Cost of Company Formation in Bangladesh: Complete Legal & Fee Breakdown (2026)
Understanding the cost structure of company formation in Bangladesh is essential for accurate financial planning, budgeting, and regulatory compliance. While starting a Private Limited Company offers significant limited liability and structural advantages, overall setup costs vary depending on your chosen Authorized Share Capital, licensing needs, and whether local or foreign equity is involved.
This legal guide outlines government statutory fees, stamp duties, professional legal expenses, and post-incorporation licensing costs required to establish a company in Bangladesh.
1. Statutory Breakdown of Government Fees & Stamp Duty
The government fees for registering a Private Limited Company with the Registrar of Joint Stock Companies and Firms (RJSC) are calculated primarily on a sliding scale based on the company's Authorized Share Capital.
┌────────────────────────────────────────────────────────┐
│ TOTAL FORMATION EXPENSES │
├───────────────────────────┬────────────────────────────┤
│ Official Government Fees │ RJSC Name Clearance, Reg. │
├───────────────────────────┼────────────────────────────┤
│ Non-Judicial Stamp Duty │ MoA & AoA Execution Duty │
├───────────────────────────┼────────────────────────────┤
│ Municipal Licensing │ Local Trade License & Tax │
├───────────────────────────┼────────────────────────────┤
│ Legal & Drafting Fees │ Corporate Legal Counsel │
└───────────────────────────┴────────────────────────────┘Statutory RJSC Fee Schedule
| Fee Category | Basis / Description | Estimated Cost (BDT) |
|---|---|---|
| Name Clearance Fee | Per proposed name application to RJSC | BDT 600 |
| MoA Stamp Duty | Fixed non-judicial stamp duty under Stamp Act | BDT 1,000 |
| AoA Stamp Duty | Tiered based on Authorized Capital (Up to BDT 1 Crore) | BDT 2,000 – 4,000 |
| RJSC Filing Fee | Fixed filing charge for mandatory forms (Forms I, IX, XII, etc.) | BDT 1,200 |
| Registration Fee | Calculated progressively based on Authorized Capital bracket | Sliding scale (from BDT 800+) |
| Certified Copies | Certified MoA, AoA, and Incorporation Certificate | BDT 1,000 – 1,500 |
| VAT on Govt Fees | Statutory 15% VAT on RJSC registration and filing fees | 15% of government fee |
2. Post-Incorporation Operational Licensing Costs
Once the RJSC issues the Certificate of Incorporation, an enterprise must secure local municipal licenses and operational registrations before commencing commercial activities:
| Operational License | Granting Authority | Estimated Cost Range (BDT) |
|---|---|---|
| E-TIN Registration | National Board of Revenue (NBR) | Free (Government Portal) |
| Commercial Trade License | City Corporation / Union Parishad | BDT 5,000 – 25,000 (Varies by location & sector) |
| VAT / BIN Certificate | National Board of Revenue (NBR) | Free (Official Portal) |
| Company Seal & Stamps | Local vendor | BDT 200 – 500 |
| Fire License / Environmental (Sector-Specific) | Fire Service / Dept. of Environment | BDT 10,000 – 50,000+ (If required) |
| IRC / ERC Licensing (Import/Export Entities) | Chief Controller of Imports & Exports | BDT 15,000 – 60,000+ (Based on limits) |
3. Sample Budget Estimate: Standard Local Private Limited Company
For a typical startup or mid-sized enterprise registering with an Authorized Capital of BDT 1,000,000 (10 Lakhs), the overall setup budget typically aligns as follows:
| Expense Head | Specific Item | Estimated Cost (BDT) |
|---|---|---|
| RJSC Costs | Name Clearance, Registration Fee & Certified Copies | ~BDT 4,000 |
| Stamp Duty | Non-judicial stamps for MoA & AoA | ~BDT 3,000 |
| Municipal Fees | City Corporation Trade License & Signboard Tax | ~BDT 10,000 – 15,000 |
| Legal Counsel | Corporate Legal Retainer (Drafting MoA/AoA, Filings, Follow-ups) | ~BDT 25,000 – 50,000 |
| Estimated Total | Comprehensive Setup Budget | ~BDT 42,000 – 72,000 |
4. Foreign Direct Investment (FDI) & Special Considerations
International entities or foreign nationals establishing a company in Bangladesh incur distinct procedural requirements:
Important Foreign Investment Notice: Foreign-owned private entities do not face a maximum equity cap in most sectors. However, remitting foreign equity requires opening a temporary "Name Clearance" bank account to obtain an official Inward Remittance Encashment Certificate.
Encashment Certificate Verification: Bank verification charges for foreign capital inflows range between BDT 2,000 and BDT 5,000.
BIDA Registration: Foreign companies should register with the Bangladesh Investment Development Authority (BIDA) to facilitate foreign work permits and profit repatriation.
Document Attestation & Translation: Foreign shareholder passports and corporate documents executed overseas must be notarized and apostilled or legalized by the relevant Bangladesh Embassy.
5. Ongoing Annual Compliance Expenses
Beyond initial formation, incorporated companies must budget for ongoing annual compliance obligations under the Companies Act, 1994, and tax laws:
- Annual General Meeting (AGM) & RJSC Filings: Filing Schedule X and annual returns with RJSC.
- Audited Financial Statements: Mandatory annual corporate audit by a chartered accountancy firm.
- Trade License Renewal: Annual renewal fee to the local City Corporation or municipal authority.
- Corporate Income Tax Return: Filing mandatory annual corporate income tax returns with the NBR.
Need Custom Cost Estimation & Legal Structuring?
At The Justice Corner, our corporate law specialists assist businesses with exact statutory fee calculations, MoA/AoA drafting, RJSC submissions, and post-incorporation licensing.
Contact us today to receive a tailored fee quote and strategic setup consultation for your enterprise.