A Step-by-step guide to company registration in Bangladesh for global businesses

Think of Bangladesh as your gateway to South Asia—where growth meets opportunity.

With its business-friendly policies and a rapidly expanding economy, Bangladesh offers a seamless way to establish your presence in the region. Its cost-effective operations, straightforward registration process with the Registrar of Joint Stock Companies and Firms (RJSC), and support for foreign investment make it ideal for scaling your business efficiently. Bangladesh is where affordability and accessibility align, giving you the tools to grow in one of Asia’s most dynamic markets.

The business benefits of registering your company in Bangladesh 

Bangladesh is a rising hub for business expansion, offering a young, skilled workforce, growing infrastructure, and unique opportunities in a booming economy.

Here’s why Bangladesh is an excellent choice for expanding your business:

• Cut costs with competitive labor rates and efficient operations.
• Register easily through the streamlined RJSC process.
• Access government incentives for foreign investments and exports.
• Utilize expanding infrastructure and economic zones.
• Reach a large, diverse market in a growing economy.
• Stay compliant with transparent, business-friendly regulations.
• Bangladesh delivers high growth at low cost for South Asia expansion.

Next, we’ll explore the options—standard company registration, business licensing, and Employer of Record (EOR)—to help you determine the approach that aligns with your business needs.

What are the options for setting up a business in Bangladesh?

In Bangladesh, businesses have two primary options for establishing a presence, each catering to different operational needs and objectives:

1. Standard Company Registration through RJSC

This option involves setting up a legal entity under the Registrar of Joint Stock Companies and Firms (RJSC). It grants businesses full control over operations and finances but comes with responsibilities for compliance and legal obligations.

2. Employer of Record (EOR)

An EOR enables companies to hire employees in Bangladesh in 2025 without establishing a legal entity. The EOR handles compliance, employment contracts, and administrative tasks, offering a quick and efficient route for businesses looking to expand their workforce.

Aspect	RJSC Company Registration	Employer of Record (EOR)
Purpose	Establishes a legal entity, granting full control over operations.	Allows hiring in Bangladesh without entity setup, with the EOR managing employment and compliance.
Control	Provides complete operational and financial authority.	Delegates administrative tasks while retaining operational oversight of employees.
Compliance	Requires adherence to local laws, tax regulations, and corporate governance.	Ensures compliance with labor laws and tax obligations on behalf of the company.
Setup Time	Longer, due to documentation and legal procedures.	Quick, allowing for immediate workforce expansion.
Cost	Includes entity registration fees, operational costs, and legal compliance expenses.	Involves service fees to the EOR, often more cost-effective for short-term or limited operations.
Scalability	Ideal for businesses planning significant, long-term operations in Bangladesh.	Best for rapidly scaling teams or testing new markets without establishing a local entity.

Standard company registration is ideal for businesses seeking full operational control and long-term growth in Bangladesh. On the other hand, an Employer of Record (EOR) is perfect for businesses looking to enter the market quickly and focus on workforce expansion without the complexities of setting up a legal entity.

Next, let’s explore how EOR simplifies onboarding and compliance for businesses operating in Bangladesh.

How EOR simplifies Bangladesh company registration

Establishing your presence in Bangladesh becomes significantly more efficient with the guidance of a trusted expert. An Employer of Record (EOR) offers a practical solution for hiring local employees and managing compliance, all without the need to establish a legal entity.

Here’s how an EOR supports businesses entering Bangladesh:

1. Skip the lengthy and complex process of registering a legal entity. An EOR acts as the official employer, allowing you to begin operations immediately.
2. Shift the administrative workload to the EOR, including payroll management, tax filings, and employment documentation, so you can focus on expanding your business.
3. Stay compliant with local labor regulations, as the EOR ensures all legal requirements are met, reducing your exposure to potential risks.
4. Save on entity setup and operational costs, directing your resources toward strategic business growth instead.
5. Quickly scale your workforce to meet market demands without committing to long-term infrastructure or operational requirements.
6. Access Bangladesh’s talent market without the complexities of local onboarding processes or geographical limitations.
7. Provide competitive benefits packages in line with local standards, with the EOR handling the management and compliance aspects.
8. Rely on the EOR to navigate legal and regulatory challenges, giving you confidence and security as you grow your business.

Partnering with an EOR allows you to seamlessly enter the Bangladeshi market, enabling you to concentrate on driving your business goals while scaling your operations with ease. With the complexities of legal entity setup managed on your behalf, you can achieve growth efficiently and compliantly.

Next, let’s dive into the step-by-step process of registering a company in Bangladesh to help you navigate the setup with confidence.

A step-by-step guide to registering a company in Bangladesh

Bangladesh’s straightforward registration process makes it easy to establish a business. Follow these steps to ensure a smooth setup and compliance with local regulations.

Step 1: Decide on the business entity

Setting up a local entity in Bangladesh can be a lengthy and complicated process. But with an EOR, you can skip the hassle and hit the ground running.

An EOR acts as your legal employer, taking care of everything from hiring and onboarding to managing payroll, tax filings, and ensuring compliance with Bangladesh’s labor laws. This means you can channel all your focus to other high-value expansion initiatives instead of paperwork and legalities.

If you still choose to set up a local entity, selecting the right business structure is key. It determines your legal responsibilities, tax obligations, and how flexible your operations will be. 

Common business entities:

• Private Limited Company (PLC): The most popular option for small to medium-sized businesses, offering limited liability to shareholders.
• Public Limited Company (Ltd.): Ideal for larger enterprises planning to raise capital through public offerings.
• Branch Office: Suitable for foreign companies seeking to establish a local presence without creating a separate entity.

