Company registration in Bangladesh is a process for both local and foreign investors. The most common type of entity is a private limited company having liability limited by shares.
As per section 2(q) of Companies Act 1994, A Private Company is a Company which by its Articles of Association restricts the right of transfer of the share, limits the number of members to fifty, and prohibits invitation to the public to subscribe to the shares or debentures of the Company.
The Companies Act 1994 outlines the characteristics of a company in Bangladesh:
a. It restricts the rights to transfer the shares [s. 2(q)];
b. The minimum number of members is 2 (two) [s. 5];
c. The maximum number of the members is 50 (fifty) excluding the persons employed in the Company [s. 2(q)];
d. It must have at least two directors [s. 90 (2)];
e. It prohibits any invitation to the public to subscribe for the shares or debentures of the Company [s. 2(q)];
f. It does not have to fulfill the requirement of statutory meeting or statutory report [s.83(12)].