Company Formation in Bangladesh


Some important information for the FOREIGN investors who is looking to set up business in Bangladesh
1. Why USD 50,000 is required in terms of Foreign Investment in Bangladesh ? 
As rules of government , Foreign Investors have to deposit minimum USD 50,000 in terms of inward remittance, business Visa, foreign employment Visa, official expenses & other.

2. Do the Foreign Branch office is Tax exampted or do not ? 
Yes, Foreign Branch/ Representative/ Liason office is out of Tax Payer in Bangladesh but they need to submit Tax return ONLY, yearly.

3. What is Encashment certificate? Is is necessary to incorporate the foreign company (100 own/ JV) ? 
Yes. Encashment certificate is required to incorporate the foreign company in Bangladesh. Encashment certificate is issued by bank against PAID UP/ INVESTMENT amount of the company.

4. What is the ratio of man power of Foreign Company (100% own, JV, Branch office) ? 
1 : 5 , mean One Foreign Employee is equal of Five local employees.

5. Is BOI permission required to start foreign business in Bangladesh? 
No. it is not required always. BOI permission is required for PI & E Visa, remittance & others. But in case of Joint Venture (JV) company foreign investors can start business by incorporation certificate & Trade License.

6. Can expatriate transfer the profit to the mother / own country from Bangladesh ? 
Yes, they can do so by the approval of Bangladesh Bank.

7. How longer takes time to complete all procedure of company formation? 
Except branch/ rep/ liason office it takes almost 30 days to complete all procedure. Because all foreign applications are placed before the meeting of Board of Investment which usually held once in a month. All applications for permission of foreign branch office are placed before the meeting of BOI with all required documents for approval.

8. How longer will be allowed to pay the amount of USD 50,000 after permission of Branch Office? 
Almost 2 (two) months. If failed to bring the said amount in the period the applicants have to carry extra charge 5 % each month.

9. Can branch office transfer the profit in mother country? 
No. branch/ rep/ liason offices are not allowed to transfer any profit & branch offices are not allowed to do business in Bangladesh.



One thought on “Company Formation in Bangladesh

  1. Government of Bangladesh has opened field to invest in Bangladesh, green field to start business as Foreign entity. Its need to know and obey some terms and conditions to set up business in Bangladesh.

    There are many sectors can be profitable and successful doing business in Bangladesh, garments, textiles, clothing are one of them.


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