PROPRIETORSHIP

Generally three types of business operate in Bangladesh. These are Limited Company, Partnership Firm and Proprietorship Business. Among them, the most preferable trade is proprietorship business in Bangladesh. A single entrepreneur can start a proprietorship business. Generally, small and medium scale businesses are regularly forming by proprietorship as it is an easy way to form this type of business.

If someone wants to start proprietorship business at first make a Trade License in Bangladesh from local authority, he or she may apply to the City Corporation Office, Municipality Office, Upozila Council, Union Council or other respective Government authority. For having a Trade License firstly, one needs to select a name for his or her proprietorship business. After that all the necessary documents have to be submitted and the necessary Govt. Fees have to be paid (depending on the kinds of business) to the Trade License issuing authority. After checking of all the papers, the Trade License is issued by the issuing body.

Some information and documents which are needed to collect the Trade License include the following:

Name of the Proprietorship Business

Owner’s address, Date of Birth, and Parents’ Names

VAT Challan copy of Trade License

Kinds of business, such as import, export, supplier, etc

Registered Address of the business

Fill up Trade License Form and owner’s signature

Owner’s Name

Owner’s Photograph

Office Rental Deed

Proprietorship business has some advantages, as like after receiving Trade License one can easily start operate the business.

* For operating business transactions smoothly, one needs to collect the Trade License for the proprietorship business, TIN (Tax Identification Number) and open a bank account for the business.

* A VAT (Value Added Tax) Registration Certificate must be collected, in order for the business to deduct VAT.

* TIN certificate shall be used for deducting AIT (Advance Income Tax) at source in operating business in the country.

* If proprietor wants to involve in international business with another country and engage into export/ import, he or she must have an Export Registration Certificate and an Import Registration Certificate.

* Bangladesh is one of the leading exporters of goods such as: readymade garments, jute, frozen foods, leather goods, and potatoes, therefore businesses like proprietorship, partnership, and limited companies are interested to involve in international businesses in Bangladesh.

* In contrast to Proprietorship, when two or more entrepreneurs want to initiate a business in Bangladesh, they can form a Partnership or a Limited Company. The registering authority of Limited Company and Partnership Firm is RJSC