5 things you need to know as a startup in Bangladesh

1. The minimum documentation you should have as a business is:

i. Trade License;

ii. membership certificate of a relevant trade organization or chamber of commerce;

iii. registration with Bangladesh Investment Development Authority (assuming the venture is an industry).

2. You may be tempted to avoid obtaining a tax identification no.("TIN") to remain outside the tax radar in the first few years of your business; but if you think in terms of growth and sustainability of business, it is ALWAYS a good idea to have a TIN.

3. Being involved in IT business would NOT necessarily grant you 100% exemption from income tax. So, for example, if you have a company which provides IT services as well as is engaged in distributorship of a product, any income accruing from distributorship will attract income tax. Needless to say, regardless of the exemption, you NEED to obtain a tax identification no.

4. You will be required to pay VAT, whether or not you are exempted from income tax. Presently, the applicable VAT rate is 5% for any IT based businesses.

5. At the time of structuring a startup, it is possible that you may find the solutions offered by Google perfectly suited to your needs; however, let's not lose sight of the unique ecosystem in which each market operates. So, while forming agreements between founders, you may find the ideas of vesting of shares, sweat equity, employee stock options prescribed in various articles found on the web, useful. But, these issues are governed by specific laws of specific jurisdictions; hence, it's always advisable to consult a professional before you lock-in an arrangement of this nature.