Starting a business can feel both exciting and confusing. You might wonder how to start a business in Bangladesh and what steps to take first. The good news is that starting a business in Bangladesh is not as hard as it seems if you follow the right steps. From picking the right type of business to completing all the legal registrations, everything has a clear process.
In simple words, starting a business here means knowing what type of company suits you, getting the proper approvals, and making sure you follow the law.
Stick with us, and we’ll show you step by step how to do it easily without missing anything.
Key Takeaways:
- Starting a business in Bangladesh is possible for anyone if you follow the right steps.
- Choosing the right type of business is the first and most important step.
- Legal registration and licenses are mandatory to run a business safely.
- You need to open a business bank account and handle taxes properly.
- Planning your finances and knowing your market helps your business grow faster.
- Following rules and staying organized keeps your business smooth and trouble-free.
9 Steps on How to Start a Business in Bangladesh in 2025
Starting a business in Bangladesh can feel tricky at first. But if you follow the right steps, it becomes simple and clear. These steps cover everything from planning to launching your business, so you don’t miss anything important.
Let’s get into the details.
1. Choose Your Business Structure
Choosing the right business structure is very important. It decides your taxes, responsibilities, and how you run the business.
Here are the options:
Sole Proprietorship
Sole proprietorship is ideal for freelancers or small businesses. Very simple to start. You need a trade license from the local City Corporation or Union Parishad. You are personally responsible for all business debts. Perfect if you are starting small with low investment.
Partnership
A partnership business type is good for businesses with multiple owners. Requires a partnership deed that explains each partner’s role, responsibility, and profit share. It is easy to set up, but partners share liability for business debts.
Private Limited Company (Pvt Ltd)
A private limited company is popular for startups and small businesses. Your personal assets are safe if the business has problems. You can get investors or loans more easily. You need at least two directors and two shareholders, and registration at the RJSC.
Public Limited Company (PLC)
A public limited company structure is suitable for large businesses planning to list on the stock market. Can sell shares to the public. Needs stricter compliance, like annual reports, audits, and regulatory approvals.
Branch or Liaison Office
A branch or liaison office is suitable for foreign companies. You can operate in Bangladesh without forming a full local company. Good for market research or exploring a business before full setup. Needs permission from the Bangladesh Bank.
Tip: Think about your business goals, investment, and risk before choosing. This will save you time and money later.
2. Do Market Research
Market research tells you if your idea will work. It helps you know customers, competitors, and trends.
What to do:
- Find out who your customers are and what they want.
- See what competitors are doing. What works for them? What doesn’t?
- Check if your industry is growing or shrinking.
- You can use online surveys, visit other shops, or ask people directly.
Tip: Market research reduces risk. It helps you make better decisions.
3. Make a Business Plan
A business plan is a guide for your business. It shows where you are going and how to get there.
What to include:
- Summary: Write your business idea in a few lines.
- Market Analysis: Show what you know about customers and competitors.
- Team: Explain who will do what.
- Products or Services: Describe what you sell and why it is different.
- Marketing Plan: How will you reach customers? Social media, ads, or word of mouth?
- Money Plan: Estimate your income, costs, and profits.
Tip: A good plan helps if you need loans or investors. Keep it simple and clear.
4. Name Clearance and Company Registration
Every business in Bangladesh must get legal recognition before starting. This step proves your business exists and allows you to work without legal problems.
The process is not the same for all. It depends on the type of business you choose.
Sole Proprietorship
- Apply for a trade license from your local City Corporation, Municipality, or Union Parishad.
- Apply for a Tax Identification Number (TIN) from the National Board of Revenue.
- VAT registration is needed if your turnover crosses the set limit.
- Keep in mind, the owner and the business are the same legal entity.
Partnership
- First, write a Partnership Deed. This should clearly mention duties, profit sharing, and other rules.
- Collect a trade license from your local authority.
- Apply for a TIN and, if needed, VAT registration.
- You can also register your partnership at RJSC. This is not always required, but it makes your business more reliable in front of banks and investors.
Private Limited Company
- Apply to RJSC for name clearance. Make sure no one else is using your name.
- Prepare the Memorandum and Articles of Association.
- Submit all required papers to the RJSC for registration.
- Once approved, you will receive the Certificate of Incorporation.
- After that, apply for a TIN, VAT if needed, and a trade license.
Public Limited Company
- Same process as a private company, but stricter.
