Investing in Bangladesh
Questions we are asked first.
These eight come up on almost every first call with a foreign investor. The answers are general — your sector and structure can change them — but they are the honest starting position.
- 01Can a foreign company own 100% of a Bangladeshi company?
In most sectors, yes. A small number of sectors are reserved or restricted, and several regulated sectors — banking, insurance, telecoms, power — impose their own conditions on shareholding and board composition. The sector analysis should be done before the structure is chosen.
- 02Can profits be repatriated?
Yes, for properly documented investment returns. Dividends, sale proceeds, approved loan repayments and royalties within permitted parameters are remittable through an authorised dealer bank, subject to tax having been paid and the original inward investment being evidenced. The encashment certificate obtained when capital arrives is what makes repatriation straightforward later.
- 03Do I need a local partner?
Not as a general rule. Joint ventures in Bangladesh are usually commercial decisions — market access, land, distribution, government relationships — rather than legal requirements. Specific regulated sectors are the exception.
- 04Is an arbitral award from outside Bangladesh enforceable here?
Bangladesh is a party to the New York Convention and the Arbitration Act 2001 provides for the recognition and enforcement of foreign awards. Enforcement requires a properly prepared application and the Convention's grounds for refusal are preserved, but the route exists and is used. Foreign court judgments are in a materially weaker position where reciprocity is not established.
- 05Can I register my trademark internationally and have it cover Bangladesh?
No. Bangladesh is not a member of the Madrid Protocol, the Patent Cooperation Treaty or the Hague system, so there is no international filing route. A national application must be filed through counsel admitted in Bangladesh. An amendment to enable Madrid accession has been reported to be in progress.
- 06How long does it take to set up?
The incorporation itself is not usually the slow part. The gating items are legalisation of the parent company's documents, the inward capital remittance and encashment certificate, and any sectoral licence. An investor who starts document legalisation early and chooses their bank deliberately moves considerably faster than one who does not.
- 07Can I second staff from head office?
Yes, with a work permit from Invest Bangladesh (formerly BIDA) or the relevant zone authority and the correct visa category obtained before taking up employment. Secondment needs structuring, because a seconded employee can create permanent establishment exposure for the sending entity.
- 08What happens if we want to exit?
A share sale with proceeds remitted out, or a members' winding up, are both available. Both are materially easier where the entry was structured with the exit in mind — in particular where the original investment is properly evidenced and the capital gains position was modelled before completion rather than after.
Your question is not here.
Most of them are not. Tell us what you are trying to do and we will tell you whether it is straightforward, what it is likely to take, and who here would handle it. We respond within one business day, Dhaka time (GMT+6).
Ask us