Proprietorship Business in Bangladesh

Generally three types of business operate in Bangladesh. These are Limited Company, Partnership Firm and Proprietorship Business. In which most preferable trade is Proprietorship Business in Bangladesh. A single entrepreneur can start a proprietorship business. Generally, small and medium scale business is forming by proprietorship, its easy way to form these kinds of business.

If someone wants to start proprietorship business at first make a Trades License in Bangladesh from local authority, it may City Corporation Office, Municipality Office, Upozila council and Union Council or respective Govt. authority. For preparing Trade License firstly you select a good name of your Proprietorship business then submit with necessary documents and pay Govt. fees (kinds of business) to the Trade License issuing authority, after checking all papers and issues the Trade License.

Some information and documents need to collect Trade License for a Proprietorship Business as like:

  1. Name of the Proprietorship Business
  2. Owner’s name
  3. Kinds of business such as Export, Import, Supplier etc
  4. Business Address
  5. Owner’s Address, Date of Birth, Parents Name
  6. Owner’s National ID cards copy
  7. Owner’s Photograph
  8. Registered address of the business
  9. VAT chalan copy of Trade License
  10. Office rental deed
  11. Fill up Trade license form and Owner’s signature

Proprietorship business have some advantages as like after receiving Trade License you can start business, owner can easily operating the business.

Firstly we collect Trade License for proprietorship business then take business TIN certificate (Taxpayers’ Identification Number) and open a bank account (business account) for operating business transaction. At present most of the business implements on VAT (Value Added Tax) for deducting VAT, so must be collect VAT Registration Certificate. TIN Certificate needs for deducting AIT (Advance Income Tax) at source in operating business in the country.

If proprietor wants to involve international business one country to another country or Export & Import business within two countries, must be needed Export Registration Certificate and Import Registration Certificate for doing  international and multinational business. Recently, a large number of proprietorship business involving export oriented activities. Now Bangladesh is one of the leading readymade garments, Jute, Frozen Food, Leather Goods and Potato exporting country in the world that’s why most of businesses like Proprietorship, Partnership Firm and Limited Company are interested to involve International business or Export & Import Business in Bangladesh. When two or more entrepreneurs want to  start business in Bangladesh they have to go Limited Company or Partnership Firm. The registering authority of Limited Company and Partnership Firm is RJSC. To know here RJSC Activities in Bangladesh.

Author: Aman123