A foreign investor is eligible to register a 100% foreign owned Private Limited Company (PLC) in Bangladesh which is commonly known as FDI company. It is the preferred business arrangement for individual entrepreneurs who want to establish a local company in Bangladesh.
Characteristics of a Private Limited Company in Bangladesh
- It can have minimum 2 and maximum 50 shareholders (owners).
- It must have minimum 2 directors.
- Any individual, who is at least 18 years old, is eligible for shareholder.
- An initial paid-up capital of at least BDT 1. Additional capital can be injected any time after incorporation.
- It has legal identity entitlements of a natural person.
- Registered office address must be a physical address.
- It can own property in its name.
- It can sue or be sued in its own right. Thus, shareholders are not involved in the legal proceedings.
- It does not depend on any individual member or shareholders for its existence.
- Foreigners can have 100% ownership of company shares.
- Share transfer and transmission is allowed.
- The name of the company should end with Ltd., Private Limited or Limited.
- It must appoint an auditor within 30 days from the date of its incorporation.
Steps and Procedure to Register a Private Limited Company in Bangladesh
- It can have minimum 2 and maximum 50 shareholders (owners).
- It must have minimum 2 directors.
- Any individual, who is at least 18 years old, is eligible for shareholder.
- An initial paid-up capital of at least BDT 1. Additional capital can be injected any time after incorporation.
- It has legal identity entitlements of a natural person.
- Registered office address must be a physical address.
- It can own property in its name.
- It can sue or be sued in its own right. Thus, shareholders are not involved in the legal proceedings.
- It does not depend on any individual member or shareholders for its existence.
- Foreigners can have 100% ownership of company shares.
- Share transfer and transmission is allowed.
- The name of the company should end with Ltd., Private Limited or Limited.
- It must appoint an auditor within 30 days from the date of its incorporation.
