Small Business
Small Business In Bangladesh generally, three types of entities are observed operating in Bangladesh. These are Limited Company, Partnership Firm, and Proprietorship Business. Around 65% of businesses are being operated as a sole proprietorship basis. A single entrepreneur can start a proprietorship business. Generally, small and medium-size business venture goes for proprietorship.
Following Issues are taken into account by the authority
Liability:
A proprietorship is not considered as a separate legal entity. The owner is liable for all the business consequences.
Taxation:
The owner shall have to pay the tax by his individual head as his personal income from the business.
Maintenance & Operation:
Further required approvals:
Small Business In Bangladesh Once the Trade License is obtained for proprietorship business, a TIN certificate (Taxpayers’ Identification Number) is required to open a bank account (business account) to operate business transaction. At present most of the business implement VAT (Value Added Tax). To deduct VAT, one needs to collect a VAT Registration Certificate. TIN Certificate needs for deducting AIT (Advance Income Tax) at the source to operate the business.
If the proprietor wants to get involved with international business, he/she shall require Export Registration Certificate or Import Registration Certificate for doing international and multinational business. Now Bangladesh is one of the leading readymade garments, Jute, Frozen Food, Leather Goods, and Potato exporting country in the world. A good number of business entities like Proprietorship, Partnership Firm, and Limited Companies are interested to involve International business or Export & Import Business in Bangladesh. When two or more entrepreneurs want to start a Small Business In Bangladesh, either they have to form a Limited Company or a Partnership Firm.
This guide provides information on registration of a sole proprietorship in Bangladesh. To learn about various types of business entities in Bangladesh, refer to start a business in Bangladesh.
A sole proprietorship is the simplest form of structure in Bangladesh. However, it is suitable only for very small single-owner type business that does not carry any risks. Unlike a private limited liability company, a sole proprietorship does not provide limited liability protection and your personal assets are not protected from business risks.
SOLE-PROPRIETORSHIP – KEY FACTS
CONSIDERATIONS FOR FOREIGNERS
Small Business In Bangladesh Practically, a sole proprietorship is not an option for foreigners. Foreign business professionals should incorporate a private limited company instead. For further details about private limited companies, refer to company registration in Bangladesh guide.
DOCUMENTS REQUIRED AND REGISTRATION PROCEDURE
In order to register a sole proprietorship Small Business In Bangladesh, the following documents/information are required:
SOLE PROPRIETORSHIP ADVANTAGES
SOLE PROPRIETORSHIP DISADVANTAGES
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