- Minimum seven shareholders and three directors are required.
- Apply to RJSC for name clearance and registration.
- Prepare and submit the Memorandum and Articles of Association.
- After registration, you get the Certificate of Incorporation.
- You must also get permission from the Bangladesh Securities and Exchange Commission if you plan to sell shares to the public.
Branch Office of a Foreign Company
- Apply to the Bangladesh Investment Development Authority (BIDA) for permission to open a branch or liaison office.
- Submit documents like parent company incorporation papers, board resolution, and financial reports.
- After approval, register the office with RJSC.
- You will also need approval from the Bangladesh Bank for financial activities.
Liaison Office of a Foreign Company
- The process is the same as a branch office through BIDA.
- The main difference is that a liaison office cannot earn money in Bangladesh. It can only promote, research, or coordinate activities for the parent company.
Tip: Always double-check with RJSC or local authorities before submitting papers. A small mistake in the name or documents can delay the whole process.
5. Open a Business Bank Account
You need a bank account to handle money.
Steps:
- Choose a trusted bank
- Give your business registration, trade license, and TIN
- Use this account for all business transactions.
Tip: Keep personal and business money separate. It makes accounting easier.
6. Get Licenses and Permits
After you register your business, you cannot just start running it. You also need licenses and permits to work legally in Bangladesh. These depend on the type of business you choose.
Sole Proprietorship
- Trade License: Taken from the City Corporation, Municipality, or Union Parishad. The cost is usually 2000 to 10000 taka per year. Must renew yearly.
- TIN: Free from NBR online. No renewal fee.
- VAT Registration: Needed if turnover crosses 30 lakh taka. Free to apply, but monthly returns required.
- Extra Permits: If you run a food, health, or beauty business, you may need health certificates or BSTI approval. Cost 1000 to 5000 taka.
Partnership
- Partnership Deed: Written agreement. It can cost 5000 to 15000 taka, depending on the lawyer. One time only.
- Trade License: Varies between BDT 100.00 and BDT 40,000.00, based on the nature and type of business.
- TIN: Free for both the partnership firm and individual partners when you apply online via the NBR portal.
- VAT Registration: Free, required only if your turnover reaches or exceeds the threshold for mandatory VAT.
- RJSC Registration (Optional): If you choose to register your partnership with RJSC, expect to pay a fee of around 1,000 to 1,200 taka for entry and filing.
Private Limited Company (Pvt Ltd)
- Name Clearance: You need to reserve your company name with the RJSC. It costs 600 taka for each proposed name.
- Stamp Duty (MoA & AoA): For authorized capital up to 100,000 taka, expect about 2,000 taka total for stamps on your Memorandum and Articles.
- RJSC Registration & Filing Fee: You pay a filing fee for submitting your company documents. For small capital, this is about 1,200 to 1,800 taka.
- Trade License: After incorporation, you must get this from your local authority annually. Cost ranges from 2,000 to 10,000 taka depending on location and business type.
- TIN: This is free, and you can apply online with the National Board of Revenue. No renewal cost.
- VAT Registration: It’s free to register if you qualify (based on turnover). After that, you must file periodic VAT returns.
- Import or Export Certificates (IRC & ERC): Costs vary by value, but generally start from 5,000 to 10,000 taka; higher amounts apply for large-volume trade.
Public Limited Company (PLC)
- RJSC Fees: PLC registration fees are higher than for Pvt Ltd companies. The amount depends on your authorized capital and can range from a few thousand to tens of thousands taka. You can use the RJSC fee calculator to get accurate estimates.
- BSEC Approval (for public listing): To list shares publicly, you must get approval from the Bangladesh Securities and Exchange Commission (BSEC). Fees include application charges and underwriting/issue management costs. For example: a Tk 50,000 application fee, underwriting fees up to 1%, and issue management up to 2% of the public offer amount.
- Trade License: Just like other business types, you need a trade license from your local authority. This generally costs between Tk ranging from roughly Tk 100 to over Tk 40,000.
- TIN: You can get a Tax Identification Number (TIN) for free online through NBR—no renewal fees.
- VAT Registration: Apply for it free of charge if your annual turnover exceeds BDT 5 million (50 lakh) or if your business falls into specific categories regardless of turnover. Once registered, you must file monthly returns.
