Guide to Doing Business

Bangladesh
Prepared by Lex Mundi member firm,
Amir & Amir Law Associates

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A Guide to Doing Business in

Bangladesh
Prepared by: Amir & Amir Law Associates
Email: [email protected]
Web: www.aalabd.com

Updated 29th December 2011

Limitations of Scope: This guide contains a general introduction to the subject. The
information in this guide is meant for the purposes of reference and should not be used as
legal advice.
Source of Information: The information provided in this guide has been obtained from
various sources, namely the Bangladesh Board of Investment (BOI) and the Bangladesh
Bank.

A GUIDE TO DOING BUSINESS IN BANGLADESH

CONTENTS

I. BANGLADESH AT A GLANCE
I.A. Key Facts
I.B. Infrastructure
I.B.1. Telecommunications
I.B.2. Transport
I.B.2.a) Land
I.B.2.b) Water
II. INVESTMENT OPPORTUNITIES IN BANGLADESH
II.A. Bangladesh Investment Climate
II.B. Economic Overview
II.C. Investment Opportunities
II.C.1. Resource Advantages
II.C.2. Development Opportunities
II.D. Foreign Investors
II.E. Sectors with Investment Opportunities
III. GENERAL CONSIDERATIONS
III.A. Diplomatic Relations
III.B. Bangladeshs History and Government
III.B.1. History
III.B.2 Government
III.C. Legal System
III.C.1. Common Law System
III.C.2. Supreme Court
III.C.3. Special Courts
III.C.4. Alternative Dispute Resolution
III.D. Environmental Considerations
III.E. Intellectual Property Rights
III.E.1. International Obligations
III.E.2. Legislation
III.E.3. Permission for Royalties

IV. FOREIGN INVESTMENT INCENTIVES

IV.A. General Incentives for Foreign Investment
IV.B. Incentives for Export Oriented Businesses
IV.C. Access to Foreign Investors
IV.C.1. Access to the Sectors and Industries
IV.C.2. Acquisition
IV.D. Ownership, Property and Management Control
IV.D.1. Ownership
IV.D.1.a) Equity Participation
IV.D.1.b) Foreign Participation
IV.D.2. Shares and Securities
IV.D.3. Management Control
IV.E. Investment Protection for Foreign Investors
V. FINANCIAL FACILITIES
V.A. Banking/Financial Facilities
V.A.1. The Role of Bangladesh Bank
V.A.2 The Local Banks of Bangladesh:
V.B. Foreign Investors and Loans
V.B.1. Local Borrowings
V.B.2. Foreign Loans
VI. STRUCTURES FOR DOING BUSINESS
VI.A. Registered Companies
VI.B. Limited liability- Companies Limited by Shares
VI.B.1. Private Limited Companies
VI.B.2. Public Limited Companies
VI.C. Companies Limited by Guarantees
VI.C.1. Features of a Guarantee Company
VII. REQUIREMENTS FOR THE ESTABLISHMENT OF A
BUSINESS
VII.A. Place of Business
VII.B. Foreign Investment
VII.C. Registration of Foreign Direct Investment
VII.C.1. EPZ or Industrial Estate
VII.C.2. Any other Businesses
VII.C.3. Manufacturing Firm
VII.C.4. Businesses Requiring Pre -Registration Clearance
VII.D. Environmental Regulations
VII.E. Zonal Restrictions
VII.F. Building and Related Permits
3

VII.F.1. Businesses in the Export Processing Zones (EPZ)

VII.F.2. Businesses outside the EPZs
VIII. TERMINATION OF BUSINESS
VIII.A. Investors Decision to Wind up
VIII.B. Courts Initiative to Wind up
VIII.C. Repatriation of Capital
IX. LABOUR LEGISLATION, RELATION AND SUPPLY
IX.A. Workforce
IX.B. Employment Conditions
IX.B.1. Minimum Age
IX.B.2. Contracts
IX.B.3. ILO Convention
IX.C. Labour Laws
IX.D. Settlement of Labour Disputes
IX.E. Wages and Fringe Benefits
IX.E.1. Public Sector
IX.E.2. Private Sector
IX.F. Leave & Holidays
IX.G. Social Security
IX.H. Labour Union
IX.H.1. Right to Form an Association
IX.H.2. Formation
IX.H.3. Disputes
IX.I. Working Hours
IX.I.1. Hours
IX.I.2. Overtime
X. TAXATION
X.A Income Tax
X.B. Corporate Tax
X.C. Capital Gains Tax
X.D. Dividend Income
X.E. Royalties
X.F. VAT
X.G. Salaries of foreign technicians
XI. EXCHANGE and REMITTING FUNDS
XI.A. The Role of Authorised Dealers (AD)
XI.B. Remittances
XI.B.1 Remittance of Profits
4

XI.B.2. Remittance of Salaries and Savings by Expatriates

XI.C. Convertibility on Trade Accounts
XI.D. Exchange Facilities for Exporters
IX.D.1. Merchandise Exporters
IX.D.2 Exporters with High Import Items
IX.D.3. Service Exporters
XII. IMMIGRATION
XII.A. Immigration Procedure
XII.B. Landing Permit / Visa on Arrival (LP/VOA)
XII.C. Work Permits
XIII. CONTACT DETAILS
XIII.A. Embassies and Consulates
XIV. TERMS AND DEFINITIONS
XIV.A. Board of Investment (BOI)
XIV.B. Bangladesh Small Cottage and Industry Corporation
(BSCIC)
XIV.C. Foreign Direct Investment (FDI)
XIV.D. Export Processing Zone (EPZ)

I. BANGLADESH AT A GLANCE
I.A. Key Facts

Area

Geographically located in South Asia;

between 20'34 and 26'38 north latitude and
between 88'01 and 92'41 east longitude. It
consists of flat fertile alluvial land.
Neighbouring India to the north, east and
west; Burma to the south-east and the Bay
of Bengal to the south. Bangladesh, on the
northern coast of the Bay of Bengal, is
surrounded by India, with a small common
border with Myanmar in the southeast.
147,570 km2

Climate

Sub-tropical monsoon.

Geography

Winter (December - February)

(29'C Maximum; 11'C Minimum)
Summer (April - June) (32'C Maximum;
21'C)
Heavy rainfall during the monsoons (JulyOctober)
Standard Time

GMT + 6 hours

Population(2010):
Languages

164,425,491
Official language Bangla (Bengali).
English is widely used in Government,
Business and Universities.

Religion

Muslim (89.6 %)
Hindu (9.3 %)
Buddhist (0.5%)
Christian (0.3%)
Other (0.3%)

Government

Bangladesh is a developing democratic

polity based on the Westminster model;
secular, but not a theocratic state.

Money and Currency

Currency Bangladeshi Taka (Tk)

6

Exchange Rates ( As on 27th December 27,

2011)
Currency

Buying

Selling

USD
GBP
Euro

82.03
128.17
107.18

79.28
123.8
103.5

GDP/PPP (2011 est.): $100 billion; per

capita $664
Real growth rate: 6%
Inflation: 11.3%
Industries: Textiles, Jute, Garments, Tea
Processing, Paper Newsprint, Cement,
Chemical Fertilizer, Light Engineering,
Sugar, Ceramics and Pharmacy.

Economic
Summary

Natural resources: Natural Gas, Arable

Land, Timber and Coal.
Exports: $1447 million (September
2011.): Bangladesh exports mainly Ready
Made Garments including knit wear (75%
of exports revenue). Others include:
Shrimps, Jute Goods (including Carpet),
Leather Goods and Tea.
Imports: $6938 million (July 2011):
Bangladesh imports mostly Petroleum
Product and Oil, Machinery and Parts,
Soybean and Palm Oil, Raw Cotton, Iron,
Steel and Wheat.

