Partnership Firm Registration in Bangladesh.

Business Form

In Bangladesh, partnership firms are a popular form of business organization due to their ease of formation and minimal regulatory requirements.

Partnership Act

Partnership firms are governed by the Partnership Act of 1932, which provides the legal framework for the registration and operation of partnerships in the country.

Partnership Firm Registration

Registration of a partnership firm in Bangladesh is not mandatory, but it is highly recommended for several reasons. Firstly, a registered partnership firm enjoys legal recognition and can sue or be sued in its own name. This provides a sense of security and legitimacy to the business. Additionally, a registered partnership firm can avail of various benefits and facilities provided by the government and financial institutions.

Registration Process of Firm

The process of registering a partnership firm in Bangladesh involves several steps.

Name Clearance

The first step is to choose a suitable name for the firm. The name should not be similar to any existing registered firm and should not violate any laws or regulations.

Partnership Deed

Once the name is finalized, the partners need to prepare a partnership deed, which is a written agreement outlining the terms and conditions of the partnership. The partnership deed should include details such as the name and address of the firm, names and addresses of the partners, nature of the business, profit-sharing ratio, and other relevant provisions.

Signe by All Partners

After the partnership deed is prepared and signed by all partners, the next step is to obtain a non-judicial stamp paper of appropriate value and execute the partnership deed on the stamp paper.

Apply and deposit the prescribed fee

Subsequently, the partners need to apply for registration of the partnership firm to the Registrar of Joint Stock Companies and Firms. The application should be accompanied by the original copy of the partnership deed, a prescribed fee, and other necessary documents as required by the authorities.

Certificate of Registration

Upon receiving the application, the Registrar will examine the documents and, if satisfied, will register the partnership firm and issue a Certificate of Registration. The registration process usually takes a few weeks, depending on the workload of the Registrar’s office.

Trade License

It is important to note that the partners should also obtain a trade license from the local government authority to commence business operations.

TIN (Taxpayer identification number) and BIN (Business identification number)

Additionally, it is advisable for the partnership firm to obtain a taxpayer identification number (TIN) and Business Identification Number (BIN) from the National Board of Revenue to fulfill its Tax and VAT obligations.

Conclusion

In conclusion, registering a partnership firm in Bangladesh is a relatively straightforward process that provides numerous benefits and legal protections to the partners. It is essential for ensuring the smooth functioning and credibility of the business. By following the prescribed procedures and fulfilling the necessary requirements, Bangladeshi entrepreneurs can establish and operate their partnership firms with confidence and legitimacy..