RJSC to probe into 1,400 shell cos

The Registrar of Joint Stock Companies and Firms (RJSC) is now investigating how 1400 name-only companies obtained registrations using the same address of two buildings at Karwan Bazar in the capital.

The two premises are 28 Taj Mansion and 33 Shah Ali Tower of Karwan Bazar -- both situated just about 200 feet away of RJCS office boundary.

The registration authority of the Private, Public Limited Company or Society suspects that some of its rogue staff might involve in getting the firms the required certification in exchange of bribe.

The National Board of Revenue (NBR) has found that 1392 private companies, mostly non-existent, unusually got registered using the two building addresses at Karwan Bazar. RJCS Registrar Sheikh Soebul Alam said they are probing into the issue.  

The Central Intelligence Cell (CIC) of NBR revealed that the 1392 companies got licence without TIN certificate. In addition, they also filed the report of field visits by the authorities concerned.   

CIC officials said they obtained the list of registered firms from the NBR and how many of them are paying income tax on TIN after forming a corporate compliance task force.

The CIC officials were taken aback to find that the companies did not submit any income tax returns through opening a taxpayer’s identification number (TIN).

Even they did not deign to submit an annual report to the Registrar of Joint Stock Companies and Firms.  

Md Alamgir Hossian, director general of the intelligence cell, told The Business Post their task force has been working for eight months and found these eccentric businesses registered with the RJSC using fake addresses.

“These name-only paper-based firms mushroomed to get bank loans. We would like to bring them under the tax net by making it mandatory to open a TIN certificate,” he made an assertion.

The main focus of CIC is to make sure all companies registered with the RJCS but are yet to submit their income tax do so in a due manner.

“These sorts of business firms must show their activities, income tax and annual audit report. Our evaluation team will work on them,” said Alamgir.

Around 25-30 small offices are housed in the four-story Taj Mansion, the ground floor of which is also occupied by some other offices including Bhai Bhai Engineering Works, Shyamoli Timbers, AB Timbers and Sonjita Timber.

Similarly, a staggering number of 60 to 65 offices are accommodated in 12-story Shah Ali Tower.

Several sign boards are still hanging on the facade of the building along with 20 to 25 law firms.

Hasan and Associates, one of the law firms, is there that is said to work on file processing for company registration with the RJSC.

A source in the NBR said most company registration applicants cannot get a certificate from the RJSC without the help of these law firms.

Advocate Rashidul Hasan, proprietor of the law firm, told The Business Post, “Anyone can get a company registration using my address but it is not permanent for an industrial unit.”