I.B. Infrastructure
I.B.1. Telecommunications
Situated in the heart of South Asia, there has been considerable development in
the telecommunications system in Bangladesh. In August 2002, the Government
has opened up the telecom sector (fixed line) to the private sector for
participation. There are currently 62 Internet Service Providers (ISPs) in the
market. The internet is easily accessible in cities and most businesses and

government organisations have their own websites and are able to correspond
through email.
I.B.2. Transport
I.B.2.a) Land
A road network connects most parts of Bangladesh, even the remote ones.
The railway system is being upgraded through management contracts with
private operators. Biman, the state-owned airline as well as other
international airlines fly regularly to and from international destinations in
Asia, Europe, the Middle East and North America. In addition to the main
international airport, Hazrat Shahjalal International in the capital city of
Dhaka, there are two other international airports in Sylhet and Chittagong
and a few domestic airports around the country.
I.B.2.b) Water
Bangladesh has perhaps the best water transport system in the region
which accounts for two-thirds of cargo transport within the country.
Hundreds of rivers criss-cross the land connecting all parts of the country.
The major rivers run to the Bay of Bengal in the south where the major
seaport of Chittagong plays the most significant role in the countrys
international trade.
INFRASTRUCTURE AT A GLANCE
Telecommunications
Transport
Telephones(main 831,000
Railways
lines in use)
Mobile Cellular
82.442 million (Oct Highways
2011)

Radio Broadcast

AM 1 (Bangladesh
Betar), FM 5 (Radio
Foorti, Radio Today,
Radio Amar, ABC
Radio, BBC Bangla)

Television
Channels

State Owned: 2
Privately Owned: 18

Internet Hosts
Internet users

266
995,560 (2010)

2835.04 km
(2011)
239,226 km
paved:
22,726 km;
unpaved:
216,500 km
Ports
and Chittagong and
harbours
Mongla Port

Airports

17

II. INVESTMENT OPPORTUNITIES IN BANGLADESH

II.A. Bangladesh Investment Climate
"Bangladesh is the third easiest country in which to do business in South Asia,"
reported a World Bank-International Financial Corporation report of 6th
September 2006. The report further observed that Bangladesh has undertaken
steps to improve its business climate and one notable reform made recently was
the introduction of a new land registration act to improve security and reduce
corruption in land transactions.
Among South Asian FDI regimes, a World Bank report (Foreign Direct
Investment in Bangladesh: Issues of Long-run Sustainability, 1999) judged the
Bangladeshi regime to be the most liberal, with no prior approval requirements or
limits on equity participation or on the repatriation of profits and income.
According to the report, not only has Foreign Direct Investment (FDI) in
Bangladesh been growing but it may be significantly underreported, on account in
part of the more open regime.
II.B. Economic Overview
Although the transition process from an agrarian economy to a manufacturing and
service based economy has only begun, the common consensus between all
political parties is that the market-oriented economic policy must be promoted.
The private sector is now the major source of investment in the country and this is
further accentuated by Bangladeshs liberal economic approach. Policies of
liberalisation, deregulation and reforms have been combined together to bring
about changes in almost all sectors of the economy in tune with globalisation
challenges. By removing all barriers to investment and business, Bangladesh has
opened up its economy. Bangladesh is currently one of the top exporters of
Readymade garments (RMG) to the USA and Europe. Fisheries (shrimp mainly)
and leather products are also being exported at an increasing rate.
The population reaching nearly164 million, Bangladesh is one of the most
populous countries of the world and potentially a sizeable market due to
relatively high growth rates and an expanding middle class with increasing
purchasing power.
II.C World Economy and Bangladesh
Although the world economy has been affected by the recession of 2008-2009,
Bangladesh performed well along with other Asian countries.

Economy growth rate (%)

Projections
2007 2008 2009 2010 2011 2015

Bangladesh

6.3

6.0

5.4

5.4

5.9

6.2

Developing Asian economies

10.6

7.9

6.6

8.7

8.7

8.5

Emerging economies and developing economies 6.5

9.2

5.2

6.2

4.7

3.8

Developed economies

0.2

0.5

0.4

0.4

0.3

0.1

World

5.2

3.0

-0.6

4.2

4.3

4.6

Source: IMF World Economic Outlook, April, 2010

II.C. Investment Opportunities

Investment opportunities in Bangladesh can be seen as falling into two broad
categories:
II.C.1. Resource Advantages
Areas in which Bangladesh offers substantial resource advantages
Example: Low-cost labour
II.C.2. Development Opportunities
Areas in which Bangladesh needs to develop.
Example: Upgrading of infrastructure (power, telecommunications, ports,
roads and railways)
Note: For this category, financing is available through multilateral and
bilateral sources.
.
II.D. Foreign Investors
Bangladesh offers important investment opportunities reflected in the inflows of
foreign direct investment . It increased from virtually zero in the
1980s to over $300 million in the late 1990s. There was an inflow of $666m
foreign direct investment in 2007 which rose significantly in 2008 to $1086m. As
of 2010, inflows of foreign direct investment recorded to $571m. Bangladesh has
adopted a liberal approach to foreign investment with schemes such as no
restrictions on equity participation, repatriation of profits or income and no prior
approval requirements. In the year 2009-10 (February), there were 89 new foreign
and joint venture investment projects registered to BOI which amount to $590m.
The projects were invested for mainly the service, engineering, clothing and
agricultural sectors.
Investment Climate: Key Points for Foreign Investors
10

1. A largely homogeneous society with no major internal or external

tensions and a population with great resilience in the face of adversity
(e.g., floods).
2. Broad non-partisan political support for market-oriented reform and
perhaps the most
investor-friendly regulatory regime in South Asia.
3. Trainable, enthusiastic, hardworking and low-cost (even by regional
standards) labour force.
4. Potentially significant market, especially with easy access to South
Asia.
II.E. Sectors with Investment Opportunities
The following table provides an overview of the sectors in which the government
is seeking foreign direct investment for both domestic and export market oriented
industries.
1. Natural Gas
Exploration (Electricity,
Fertilizer
and
Petrochemicals)

Bangladesh

2. Textile

The

has a substantial gas reserve of

about 20 trillion
cubic feet (tcf)
Opportunities exist in developing new plants
(bargemounted
and other, large, small and mini), constructing
transmission
and
distribution
system,
rehabilitating or
upgrading existing plants and supplying a variety
of support
services. Investment opportunities are available
on a buildoperatetransfer (BOT) basis.
fastest growing industry in Bangladesh
with Readymade
Garments (RMG) accounting for more than 75%
of
total exports.
Bangladesh is best placed in the region for
textiles and
garments because of cheap labour and trade
status with the
EU.
Government incentives for the spinning and
weaving
industries include a 15% cash subsidy of the
11

fabric cost to
exporters sourcing fabrics locally.
3. Electronics(SemiConductor, Cell Phone
Assembly and other
Electronics)

Manufacturing

5. Frozen Foods
(Shrimp Farming; shrimp
and prawn exports)

Fish

of semi-conductors could be
established as a
potential cottage industry.
Bangladesh is going to be the largest cellphone market in
South Asia with more than 2 million cell phone
users
Investment is mostly confined to information
4. Information
Technology (Data
processing.
Processing , Software
Bangladesh has a cheaper and rapidly growing
Development & Hardware IT
Manufacturing)
workforce.

