Partnership Registration in Bangladesh

Various types of business exist in Bangladesh. One of them is Partnership Firm and others are Proprietorship and Limited Company. A Partnership Firm is formed under the provision of the Partnership Act 1932. RJSC (The Registrar of Joint Stock Companies and Firms) is the sole authority to Register Partnership Firm in Bangladesh. For Partnership Registration in Bangladesh we should follow some steps those will discuss at the end of this article.

Especially similar minded or similar professionals two or more people when a business start and create a voluntary agreement with the intention of making and sharing profit among themselves that is called Partnership Business. For form a Partnership Business minimum two and maximum twenty people can include.

Now days for opening Bank Account for Partnership Business, Partnership Registration from RJSC is essential. For this many of the unregistered Partnership Business owner going to register their Partnership Firm from RJSC. On the other hand to get some legal facilities Partnership Business Registration from RJSC is mandatory.

Partnership Agreement:

Partnership Agreement is well known as Partnership Deed. Usually following terms and conditions are including in a Partnership Deed:

• Name, Present Address, Permanent Address of the Partner.
• Name of the Partnership Firm
• Nature of Business
• Business Address
• Duration of Partnership
• Share of profit taken by each Partner
• Amount of capital contribution of each partner
• Terms of Retirement
• Mode of Management
• Interest of Borrowings
• Dissolution of Partnership

Steps of Partnership Registration in Bangladesh:

A partnership firm can be registered at the time of creation or even subsequently. An application should file to the RJSC where following information should include:

• Take Name Clearance Certificate of the Partnership Firm
• Date of Establishment of the Partnership Firm
• Duration of the Partnership Firm
• Principal place of business with full Address
• Joining Date of Partners
• Particulars of Partners
• Particulars of Business
• Application must be submitted on the prescribed Form- I

We are suggesting you register your existing Partnership Firm immediately for avoiding unexpected circumstances. Also if you start a new partnership firm you must be Registration at RJSC in Bangladesh. To know more about RJSC.

Benefits of Partnership Business:

For the nature of business start-up capital fund by the partners, so the more partners, more capital they can invest into their business, which will permit more flexibility and more potential for progress.

A partnership firm is usually easier to register, run and manage. For partnership firms Rules and Regulations are not strictly regulated than companies. As long as all the partners can agree, they run their business as they like.

Every partner brings new ideas and skills to a business.  Easier to make a decision for solving a problem because of more brains to think about it. Every partner can share their duties and responsibilities for the business.

Partnership – Quick Facts

Liability

• A partnership is considered as a separate legal identity (i.e. separate from its owners) in Bangladesh only if the partnership is registered.
• All the partners of a partnership are liable severally and jointly for the liability of the partnership.
• The concept of Limited Liability Partnership does not exist in Bangladesh.

Taxation

From a tax perspective, partnerships in Bangladesh are not taxed at the entity level and profits are treated as part of each partners’ personal income and are taxed at personal income tax rates.

Members & Management

• There must be a minimum of 2 partners and maximum of 20 partners.
• The partners can be natural persons or companies.
• Unlike private or public limited companies, a partnership in Bangladesh does not have directors, shareholder or secretary, instead the partners own and run the business.