A partnership may be registered with Registrar of Joint Stock Companies and Firm of Bangladesh (“RJSC”). There must be a minimum of 2 partners and a 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, shareholders or secretaries, instead the partners own and run the business.
PARTNERSHIP – KEY FACTS
- 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.
- 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.
PARTNERSHIP – DOCUMENTS REQUIRED
In order to register a partnership in Bangladesh, the following information/documents are needed:
- Proposed partnership name;
- Partnership agreement duly notarized;
- Form I;
- Particulars of the partners;
- Residential address of the partners;
- Details of the registered address for the partnership; and
- Percentage of the share of profit of each partner.