Business registration to get costlier

The Office of the Registrar of Joint Stock Companies and Firms moves to increase different fees against the services it provides to public and private companies, joint ventures and societies, officials familiar with the matter told The Business Standard.

The fees for 34 types of services are proposed to increase two to six times, while those for 21 services are set to remain unchanged. The fees of three services will be withdrawn, according to a draft placed at a meeting of the agency on 12 February with Commerce Secretary Tapan Kanti Ghosh in the chair.

The company registration fee might go up six times as the Registrar of Joint Stock Companies and Firms has proposed an increase from the existing Tk1,000 to Tk7,000. The fee for changing a firm's name or address may also double from Tk200 if the proposals are approved.

"Although our operating costs have increased substantially, most of our service fees have not seen any revision over the past decade. So, we are now moving to increase the fees," Sheikh Shoebul Alam, registrar at the Office of the Registrar of the Joint Stock Companies and Firms, told TBS.

"A draft of fees has been prepared. It is yet to be finalised," he added.

Echoing Shoebul Alam, a commerce ministry official, wishing to remain unnamed, told TBS that the hikes in fees are being considered so that the Registrar of Joint Stock Companies and Firms can meet the increased operational cost and expand its services.

Business insiders, however, said the initiative will increase the burden on entrepreneurs to start new businesses. The expansion of the formal sector can be hampered, as a consequence.

"Costs of doing business in Bangladesh are already high as entrepreneurs are forced to spend money on many unnecessary things beyond the formal costs – and this hampers the growth of businesses," said Abul Kashem Khan, former chairperson of Business Initiative Leading Development, also known as BUILD.

"Moreover, the decision of raising service fees of the Registrar of the Joint Stock Companies and Firms at the moment of ongoing economic crisis will create further pressure on entrepreneurs," he told TBS.

"Rather, all the service fees of the registrar, particularly for new entrepreneurs, should be withdrawn if the government wants expansion of the formal economy. Also, the fees should be rational for existing business people," added Abul Kashem Khan, also a former president of the Dhaka Chamber of Commerce and Industry.

Most of the existing service fees of the registrar were previously revised in 2013 and a few were in 2016, officials said and noted that the number of registered companies in the country reached 2.70 lakh at the end of the fiscal 2021-22 with a gradual rise over the time.

The registrar, however, does not have enough office space to preserve documents of the large number of companies, they said, adding they also need higher revenue for service expansion, particularly for maintaining online servers.

Service seekers, on the other hand, often complain that they are forced to pay extra beyond the fixed fees and face hassles at the registrar's office. When asked about the matter, Registrar Sheikh Shoebul Alam said, "A customer may complain of not getting the service as per his convenience or desire, but we are serving the customers with our maximum capacity.

"Daily tasks are being completed on a daily basis, for which our officials work extra hours. People do not face hassles here."

He noted that they are now emphasising automation.

Proposed hikes in other key services

The Registrar of Joint Stock Companies and Firms has proposed fee increases for opening or closing a branch to Tk400 from Tk200, and dissolution of a firm to Tk1,000 from Tk500. Fixing any error will cost Tk400, which is now Tk200.

The fees will double to Tk20,000 for society registration and Tk2,000 for obtaining name clearance certificate.

The agency also proposed to include a new service fee in the case of the failure of any company shareholder to be present at the registrar's office during the transfer of his shares. The fee will be Tk10,000 to Tk25,000 in that case, which will compensate for the cost of the commission constituted by the registrar to go to the shareholder and complete the share transfer process.