The country is an attractive investment hub for business owners as its government provides incentives such as a friendly investment environment, a large labor market, etc. It allows foreigners to invest privately in all industries, except defense, mining, and nuclear energy. Foreign direct investment (FDI) improves sectors such as garment and textiles, energy, and infrastructure, among others. With the establishment of export processing zones (EPZs), private economic zones, and special economic zones (SEZs), the country can aim at sector-specific foreign investment and business participation from global countries.
If you are a business owner looking to set up investment here, there are lots of companies available for sale. This guide provides information on buying a company here, and the forms of companies to look out for. If you are interested in buying an offshore company in this territory, then you need to read this.
Buying a Company
You can acquire a business online without traveling to it is located. Nonetheless, this can be unsafe and not recommended except with the assistance of a hired service provider. Purchasing an active or closed company is relatively easy, as there are lots of marketplaces on the internet advertising business and investment opportunities on sale. Although, this is inclined to scam by business identity criminals, hence, not recommended unless one intends to engage the services of a professional provider located in the country.
There are two phases to acquiring a company. Phase one is scouring for a desired business ready for sale and guaranteeing its authenticity through investigation. With SMERGERS, you can find active and verified businesses for sale and investment opportunities. For phase two, you should engage a service provider to substitute for you during the process. Alternatively, you may choose to do it yourself, but it is commended to contract a specialist who can facilitate the process smoothly.
Doing Business in Bangladesh
The country is a prominent production center due to its qualified and cheap labor. The government entices investors and company owners with its friendly policies such as the intellectual property protection policy. Registering a company is simple here, it takes at least a day to incorporate with the Bangladesh Investment Development Authority (BIDA).
Types of Companies
There are five types of legal structures acceptable by the Bangladesh Investment Development Authority (BIDA) namely sole proprietorship, partnership, limited liability company, public limited company, branch office, and representative office.
Owned and regulated by a person with total control over the business.
Involves more than one person and has to be registered with the Registrar of Joint Stock Companies and Firms (RJSC). All the partners have to contribute to the share capital.
Limited Liability Company (Private Limited Company)
A common business entity for foreigners with shares limited to the shareholders only. Shareholders fund the share capital needed to establish the business
Public Limited Company (PLC)
A form of structure, which may be listed on the Dhaka Stock Exchange (Securities Market of Bangladesh) and can sell its shares to the public.
A foreign business can set this up to carry out business activities here. Must be approved by the Bangladesh Investment Development Authority (BIDA) before commencing business.
Representative Office (Liaison Office)
Foreign businesses may set up a representative office on this shore. The business activities are limited to regular commercial activities, which do not generate income.
Features of a Company
All companies have their features and by knowing them one can make a good choice when acquiring a company. The following are some of the features of a company:
- Liability of Shareholders
- Registered company address
- Minimum capital
- Foreign ownership
- Number of Shareholders/Partners, et cetera