Investment in Bangladesh

এতদ্বারা বাণিজ্যিক গুরুত্বপূর্ণ ব্যক্তি (অনিবাসী বাংলাদেশি) নির্বাচন নীতিমালা, ২০১৮ অনুযায়ী নিম্নবর্ণিত তিনটি ক্যাটাগরিতে বাণিজ্যিক গুরুত্বপূর্ণ ব্যক্তি (অনিবাসী বাংলাদেশি), ২০২৪ নির্বাচনের লক্ষ্যে আগ্রহী ও যোগ্যতা সম্পন্ন সকল অনিবাসী বাংলাদেশির নিকট হতে নিম্নোক্ত শর্তাধীনে দরখাস্ত আহবান করা যাচ্ছে :
To see the details, please click here.

Invitation for Prequalification
To see the details, please click here.

Accelerating the trillion dollar journey
To see the details, please click here.

Bangladesh Business Summit 2023
To see the details, please click here.

Regarding the celebration of Made in Bangladesh Week 2022 organized by BGMEA from 12-18 November 2022.
To see the details, please click here.

Prospectus and Abridged version of the prospectus for Non-Resident Bangladeshi (NRB) for IPO of Global Islami Bank Limited.
To see the details, please click here.

Invitation of Prequalification for Contract No. CP10, Signal System, Telecommunication System, Platform Screen Doors and Enterprise Resource Management System.
To see the details, please click here.

Investment in capital market involves certain degree of risks. The investors are required to read the prospectus and risk factors carefully, assess their own financial conditions and risktaking ability before making their investment decisions.
To see the details, please click here.

Invitation for Bids (IFB) of Implementation of civil works of SASEC Dhaka-Sylhet Corridor Road Investment Project-Package. WP-04.
To see the details, please click here.

EMPLOYMENT ANNOUNCEMENT FOR FOREIGN & BANGLADESHI EXPERTS.
To see the details, please click here.

Invitation of international tender for import of 6,000 (±5%) M.T. White Refined Sugar packed in transparent HDPE packet of 01(One)/02(Two) kg.
To see the details, please click here.

Invitation for Bids of Dhaka Mass Rapid Transit Development Project (Line-5): Northern Route Project
To see the details, please click here.

NOTICE FOR QUALIFIED INVESTORS (QIs) TO SUBMIT THEIR APPLICATION(S) THROUGH THE ELECTRONIC SUBSCRIPTION SYSTEM OF THE STOCK EXCHANGES FOR THE SHARES OF ACHIA SEA FOODS LIMITED.
To see the details, please click here.

Invitation of international tender for import of 6,000 (±5%) M.T. White Refined Sugar packed in poly lined jute or polypropylene bag of 25/24 kg.
To see the details, please click here.

Invitation For Tender (International) of a) 25,00,000 (-i-5%) Liter Refined Soyabean Oil, b) 6,000 (±5%) M. Ton White Refined Sugar, 4,000 -i-5% M. Ton Whole Husked (without Husk) Red Lentil & d) 5,000 (±10% M.Ton Onion.
To see the details, please click here.

Invitation of Prequalification Application for Contract NO. CP03 Consturction of main Line and Station (From Kamlapur Station to Rampunra Station)
To see the details, please click here.

Invitation of Prequalification Application for Contract NO. CPSS Consturction of main Line and Station (From Kamlapur Station to Rampunra Station)
To see the details, please click here.

International Tender Notice:
To see the details, please click here.

Vetted prospectus and notice for non-resident Bangladeshi(s) (NRB) for Qualified Investor Offer (QIO) of Star Adhesives Ltd.
To see the details, please click here.

Notice for Qualified Investors (QIs) to submit their application(s) through the electronic subscription system (ESS) of the stock exchange(s) for the shares of Star Adhesives Ltd.
To see the details, please click here.

Invitation of prequalification application for Contract No. CP04, construction of main line and stations (From the north of Rampura station to Natun Bazar station).
To see the details, please click here.

Investment in capital market involves certain degree of rlsks. The investors are required to read the prospectus and risk factors carefully, assess their own financial conditions and risk taking ability before making their investment decisions.
To see the details, please click here.

