How to setup a company in Bangladesh?

Branch/Liaison Office

For the purposes of this provision, startup means any company with annual turnover not exceeding Tk. 100 crore in any financial year and which:

• is incorporated under the Companies Act 1994 (section 18 of the Act);
• works towards deployment or commercialization of new products, process or service driven by innovation, development and technology or intellectual property;
• is not a subsidiary of another company holding fifty percent or more of its shares;
• is not a resulting company of a scheme of amalgamation or demerger.

However, the companies will have to register with NBR as startup to enjoy the benefits and their eligibility for registration will be dictated as follows:

What are the Benefits?

For startups, the initial years subsequent to the commencement of operation will now be termed as Growth Years. The duration will be demarcated as follows:

During the growth years, registered startups will be eligible for the following benefits and exemptions:

ACE Advisory is one of the leading providers of tax consultancy and compliance services in Bangladesh. We can help your entity obtain the registration as a startup from the National Board of Revenue (NBR) and with any other tax requirements.

• Provision and treatment of disallowance of deductions/expenses pursuant to Section 30 and 30B of Income Tax Ordinance will not be applicable;
• Losses from the business which cannot be set off in any particular year can be carried forward over nine successive assessment years;
• The rate of minimum tax as specified by section 82C(4) will be 0.1%;
• No reporting obligation will be applicable except the annual return of income if companies grant access to its system and records to the income tax authority.