6.Leather
Leather and
Leather Goods)

and prawn exports grew at an average

20% in the past
decade.
Shrimp processing and export industry is
largely dominated
by the smaller unorganised sector.
The frozen foods export is the second largest
export sector
of the country. The average annual growth rate is
about
28%. This export-oriented industry includes the
following
sub-sectors which need proper attention for
augmentation of
production and export earnings:
o Hatcheries
o Sustainable aqua-culture technology
o Feed meals plants
o Processing unit for value-added products

(Finished Bangladesh has a domestic supply of good

quality raw
material, as hide and skins are a by-product of
large
livestock industry.
Adequate government support in the form of
tax holidays,
duty free imports of raw materials and
machinery for export-oriented leather market
Presently Bangladesh produces between 2 and
12

7. Ceramics (Tableware,
Sanitary ware and
Insulator)

3 percent of the world's leather market.

Most of the livestock base for this production is
domestic which is estimated as comprising 1.8
percent of the world's cattle stock and 3.7
percent of the goat stock.
Tableware industry is labour-intensive and
although manufacturers in developing countries
have invested in automation, they were unable to
reduce the number of workforce.
Bangladesh has a skilled manpower in ceramic
industry and the clean gas reserve required for
firing is a great competitive advantage for
Bangladesh.
Bangladesh, being a gas-rich and low- labourcost economy, offers to be strategic partners in
production and supply of ceramic products.

8. Light Engineering
(Machinery Parts and
Consumer Items)

9. Agro-Based Industry
(Canned Juice / Fruit and
Dairy and Poultry)

Bangladesh

10.Steel
(Billets,Plates,HR
Coils,Galvanized Sheets)

11. Pharmaceuticals

growing and increasingly affluent middle

class indicates demand for consumer durables.
There is a significant sector of cottage
industries engaged in simple electronic goods.
Export-oriented production in light industries
has gained momentum in the past few years.
has the basic attributes for
successful agro based industries, namely, rich
alluvial soil, a year-round frost- free
environment, an adequate water supply and an
abundance of cheap labour.
Increased cultivation of vegetables, spices and
tropical fruits now grown in Bangladesh could
supply raw materials to local agro-processing
industries for both domestic and export markets.
Usage of Steel products in Bangladesh
Increased remarkably during the 80s, when this
Industry flourished due to
relaxation/liberalization of the countrys
Industrial Policy.
Bangladesh

offers a good number of qualified,

skilled pharmacists, bio-chemists, micro
biologists, and chemists for pharmaceutical
industries.
Government offers support for importing
raw materials for production.
Present Government has taken initiatives
13

to modernize, expand and attract foreign

investment in pharmaceutical industries,
and for this adopted national medicine
policy (revised) 2005, which will help to
adapt with the changing world under
WTO/TRIPS

III. GENERAL CONSIDERATIONS

III.A. Diplomatic Relations
Bangladesh is a member of various international trade and business agreements.
III.A.1. Member of Commonwealth of Nations.
III.A.2. Founding member of the World Trade Organization.
III.A.3. Member of the Multilateral Investment Guarantee Agency
(MIGA), an arm of the World Bank that insures foreign investors against
political risks such as expropriation, inconvertibility and war damage.
III.A.4. Party to the World Bank Convention on the Settlement of
Investment Disputes between states and nationals of other
states which enables international arbitration of disputes
with foreign investors.
III.A.5. Member of the World Intellectual Property Organizations
permanent committee on development co-operation related
to industrial property.
III.A.6. Bangladesh is a member of several South Asian organizations,
one of which, SAARC and its off shoot SAPTA
III.A.7. In addition, Bangladesh has joined BIMSTEC (Bangladesh,
India, Myanmar, Sri Lanka, Thailand Economic
Cooperation) and D-8 (involving Bangladesh, Pakistan,
Egypt, Malaysia, Indonesia, Turkey, Nigeria, and Iran).
III.A.8. Bangladesh has also entered into a number of investment
and taxation agreements, as indicated in the table below:
14

Bilateral
Investment
Treaties
(BITs) (Bilateral treaties on
investment
promotion
and
protection)
Austria
Belgium
Canada
China
France
Germany
Indonesia
Iran
Italy
Japan
Korea,DPR
Korea, Republic of
Pakistan
Poland
Romania
Switzerland
Netherlands
Phillipines
Turkey
Thailand
UK
USA
Uzbekistan
Vietnam
Singapore
Source: Board of Investment

Avoidance of Double Taxation

Treaties (DTTs)
(Bilateral
treaties
for
the
avoidance of double taxation
Belgium
Canada
China
Denmark
France
Germany
India
Italy
Japan
Republic of Korea
Malaysia
Netherlands
Oman
Pakistan
Poland
Phillipines
Romania
Singapore
Sri Lanka
Sweden
Thailand
Turkey
UK
Vietnam

III.B. Bangladeshs History and Government

III.B.1. History
On the political partition of the Indian subcontinent in 1947, the eastern part of
the province of Bengal became East Pakistan. East Pakistan was governed by
West Pakistan although separated from it by a considerable stretch of Indian
territory. Differences in culture and language led to a movement of independence
by East Pakistan and it resulted in the creation of the Republic of Bangladesh on
16th December 1971, after a 9 month long liberation war.
III.B.2 Government
15

Under the constitution of Bangladesh, the Prime Minister, as the executive power,
is the head of the government. A cabinet of ministers assists the Prime Minister.
The head of state is the President, who is chosen by parliament for a five-year
term. The tenure of the national parliament, known as the Jatiya Sangsad, is also
for a five-year period. It is a unicameral body vested with legislative powers and
has 300 elected members.
III.C. LEGAL SYSTEM
III.C.1. Common Law System
The legal system of Bangladesh is based on a common law system.However,
unlike other common law jurisdictions, Bangladeshs Supreme Court has the
power to not only interpret laws made by the Parliament but to also declare them
null and void and enforce fundamental rights of the citizens. Although founded on
the English common law system, the laws of Bangladesh take a statutory form
which are enacted by the legislature and interpreted by the higher courts.
III.C.2. Supreme Court
The Constitution of Bangladesh created the Supreme Court of Bangladesh with
two divisions, the High Court Division and the Appellate Division. As the apex
court, the High Court division has been vested with the power to hear appeals and
revisions from subordinate courts and also to issue orders and directives in the
nature of writs to enforce fundamental rights and to grant other relief available
under the writ jurisdiction. The Appellate Division shall have power to issue such
directions, orders, decrees or writs as may be necessary for doing complete justice
in any cause or matter pending before it, including orders for the purpose of
securing the attendance or any person or the discovery or production of any
document.
III.C.3. Special Courts
III.C.3.a) Labour Courts decide labour disputes.
III.C.3.b) Administrative Tribunals decide service disputes of public
servants.
III.C.3.c) Income Tax Appellate Tribunals decide income tax disputes,
custom and excise matters. VAT Appellate Tribunals decide disputes
regarding custom and excise duties and VAT.
III.C.3.d) Court of Settlement decides disputes relating to abandoned
properties.

