Sole-Proprietorship
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.
Sole proprietorship is the simplest form of business 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 A sole proprietorship in Bangladesh does not constitute a separate legal entity therefore it is not distinct from the owner/ proprietor. The business owner is personally accountable for all liabilities incurred during the course of the business.
Any Bangladeshi citizen of at least 18 years of age is eligible for a sole proprietorship.
A local commercial address must be provided as the business address for the sole proprietorship.
Profits of the sole proprietorship are treated as income of the individual who owns the entity, thus it is subjected to a tax rate as that of personal income.
As a Bangladesh sole proprietorship is not a legal entity, it cannot register another business firm.
Sole proprietorships do not need to audit their accounts as any profits will be taxed as personal taxes.
Trade License is the basic requirement for proprietorship.
Trade License needs to be renewed annually.
Source:
https://resource.ogrlegal.com/proprietorship-in-bangladesh/
