Company Formation in Bangladesh in 2022 Forming a Private Limited Company in Bangladesh is a common choice for entrepreneurs looking to establish a legal presence in the country. Although there are a variety of ways to launch a business in Bangladesh, establishing a private limited company or opening a branch office are the most popular and practical choices, and hence the steps involved in doing so are outlined below. If you intend to form a company in Bangladesh, you should seek help from any repute law firms in Bangladesh. It is very important to hire an experience and renowned lawyer in Bangladesh, so that with time it gets easier to navigate the business in Bangladesh. Classification of Companies by Mode of Incorporation: In Bangladesh, on the basis of mode of incorporation, the companies are of three kinds: (a) Chartered Companies: The Companies which are incorporated under royal charter may be named as chartered companies. The East India Company and the Bank of England are two examples of this kind of company. In case of chartered companies, the power and nature of business to be dealt with are defined in the charter. These companies, however, possessed huge power. But at preset, these companies do not exist in this country. (b) Statutory Companies: Statutory Companies are the companies formed under the authority of an Act passed by the parliament. These types of company do not have any Memorandum of Association or Articles of Association. They derive their power mainly from the statute. These types of companies are formed generally to meet the social demands and not for earning profits, Bangladesh Bank, Bangladesh Airlines, BRTC, WASA etc. are some instances of this kind of institution. (c) Registered or Incorporated Companies: The companies formed and registered under the authority of the Companies Act, 1994 are named as registered companies. These type of companies have Memorandum of Association and Articles of Association. The registered companies may be of either- (i) Company limited by shares; or (ii) Company limited by guarantee. Classification of Companies by Liability of Members: As said earlier that the registered companies may be of either- (i) Limited by Shares; and (ii) Limited by Guarantee. Apart from these companies, there is another type of company named unlimited company. A brief discussion goes here regarding the classifications- (a) Companies limited by shares: In case of companies limited by shares, there is a share capital and each share has definite nominal value which the shareholder pays at a time or by installments. Here, the members are not bound to pay more than the face value of the shares, whatever may be the liabilities of the company, Most of the companies in our country belong to this class. (b) Companies limited by guarantee: In case of these type of companies, each member promises to pay a fixed sum of money in the event of liquidation of the company. This amount is called the Guarantee. Sometimes, the members are required to buy a share of a fixed value and also give a guarantee for further sum in the event of liquidation. There is no liability to pay anything more than the value of the share (where there is a share) and the guarantee. (c) Unlimited company: A company is said to be unlimited company when it has no limit on the liability of its members. [sec. 5 (c) of the Companies Act, 1994] In case of unlimited company, the liability of the members constitutes to pay Company's debt in proportion to their respective interest in the company. Unlimited companies may not have share capital. The articles of an unlimited company define the number of members with which the company is to be registered along with the amount of share capital, if any, with which the company is to be registered. Now-a-days, such companies are rare. If you want the help of an elite corporate law firm in Bangladesh to help you with your company incorporation in Bangladesh, feel free to contact Tahmidur Rahman Remura. Email Address: info@tahmidur.com Website: https://tahmidurrahman.com/ Phone Number: +8801847220062 or +8801779127165 or +8801708080817

Compnay Formation in Bangladesh - Fail-proof way of incorporating your company in Bangladesh

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