Step 2: Reserve your company name

Choose a unique name for your company that complies with the Registrar of Joint Stock Companies and Firms (RJSC) guidelines. You can verify name availability through RJSC’s online name clearance service.

Step 3: Prepare and submit required documents to the RJSC

Once you’ve finalized your business entity and name, prepare the necessary documentation for submission.

Required documents:

• Articles of Association (AOA) and Memorandum of Association (MOA)
• Director identification and proof of address
• Proof of the company’s registered office in Bangladesh
• Name clearance certificate from RJSC

Submission process:

• Online: Submit your application via the RJSC portal.
• Offline: You can also submit documents directly at RJSC offices if preferred.

Step 4: Open a business bank account

A local bank account is necessary for conducting business transactions, paying taxes, and meeting other financial obligations.

What you’ll need:

• Company registration certificate
• Articles of Association and Memorandum of Association
• Identification documents for directors and authorized signatories
• Proof of registered office address

Opening a bank account in Bangladesh can be a hassle, but with an Employer of Record (EOR), you can skip it entirely. Here’s how an EOR makes payroll effortless:

• Pay your team in Bangladeshi Taka (BDT) or other currencies without any friction.
• Stay fully compliant with Bangladesh’s tax laws.
• Leave behind the headaches of global payroll management.

An EOR handles payroll and compliance so you can focus on scaling your business. 

Step 5: Register for taxes

Ensuring compliance with Bangladesh’s tax laws is vital for smooth operations.

Key tax registrations:

• Corporate Tax: Registration is mandatory for all businesses.
• VAT Registration: Required if your business meets the taxable turnover threshold, which varies by sector.
• Payroll Tax: If you plan to hire employees, you must register for payroll tax and social security contributions.

By following these steps, you can ensure your business is set up legally and efficiently in Bangladesh. 

Now, let’s break down the costs associated with company registration to help you budget with confidence.

The real cost of registering a business in Bangladesh

For business owners planning to establish a company in Bangladesh, here’s a clear breakdown of the typical costs to help you plan effectively:

1. Registration costs
   • RJSC filing fees: The Registrar of Joint Stock Companies and Firms (RJSC) charges approximately BDT 5,000 to BDT 10,000, depending on the type of company.
   • Legal and documentation fees: Drafting the Memorandum and Articles of Association can cost BDT 10,000 to BDT 20,000.
   • Name clearance fee: Securing a unique company name costs around BDT 2,000.
   • Stamp duty: Expect to pay BDT 3,000 to BDT 5,000 for official documentation.
2. Annual maintenance costs
   • Accounting and auditing services: Fees start at BDT 20,000 per year, varying based on the company’s size and activities.
   • Tax filings: Professional services for filing corporate taxes and VAT typically cost between BDT 10,000 and BDT 15,000 annually.
   • Registered office renewal: Maintaining a registered address can cost around BDT 5,000 annually.
3. Additional considerations
   • Banking services: Opening a corporate bank account may involve an initial setup fee, depending on the bank.
   • Compliance costs: Keeping up with local labor and tax regulations may require professional assistance, which can add to ongoing costs.

An Employer of Record (EOR) helps cut down costs and simplifies the administrative workload. From handling payroll and taxes to ensuring compliance, an EOR lets you operate smoothly with one clear, predictable fee.

Up next, we’ll break down how traditional entity registration compares to the cost-saving benefits of using an EOR in Bangladesh.

Cost comparison: standard registration vs. EOR

Here’s a straightforward breakdown of the cost differences between registering a company through traditional methods and using an Employer of Record (EOR) in Bangladesh:

While traditional company registration demands upfront costs and ongoing administrative management, an EOR simplifies the process with predictable monthly fees that cover compliance, payroll, and operational requirements.

Next, let’s explore how partnering with an EOR can streamline and accelerate your expansion into Bangladesh.

Take the stress out of your Bangladeshi expansion with Multiplier

Growing your business in Bangladesh doesn’t need to involve complicated procedures or overwhelming paperwork. With Multiplier’s Employer of Record (EOR) solution, you can prioritize scaling your operations while we take care of the details.

With Multiplier as your trusted partner for Bangladesh, you can:

• Hire locally, scale globally
  Leverage Bangladesh’s skilled, cost-effective workforce without the complexity. Our local HR experts handle compliant contracts and seamless onboarding, so you can expand confidently.
• Effortless payroll management
  Stay compliant with Bangladesh’s tax laws, social contributions, and payroll regulations. We ensure real-time accuracy in tax filings, payouts, and reporting—no errors, no stress.
• Streamlined HR operations
  Simplify onboarding, expenses, and leave management with our all-in-one platform. Gain full visibility and control over your teams in Bangladesh effortlessly.
• Compliance made easy
  Bangladeshi labor laws and tax requirements can be tricky—let us handle them. From employment contracts to payroll taxes, we ensure you meet every regulation, every time.
• Tailored benefits that attract
  Stand out with competitive, locally optimized benefits. We manage the administration so your team gets the support they need without extra effort.
• Support you can trust
  With 24/5 expert assistance, GDPR compliance, and SOC 2-certified security, we keep your business and employees protected at every step.

With Multiplier, establishing your presence in Bangladesh becomes a streamlined and stress-free journey. From payroll and compliance to local onboarding and tailored support, we provide everything you need to grow your business with confidence. Let us handle the complexities while you focus on unlocking your organization’s maximum potential in Bangladesh.

Book a Demo today and discover how easy it is to expand into Bangladesh with Multiplier’s EOR services.