The question every investment committee asks about Bangladesh is the same: can we get the money out again. The answer is yes for properly documented investment returns — and the qualification in that sentence is where the work is.
Bangladesh operates exchange control under the Foreign Exchange Regulation Act 1947, administered by Bangladesh Bank through its authorised dealer banks and a continuously updated body of circulars. Capital account transactions are regulated; current account transactions are freer but still documented.
Money in
- Equity: remitted through a scheduled bank, with the encashment certificate evidencing that it arrived as foreign investment. This certificate is what underpins the right to repatriate later — it should be obtained and kept.
- Shareholder loans and foreign borrowing: permitted, but subject to approval, with conditions on tenor and pricing. The approval should be in place before the money moves.
- Capital machinery and equipment contributed in kind: possible, with valuation and approval requirements.
Money out
| Outflow | Position | What it turns on |
|---|---|---|
| Dividends | Remittable to non-resident shareholders | Audited accounts, tax paid and withholding deducted, properly documented original investment |
| Sale proceeds on exit | Remittable | Valuation acceptable to the central bank, capital gains tax cleared, original inward remittance evidenced |
| Royalties, technical and franchise fees | Remittable within limits | The underlying agreement, its terms, and whether it falls inside the permitted parameters or needs specific approval |
| Interest and loan repayment | Remittable | The borrowing having been approved on those terms in the first place |
| Payments for services and management charges | Remittable | Documentation of the service actually rendered, withholding tax, and transfer pricing where the counterparty is related |
| Expatriate salary | A proportion remittable | A valid work permit, and tax paid in Bangladesh |
Positions summarised. Bangladesh Bank's requirements move by circular; confirm the current position before relying on any entry.
Royalty and fee structures
Licensing a brand, technology or franchise system into Bangladesh needs the remittance treatment planned at the point the agreement is drafted, not discovered at the first payment date. There are parameters within which royalty and technical fee remittance is permitted without specific approval, and arrangements outside them need approval that is better obtained before signature.
General information about Bangladeshi law, current at the date of publication. Not legal advice, and not a substitute for advice on your own facts.