How to start a business in Bangladesh as foreign investors:
- Registering a private limited company as foreigner
- Registration of branch office
- Registration of project office
- Franchise agreement
Local investors can start business easily although we do not guide the local investors. Our main focus is only to guide the foreign investors who are planning to start business in Bangladesh.
Know Bangladesh at first before planning to start a business: Human behavior, required business licenses, cost of business setup, political environment, population density, investment sectors, possibility of investment return, income tax rate, VAT, market and many other things.
Read also The procedure company formation in Bangladesh.
Private Limited Company Registration
- It’s not easier like other country to register private limited company by registrar of joint stock companies and firms, RJSC.
- All limited companies are registered by this organ of government.
- To know in detail procedure of company registration may visit here.
- No foreign investors are allowed to start business without legal identity, business registration.
- Declare of investment capital in Taka
- Pay government fees as figure of authorized capital.
- Allocate number of shares and decide share holding position.
- Proposed 3 company names
- And complete objectives of the company as MoA.
- Most important information is that foreigner can hold 100 percent of shares in Bangladesh.
- Whereas local share holders or directors are not required to register new business.
- Very few consultant or lawyer or consultancy firms are aware on the procedure to register new business IF the directors are foreigner.
- Business registration is different than local business if the directors are foreigner.
Registration of branch office
- Branch office registration authorities are BOI and BEPZA in Bangladesh.
- Branch office is income tax free due to direct business involving is not permitted by the branch office.
- Branch office cannot receive any payment from customer into bank account but can expense from remitted capital of parent company.
- Visit here to know the procedure of opening branch office.
Permission of project office
- BOI has authority to permit of starting project office in Bangladesh.
- Project office is NOT income tax free.
- Know-how staffs are tax free for certain conditions.
- Foreign manpower can hire under project office.
- Being international business policy good can be sold upon conditions.
- Reputed company can open franchise in any country as global trade policy.
- Royalty fees can be charged by the main company from franchise owner.
Above information are required for the legal formalities. Starting a business as foreign investors are little bit complicated in Bangladesh. Many other licenses are required to start Manufacture Company. However, after completion of legal procedure and licensing you are permission to start business in Bangladesh. Some other steps should keep in mind:
Subsidiary Company Registration
|Subsidiary Company||Share Holding||Nominee Director|
|Parent company (foreign)||Majority up to 100%||2 directors|
|LLC||Foreign: 99%, Local: 1% ( |
|1 director from parent and 1 director from local company|
|Parent company||Hold 100% shares||Appoint 1 representative on behalf of Bangladesh company|
Dhaka is the biggest traffic city. Location of business is an import issue.
As law, trade owners have to rent commercial office to start business and commercial space renting is expensive. You may ask for good suggestion to consultant. You may rent virtual office to save money and time for certain period or longer.
Foreign staff hiring
BOI has the right to approve hiring of foreign staffs. Foreign investors have to bring US$ 50,000 in bank to prove of capability of hiring so.
There are advantage and disadvantage to setup office inside of export processing zone. Tax free for certain period upon conditions.
Man power cost
It’s cheaper than many countries and labor force can save your money comparatively setup office in another country.
I hope, raw materials are available if you have garments business. But machines are imported in most of the cases.
Prospective sectors to start business in Bangladesh
- IT and
- Labor supply business.
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