06/01/2021
How to Start Business within a Legal Framework as Bangladesh Citizen?🤓😎🤓
It is really very appreciable that our young generation is now more inclined to start their own ventures rather than doing petty jobs for others. Young people prefer greater independence which is the main motivator for their lifestyle!!
COVID-19 pandemic has created a different dimension in thinking to the mindset of people who are already doing jobs. These people are either forced or influenced by some sort of inner self-calling for trying to make a second income source. They do it to support their already shrinking income and to minimize the unprecedented threats of losing the job.
Some are already trying quite seriously to focus on their new start-ups so that they can quit the boring, monotonous jobs as soon as possible.
👉👉Start of Business:🔥
For the prevalent uses of the internet and mobile devices around the Globe including off-course Bangladesh, Digital Marketing has gained its momentum. In our country, Facebook marketing is the most commonly used medium for digital marketing. There are hardly any smartphone users who don’t have a Facebook account.
Our younger generation is grabbing this opportunity to reach people with their products or services through marketing on the digital platform of Facebook. However, many of the already established corporate businesses or groups of companies are also focusing on this new dimension of marketing.
So, we see that F-Commerce (commerce on Facebook) is a great way of starting a venture!! The most interesting part of the F-Commerce business is that it doesn’t require any legal permission to start!!
However, when the business on F-Commerce becomes larger, the issue of framing the structure within a legal framework starts to emerge!!
To understand the legal structure of doing business, one must have a clear sense of the various types of business entities in Bangladesh and the differences among them. Each of these is subject to different regulatory and tax regimes reflecting their organization and ownership.
👉👉Sole Proprietorship🔥
A sole proprietorship is the simplest type of business form in Bangladesh. From a legal perspective, a sole proprietorship is not a separately incorporated entity and therefore the owner and the business are one and the same.
The owner personally owns all assets and liabilities of the business. There is no protection of personal assets from business risks and liabilities.
As the sole proprietor of a business, the owner has unlimited liability, meaning that if the business can’t pay all its liabilities, the creditors to whom his/her business owes money can come after his personal assets.
Many entrepreneurs are usually unaware of this enormous financial risk. If the business is sued or can’t pay its bills, the owner is personally responsible for the business’s liabilities.
👉👉Partnership🔥
Under Bangladeshi law, a partnership must consist of a minimum of two and a maximum of 20 partners. An agreement for the partnership is required for obtaining a trade license and opening a bank account.
The agreement is not required to be registered with the Registrar of Joint Stock Companies and Firms (RJSC). The liability of a partnership is borne by the partners.
The concept of Limited Partnership or Limited Liability Partnership does not exist in Bangladesh.
👉👉Company🔥
In Bangladesh companies are either – i) limited by shares; or ii) limited guarantee. Though it is technically possible to register an unlimited company, those companies are rare.
A limited liability company is a company limited by shares i.e. its liabilities are limited to the amount of share capital.
A limited liability company is a business entity registered under the Bangladeshi laws and a separate legal entity from its members.
In a limited liability company, the liabilities of the owners are limited to the assets in the company and their personal assets are protected from business liabilities.
A Bangladeshi Limited Liability Company can be – i) a private limited company, or ii) a public limited company.
🍁🍁Private Limited Company
A private limited company is a limited liability company in which the shares are held by less than 50 persons and are not available to the general public.
Most privately incorporated businesses in Bangladesh are registered as private limited companies.
The shareholders of a private limited company can either be individuals or corporate entities or both.
A private limited company is the most advanced, flexible, and scalable type of business incorporation in Bangladesh.
It’s also the most preferred type of Bangladesh business entity for serious entrepreneurs (as opposed to a sole proprietorship or limited liability partnership).
🍁🍁Public Limited Company
A public limited company is a limited liability company that may offer its shares to the general public.
A public limited company must have at least 7 shareholders and is subject to significantly more stringent rules and regulations since they have the power to raise funds from the public. Usually, a public limited company is listed on a stock exchange.
🍁🍁OPC (One Partner Company) - Company
From Fy 2020 one company shareholder pattern limited company formation is possible.