16

III.C.3.e) Artha Rin Adalats decide money claims of banks and other
financial institutions.
III.C.3.f) Insolvency Courts declare defaulting borrowers as insolvent.
III.C.4. Alternative Dispute Resolution
III.C.4.a) Civil Procedure Code (Amendment) 2002
The Civil Procedure Code (Amendment) Act 2002 has been enacted to
introduce Alternative Dispute Resolution (ADR) system for early and
consensual disposal of civil suits.Section 89A and 89B have been inserted
to allow parties to settle their disputes in suits through mediation or
arbitration.
III.C.4.b) Arbitration
Arbitration is increasingly being employed as a means of getting around
the judiciary and the length of time it can take to resolve cases. Arbitration
in Bangladesh has proved to be a successful and efficient means of
resolving disputes arising out of commercial matters. Businesses,
especially those with foreign concerns, have now begun to insert
arbitration clauses into their standard contracts.
III.D. Environmental Considerations
Investors need to conform to certain environmental safety standards to get
clearance certificates from the Department of the Environment (DOE).
III.D.1. Environmental Clearance Required for:
(i) Appropriate water-treatment plants
(ii) Air-pollution-controlling devices
(iii) Noise-pollution
(iv) Safety measures
III.D.2. Project Proposals Must Contain:
(i) Appropriate environmental impact assessment
(ii) Pollution-control measures
III.D.3. Corrective Measures
Existing industries with possibly negative implications for the
environment or public health will be required to take corrective measures.

17

III.E. Intellectual Property Rights

The Government recognizes the importance of intellectual property rights (IPRs)
for attracting foreign investment and is currently in the process of updating
legislation in order to ensure better enforcement of such rights.
III.E.1. International Obligations
III.E.1.a) Member of the World Intellectual Property Organization
(WIPO) since 1985.
III.E.1.b) Signatory to the Paris Convention on Intellectual
Property from 1991.
III.E.2. Legislation
The existing Bangladeshi legislation in this area, however, dates mostly
from the period of British rule. The legislation in force are as follows:
III.E.2.a) Patent and Design Act of 1911
III.E.2.b) Patent and Design Rule of 1933
III.E.2.c) Trademark Act of 1940
III.E.2.d) Copyright Act of 1999
III.E.2.e) Trademarks Act 2009
III.E.3. Permission for Royalties
No prior permission is required for entering into agreements for remitting
fees for royalties, technical know-how and technical assistance.

IV. FOREIGN INVESTMENT INCENTIVES

IV.A. General Incentives for Foreign Investment
The government has been keen in promoting foreign investment and continues in
its efforts to attract such investment as a means of alleviating the economy.
Furthermore, the government has liberalised the industrial and investment policies
in recent years by reducing bureaucratic control over private investment.

Investment Incentives
1. Tax Exemptions

2. Duty

Generally 5 to 7 years. However, for

power generation exemption is allowed
for 15 years.
No import duty for export oriented
18

3. Tax Law

4. Remittance
5.Exit

6. Ownership

industry. For other industry it is at 5%

ad valorem.
i. Double taxation can be avoided in
case of foreign investors on the basis of
bilateral agreements.
ii. Exemption of income tax up to 3
years for the expatriate employees in
industries specified in the relevant
schedule of Income Tax Ordinance
Facilities for repatriation of invested
capital, profit and dividend.
An investor can wind up an investment
either through a decision of the AGM or
EGM. Once a foreign investor completes
the formalities to exit the country, he or
she
can repatriate the sales proceeds after
securing proper authorization from the
Central Bank
Foreign investors can set up ventures
which are either wholly owned or in
collaboration with a local partner.

IV.B. Incentives for Export Oriented Businesses

Bangladesh has enabled Export Processing Zones (EPZ) to encourage and
facilitate the functioning of export-oriented enterprises. Industries which fall
within an EPZ benefit from fiscal, non-fiscal and infrastructure facilities.
Bangladesh Export Processing Zones Authority (BEPZA) approves all projects to
be located in the EPZs.
Incentives to Join EPZ
Fiscal
Tax holiday for 10
years
Concessionary tax for 5
years after completing
initial 10 years
Duty free import of
machinery and raw
materials
Avoidance of double
taxation subject to
DTTs
Exemption of income
tax on interest from

Non-Fiscal
100%
foreign
equity
allowed
Unrestricted exit policy

Financial
Secured and protected
industrial area.
Land and factory buildings
for rent.

Full repatriation facilities

of dividend and capital at
the event of exit
Import of raw materials
allowed on Documentary
Acceptable basis
Intra and Inter-zone export
is allowed.

Electricity,
telecommunication,
gas
and water facilities
Export and import permits
issued in one day

19

Work permits organized

for foreign nationals

borrowing capital
Complete
exemption
from dividend tax for 3
years subject to certain
conditions
Exemption of income
tax on salaries of
foreign technicians for
3 years subject to
certain conditions
Duty free import of 3
motor vehicles under
certain conditions
Duty free import of
materials
for
constructing
factory
buildings
Duty free export of the
goods produced in the
zones

Sucontracting within EPZs Recreational facilities for

permitted
foreign nationals

Back-to-back L/C for the Contact only required with

import of raw materials in BEPZA for all operational
certain industries.
purposes.

Import of goods from the Customs clearance at plant

Domestic
Tariff
Area site
(DTA)
Option to sell 10 per cent of
output to the DTA under
certain conditions
Option to relocate existing
industries from abroad
Option to relocate from one
zone to another
No unions or strikes
Equal
rights
with
Bangladeshi nationals for
foreign employees.

IV.C. Access to Foreign Investors

IV.C.1. Access to the Sectors and Industries
Foreign investment is encouraged in all industrial activities. Such
investment may be undertaken either independently or through joint
ventures with the local private or public sector.
IV.C.1.a) Reserved Industries
Foreign direct investment is not encouraged in the following five
industries:
Arms, ammunitions and other defence equipment and
machinery;
(ii) Production of nuclear energy;
(iii) Forest plantation and mechanized extraction within the
bounds of reserved forests;
(iv) Security printing (currency notes) and minting; and
(i)

20

(v)

Air transportation and railways.

If foreign investment is aimed at one of these sectors, then

Pre- Registration Clearance would need to be obtained (see
para VII.B.4.)
IV.C.2. Acquisition
There is no barrier to the acquisition of local enterprises by foreign
investors. Foreign investors may also buy enterprises reserved for
privatisation.
IV.D. Ownership, Property and Management Control
There is no general restriction on equity participation, acquisition of property or
management control for a foreign firm.
IV.D.1. Ownership
Bangladesh welcomes foreign investors in all forms and types.
IV.D.1.a) Equity Participation
There is no limitation on equity participation for foreign
investment in Bangladesh.
IV.D.1.b) Foreign Participation
Foreign Participation is allowed up to 100 per cent under the
existing laws in all areas except the reserved ones.
IV.D.2. Shares and Securities
Foreign investors may invest in shares and securities quoted on the stock
exchange with foreign exchange sent or brought into Bangladesh.
IV.D.2.a) Easy Access
IV.D.2.a) i. Foreign investors may invest in new private
allocation of shares of industrial enterprises.
IV.D.2.a) ii. Foreign investors are not required to carry out
such transactions through registered brokers or members of
the stock exchange.

21

IV.D.2.a) iii. There are no restrictions on the transfer of

shares to other non-residents.
IV.D.2.b) Restrictions
IV.D.2.b) i. There is a restriction on foreign investors
buying national savings bonds.
IV.D.2.b) ii. Foreign investors cannot sell their shares,
irrespective of their percentage of equity and paid-up
capital through public issues.

IV.D.3. Management Control

Anyone who is chosen to hold the position of a Director or managerial role based
on relevant qualifications and skills will be able to succeed to that position and
his/her nationality will not be a bar as such. However, citizens of Israel will not be
able to serve as directors or managers because Bangladesh does not have any
diplomatic relations with the state of Israel.
IV.E. Investment Protection for Foreign Investors
The Foreign Private Investment (Promotion and Protection) Act of 1980 guarantees
protection against expropriation. If a foreign investor becomes subject to a legal measure
that has the effect of expropriation, adequate compensation will be paid and it will be
freely repatriable. The amount of the compensation will be determined in accordance
with the market value of the investment immediately before the measure went into effect.
(As noted earlier, Bangladesh is also a signatory in good standing of the Multilateral
Guarantee Agency which insures investors against political risk. There has been no
instance of expropriation of foreign property since the Foreign Investment Act was
passed in 1980.

