New company registration surges despite pandemic

Despite the lengthy coronavirus pandemic, 13,613 new companies were registered in Bangladesh in the just-included fiscal year, highlighting the confidence of businesses in the economy.

This is the highest firm registration in a single year, according to data from the Office of the Registrar of Joint Stock Companies and Firms (RJSC).

The new company registration is up 22.50 per cent from a year ago, when 11,110 firms were incorporated.

"It is encouraging that new company registration has grown despite the pandemic," said Registrar Sheikh Shoebul Alam.

The growth shows that the economy offers immense opportunity to businesses, he said. 

The office of the RJSC is mandated to provide name clearances and registration to all public companies, private companies, liaison offices or branches of foreign companies, trade organisations, societies, and partnership firms.

Some 12,107 private companies took registration in FY21, up 34.37 per cent year-on-year. About 9,010 companies were incorporated in FY20.

Some 317 societies were incorporated in FY21, which was 250 in the previous year. The registration of partnership firms went up 30 per cent to 2,359 in FY21 compared to 1,827 in FY20.

In Bangladesh, there are 3,587 public limited companies, 186,825 private limited companies, 974 foreign companies, 51,332 partnership firms, 1,143 trade organisations, and 15,253 societies, data from the RJSC showed.

"Entrepreneurs are increasingly forming new businesses and making the investment as they hope that things will return to normalcy in the coming months," said Md Harun Or Rashid, deputy registrar of the Chittagong Office.

Md Rakibul Islam, assistant registrar of the Rajshahi office, said agro-based industries and trading firms in the division usually took registration from the office.

"The rise in registration is a positive sign. This is particularly important when the pandemic has created uncertainty in the economy," said Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue.

"The new firms will play a key role in creating new jobs and entrepreneurs."

The industrial economist said new firm registration posted higher growth in the FY20, and the trend continued in the just-concluded fiscal year.

Registration of new companies rose 24.32 per cent in 2018-19.

The RJSC earned Tk 217 crore in the last fiscal year in the form of non-tax revenues, stamp duties and value-added tax, up 19.23 per cent from a year ago.