Business Structure Comparison Chart for Bangladesh

Sole ProprietorshipPartnershipLimited CompanyBranch/Liaison Office
The business duration can be perpetualUp to the death of the proprietor. It shall be carried by the heirs later on.Up to the death of the partners. It shall be carried by the heirs later on.Perpetual in nature unless agreed otherwisePerpetual in nature unless agreed otherwise
Equity based share allotmentNot applicableNot applicableApplicableApplicable
Owners need not be BD citizens or residentsMust be BD CitizensMust be BD CitizensNot requiredNot required
Owners have limited liability for business debts and obligations Owner shall have to take the full liabilityOwners shall have to take full liabilityShareholders & directors have limited liabilityShareholders & directors have limited liability
Tax CalculationTax shall be calculated on the individual head of the proprietor at individual tax rateTax shall be calculated on the individual head of the partners at individual tax rateTax shall be calculated at the corporate tax rateTax shall be calculated at the corporate tax rate for the branch office
Owners can split profit and loss with the business for a lower overall tax rateNoNo No No
Owners can report business profit and loss on their personal tax returnsYesYesNoNo
Not required to hold annual meetings or record meeting minutesYesYesNo, It's required and need to file with the company house on a regular basis.No, It's required and need file with the concerned authorities on a regular basis.
May issue shares of stock to attract investorsNoNoYesYes, mother company may issue
May have an unlimited number of ownersNo, only oneYes, minimum 2 partners requiredYes, up to 50 membersNo
May be owned by another business, rather than individualsNoYesYesYes
Need to submit annual audited reportNoNot mandatory, yet they can submit annual return.YesYes
AuthorityUnion/Municipality/City Corporation Union/Municipality/City Corporation
Along with RJSC
Comparative credibility to Banks, Investors & clientsComparatively lessMore than Sole Proprietorship It has comparatively more credibility to the stakeholders to be engaged withComparatively less than Limited Company

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