What are the Benefits of Starting a Business?

Entrepreneurs' goals and passions frequently lead them to create their own firms. It might be difficult to find the motivation to accomplish your excellent efforts when you work for someone else. Whatever you do, the company owner will enjoy the benefits. One of the most rewarding aspects of being an entrepreneur is starting a business and using it for social good. You can choose to contribute your profits to nonprofits, charities, or social projects. If you work hard and stay focused, there is no limit to how profitable your own firm can be. There's no reason why you may not be able to reach your financial goals.

You have little to no control over your tax burden when you work for someone else's paycheck. You can, however, change this by establishing a small business based on your interests. You can claim a lot of business costs as a small business owner, such as travel, food, phone bills, car payments, and office space. Anything that directly aids the growth of a business. You can even deduct a large portion of your income, minimising your tax burden and putting more money in your pocket.

Why Start a Business in Bangladesh?

Young, Skilled Workforce;

Bangladesh's young workforce is one of the key drivers of the country's economic progress. In actuality, Bangladesh's median age in 2018 was 26.0 years. There is also potential in technical education in the country. Every year, 15,000 fresh Bangladeshi graduates are hired by leading IT corporations such as IBM, Microsoft, and Google.

The European Commission named Bangladesh as a suitable outsourcing destination. Tech Parks have been established in Dhaka and Jessore to encourage the development of the ICT sector and the creation of a Digital Bangladesh.

Consistently High Economic Growth;

Bangladesh's soaring GDP is one of the most visible indications of the country's rapid economic expansion. The average GDP growth rate for emerging and developing countries is 4.9 per cent, according to the IMF. As a result, Bangladesh's GDP growth has been exceptional when compared to other developing countries.

Bangladesh's Business-Friendly Policies and Government Initiatives;

Bangladesh is now assessed by the IMF to be 'rising from low-income status,' with significant improvements in social metrics. More recently, sound macroeconomic policies and favourable external conditions—particularly strong export demand, high remittances (nearly two-thirds of which come from Gulf countries), and low commodity prices—have combined to produce solid growth, lower inflation, lower public debt, and more stability.

To attract private investment, the government is implementing a number of transportation and energy infrastructure projects, including upgrading rural roads in the southwest, widening the Elenga–Hatikumrul–Rangpur highway in the northwest to four lanes for better connectivity with Bhutan and India, and constructing and upgrading electricity transmission lines to avoid power outages.

Organizations such as the Bangladesh Stranded and Testing Institution (BSTI), Bangladesh Industrial Technical Assistance Center (BITAC), Bangladesh Institute of Management (BIM), Bangladesh Small and Cottage Industries Corporation (BSCIC), and many others provide administrative, institutional, and infrastructure facilities for the country's industrialisation.

Bangladesh's Industrial Infrastructure;

Aviation Facilities:

In Bangladesh, there are three international airports (Hazrat Shahjalal International Airport, Shah Amanat International Airport, Osmani International Airport) and seven domestic airports. In Bangladesh, over nine airlines operate domestic and international flights.

Roads and Highways:

Bangladesh has a road network of 3.33 lakh kilometres. Upazila, Union, and Village level roads have the longest lengths of this network. The Dhaka Chittagong Highways (215 kilometres) transport more than 60% of Bangladesh's commercial traffic and 27% of the country's passengers.

Railroads;

In Bangladesh, there are around 2.87 thousand kilometres of railroads. It is one of Bangladesh's busiest ways of transportation. New railroads are being built and operated in a commercial context.

Sea Ports:

Bangladesh has three operational seaports: Chittagong Port, Mongla Port, and Payra Port. In various places, there are a huge number of private or service-oriented port facilities. Bangladesh's maritime commerce flow is significantly concentrated in a single port, the Chittagong Port.

Natural Resources in Bangladesh;

Gas (natural);

Natural gas is an important source of energy in Bangladesh, where mining dates back to the 19th century and accounts for more than 70% of the country's commercial energy. With 26 gas fields generating over 2,700 million cubic feet of natural gas per day, it is Asia's seventh-largest natural gas producer. Aside from oil, the country produces other natural resources like coal, petroleum, and wood, all of which offer energy for residential and industrial use.

Land Resources;

Between the rivers the Brahmaputra and the Ganges, major tracts of land are found on the Bengal delta plains, exposing most of the land to annual flooding from heavy rains between May and November. After floods, many nutrient-rich alluvial soils are deposited, giving Bangladesh one of the world's most fertile soils.

Agriculture and Fishing in Bangladesh;

Early, Bangladesh's economy was predominantly agrarian, with agriculture employing about half of the population. Rice is the most important agricultural product in Bangladesh, but jute and tea, which both earn significant foreign exchange, are also important. Indeed, the country is a major provider of raw jute around the world. Wheat, pulses such as peas, beans, and lentils, sweet potatoes, oilseeds and spices of various sorts, sugarcane, tobacco, and fruits such as bananas, mangoes, and pineapples are all-important agricultural products. In addition, the country is a major producer of goat milk and meat.

Bangladesh's rivers are ideal for breeding and producing fish, and aquaculture accounts for more than two-fifths of the country's fish production. However, open-water fishing is possible in the rivers and along the coast, particularly in the Bay of Bengal's estuaries. The marine rupchanda, or pomfret, and the freshwater hilsa, a relative of the shad, are among the species harvested.

What are the steps for Starting a Business in Bangladesh?

Legal Entities that are available in Bangladesh;

Private Limited Company;

In Bangladesh, a high number of businesses are registered as private limited corporations (LLC). Anyone above the age of 18 is eligible to form a corporation. A minimum of two and a maximum of 50 shareholders, as well as two directors, are required by law. Also, keep in mind that you can organise a joint venture with a local company to pool your resources and reduce risk.

Public Limited Company;

A public limited company must have at least seven members, three directors, and no more than one hundred stockholders. Its shareholders can be any legal entity or anybody over the age of 18 who meets Bangladesh's legal requirements. It has the ability to raise contributions from the general population. It should also comply with the Securities and Exchange Commission Act 1993, in addition to the Companies Act of 1994.

The step-by-step procedure for setting up a company in Bangladesh;

Step 1: Clearance of Names;

To begin, you must obtain clearance from The Registrar of Joint Stock Companies and Firms for your company's name (RJSC).

Step 2: Prepare the necessary Documentation;

The second step is to write the Articles of Association (AoA) and the Memorandum of Association (MoA). You must draught it along with other forms as requirements for RSJC compliance while drafting them.

Step 3: Open a Bank Account;

Third, if you plan to hire foreign staff, you must open a bank account in the planned company's name and make an inward remittance of at least US$ 50,000.

Step 4: Submit Documents to the RSJC;

You must submit all relevant documentation to the RJSC and pay the registration fees in this step. During the regular process time, you can also look into RSJC for the incorporation certificate.

Step 5; Compliance after Registration;

You now have a freshly established company in Bangladesh with the certificate of incorporation, Articles of Association (AoA), and Memorandum of Association (MoA).

You must also complete the following licences and registrations:

Trade Permit

Tax Identification Number (TIN)

VAT Registration Certificate

Fire Certificate

Certificate of Environmental Clearance (if necessary)

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