V. FINANCIAL FACILITIES
V.A. Banking/Financial Facilities
Bangladesh offers adequate banking facilities to the investors, both domestic and foreign,
for establishment of industries and to facilitate their business transactions.
V.A.1. The Role of Bangladesh Bank
Bangladesh Bank, as the central bank, has legal authority to supervise and
regulate commercial banks and banking institutions. It performs the traditional
central banking role of note issuance and as banker to the government and banks.
22

It formulates and implements monetary policies, manages foreign exchange

reserves and supervises banks and non-bank financial institutions.
V.A.2. The Financial System
In addition to the Bangladesh Bank, the financial system consists of scheduled
banks, non-bank financial institutions, micro finance institutions, insurance
companies, co-operative banks, credit rating agencies and stock exchange.

V.A.3 The Banks of Bangladesh

Type of Bank No. No. of Branches

State owned

3,404

Specialized

1,382

Private

30

2,816

Foreign

62

Total

47

7,664
* As of February, 2011

Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of

Finance and Board of Investment
V.B. Foreign Investors and Loans

V.B.1. Local Borrowings

Foreign investors have full access to local capital sources. Banks in Bangladesh
may extend working capital loans or term loans in local currency to foreigncontrolled or foreign-owned firms/companies (manufacturing or nonmanufacturing) operating in Bangladesh on the basis of normal banker-customer
relationship, without reference to
Bangladesh Bank. Interest rates vary from
19 to 21 per cent.
V.B.2. Foreign Loans
23

Industrial enterprises in Bangladesh (local, foreign or joint venture) may borrow

abroad with prior BOI approval. Remittances towards payment of interest and
repayment of principal as per terms of BOI approved borrowing may be made
through Authorised Dealers without prior Bangladesh Bank.

VI. STRUCTURES FOR DOING BUSINESS

VI.A. Registered Companies
Any company with unlimited liability, liability limited by shares or liability
limited by guarantee may register as a company under the Companies Act 1994.
Forms for incorporation and registration are available with the office of the
Registrar of Joint Stock Companies and Firms. Nominal fees are charged for
registering the Memorandum and Articles of Association of a proposed company.
VI.B. Limited liability- Companies Limited by Shares
There are two types of companies limited by shares, the public and the private.
VI.B.1. Private Limited Companies
A private limited company is restricted in its rights to transfer its shares
and it is also limited in the number of its members. The following are the
essential features of a private limited company:
(i)

Its members will have restricted rights to transfer shares.

(ii)

It will consist of a minimum of 2 and a maximum of 50 members.

Members do not include persons employed in the company.

(iii)

It will prohibit any invitation to the public to subscribe to its

shares or debentures.

(iv)

Trading and business may commence from the date of its

incorporation.

VI.B.2. Public Limited Companies

A public limited company offers shares and debentures to the public
through a prospectus which complies with the requirements of the
Companies Act 1994 and the Securities and Exchange Commission Act
1993. The features of a public limited company are as follows:

24

(i)

A public limited company may issue invitation to the members of

the public to subscribe to the shares and debentures of the
company.

(ii)

It will consist of a minimum of 7 members. There is no limit as to

the maximum number of its members.

(iii)

It must have at least 3 Directors.

(v)

A public limited company may be formed after conversion of a

private company.

(vi)

Publicly traded companies pay a lower rate of corporate tax 27.5

per cent rather than 37.5 per cent.

VI.C. Companies Limited by Guarantees

When a company is incorporated with the liability of the shareholders limited by
guarantee, the shareholder will only be required to pay capital when the company
commences its winding up.
VI.C.1. Features of a Guarantee Company
(i)

Guarantee Company will be wound up if it is unable to discharge

its liabilities due to inadequate funds.

(ii)

Each member who is a shareholder at the time of commencement

of winding up is liable to pay an amount prescribed in the
memorandum of association.

VII. REQUIREMENTS FOR THE ESTABLISHMENT OF A

BUSINESS
VII.A. Place of Business
Foreign companies not registered in Bangladesh can set up a place of business in
Bangladesh in the form of a Branch Office or a Liaison Office. Permission will be
required from the Bangladesh Bank and the BOI in order to open up a Branch
Office or a Liaison Office.

VII.B. Foreign Investment

25

As mentioned earlier, foreign investors may set up an industrial entity which is

wholly owned or set up in collaboration with local investors. There is no
requirement to obtain prior permission to set up such enterprises if the
entrepreneurs use their own funds.
VII.C. Registration of Foreign Direct Investment
Although prior permission is not required, it is advised that a business entity is
registered in order to benefit from various facilities and institutional support
provided by the government, entrepreneurs and sponsors.
VII.C.1. EPZ or Industrial Estate
If the business is to be set up in an EPZ or industrial estate (see para IV.
B), registration must take place with BEPZA or Bangladesh Small Cottage
and Industry Corporation (BSCIC).

VII.C.2. Any other Businesses

If the business is to be set up elsewhere, it must register with the BOI.
VII.C.3. Manufacturing Firm
A manufacturing firm employing ten or more workers must also register
with the Chief Inspector of Factories and Establishments.
VII.C.4. Businesses Requiring Pre -Registration Clearance
A Pre- Registration Clearance is required for investment in the following
areas as FDIs are discouraged in these areas:
(i) Ready-made garments
(ii) Banks
(iii) Insurance companies
(iv)Other financial institutions

VII.D. Environmental Regulations

All industrial and other projects that may be potentially polluting are required, in
accordance with the Environment, to undertake some form of environmental
impact assessment.
VII.D.1. Environmental Clearance

26

Environmental clearance must be obtained from the Department of

Environment. The process takes 15 days for projects with low levels of
potentially adverse impact and 30 days for projects with significant
impact.
VII.E. Zonal Restrictions
There are no regional or zonal restrictions on investment.
VII.E.1. Location for Business
Investors can set up businesses in any part of the country except in the areas
reserved for the armed forces or declared environmental preserves (e.g., the
mangrove forests in the Sunderbans).
VII.E.2. Investment Incentives
The availability of investment incentives including tariff concessions and taxholiday periods varies according to location, with the less developed regions
providing the best offers.
VII.F. Building and Related Permits
A foreign investor will receive assistance to acquire buildings and industrial plots
depending on the nature of the business.
VII.F.1. Businesses in the Export Processing Zones (EPZ)
(i)

Investors can rent custom-made premises within the EPZs.

(ii)

Investors need to have the designs of their buildings approved by the city
development authorities.

VII.F.2. Businesses outside the EPZs

Investors requiring industrial plots to set up factories in areas outside of the
BEPZA zones and BSCIC estates may approach the BOI for assistance. BOI
requirements for providing assistance are as follows:
(i)

The Company must be registered

(ii)

The Company must have an industrial lay out plan to justify actual
requirements.

VIII. TERMINATION OF BUSINESS

27

A company can wind up on its own initiative or the court may intervene to wind up the
company.
VIII.A. Investors Decision to Wind up
(i) The decision must be made at the annual general meeting or the extraordinary
general meeting.
(ii) The Company must inform the public through the Government gazette or a
newspaper within 10 days of taking such a decision.
(iii) The directors of the Company must agree to pay off the liabilities of the
enterprise within 3 years of the winding up and this agreement must be backed
by an auditors report.
(iv) The Company can appoint liquidators to pay off its liabilities. After
completing the task, the liquidator must prepare a report on the liquidation
process and explain how liabilities have been paid off. This report should be
submitted to the Registrar of Joint Stock Companies.
VIII.B. Courts Initiative to Wind up
The Court may, by its own initiative wind up a company in accordance with
Section 241 of the Companies Act 1994.
VIII.C. Repatriation of Capital
Foreign investors have the right to sell their concerns to local entrepreneurs. Once
a foreign investor has completed the formalities to exit the country, (s) he can
repatriate the sales proceeds or the balance after securing proper authorization
from the Bangladesh Bank. Fully documented applications are disposed of
promptly. No approval by the Bank is required for the repatriation of portfolio
investment.

