Operating a Business

flag Bangladesh Bangladesh: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited liability company or LLC
Number of partners: Minimum 2 partners.
Capital (max/min): No minimum required.
Shareholders and liability: For limited liability companies, the liability of shareholders is limited to the amount of capital subscribed by them or held on their behalf. For unlimited companies, shareholder liability is not limited.
Public limited company or PLC
Number of partners: Minimum 7 partners (with 3 directors).
Capital (max/min): No minimum required.
Shareholders and liability: For limited liability companies, the liability of shareholders is limited to the amount of capital subscribed by them or held on their behalf. For unlimited companies, shareholder liability is not limited.
Business establishment (a branch or subsidiary of a foreign company)
Number of partners: 1 person.
Capital (max/min): No minimum required.
Shareholders and liability: An establishment is not a legal entity separate from the parent company abroad and therefore has no limited liability of its own.
The Competent Organisation
Registrar of Joint Stock Companies and Firms, Board of Investment
Company Directories
Bangladesh Yellow Pages, Commercial Registry
 
Setting Up a Company Bangladesh South Asia
Procedures (number) 9.0 7.1
Time (days) 19.5 14.6

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Bangladesh.

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The Active Population in Figures

201820192020
Labour Force 68,844,39770,160,18267,225,702

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 61.23%61.40%61.54%
Men activity rate 84.09%84.17%84.23%
Women activity rate 37.95%38.25%38.48%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
Bureau of Statistics
For Further Information About the Labour Market
Bangladesh Institute of Labor Studies

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Working Conditions

Legal Weekly Duration
No worker can work more than 48 hours per week or 10 hours per day.
Retirement Age
59 years
Working Contracts
An employer must normally provide employees with a written statement of terms and conditions of employment within two months of starting employment. Contracts can also be verbal.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to the Ministry of Labor and Employment of Bangladesh's minimum wage board the gross average monthly wage varies depending on the sector.
Average Wage
The gross average monthly wage is BDT 13,258 according to latest data available from the Bureau of Statistics of Bangladesh.
Social Contributions
Social Security Contributions Paid By Employers: There is no social security system in Bangladesh. However, companies of a certain size must contribute up to 5% of their profits to a fund (Workers Profit Participation Fund).
Social Security Contributions Paid By Employees: None

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Social Partners

Social Dialogue and Involvement of Social Partners
Freedom of association and the right to organize are guaranteed by the Constitution, but in practice the laws are not respected. Companies often discourage workers from forming unions and union members are subject to intimidation and violence. In special export zones, the right of association and protection of workers is limited. Industrial relations are often tense, especially in the textile sector, which saw the creation of more than 100 new unions in 2013.
Unions
Bangladesh Garment and Industrial Workers Federation (BGIWF)
Bangladesh Trade Union Kendra
Bangladesh Labour Federation
Bangladesh Free Trade Union Congress (BFTUC)
Jatio Sramik Federation
Unionisation Rate
Bangladesh has 2.5m of trade union members (roughly 4.4% of the workforce).
Labour Regulation Bodies
Ministry of Labour and Employment

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Latest Update: November 2022