Registration of new local firms declined to 10,738 in FY23, a reduction by 20% year-on-year from FY22.
This downward trend follows a peak of 14,826 registrations in FY21, with subsequent decreases to 13,485 next year, according to official figures.
According to the Registrar of Joint Stock Companies and Firms (RJSC), entrepreneurs secured registration to establish 8,021 new companies in FY23, down from 10,817 a year ago.
Some 215 societies registered with the RJSC in FY23, a decrease from 254 in FY22 and 317 in FY21.
However, the number of partnership firms that obtained registration rose to 2,337 in the last fiscal year from 2,268.
The number of one-person company (OPC) registrations also increased to 140 in a year from the previous year's 124.
OPC registration began in FY22.
The income of RJSC also dropped during the period from Tk296 crore in FY22 to Tk270 crore in the just-concluded fiscal year.
In Bangladesh, there are 283,321 companies registered with the office of the RJSC until June 30.
They include 3,666 public limited companies, 205,484 private limited companies, 1,071 liaison offices of foreign companies, 55,937 partnership firms, 1,177 trade organizations, 15,722 societies and 264 OPCs.
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 organizations, societies and partnership firms.
It also handles tasks such as returns filing, issuance of certified copies, winding up and striking off firms.
Last month, the RJSC increased a total of 37 types of fees, such as application charges for firm registration, name and location changes and branch opening or closing, by two to more than five times, while 22 services remained unchanged.
The RJSC has also introduced fees for three types of services that were previously provided free of cost last month.
Businessmen said the fee hike will impact the costs of both local and foreign public and private limited companies, partnership firms, trade organizations, social organizations and individual companies registered with the RJSC.
They feared new entrepreneurs will face difficulties in starting their businesses due to the added costs.
Moreover, the move will dampen the expansion mood of the formal business sector.