IX. LABOUR LEGISLATION, RELATION AND SUPPLY

IX.A. Workforce
Bangladesh offers an abundant supply of disciplined, easily trainable and low-cost
work force suitable for any labour- intensive industry. Furthermore, there is an
increasing supply of professionals, technologists and other middle and low level
skilled workers who have received technical training from universities, colleges,
technical training centers and polytechnic institutions.
IX.B. Employment Conditions
28

IX.B.1. Minimum Age

The minimum age for workers in Bangladesh is 16 years in factories and
establishments.
IX.B.2. Contracts
Contracts are made in the form of a letter of offer but workers may also be
engaged on verbal agreements.
IX.B.3. ILO Convention
Bangladesh is a member to ILO and both the private and public sectors are
encouraged to observe the principles so enunciated in the ILO Convention
and Recommendations.
IX. C. Labour Laws
IX.C.1.The Labour Act 2006
The Labour Act 2006 consolidated and amended previous laws relating to
employment of workers, relationship between workers and employers,
determination of minimum wages, payment of wages, compensation for
injuries arising out of and in the course of employment, formation of trade
unions, raising and resolving industrial dispute, health, safety, welfare and
environment of employment of workers and apprentice and related issues.
IX.C.2. Settlement of Labour Disputes
The process for settlement of industrial disputes is stipulated under section
210 - 211 of the Labour Act 2006, a summary of which detailed below:
(i) If the collective bargaining agent or the employer finds that an
industrial dispute is likely to arise between the employer and the workers,
the employer or the collective agent shall communicate his or its views in
writing to the other party.
(ii) Within fifteen days of the aforesaid communication, the party
receiving the communication shall arrange a meeting with the other party
for collective bargaining of the issue raised with a view to reaching an
agreement thereon through the procedure of a dialogue.
(iii) If the parties reach a settlement on the issues, a memorandum of
settlement shall be recorded in writing and signed by both parties and a
copy shall be forwarded to the Government, Director of Labour and
Conciliator.
29

(iv) If the meeting is not arranged within fifteen days or the parties fail
to reach a settlement within one month of the first meeting held for
settlement, report thereof may be referred to the Conciliator requesting
him in writing to settle the dispute through conciliation.
(v) If there is a settlement of the dispute through conciliation, the
Conciliator shall send a report thereof to the Government. If the
conciliation fails, the Conciliator shall try to persuade the parties to refer
the dispute to an Arbitrator for settlement. If the parties fails to agree to
an Arbitrator within three days, the Conciliator will issue a certificate of
failure.
(vi) Within fifteen days of issuance of the certificate of failure, the
party who has raised the dispute may opt for strike or lock-out. Such an
action may be prohibited by the Government if it relates to essential
services such as electricity, gas, emergency services, airports and ports.
IX.D. Wages and Fringe Benefits
Wages may be determined through collective bargaining processes. However, in
instances where collective bargaining procedure is unable to determine wages, it may be
referred to the Minimum Wages Board. The Minimum Wages Board strives to ensure a
balanced view of both the interests of the management and the workers.
IX. E. Weekly Working Hours
An adult worker shall be required to work in an establishment for no more than fortyeight hours in any week. If a worker works for more than the prescribed hours in any day
or in any week, he shall be entitled to overtime at the rate of twice of the average of
his/her basic wages, dearness allowance and ad-hoc or interim wages, if any. Workers
can work in an establishment up to 9 hours a day but not more than 10 hours a day.
IX.F. Leave and Holidays
IX.F.1. Weekly Holidays
Every worker working in any establishment, in case of shop, commercial or
industrial establishment will be entitled to one and half day weekly holiday and in
case of factories and other establishments, one day weekly holiday.
30

IX.F.2 Annual Leave with Wages

Every adult worker who has completed one year continuous employment shall be
entitled to leave with full wages in the subsequent period of twelve months for a
number of days. In the case of a shop, commercial or industrial establishment or
factory, or transport establishment, a worker is entitled to one day leave for every
eighteen days of work.
IX.G. Social Security
The Labour Act 2006 contains provisions on compensation for workers injured in the
course of employment, 1 maternity benefit 2 and provident funds for workers of nonGovernment establishments. 3 The Act also requires certain industrial undertakings to
establish a Workers Participation Fund and a Workers Welfare Fund. 4

IX.H. Labour Union

The Labour Act 2006 lays down the provisions on formation of trade unions and its
registration requirements. 5
IX.H.1. Right to Form an Association
Any worker has the right to form an association/union primarily for the purpose
of regulating the relations between workers and employers or workers and workers.
However, such an association union can only function as a trade union if registered under
the law.

IX.I.2. Formation
In any industrial and commercial establishment, a trade union may be formed
with 30% membership of the total number of workers employed.
IX.I.3. Disputes
1

Section 150 174 of the Labour Act 2006

Section 45 50 of the Labour Act 2006
3
Section 264 273 of the Labour Act 2006
4
Section 232 252 of the Labour Act 2006
5
Section 175 208 of the Labour Act 2006
2

31

disputes

Only the Collective Bargaining Agent is authorized to raise industrial

and negotiate with management (see para IX.C.2 above).

X. TAXATION
X.A Income Tax
Income level (Taka)

Rate Remarks

a. On the first Tk. 165,000

0% Female tax payers & elderly

persons (65 Yrs & above):
Tk. 180,000

b. On the next 275,000

10%

c. On the next 325,000

15%

d. On the next 375,000

20%

e. On the balance

25% Rebate opportunity for those

Tk. 2,000

f. Minimum tax (of total

income) for all in the
"individual" category
g. Non-resident individual
(other than non-resident
Bangladeshi)

25%

Source: BOI and National Board of Revenue

X.B. Corporate Tax

Company/business
a. For publicly traded
companies (except bank,
insurance, leasing & other
financial institutions)

Rate
27.5%

32

Condition/rebate
a. Any listed company declares
dividend at 20%, or higher, will
benefit from tax abatement at 10%.
b. Any listed company which
declares a dividend at 10% or lower,
or does not distribute a dividend by
the date declared by the SEC*, will
be required to pay tax at 37.5%.

b. For non-publicly traded

companies (except bank,
insurance, leasing & other
financial institutions)

37.5%

c. Bank, insurance, leasing &

other financial institutions

45%

d. 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%.

e. Dividend or profit
withholding

15%

For foreign investment, it is based on

existence of a bilateral tax convention
with the investors' country.

f. Expatriates in Bangladesh
(Not NRBs**)

25%
Tk. 5,000

Minimum corporate tax

Source: BOI and National Board of Revenue

X.C. Capital Gains Tax

Capital Gains from the transfer of shares of public limited companies listed with a
stock exchange are tax-exempt. In computing capital gain, deductions are made
from the full value or sales proceeds or the fair market price (whichever is
higher) of the capital assets.
X.D. Dividend Income
The dividend income which is received by shareholders (other than companies) is
tax-exempt. However, this benefit is not available to shareholders of private
limited companies.
X.E. Royalties
Royalties and technical know-how fees received by any foreign collaborator, firm,
company or expert are also tax-exempt.
X.F. VAT
Bangladesh has replaced the sales and excise tax by the more modern value added
tax (VAT). The VAT is imposed at a flat rate of 15 per cent. Excise duties do
33

exist on a few items and a turnover tax may be imposed on small-scale activities
which cannot be taxed through the VAT.
X.G. Salaries of Foreign Technicians
Salaries of foreign technicians are tax exempt for a period of 3 years from the date
of their arrival in Bangladesh provided their salaries are for services stipulated
under a contract approved by the National Board of Revenue. A technician in this
context is a person with specialised knowledge and experience in the industrial
arts and sciences.