Invitation of international tender for import of 6,000 (±5%) M.T. White Refined Sugar packed in 50 KG polypropylene bag.
To see the details, please click here.

ঢাকা আন্তর্জাতিক বাণিজ্য মেলা-২০২২ এ বিদেশি প্রতিষ্ঠানের অংশগ্রহণ প্রসঙ্গে
To see the details, please click here.

Application for selection of CIP (NRB) 2022.
To see the details, please click here.

Invitation of International Tender for White Refined Sugar. To see the details, please click here.

BHC London in colaboration with the ICT Division of the Government of Bangladesh has launched the virtual IT desk - the ITConnectBD.

Publication of EOI Notice for construction supervision consultants for the improvement of Sylhet-Tamabil road to a 4-lane highway in the websites of Bangladesh Mission: To see the details, please click here.

Notice for Invitation of Expression of Interest (EOI) by the Road Transport and Highways Division, Government of Bangladesh: To see the details, please click here.

The Government of the People's Republic of Bangladesh is inviting Expression of Interest (EoI) for consulting firm for preparation of drawing, design and supervision of construction work for implementation of the project titled ‘Construction of Bangladesh Chancery Complex in Jeddah, Saudi Arabia’. To see the details, please *click here* :

Application for CIP. Click here to download English and Bengali version.

For downloading the Prospectus of Walton Hi-Tech Industries Limited (abridged version), please click here .

1. FDI Inflow to Bangladesh from UK (Million US $)

Year Total FDI Flow to Bangladesh FDI from the UK FDI from UK as % of Total
2003 350 116 33.14
2004 460 106.2 23.09
2005 845 111.9 13.24
2006 792 127.6 16.11
2007 666 140.2 21.05
2008 1,086 138.5 12.75
2009 700 207.3 29.61
2010 913 105.68 11.58
2011 1,136 116.32 10.24
2012 990.04 136.94 13.83
2013 1,599 191.35 11.97
2014 1,526.70 180.98 11.85
2015 2,235.39 300.8 13.46
2016 2,332.72 330.32 14.16
2017 2150.00 312.98 14.56

2 . Areas Allowed for Foreign Investment

Foreign investment is encouraged in all sectors except for the following four sensitive sectors:

  • 1. Arms and explosive
  • 2. Nuclear energy
  • 3. Security printing and printing of notes and coins
  • 4. Mechanical extraction of reserved forests

3. Incentives for Foreign Investors

  • 1. Foreign investment is protected by Foreign Investment Promotion & Protection Act, 1980;
  • 2. 100% foreign equity is allowed;
  • 3. Presence of unrestricted exit policy;
  • 4. Tax holiday for 5-7 years for 23 selected sectors;
  • 5. Private power companies are allowed a tax holiday for 15 years;
  • 6. Accelerated Depreciation Allowance (ADA) is allowed instead of tax holiday for newly industrial units under specified schedule;
  • 7. Concessionary duty on imported machinery: 1% import duty on capital machinery and spares for 80% to 100% export oriented industry. This is applicable for initial installation or BMR/BMRE of the existing industries;
  • 8. 3% import duty on capital machinery and spares for other industries. This is applicable for initial installation or BMR/BMRE of the existing industries;
  • 9. Value Added Tax (VAT) is not payable for imported capital machinery and spares;
  • 10. Avoidance of double taxation on the basis of Double Taxation treaties;
  • 11. Full repatriation facilities of dividend and capital in the event of exit;
  • 12. Provision for granting permanent residence permit on investing US$ 75,000 and citizenship offer investing US$ 5,000,000

Additional Incentives:

  • 1. Lower living costs for the expatriates;
  • 2. Wages and salaries are lowest in the region;
  • 3. Duty draw back facilities;
  • 4. Consistent adaptation of market liberalization and privatization policies;
  • 5. Investment by NRBs is considered as FDI;
  • 6. Up to 10% of public shares are retained for NRBs;
  • 7. NRBs are allowed to retain foreign currency deposits in NFCD accounts;
  • 8. Highest remittance senders are awarded with CIP;

4. Road Map to Investment in Bangladesh click here to get chart for investment Road Map in Bangladesh.

5. Registration of a Foreign Company in Bangladesh

A foreign company needs to register its entity to the office of the Registrar of Joint Stock Companies and Firms (RJSC) and also has to obtain a trade license from the local City Corporation office and get an income tax and VAT certificates from the National Board of Revenue for operating in Bangladesh.

