How to get real estate license in Bangladesh

REGISTRATION AND LICENSE PROCESS 

An investor might set up a company to establish a business in the Real Estate market in a variety of methods, for example. A sole proprietorship, a partnership business, and a private limited company are all examples of business structures. Foreign investors are not eligible for the first two alternatives.

SOLE PROPRIETORSHIP 

A sole proprietorship is not a separate legal entity in Bangladesh. As a result, it is indistinguishable from the owner/proprietor. If any responsibility develops during the business, the business owner will be personally liable for any obligations.

Procedure for Registration

The following procedures must be done to start a single proprietorship firm in Bangladesh:

Step 1: Proposed Bangla business name

Step 2: Obtaining a Business License

General Permits

 Trade license:

A trade license is a prerequisite for owning a business. This may be obtained by applying to the appropriate City Corporation/local government, together with a copy of the business’s lease/rent contract. Entities operating in the commercial sector and those operating in the industrial sector must appropriately apply for a business trade license and an industrial trade license.

TIN Certificate — The application must be submitted through the National Board of Revenue’s online site (NBR).

VAT certificate — The application must be submitted using the National Board of Revenue’s online site (NBR).

BUSINESS PARTNERSHIP

The Registrar of Joint Stock Companies and Firms of Bangladesh (“RJSC”) must be contacted to register a partnership business.

STEP 1: SELECTING THE PARTNERSHIP NAME The Registrar of Joint Stock Companies and Firms must provide a Name Clearance for the proposed name of the Partnership Business (RJSC).

STEP 2 – PREPARATION OF A PARTNERSHIP DEED The Partnership Deed shall be prepared on a stamp paper in compliance with the Stamp Act, signed by all partners, and notarized.

STEP 3: FILE PARTNERSHIP DEED WITH RJSC The partnership deed should be filed with RJSC together with the completed Form I. The paperwork will be reviewed by RJSC authorities, who will then issue a Certificate of Registration.

Timeline – Obtaining the Certificate of Registration from RJSC after submitting the papers as per STEP 3 generally takes two weeks.

General

 Licenses TIN Certificate — The application must be submitted through the National Board of Revenue’s online site (NBR).

Trade License – An application must be submitted, together with the necessary government payments.along with the company paperwork and the lease/rent deed of the business’s office space to the relevant municipal corporation office/local government agency. Commercial trade licenses and industrial trade licenses are required for companies operating in the commercial and industrial sectors.

VAT certificate — The application must be submitted using the National Board of Revenue’s online site (NBR).

LIMITED LIABILITY COMPANY (LLC)

The setup procedure for a business:

The steps for forming a business are as follows:

Incorporation of a Business:

STEP 1 – RJSC must provide a Name Clearance for the Company’s proposed name.

STEP 2: Create and sign the necessary documents:

• Company Memorandum and Articles of Association; • Consent of Director to Act; • Particulars of the Directors, Managers, and Managing Agents;

STEP 3 – Establishing a bank account for the Bangladeshi company and transferring the foreign shareholders’ share capital (not required for local shareholders)

STEP 4 – The bank will provide an encashment certificate for the remittance (not required for local shareholders)

STEP 5 – The signed paperwork from step 2 must be sent to the RJSC, together with the encashment certificate and government fees for the incorporation of the business.

STEP 6 – RJSC verifies the paperwork and issues the certified incorporation documents.

Timeline – After submitting the papers in Step 5, RJSC typically takes 3 to 4 weeks to issue the certificates.

General Licenses:

After the business has been properly constituted, an online application must be submitted to receive the TIN certificate. Additionally, To complete the application, you’ll need a local phone number and a registered office address.

Trade License – The application must be submitted to the relevant municipal corporation office, together with the business paperwork and the lease/rent deed of the Company’s office space, along with the required government fees. Entities operating in the commercial sector and those operating in the industrial sector must apply for a commercial trade license and an industrial trade license, respectively.

The application for a VAT certificate must be filed using an internet portal and must be accompanied by company papers.

Specific licenses/approvals are required.

Entities that will need to import commodities and/or machineries for construction purposes will need to get an Import Registration Certificate (IRC). IRC applications must be submitted to the Office of the Chief Controller of Imports and Exports, together with entity incorporation paperwork, TIN certificates, trade licenses, bank solvency certificates, chamber of commerce membership certificates, and any applicable government fees. Every year, both certificates must be renewed.

Real Estate Developer Registration 

Every property developer must get registration from the relevant authorities in order to operate real estate empire in that region. The mentioned property developer must get government registration in order to operate real estate firm across Bangladesh.

Step 1: Every real estate developer must submit an application for registration to the government or, as the case may be, to the appropriate authorities in the form stipulated by the regulations, together with a copy of the following documents:

1) Trade License 2) TIN (Tax Identification Number) Certificate 3) VAT Registration Number 4) I project formulation and implementation experience (if any); (ii) Certificate of Qualification of Technical Persons (Certificate of Educational Qualification of Architects,Engineers, planners, and the concerned organization’s certificate of membership  professional body); (iii) Certificate of Qualification of Technical Persons (Certificate of Educational Qualification of Architects, ngineers, and Planners, as well as the related organization’s Certificate of Membership

5) Certificate of Incorporation, including Memorandum and Articles of Association;

 6) Copy of membership registration with the Property Development and Housing Association of Bangladesh (REHAB) or the Land Developers Association, 

.Step 2– After receiving the application, the government or, as the case may be, the authority shall approve the application within 60 (sixty) days of verifying and sorting the information obtained by the authority if it is satisfied that- • the applicant is able to meet the conditions laid down for the implementation of the real estate development project, he shall approve the application within that time and it will be informed If the applicant is unable to meet the stated requirements, the application will be denied with reasons and the applicant will be notified in writing.

Step 3– If the application is approved, the Government or the Authority will provide a Registration Certificate to the applicant for a period of 5 (five) years, subject to the payment of appropriate fees, within 30 (thirty) days after informing the applicant in writing. Every year, it can be renewed.

Step 4 – The competent authorities must keep and publish a list of registered developers in the required way.

Step 5 – The developer’s registration can be renewed, terminated, or changed in the required way.