Automatic company registration from 12 November, instant approval on offer

The Registrar of Joint Stock Companies and Firms (RJSC) is launching a new Electronic Business Registration System (eBRS) to make company registration simpler and faster. The new system will come into effect from 10am on 12 November.

Under it, applicants who use the prescribed model memorandum and articles of association and submit the required information, documents and fees, complete identity verification and fulfil all conditions will receive instant approval for company registration. The process of issuing name clearance for a company will also be speeded up.

The information was given in a circular from the RJSC. To migrate data and prepare the new software technically, submission of new applications on the organisation's old e-service software will remain closed from 5pm on Monday until 10am on 12 November.

After that, all new applications for name clearance and company registration must be made through the new eBRS.

Not all applications will be settled in the same way under the new system. If applicants use the RJSC-prescribed model memorandum and articles of association and ensure the required information, fees, identity verification and the consent of the persons concerned, the application will be approved and registered automatically.

If someone uses their own or customised memorandum and articles of association, RJSC officials will examine the application under the prevailing laws and rules.

If the examination finds any inconsistency, incompleteness or error in the information, the application will be returned to the applicant's online account with instructions for correction.

In the initial phase of the new system, name clearance applications will be settled after an automatic preliminary check by the software followed by re-examination by officials. The RJSC said a decision will be given within 24 hours of receiving an application. Later, when the software's algorithm is improved, a fully automatic system for instant name clearance will be introduced.

New conditions have also been added for identity verification in the registration process. For any Bangladeshi citizen to become a shareholder, director, member or partner of a company, their National Identity Card (NID), e-TIN and mobile number will be verified in real time during the application process.

It will also be checked whether the mobile number is registered under the person's own NID. If verification fails, the person cannot be included in the relevant position. In applicable cases, proof of income tax return submission (PSR) must also be scanned and uploaded.

The consent of shareholders, directors, members and partners must be confirmed using a one-time password (OTP) sent to their email or mobile. Until the consent of all concerned is complete, the registration application will not proceed to the next stage of verification.

The RJSC has also issued instructions for applications submitted on the old software. Name clearances received until 5pm on 9 November and registration applications submitted from 1 July until that time will be migrated to the new system. Applications that were drafted but for which the prescribed fee was not paid will not be migrated. Those will have to be submitted again on the new software.