This guide provides information on registration of a sole proprietorship in Bangladesh. To learn about various types of business entities in Bangladesh, refer to start a business in Bangladesh.

A sole proprietorship is the simplest form of business structure in Bangladesh. However, it is suitable only for very small single-owner-type business that does not carry any risks. Unlike a private limited liability company, a sole proprietorship does not provide limited liability protection and your personal assets are not protected from business risks.


  • A sole proprietorship in Bangladesh does not constitute a separate legal entity therefore it is not distinct from the owner/ proprietor. The business owner is personally accountable for all liabilities incurred during the course of the business.
  • Any Bangladeshi citizen of at least 18 years of age is eligible for a sole proprietorship.
  • A local commercial address must be provided as the business address for the sole proprietorship.
  • Profits of the sole proprietorship are treated as income of the individual who owns the entity, thus it is subjected to a tax rate as that of personal income.
  • As a Bangladesh sole proprietorship is not a legal entity, it cannot register another business firm.
  • Sole proprietorships do not need to audit their accounts as any profits will be taxed as personal taxes.
  • Trade License is the basic requirement for proprietorship.
  • Trade License needs to be renewed annually.
  • Practically, a sole proprietorship is not an option for foreigners. Foreign business professionals should incorporate a private limited company instead. For further details about private limited companies, refer to company registration in Bangladesh guide.


In order to register a sole proprietorship business in Bangladesh, the following documents/information are required:

  • Proposed business name in Bangla
  • Description of principal activities
  • Local business address for the proposed business in any commercial area.
  • Lease/Rent Agreement or title deed for the office address.
  • Copy of National ID for the owner.