Partnership Firm Registration is one of the most popular ways to start a business in Bangladesh. The process is straightforward, and a partnership firm can be formed with a minimum of 2 and a maximum of 20 partners. This business structure is governed by the Partnership Act, 1932, and registered through the RJSC (Registrar of Joint Stock Companies and Firms).
Quick Facts: Partnership Firm Registration in Bangladesh
– Governing Law: Partnership Act, 1932
– Registering Authority: RJSC (Registrar of Joint Stock Companies and Firms)
– Minimum Partners: 2 | Maximum Partners: 20
– Partnership Deed Stamp Requirement: Tk. 2,000 non-judicial stamp
– Registration Form: Form-I
– Minor as Partner: Allowed only for profit-sharing, with unanimous consent of all partners
– Bank Account: Not possible without RJSC registration
When two or more entrepreneurs join together to create a business, they form a partnership firm. All partners unanimously agree on a business arrangement that outlines profit sharing, business operations, and the scope of activities. A minor (below 18 years) can be admitted to the benefits of a partnership only if all partners unanimously agree — though a minor cannot be held personally liable for the firm’s losses.
At present, a partnership firm must be registered with the RJSC; otherwise, the firm cannot open a bank account at any scheduled bank in Bangladesh.
Partnership Agreement (Partnership Deed)
A Partnership Agreement is commonly known as the Partnership Deed. Every partnership business must have a partnership deed to operate its business activities legally. The deed must be written on a Tk. 2,000 non-judicial stamp, and it outlines the business activities, terms, and conditions agreed upon by all partners.
- Name of the Partnership Firm
- Firm’s Business Address & Commercial Address
- Kinds of Business
- Partnership Firm’s Duration of activities
- Profit & Sharing percentage of each partner
- Portion of capital contribution of each partner
- Retirement Terms of the Firm
- Management body of firm’s
- Partnership Dissolution terms
- Borrowing percentage of Interest
- Partner’s details as like Name, Permanent Address, Present Address
Partnership Firm Registration Steps in Bangladesh
The RJSC is the only legal authority to register a Partnership Firm in Bangladesh. Below is the essential information required for Partnership Firm Registration:
- Partnership Firm Name Clearance Certificate
- the Partnership Firm Duration
- Firm’s registered address
- Partner’s joining date
- Business Particulars of the Firm’s
- Establishment date of the Partnership Firm
- Partner’s Particulars of the firm
- Partnership Firm Application must be submitted on the prescribed Form- I
Benefits of Partnership Business:
More entrepreneurs joining together for setting up a partnership firm that’s why large capital accumulated here of operating medium or big business. Some partners have exceptional knowledge which will be strength for business capability of competitive market in the global village.
Partnership firm set up and registration is more flexible than Limited Company Registration in Bangladesh. Partnership firm’s operating rules and regulations are not strong as limited company operation. Basically, profit of partnership business distributed by following the partnership agreement. Different type of experts operating the partnership firm for this reason increasing business and profit capability from others kinds of business.
After receiving the Partnership Firm Registration Certificate, most businesses proceed to obtain a Trade License, TIN Certificate, VAT Registration Certificate which are required for nearly every type of business. If you plan to conduct international trade, you will also need an Export Registration Certificate and Import Registration Certificate for Export & Import Business to foreign countries. Some businesses also require sector-specific permissions — for example, manufacturing industries typically need BIDA approval, a fire license, and a No Objection Certificate (NOC).