To register a company it has to submit the following papers to the RJSC office along with applicable registration fee. However, it does not need to have the Name Clearance from RJSC which is however mandatory for a local companies.

  • 1. Memorandum and Articles of Association of the Company (Form No. XXXVI);
  • 2. Address of the registered or principal office of the company (Form No. XXXVII);
  • 3. List of directors and managers (Form No. XXXVII);
  • 4. Return of persons authorized to accept service (Form No. XXXIX);
  • 5. Notice of situation of the principal place of business in Bangladesh (Form No. XLII);
  • 6. A board meeting resolution that takes a decision to set up a company in Bangladesh;
  • 7. Encashment certificate obtained from any scheduled bank;
  • 8. Permission from Bangladesh Investment and Development Authority (BIDA);

Note: All the above mentioned forms are available the RJSC website at:

http://www.roc.gov.bd/site/forms/1a138a8a-7a30-4f11-adc8-a2db55a773dc/Company/TO-forms

6. Fees for Registering a Foreign Company

A company has to pay the required fees for registering with RJSC. For filing 6 documents (5 filled in forms @ BDT 200.00 per document plus 1 Memorandum & Articles of Association, @ BDT 200.00) BDT 1,200.00).

7. Taxes to be Paid by Foreign Companies

Similar to the local entities, foreign companies and investors are liable to pay income tax and corporate tax as per existing rules and procedures.

7a. Income Tax
Income tax is dependent on whether an individual is classified as resident or non-resident in a given tax year. An individual is classified as a resident if they stay in Bangladesh for at least 182 days in one income year, or for 90 days if they have previously resided in Bangladesh for more than 365 days in the four preceding years. Residents are subject to progressive rates of income tax, which range from 10% to 30%. Non-residents, with the exception of Bangladeshi non-residents, are subject to pay a flat rate of 30%.

7b. Corporate Tax
The following table provides a description of corporate tax rates presently prevailing in Bangladesh:

Sl. No. Nature of the Company Rate (%) Condition/Rebate
01

For publicly traded companies (except bank, insurance, leasing and other financial institutions)

27.5%

Any listed company which declares a     dividend at 20% or higher, will benefit from a tax abatement at 10%.

     

Any listed company which declares a dividend at 10% or lower, or does not distribute a dividend approved/ declared by SEC, will be required to pay tax at 37.5%.

02

For non-publicly traded companies (except bank, insurance, leasing and other financial institutions)

37.5%  
03

Bank, insurance, leasing and other financial institutions

42.5%
04 For mobile phone operator companies

45%

If the mobile phone operator company transforms to a publicly traded company offering at least 10% of paid up capital in an IPO, then the tax rate will be 35%.

Source: Bangladesh Board of Investment Guidelines (Page 60)

8. Opening of Bank Accounts by Foreign Companies

A non-resident may open a Non-Resident Taka Account (NRTA) in the name of the proposed company/enterprise of foreign investors wishing to invest or set up a business in Bangladesh, without requiring prior approval from Bangladesh Bank. However, the account may only receive inward remittances from abroad.

After registration/commencement of the business, a new account in the name of the company may be opened following usual procedures and the account opened previously should be closed immediately and balances lying therein shall be transferred to the new Foreign Currency (FC) accounts and Non-Resident Foreign Currency Deposit (NFCD) accounts with foreign exchange brought from outside. Balance of these accounts are freely transferable abroad.

If for any reason, the proposed investment/incorporation does not take place, then the balance of the account, after meeting the required expenses, may be allowed to be repatriated without prior approval from Bangladesh Bank.

A foreign investor may also open and operate a Taka account freely with any bank while he is a resident in Bangladesh..

Non-residents may also open a Non-Resident Investor’s Taka Account (NITA) with any Authorized Dealer (AD) bank in Bangladesh with foreign exchange remitted from abroad through normal banking channel or by transfer of funds from non-resident investor’s foreign currency account for portfolio investment in Bangladesh.