Why Invest in Bangladesh?
A snapshot of a thriving economy with immense potential.
Export Earnings (2023-24)
Projected GDP Growth (2025)
Forex Reserves (Aug 2024)
Large & Young Population
Strategic Advantages & Key Infrastructure
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Major Projects: Padma Bridge, Dhaka Metro Rail, Karnaphuli Tunnel, and major power plants enhancing connectivity and capacity. -
Economic Zones: 68 Government and 29 Private EZs offering a favorable business environment. -
Growing Digital Economy: Rapid adoption of MFS (bKash, Nagad), e-commerce, and ride-sharing platforms.
Investment Conditions
Understanding the landscape for foreign direct investment (FDI).
Restricted Industries
FDI is not permitted in these 4 sectors:
- Arms, ammunition, and defence equipment
- Forest plantation and mechanised extraction
- Production of nuclear energy
- Security printing and mining
Protected Industries (Prior Approval)
Investment requires approval from the relevant ministry:
- Deep sea fishing
- Banking & financial institutions
- Power generation and distribution
- Telecommunication services
- And other key infrastructure sectors
Priority Sectors
Government encourages investment in high-growth areas:
- Hi-tech industries & IT
- Agricultural machinery
- Pharmaceuticals
- Automobile manufacturing
- Renewable energy
Modes of Entry & Setup Timeline
Choose the right structure and understand the setup process.
Incorporate a Company
The most common and flexible approach, providing a distinct legal entity. Governed by RJSC.
Private Limited Company:
Min 2, max 50 shareholders. Limited liability.
Public Limited Company:
Min 7 shareholders. Can offer shares publicly.
Open a Registered Office
Operate as a foreign company by registering with BIDA. Suitable for limited operations.
- Liaison/Representative Office: For marketing & coordination. Cannot earn income.
- Branch Office: Can engage in approved commercial activities.
General Partnership
A simpler structure under the Partnership Act, 1932. Involves an agreement between partners with unlimited liability.
Indicative Setup Timeline (Company)
Name Clearance & Bank Account
Apply to RJSC for name clearance. Open temporary bank account for capital deposit. (1-2 Weeks)
Incorporation
Prepare AoA/MoA and apply for incorporation with RJSC. (2-3 Weeks)
Tax & VAT Registration
Register with Income Tax Authority (eTIN) and obtain VAT registration (eBIN). (1 Week)
Licenses & Permits
Obtain Trade License and other necessary permits (e.g., IRC/ERC if required). (1-2 Weeks)
Tax Environment & Incentives
A favorable tax regime designed to attract foreign investment.
Corporate Tax Rates
- Non-Listed Company: 27.5%
- Listed Company: 22.5%
- One Person Company: 22.5%
- Banks/Financial Inst (Listed): 37.5%
- Mobile Phone Operator (Listed): 40%
- Exporter (General): 12% (10% with LEED cert.)
Major Tax Incentives
- Tax Holidays: 5-10 year regressive tax exemption for industries in specified locations.
- EZ/HTP/EPZ Investors: 10-year regressive tax exemption.
- Power Sector: Up to 15-year tax exemption for new plants, plus exemptions on royalties and interest for foreign lenders.
- PPP Projects: 10-year tax exemption for specified infrastructure projects.
Personal Income Tax (Resident)
Progressive tax slabs:
- First BDT 350,000: 0%
- Next BDT 100,000: 5%
- Next BDT 400,000: 10%
- Next BDT 500,000: 15%
- Next BDT 500,000: 20%
- On remaining balance: 25%
*Non-residents taxed at a flat rate of 30%.
Double Taxation Avoidance Agreements (DTAA)
Bangladesh has DTAAs with over 40 countries to prevent double taxation and promote investment, including:
Regulatory & Foreign Exchange
Key authorities and regulations governing your investment.
One-Stop Service Providers
BIDA
Primary regulator for most FDI
BEZA
Regulator for Economic Zones
BEPZA
Regulator for Export Processing Zones
BHTPA
Regulator for Hi-Tech Parks
Foreign Exchange (Forex) Regulations
Governed by Bangladesh Bank, the forex regime has the following key features:
- Capital Repatriation: Full repatriation of invested capital and profits/dividends is permitted.
- Equity Injection: Does not require prior approval, but must be reported to Bangladesh Bank.
- Foreign Loans: Subject to prior approval from BIDA and Bangladesh Bank.
- Outward Remittances: Generally restricted. Remittances for royalties, technical fees, and loan repayments are permissible under specific guidelines, often requiring approval.