- Annual Audits: PLCs must have annual audits. Fees vary based on company size. For smaller non-listed companies, expect a minimum fee of around Tk 50,000. Larger public companies often pay much more.
Branch or Liaison Office
- BIDA Approval: The initial registration fee is BDT 25,000, valid for 3 years. Renewal costs BDT 15,000 every 3 years.
- RJSC Registration: Registering with the Registrar of Joint Stock Companies and Firms (RJSC) is required for all companies operating in Bangladesh. The registration fee typically ranges from BDT 5,000 to BDT 10,000, depending on the company’s authorized capital and other factors.
- Bangladesh Bank Approval: Needed to open a bank account with remitted funds. No direct fee.
- Trade License: 5000 to 10000 taka yearly.
- TIN: Free.
7. Set Up Accounting and Taxes
Accounting keeps track of money. Taxes are important to follow the law.
Steps:
- Keep records of income and expenses.
- File tax returns on time.
- Use simple software or hire an accountant if needed.
Tip: Good accounting saves money and avoids problems with tax authorities.
8. Hire Employees
If you need staff, do it properly.
Steps:
- Write clear contracts. Include roles, duties, and pay.
- Register employees for the social security and provident fund. Follow the Labour Act.
Tip: Happy employees work better. Treat them fairly and legally.
9. Launch and Promote Your Business
Now it’s time to go live.
Steps:
- Create a marketing plan. Use social media, flyers, or local events.
- Offer discounts or promotions to attract customers.
- Ask friends and family to spread the word.
Tip: Promotion is ongoing. Keep telling people about your business.
Legal & Tax Considerations When Starting a Business in Bangladesh
When you start a business in Bangladesh, you need to follow the law and pay taxes properly. Corporate compliance is very important. You must submit annual reports, get audits done by certified accountants, and file tax returns on time.
The National Board of Revenue collects business taxes, including corporate tax, VAT, and payroll taxes if you have employees. You also need to follow labor laws. This means giving employees fair pay, safe working conditions, proper working hours, and respecting their rights.
Following these rules keeps your business legal, avoids fines, and builds trust with customers and employees.
Challenges in Bangladesh When Starting a Business in Bangladesh
Starting a business in Bangladesh is exciting, but it comes with some challenges you should know about. Being aware of them helps you plan better and avoid problems.
- Corruption and lack of transparency can slow down approvals and create extra costs.
- Infrastructure issues like power outages and slow internet can affect your daily operations.
- Regulatory hurdles and complex tax rules make compliance tricky and time-consuming.
- Limited access to financing and skilled workers can make growing your business harder.
- Market research and cultural differences may lead to mistakes if you don’t understand local needs.
Tips for Success to Perfectly Run a Business in Bangladesh
Running a business in Bangladesh can be smooth if you follow some smart steps. These tips help you avoid common mistakes and grow your business successfully.
- Understand local laws and regulations to stay out of trouble.
- Build strong relationships with authorities and key stakeholders for smoother operations.
- Focus on transparency and ethical practices to gain trust.
- Invest in technology and train your team to improve efficiency.
- Adapt to social and cultural norms to connect better with customers
- Conduct thorough market research to know your audience and competitors.
- Secure sustainable financing to keep your business running smoothly.
- Stay informed and flexible to handle changes in the market easily.
Solve Your Business Legal Problems with Nashir Ahmed Kushol
Running a business in Bangladesh can be tricky, and many entrepreneurs face legal headaches. You might struggle with company registration, RJSC compliance, or setting up proper corporate governance.
Taxes like VAT, income tax, and customs can feel confusing. Foreign investors often need FDI approvals, while startups deal with contracts, agreements, and strategic legal issues. Property disputes, unpaid dues, or conflicts with partners and employees can slow growth.
I’m Nashir Ahmed Kushol, a corporate and business lawyer in Bangladesh with over 10 years of experience. I specialize in company incorporation, tax advisory, FDI assistance, business litigation, dispute management, and strategic legal advice for startups.
I guide you step by step, solve these problems, and keep your business safe and fully compliant. Book your consultation today and get your business’s legal issues sorted quickly!
Wrapping Up
Starting a business in Bangladesh is exciting and full of opportunities, but you need to plan carefully and follow the rules. If you want to know how to start a business in Bangladesh, this guide shows you the steps from choosing your business type to getting licenses and promoting your business. With preparation, dedication, and smart action, anyone can build a successful business in this growing market.
