Registration procedure of a company in Bangladesh

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Offline Golam Kibria

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Registration procedure of a company in Bangladesh
« on: May 25, 2012, 06:03:56 PM »
The procedure of starting a new business in Bangladesh (based on the last edition of June 2011):

1.Verify the record of rights from the Land Office (also known as Land Revenue Office):

Parties check that land tax payments are up to date.
The land administration system in Bangladesh separates records of ownership and those on revenue as such:
a. Land Records Office for land records, surveys, publication and maintenance of records under the directorate of land records and survey (Ministry of Land).
b. Land Office or Land Revenue Office under Ministry of Land. There are 11 administrative offices in each upajela (sub district)
c. There are 64 districts in Bangladesh but 61 registration districts. 3 hill districts do not have registration centres. In Dhaka, the district land registration office has 11 subregistrar offices under the Ministry of Law.


Agency: Land Office or Land Revenue Office 
   
 


Time to complete :
15 - 60 days (simultaneous with procedures 2 and 3)

Associated Cost:
BDT 2,000

2    Conduct RS Mutation on property

Since the last survey on Dhaka was done, transfers of property titles created before then must be converted (mutated) to the new survey. This is requested at the Assistant Commissioner of Lands (Tahsil). In order to obtain this, an application is required to be made to the concerned Assistant Commissioner of Land with particulars of the property. The Assistant Commissioner forwards the same to the Tahsil Office, who are responsible for conducting the relevant survey and providing a report to Assistant Commissioner of Land. Upon receiving the report, the Assistant Commissioner of Land renders the mutation certificate. The inspection is noted in procedure 3. In the future, properties will have to be converted to the Mahanagar survey, which is currently underway.

Agency: Assistant Commissioner of Lands (Tahsil)

Time to complete:   60 days (simultaneous with procedures 1 and 3)
Associated cost  :    BDT 6000 approximately

3    Obtain inspection for RS Mutation:

The permission is only mandatory when the property is under the control of either the Ministry of Works (National Housing Authority) or RAJUK (Dhaka Improvement Trust since 1952 until it was renamed Rajdhani Unnayan Kartripakkh –RAJUK in 1982).

Although the permission is usually always granted, unofficial payments are still paid in order to expedite the process and guarantee approval, which amount to BDT 20,000.
The buyer also checks that the property is up to date with payments to the City Corporation Revenue Department, gas utility service, electricity utility service, and the water utility service to make sure that there is no outstanding dues payable so that the those liabilities do not transfer to him. Each of these checks will cost around BDT 625. These are standard steps customary in Bangladesh and not mandatory for registration.


Agency: Assistant Commissioner of Lands (Tahsil)

Time to complete : 60 days (simultaneous with procedures 1 and 2)    
Associated Cost :
Included in procedure 2

4    Obtain the non-encumbrance certificate from the relevant Sub-registry office:

The buyer checks the legal status of the land (mortgaged or leased or ownership) at the relevant Sub-registry.

Agency: Sub-registry    

Time to complete : 2-3 days
Associated Cost      :    BDT 500-700

5    Prepare deed of transfer and pay stamp duty:

A lawyer may prepare the transfer deed, but it can be prepared by the parties themselves. If a lawyer does it, the fees will be around BDT 6,000.
The deed must be prepared in stamped paper that will cost 3% of the property value to get it. This represents the stamp duty.

Time to complete : 1 day    
Associated Cost     :  3% of property value (Stamp duty)

6    Pay capital gains tax, registration fee, VAT and other taxes at a designated bank:

Registration fee = 2%
Local Government Tax = 1%
The 2% registration fee is payable to the Bank in favor of the sub-registry office and the receipt is to be presented at the moment of applying for registration.
Also, Capital Gains Tax = 2% (Not applicable in rural areas for agriculture. Applicable to land above 100 000 Takas, irrespective of when the transfer was made) and VAT = 1.5% (Applicable only for municipal corporation area payable by private housing and flat developers and commercial businesses) have to be paid at this stage.

Agency: Designated Bank
   

Time to complete : 1 day    
Associated cost    : local government tax (1%) + registration fee (2%) of property value

7    Apply for registration at the relevant Sub-registry:

The buyer applies for registration at the Municipal Deed Registry Office, presenting the receipts of payment for the registration fees obtained in Procedure 6.
A certified registration document is obtained within a week for the buyer’s record. The original sale deed/certificate requires about 6 months to be obtained.


Agency: Municipal Deed Registry Office
Time to complete :    180 days (simultaneous with procedure 8)
Associated cost :   Already paid in Procedure 6

8    Register the change in ownership at the Land Revenue Office:

The change of ownership must be registered in the Land Revenue Office. The property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred.


Agency: Land Revenue Office
Time to complete :
   45 - 60 days (simultaneous with procedure 7)
Associated Cost :    BDT 5,000

Collected.

Golam Kibria
ID:101-11-1373 (BBA)
Asst.Offic, Bangladesh Skill Development Institute
Ex.Lecturer,SEBGC
Email : golam_1373@diu.edu.bd
http://www.golamkibria.com
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