How Much Does It Cost to Form an LLC in Bangladesh?

An LLC (Limited Liability Company) is a business structure that protects its owners from personal liability for company debts. Bangladesh does not use the term "LLC" in its own company law — instead, the equivalent entity is called a Private Limited Company, registered under the Companies Act, 1994 with the Registrar of Joint Stock Companies and Firms (RJSC). When Bangladeshi entrepreneurs or diaspora investors ask "how much does an LLC cost," they are almost always asking about the cost of registering a Private Limited Company, which is why this guide uses "LLC" and "Private Limited Company" interchangeably.

A Private Limited Company gives shareholders limited liability, a separate legal identity from its owners, and the ability to hold assets, sign contracts, and raise investment in its own name. It is the structure used by the vast majority of startups, small businesses, and foreign-invested ventures in Bangladesh. The total cost to form one depends on your authorized share capital, whether any shareholder is a foreign national or foreign entity, your business location, and whether you hire a professional to manage the process.

This guide breaks down every fee involved — government charges from the RJSC, stamp duty, trade license costs, tax registration, capital requirements, and optional legal fees — so you can budget accurately before you start. If you want a tailored quote for your specific situation, contact Aeenx for a free consultation.

Total LLC (Private Limited Company) formation cost in Bangladesh falls into four buckets: RJSC government fees, stamp duty, trade license and tax registration, and optional professional fees. Below is a realistic total for the most common scenarios in 2025.

Scenario	Authorized Capital	Estimated Total Cost (BDT)
Small local startup	5–10 Lakh	30,000 – 58,000
Medium local SME	50 Lakh	60,000 – 90,000
Foreign-owned joint venture	1 Crore	1,80,000 – 3,50,000 (excl. paid-up capital)
Foreign-owned (incl. min. paid-up capital)	1 Crore	~58,00,000 – 64,00,000

These figures exclude any bank charges, translation costs for foreign documents, or ongoing annual compliance, which are covered later in this guide. Government fees are fixed by law and do not vary by service provider; professional fees are market-determined and vary considerably, so always request an itemized quote.

Before incorporation, your proposed LLC name must be cleared through the RJSC online portal to confirm it is not identical or confusingly similar to an existing registered company or trademark. The name clearance fee is approximately BDT 200–500 for domestic companies and around BDT 230 (including VAT) for foreign-invested companies. Clearance is valid for 30 days, so prepare your incorporation documents before applying to avoid paying twice.

Restricted words such as "Bank," "Insurance," "Government," or "Bangladesh" require special ministry approval and cannot be used freely. Purely descriptive names may also be rejected. A quick, correctly targeted search before submission avoids delays and repeat fees.

The RJSC registration fee is charged on a sliding scale based on authorized share capital — the maximum equity your LLC is permitted to issue, as stated in the Memorandum of Association (MoA). Plus a flat BDT 200 per document filing fee (typically 6–9 documents, so BDT 1,200–1,800 total).

Authorized Capital (BDT)	Approx. Total Govt. Fee incl. Stamp Duty (BDT)
Up to 1 Lakh	~3,950
5 Lakh	~17,000–18,000
10 Lakh	~22,000–24,000
50 Lakh	~36,000–40,000
1 Crore	~55,000–65,000
5 Crore	~2,00,000–2,20,000

Setting authorized capital modestly at incorporation (e.g., BDT 5–10 lakh) keeps this fee low; it can be increased later at an additional cost as the business grows. Use the official calculator at app.roc.gov.bd/psp/fee_calculator to verify exact figures for your capital level.

Under the Stamp Act, 1899, the Memorandum of Association attracts a flat BDT 2,000 stamp duty regardless of capital. The Articles of Association attracts a variable stamp duty: BDT 10,000 for capital up to BDT 40 lakh, BDT 30,000 between 40 lakh and 12 crore, and BDT 50,000 above 12 crore. Improperly stamped documents are not legally admissible as evidence, so this is a non-negotiable cost.

After incorporation, every LLC needs a trade license from the City Corporation, Paurashava, or Union Parishad covering its registered office location. Fees range from BDT 100 for small retail categories to BDT 40,000 for large commercial establishments; a typical small-to-medium company pays BDT 3,000–12,000 annually including signboard and license-book charges. The license must be renewed every year, and operating without one is illegal.