XI. EXCHANGE and REMITTING FUNDS

The Bangladesh Taka was declared convertible for current account transactions in March
1994. As a result, payment settlements against trade in goods and services have been
freely permitted.
XI.A. The Role of Authorised Dealers (AD)
(i) ADs can settle payments for all imports inconformity with the Import Policy.
(ii) ADs can settle payments abroad for freights and passages, technical service
fees and royalties and issue foreign exchange for travel abroad by residents.
XI.B. Remittances
Before effecting remittances, ADs must scrutinize the remittance request to be
satisfied that these represent bona fide current transactions and are not disguised
attempts to circumvent capital transfer restrictions.
XI.B.1. Remittance of Profits
The repatriation of sale proceeds (including capital gains) of shares of
companies listed in a Stock Exchange in Bangladesh may be made
through an AD if such investment takes place through Non-Resident
Investors Taka Account operation. Remittance of sale proceeds of shares
of companies not listed in a Stock Exchange requires prior Bangladesh
Bank permission, which is accorded to for amounts not exceeding the net
asset value of the shares. Transfer of shares and securities from nonresident loc quires no prior Bangladesh Bank approval.
XI.B.2. Remittance of Salaries and Savings by Expatriates

34

Foreigners employed in Bangladesh with the approval of the Government

may remit 50% of salary, actual savings and admissible retirement
benefits through an AD. Net salary of foreign nationals payable for the
period of leave admissible to them as per their service contract duly
approved by the Government will be remittable.
XI.C. Convertibility on Trade Accounts
The Bangladeshi Taka is fully convertible for current account transactions. All
current transactions including trade and investment as well as investment related
transactions may be conducted by individuals-firms through authorized dealers
(banks) without prior permission of Bangladesh Bank.
XI.D. Exchange Facilities for Exporters
IX.D.1. Merchandise Exporters
Merchandise exporters may retain up to 50 per cent of the realized FOB
value of their exports in foreign-currency accounts.
IX.D.2 Exporters with High Import Items
For export items with high import contents (such as naphtha, furnace oil,
bitumen, readymade garments etc.), the retention quota is 10%.
IX.D.3. Service Exporters
Service exporters may retain 5% of their repatriated income in foreign
currency accounts. Funds may be drawn from these accounts to meet
expenses for bonafide business expenses abroad. This quota may also be
kept in interest bearing renewable term deposit accounts.

XII. IMMIGRATION
XII.A. Immigration Procedure
Business visitors to Bangladesh will require a visa. The visa has to be obtained
from the Bangladeshi diplomatic mission in the visa applicants country.
Bangladesh issues the following categories of business visas:
(i) Single-entry for three months
(ii) Multiple-entry for three months
(iii) Multiple-entry for six months
35

(iv) Multiple-entry for one year

XII.B. Landing Permit / Visa on Arrival (LP/VOA)
Foreign investors and businesspersons can apply for a LP/VOA on arrival at the
Hazrat Shahjalal International Airport, Dhaka for duration of 30 days provided:
(i)
The foreign investor is identified by a certificate issued by BOI or
BEPZA.
(ii)
The foreign businessperson who is directly associated with import
of
Bangladeshi products is identified by a certificate from the relevant
associations of export-oriented commercial/industrial organizations (ieFederation of Bangladesh Chamber of Commerce and Industry (FBCCI)
or the Bangladesh
Garment Manufacture and Export Association
(BGMEA)).
(iii)

LP/VOA cannot be extended under any circumstances.

(iv)
The LP/VOA applicant must have $500 endorsed in his/her
passport or in cash.
(v)

The LP/VOA applicant must have a return ticket.

(vi)
The LP/VOA Fee will be determined on Reciprocity Policy with
the respective countries.
XII.C. Work Permits
In order to employ a foreign national, it is imperative that the employer obtain a
work permit. The following are the conditions need to be fulfilled before applying
for a work permit:
(i) Nationality of Employee
All nationalities, except for Israeli citizens will be permitted to undertake
employment in Bangladesh.
(ii) Registered Industrial Establishments
Employment of expatriate personnel should only be considered in
industrial establishments which are sanctioned/registered by the
appropriate authority.

36

(iii) Minimum Age of Foreign Employee

Persons below 18 years of age are not eligible for employment.
(iv) Local Experts not Available
Employment of foreign nationals is normally considered for jobs in which
local experts/technicians are not available.
XII.C.5. Decision made by the Board of Directors
The work permit application must include the decision of the Board of Directors
to take on new employees.
XII.C.6. Maximum number of Foreign Employees
Number of foreign employees should not exceed 5% of the total employees
including top management personnel.
XII.C.7. Duration of Employment
Initially employment of any foreign national is considered for a term of 2 years
which could then be extended on the basis of merit of the case.
XII.C.8. Security Clearance
Security clearance must be obtained from the Ministry of Home Affairs.
XIII. CONTACT DETAILS
XIII.A. Embassies and Consulates
(1)

Embassy of the Islamic State of Afghanistan

Embassy of the Islamic State of Afghanistan
House CWN (C) #2A, Road #24, Gulshan #2, Dhaka.
Telephone: 9895994
Fax: 9884767

(2)

Australian High Commission

Australian High Commission
184, Gulshan Avenue, Dhaka-1212 Telephone : 88131015
Fax : 8811125

(3)

Royal Bhutanese Embassy

37

House #12, Road #107, Gulshan #2, Dhaka.

Telephone: 8826863, Fax: 8823939
(4)

Canadian High Commission

(5)

House No. 16A, Road No. 48 Gulshan, Dhaka-1212 Telephone : 9887091-7

Fax : 8823043
Embassy of the People's Republic of China
Plot No. 2 & 4. Road No. 3
Block-1, Baridhara, Dhaka-1212
Telephone : 8824862
Fax: 8823004

(6)

Royal Danish Embassy

House No. 1, Road No. 51
Gulshan Model Town, Dhaka
Telephone: 8821799
Fax: 8823638

(7)

Embassy of the Arab Republic of Egypt

House No. NE (N)-9, Road No. 90
Gulshan , Dhaka
Telephone : 8822766-7
Fax : 8824883

(8)

Embassy of the Republic of France

House No. 18, Road No. 108
Gulshan, Dhaka-1212
Telephone : 607083, 607084
Fax : 8823612

(9)

Embassy of the Federal Republic of Germany

Embassy of the Federal Republic of Germany 178, Gulshan Avenue, Dhaka1212
Telephone : 8824735-37
Fax : 8823141

(10)

10. Embassy of the Holy See (Vatican)

United Nation Road 2, Baridhara Diplomatic Enclave P.O. Box
6003 Gulshan, Dhaka-1212
Telephone : 8812018, 8812143
38

Fax : (880-2) 8813574

(11)

High Commission of India

House #2, Road #142, Gulshan #1, Dhaka.
Telephone: 9888189-91, Fax: 8613662

(12)

Embassy of the Republic of Indonesia

Plot #14, Road #53, Gulshan #2, Dhaka-1212
Telephone : 8812260
Fax : 8825391

(13)

