To operate a business in any sector in Bangladesh, it is essential to establish a business entity, such as a sole proprietorship, partnership, branch office, or limited liability company. Once the business is incorporated or established, various laws and regulations become applicable. These regulatory laws, often set by the relevant authorities, impose certain compliance requirements on businesses. The regulatory compliances are generally mandated by the authority responsible for granting the incorporation or permission, such as the Registrar of Joint Stock Companies and Firms (RJSC) for limited liability companies and partnership firms, and the Bangladesh Investment Development Authority (BIDA) for branch offices.

General Regulatory Compliances for Limited Liability Companies:

• Board of Directors Meetings: Conduct at least four board meetings per year.
• Audit Report: Obtain an annual audit report from a certified audit firm.
• Annual General Meeting (AGM): Hold an AGM for shareholders and submit the required documents to the Registrar of Joint Stock Companies and Firms (RJSC).
• Share Register: Maintain an updated share register.
• Director Register: Keep a register of directors.
• Trade License Renewal: Renew the trade license annually from the respective city corporation or local government office.

General Regulatory Compliances for Branch Offices:

• BIDA Permission Renewal: Apply to BIDA for the renewal of the branch office’s permission at least two months before the existing permission expires.
• Bank Notification: Notify the Central Bank (Bangladesh Bank) through the authorized dealer bank after obtaining the initial or renewal permission from BIDA.

In addition to complying with the regulatory authorities mentioned above, most businesses must also fulfill taxation-related regulatory compliances with the National Board of Revenue (NBR).

General Taxation Regulatory Compliances:

• Tax Returns: Submit annual and quarterly tax returns.
• VAT Filings: Submit monthly, quarterly, semi-annual, and annual Value Added Tax (VAT) filings.

While business owners and investors, both local and foreign, may have a general understanding of the regulatory compliances they must follow, they often lack knowledge of the specific rules, procedures, and documentation required to comply fully. This lack of awareness can result in non-compliance, which may lead to penalties from regulatory authorities.

To ensure compliance, many businesses choose to engage law or consultancy firms, such as Corporate.com, to handle regulatory obligations. By doing so, they can avoid potential penalties and defaults that may arise from failing to comply with applicable laws.

Understanding and adhering to regulatory compliances helps business owners, investors, and future stakeholders make informed decisions that prevent legal complications down the road. Multinational companies often maintain complete regulatory compliance to ensure smooth operations and safeguard their business and reputation from any legal risks or penalties.

At Corporate.com, we specialize in helping businesses stay fully compliant with all regulatory requirements, allowing them to operate without unnecessary legal concerns.