Steps For Formation Of A Company In Bangladesh
Introduction:
Company Formation in Bangladesh is a long and complex procedure that includes various significant steps. The process of company formation in Bangladesh is subject to the Companies Act, 1994. There are plenty opportunities in Bangladesh to start a business. The joint stock company’s act of 1850 was the first sub continental act concerning company. Then in 1857 the act of 1850 was replaced by a new act and popularly used before the liberation the act of 1956. After liberation Govt. of Bangladesh reforms the company’s act of 1956 which is now known as The Companies Act (Bangladesh) – 1994.
Private and Public:
As per section 5 of the companies Act, 1994, there are mainly three kinds of companies. (1) Company limited by share (2) Company limited by Guarantee (3) Company with unlimited liability.
Definition of Company limited by shares
According to section 5(a) “Company limited by shares are those in which the capital is of fixed amount divided into member of shares and in which the liability of the members do not exceed the face value of his share.”
Companies limited by shares are two kinds. There are-
Private Company: As defined in section 2(1) (k) “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.” As per Section 5 “A Private Company can be formed any two or more persons.”
Public Company: As defined in section 2(1) (j) “Public Company means a company incorporated under this Act or under any law at any time in force before commencement of this Act and which is not a private company.” As per section 5 “A Public Company can be formed by at least seven persons as members and the membership are open to the public.”
The differences between public and private company are:
Minimum no. of members: The minimum number of person required to form a public company
Company Formation in Bangladesh is a long and complex procedure that includes various significant steps. The process of company formation in Bangladesh is subject to the Companies Act, 1994. There are plenty opportunities in Bangladesh to start a business. The joint stock company’s act of 1850 was the first sub continental act concerning company. Then in 1857 the act of 1850 was replaced by a new act and popularly used before the liberation the act of 1956. After liberation Govt. of Bangladesh reforms the company’s act of 1956 which is now known as The Companies Act (Bangladesh) – 1994.
Private and Public:
As per section 5 of the companies Act, 1994, there are mainly three kinds of companies. (1) Company limited by share (2) Company limited by Guarantee (3) Company with unlimited liability.
Definition of Company limited by shares
According to section 5(a) “Company limited by shares are those in which the capital is of fixed amount divided into member of shares and in which the liability of the members do not exceed the face value of his share.”
Companies limited by shares are two kinds. There are-
Private Company: As defined in section 2(1) (k) “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.” As per Section 5 “A Private Company can be formed any two or more persons.”
Public Company: As defined in section 2(1) (j) “Public Company means a company incorporated under this Act or under any law at any time in force before commencement of this Act and which is not a private company.” As per section 5 “A Public Company can be formed by at least seven persons as members and the membership are open to the public.”
The differences between public and private company are:
Minimum no. of members: The minimum number of person required to form a public company