Embassy of the Islamic Republic of Iran

House No. 7, Road No. 6, Baridhara, Dhaka
Telephone : 8825896
Fax : 8828780

(14)

Embassy of the Republic of Iraq

House No. 8, Road No. 59, Gulshan -2, Dhaka-1212
Telephone : 8823277
Fax : 8823277

(15)

Embassy of the Republic of Italy

Plot No. 2 & 3, Road No. 74/79
Gulshan Model Town, Dhaka
Telephone : 8822781-3
Fax : 8822578

(16)

Embassy of Japan
Plot No. 5 & 7, Dutabsh Road,
Diplomatic Enclave, Baridhara,
Dhaka
Telephone : 8810087
Fax : 8826737

(17)

Embassy of the Democratic People's Republic of Korea

House 6, Road 7, Baridhara, Dhaka
Telephone : 8811893
Fax : (880-2) 8810813

(18)

Embassy of the Republic of Korea

39

4 Madani Avenue, Baridhara, Dhaka

Telephone : 8812088-90, 8812041
Fax : (880-2) 8813871
(19)

Embassy of the State of Kuwait

SE(D)-5, 26, South Link Road, Gulshan, Dhaka-1212
Tel : 882700-03
Fax : 88-02-883753

(20)

People's Bureau of the Great Socialist People's Libyan Arab

Jamahiriya
4 CWN (C), Gulshan Avenue, Dhaka.
Telephone: 9895808-9
Fax: 8823417

(21)

High Commission of Malaysia

(22)

Plot No. 1 United Nations Road,

Baridhara, Dhaka.
Telephone: 8827759-60
Fax: 8823115
Embassy of the Kingdom of Morocco
House #44, United Nations Road, Baridhara, Dhaka.
Telephone: 8823176
Fax: 8810028

(23)

Embassy of the Union of Myanmar

No NE (L) #3, Road #84, Gulshan #2, Dhaka.
Telephone: 9896373
Fax: 8823740

(24)

Royal Nepalese Embassy

United Nations Road #2, Baridhara Diplomatic Enclave, Dhaka.
Telephone: 9892490
Fax: 8826401

(25)

Royal Netherlands Embassy

Road 90, House 49
Gulshan II
Dhaka

40

(26)

Telephone: 8822715-18
Fax: 8823326
Royal Norwegian Embassy
House 9, Road 111, Gulshan, Dhaka
Telephone: 881 6276, 881 05 63, 882 3880
E-mail: [email protected]
Fax: 882 3661

(27)

High Commission for the Islamic Republic of Pakistan

House NE (C) #2, Road #71,
Gulshan Avenue, Dhaka.
Telephone: 8825387-9
Fax: 8823677

(28)

Embassy of the State of Palestine

CES (C) #4, Road #118, Gulshan Model Town, Dhaka.
Telephone: 9893895-6
Fax: 8823517

(29)

Embassy of the Republic of the Philippines

House #6, Road #101
Gulshan #2, Dhaka.
Telephone: 9881578
Fax: 882368

(30)

Embassy of the Republic of Poland

House #111, Road #4, Banani, Dhaka.
Telephone: 8825895
Fax: 8827568

(31)

Embassy of the State of Qatar

House #23, Road #108
Gulshan, Dhaka.
Telephone: 8819930
Fax: 8823950

(32)

Embassy of Romania
House No. 33, Road No. 74
Gulshan, Dhaka

41

Telephone : 600128, 8822502

Fax : 8822502
(33)

Embassy of the Russian Federation

House No. NE(J) 9, Road 79
Gulshan, Dhaka
Telephone : 8828147
Fax : 8823735

(34)

Royal Embassy of Saudi Arabia

House #5 (NE) L, Road #83
Gulshan #2, Dhaka
Telephone: 8829124-31
Fax: 8823616

(35)

Consulate of the Republic of Singapore

House #15, Road #68/A
Gulshan #2, Dhaka.
Telephone: 9880404
Fax: 9883666

(36)

The High Commission of the Democratic Socialist Republic of Sri

Lanka
House #15, Road #50
Gulshan #2, Dhaka.
Telephone: 8810779
Fax: 8823971

(37)

Embassy of Sweden
House #1, Road #52
Gulshan #2, Dhaka.
Telephone: 8824761-4
Fax: 8823948

(38)

Embassy of Switzerland
House #31/B, Road #18
Banani, Dhaka.
Telephone: 8812874-6
Fax: 8823872

(39)

Royal Thai Embassy

42

House NO. NW(I)-04

Road No. 58/62
Gulshan Model Town, Dhaka
Telephone : 8812795-6
Fax : 8823588
(40)

Embassy of the Republic of Turkey

House #14, Road #11
Baridhara, Dhaka.
Telephone : 8822198
Fax : 882373

(41)

Embassy of the United Arab Emirates

House No. CEN(H)-41
Road No. 113
Gulshan, Dhaka
Telephone : 9882244, 9882255

(42)

British High Commission

United Nations Road
Baridhara, Dhaka
Telephone : 8822705-9
Fax : 8823437

(43)

Embassy of the United States of America

Madani Avenue
Baridhara, Dhaka
Telephone : 8824700-22
Fax : 8823744

(44)

Counsular Agency of the Republic of Uzbekistan

Wali Center, 3rd Floor, House #74, Gulshan Avenue, Dhaka.
Telephone: 8813453
Fax: 8813453

(45)

Delegation of the European Commission

House 7, Road 84, Gulshan, Dhaka
Telephone : 8814730-2, 607016, 871464
Fax : (880-2) 8813118

XIV. TERMS AND DEFINITIONS

43

XIV.A. Board of Investment

The Board of Investment (BOI) was established by the Investment Board Act of 1989 to
promote and facilitate investment in the private sector both from domestic and overseas
sources with a view to contribute to the socio-economic development of
Bangladesh. It is headed by the Prime Minister and is a part of the Prime Minister's
Office.
Major Functions of BOI include:
Providing necessary facilities and assistance in the establishment of industries.
Implementing investment related GOB policies.
Preparing investment schedule.
Registering private sector industrial projects; and
Identifying competitive investment sectors and facilitating investment by providing
information and services.
XIV.B. Bangladesh Small Cottage and Industry Corporation (BSCIC)
BSCIC is a promotional organisation. It fosters the promotion and extension of Small
and Cottage Industries (SCI) in the private sector in Bangladesh and is a Government
statutory body.
BSCIC
Provides the following:
Pre investment counselling
In plant advisory services
Post investment extension services,
Developed Industrial plots for investors
XIV.C. Foreign Direct Investment (FDI)
The World Investment Report 2002 (UNCTAD: 2002:291) has detailed the FDI as
following:
FDI is defined as an investment involving a long-term relationship and reflecting a
lasting interest and control by a resident entity in one economy (foreign direct investor or
parent enterprise) in an enterprise resident in an economy other than that of the foreign
direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that
the investor exerts a significant degree of influence on the management of the enterprise
resident in the other economy. Such investment involves both the initial transaction
between the two entities and all subsequent transactions between them and among foreign
affiliates, both incorporated and unincorporated. FDI may be undertaken by individuals
as well as business entities.
XIV.D. Export Processing Zone (EPZ)
EPZs provide necessary fiscal, non- fiscal and infrastructure facilities for export-oriented
enterprises. There are various benefits enjoyed by businesses within an EPZ namely, tax
holidays, readymade factory buildings and industrial plots are available for rental, and
44

duty free imports of supplies. Bangladesh Export Processing Zone Authority approves all
projects to be located in the EPZs.

45