Both TIN (Tax Identification Number) and BIN/VAT registration through the National Board of Revenue (NBR) are free of official government charge. Full VAT registration is mandatory only if annual turnover exceeds BDT 50 lakh; turnover between 30–50 lakh qualifies for a simplified 3% turnover tax; below BDT 30 lakh is exempt. Even where not strictly required, most banks and large clients expect a BIN, so registering early is recommended. If outsourced, professional charges typically run BDT 2,000–5,000.

Paid-up capital is the cash shareholders actually deposit for their shares — distinct from authorized capital, which is only a ceiling used to calculate RJSC fees. For a wholly Bangladeshi-owned LLC, the legal minimum is nominally BDT 1, though banks commonly require at least BDT 1 lakh to open a corporate account. For companies with any foreign shareholding, BIDA and Bangladesh Bank require a minimum paid-up capital of USD 50,000, remitted from abroad and confirmed via an Encashment Certificate.

Foreign nationals and companies must also register with the Bangladesh Investment Development Authority (BIDA), pay a registration fee of BDT 5,000–1,00,000 plus 15% VAT depending on investment size, and — if establishing a branch or liaison office instead of a subsidiary — pay a recurring BDT 57,500/year Bangladesh Bank registration fee. Foreign document translation and notarization typically adds BDT 15,000–50,000. Work permits for foreign staff cost BDT 5,750/person/year. The single largest cost remains the USD 50,000 minimum paid-up capital requirement described above.

Engaging a consultant or law firm for drafting, filing, and follow-up is optional but common. Typical ranges: basic online filing services BDT 5,000–10,000; mid-range consultancies BDT 10,000–25,000; full-service corporate advisory BDT 25,000–60,000; foreign company full packages BDT 80,000–2,00,000+. Always ask for a breakdown separating fixed government fees from the provider's own service charge.

Standard requirements include: NID or passport copies of directors/shareholders, proposed name and object clause, draft Memorandum and Articles of Association, Form I (declaration of compliance), Form VI (registered office notice), Form IX (director consent), Form XII (particulars of directors), registered office proof (lease/utility bill), and — for foreign shareholders — an Encashment Certificate and notarized/apostilled parent company documents.

A domestic LLC typically takes 3–6 weeks from name clearance to full post-incorporation registration (TIN, trade license, BIN, bank account). A foreign-invested LLC takes 2–4 months due to Encashment Certificate processing, BIDA committee review, and Bangladesh Bank notification. Document errors and RJSC requisitions are the most common cause of delay.

No — you may instead operate as a sole proprietorship (trade license only, no RJSC registration, BDT 2,000–5,000) or a partnership firm. However, banks, government tenders, investors, and many corporate clients generally require the limited liability, credibility, and legal personality that only a Private Limited Company (LLC-equivalent) provides. If you don't register formally and operate a serious commercial business, you risk being unable to open a proper business bank account, sign enforceable contracts, or attract investment, and you retain full unlimited personal liability for business debts.

• Limited liability: shareholders are not personally liable for company debts beyond their share capital.
• Separate legal identity: the company can own property, sue, and be sued in its own name.
• Credibility: banks, investors, and large clients prefer dealing with registered companies.
• Perpetual succession: the company continues regardless of changes in shareholders or directors.
• Access to investment and credit: easier to raise equity or secure loans.

• Set authorized capital only as high as immediately needed — you can increase it later.
• Prepare all documents before applying for name clearance, since clearance expires in 30 days.
• Register TIN and BIN yourself — both are free through NBR's online portals.
• Use a commercial (not residential) address to avoid trade-license rejections and re-filing costs.
• Double-check director/shareholder ID details to avoid costly RJSC requisitions.
• Compare itemized quotes from providers rather than "all-inclusive" bundled prices.

Aeenx handles the entire LLC (Private Limited Company) formation process for Bangladeshi entrepreneurs and foreign investors — name clearance, drafting the Memorandum and Articles of Association, RJSC filing, stamp duty and fee payment, TIN/BIN registration, trade license applications, and BIDA registration for foreign-invested companies. Our fee quotes always separate fixed government charges from our own service fee, so you know exactly what you are paying for.

You can also book a consultation with our team to discuss authorized capital structuring, or reach out for BIDA and foreign-investment specific guidance. For entity-type comparisons or amendments to an existing company, talk to Aeenx before filing.