বিধানাবলী অনুসরণ করতে হয়। শেয়ার হস্তান্তরের দলিলে (Form IX) হস্তান্তরিত শেয়ারের মূল্যের ওপর ১.৫% হারে স্ট্যাম্প ডিউটি পরিশোধ করতে হয়। যদি শেয়ার হস্তান্তর কোনো বিদেশি বিনিয়োগকারীর সাথে সম্পর্কিত হয়, তবে ফরেন এক্সচেঞ্জ রেগুলেশন অ্যাক্ট ১৯৪৭ অনুযায়ী বাংলাদেশ ব্যাংকের রিপোর্টিং প্রয়োজনীয়তা পূরণ করতে হবে। শেয়ারের মূল্য নির্ধারণের ক্ষেত্রে সাধারণত নেট অ্যাসেট ভ্যালু (NAV) পদ্ধতি অনুসরণ করা হয়।</p><p>কোম্পানি আইনের ১৯ ধারা অনুযায়ী, শেয়ার বরাদ্দের ৩০ দিনের মধ্যে আরজেএসসিতে ফরম-৩ বা 'রিটার্ন অফ অ্যালটমেন্ট' দাখিল করা বাধ্যতামূলক। এতে শেয়ারহোল্ডারদের নাম, ঠিকানা এবং বরাদ্দের বিস্তারিত বিবরণ থাকে। সময়মতো ফরম-৩ দাখিল না করলে কোম্পানি এবং এর কর্মকর্তাদের জরিমানার সম্মুখীন হতে হয়। এছাড়া ব্যাংক অ্যাকাউন্ট পরিচালনা এবং বিডা (BIDA) থেকে ওয়ার্ক পারমিট নেওয়ার ক্ষেত্রে এই সার্টিফাইড ফরম-৩ একটি অপরিহার্য দলিল। সঠিক আইনি পরামর্শ এবং সময়মতো কমপ্লায়েন্স নিশ্চিত করা কোম্পানির 'গুড স্ট্যান্ডিং' বজায় রাখার জন্য অপরিহার্য।</p></div><div class="cta-box"><h3>Need Expert Legal Counsel?</h3><p>Consult Barrister Liton Asaduzzaman Sarkar for strategic advice on corporate structuring and RJSC compliance.</p><a href="/en/contact/">Book a Consultation</a></div></article>

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Official Regulatory Authorities, Gazettes & Forms

Governing Primary Statutes: Companies Act 1994, Partnership Act 1932, Local Government (City Corporation) Act 2009

<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://www.roc.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">Registrar of Joint Stock Companies & Firms (RJSC) &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">Online Name Clearance, MoA/AoA Registration & Returns Filing</p>
</div>

<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://bida.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">Bangladesh Investment Development Authority (BIDA) &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">One-Stop Service (OSS), 100% Foreign Equity Approvals & Branch/Liaison Office Permission</p>
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<div style="margin-bottom:12px; padding-bottom:12px; border-bottom:1px solid #1E293B;">
  <a href="https://bdlaws.minlaw.gov.bd/" target="_blank" rel="noopener noreferrer" style="color:#C5A059; font-weight:600; font-size:14px; text-decoration:underline;">Ministry of Law, Justice & Parliamentary Affairs &nearr;</a>
  <p style="color:#94A3B8; font-size:12px; margin:4px 0 0 0; line-height:1.4;">Codified Statutory Laws of Bangladesh</p>
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Frequently Asked Questions

What is the validity period of an RJSC Name Clearance?

Under Section 11 of the Companies Act 1994, the current RJSC instruction determines the validity and any extension of a name clearance; 30 days and 180 days should not be assumed without checking the category.

How is Stamp Duty calculated on share transfers in Bangladesh?

As per the Stamp Act 1899, the applicable Stamp Act schedule determines the duty base and rate for the instrument; a 1.5% figure must be verified, payable via treasury challan or adhesive stamps.

What is the deadline for filing Form III after share allotment?

Section 19 of the Companies Act 1994 mandates that Form III (Return of Allotment) must be filed with the RJSC within 30 days of the allotment date.

What documents should be checked before a share transfer?

Check the current RJSC form, the Companies Act and Articles, the executed transfer instrument, the share certificate and any applicable tax, valuation or foreign-exchange instruction for the transaction.

Are RJSC fees and name-clearance periods fixed?

No. Confirm the current RJSC instruction and fee schedule for the company class, filing type and effective date; older figures should not be treated as universal.