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how-to-start-a-partnership-business-in-bangladesh

How to Start a Partnership Business in Bangladesh

Barrister Kazi Zawad Bodruddoza

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18 Nov 2023

Starting a partnership business in Bangladesh involves several steps, including preparing necessary documents and registering with the Registrar of Joint Stock Companies and Firms of Bangladesh (RJSC). Here's a step-by-step guide:

⦿ Step 1: Choose a Partnership Name-
Ensure that the chosen name is not identical or similar to an existing firm,and avoid names that contain words suggesting government approval. Afterwards, check the availability of the desired name on the RJSC website.

⦿ Step 2: Prepare a Partnership Deed

Draft a Partnership Deed: Include essential clauses such as the name and address of the firm and partners, nature of business, commencement date, duration of partnership, capital contributions, profit-sharing ratio, and rules for events like retirement or admission of partners, and additional clauses may be added as needed.

Stamp and Notarize: The Partnership Deed should be on a stamp paper as per the Stamp Act, and all partners must sign the deed, and it should be notarized.

⦿ Step 3: Register Partnership Deed with RJSC

Fill Form I: Complete Form I, providing details like the proposed partnership name, particulars of partners, residential addresses, details of the registered address for the partnership, and the percentage of the share of profit for each partner.

Submission to RJSC: Submit the Partnership Deed and Form I to the RJSC for review; RJSC officials will assess the documents to ensure compliance with legal requirements.

Certificate of Registration: If the officials are satisfied, they will record the partnership in the Register of Firms, and a Certificate of Registration will be issued.

⦿ Additional Information:

Liability:
- Partnership is considered a separate legal entity only if registered;
- Partners are jointly and severally liable for the partnership's obligations.

Taxation:
- Profits are treated as personal income for partners.
- Obtain a separate TIN for the partnership.

Members & Management:
- 2 to 20 partners are allowed, and partners can be individuals or companies.
- Unlike limited companies, partnerships don't have directors or shareholders; partners own and manage the business.

⦿ Partnership – Quick Facts:
- Registration is not compulsory, but unregistered firms face limitations in enforcing rights
- Limited Liability Partnership concept does not exist in Bangladesh.


Remember, it's advisable to consult with legal professionals or business advisors in Bangladesh to ensure compliance with any changes in regulations and to navigate the registration process effectively.

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⦿ How to Start a Partnership Business in Bangladesh

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