How to invest in Bangladesh safely with the help of its brightest lawyers

Opportunities for Investment in Bangladesh

Under its liberalized Industrial Policy and export-oriented, private sector-led growth strategy, Bangladesh provides substantial investment opportunities. Bangladesh is open to private investment in all sectors with the exception of (a) arms and ammunition and other defense equipment and apparatus, (b) forest plantation and mechanized extraction within the boundaries of reserved forests, (c) the production of nuclear energy, and (d) security printing and mining. The government’s role is that of a facilitator, helping to establish an environment conducive to expanding domestic and foreign private investment.

Why make investments in Bangladesh?

  • An open and diverse economy; • A very low-cost Young and skilled workforce; • A strategic and competitive position in the global value chain; • An economic and legislative environment globally favorable to business; • A strategic geographic location as a gateway to countries in the Asia-Pacific region.

Investment promotion incentives in Bangladesh

As part of the government’s liberal policy regime, a number of incentives for investing in particular sectors have been established.

Holidays and tax exemptions

  • 5 to 10 years of Tax Holiday and tax reduction based on region.
  • Ten-year total tax exemption on income and capital gains for certain Public Private Partnership (PPP) initiatives.

Software development, the National Telecommunication Transmission Network, and information technology-enabled services are exempt from all taxes.

  • 50% of export-derived income is exempt from taxation.
  • Tax exemption on revenues, fees for technical know-how and technical assistance, and repatriation facilities.
  • Exemption of interest on foreign loans from taxation.

Exemption on import duties

  • Exemption from customs duties on capital equipment; • exemption from import duties on basic materials used to manufacture export products.

a double taxation system

  • Bangladesh has a double taxation avoidance agreement with more than 30 main trading partners. • Expatriate employees in certain industries are exempt from income tax for a maximum of three years.

Capital repatriation

  • The total repatriation of capital invested from abroad will be permitted.
  • Profits and dividends accruing from foreign investment may be transferred in their entirety. • If foreign investors reinvest their dividends and/or retained earnings, these will be considered new investment.

Bonded storage facilities

  • For export-oriented industries • Bond duration differs by industry

Tariff decrease

  • Tariff (if paid) refund on import of export-bound raw materials

Accelerating wear and tear

  • Industrial undertakings that do not receive a tax holiday will be eligible for accelerated depreciation allowance. • This allowance is available at a rate of 100 percent of the cost of the machinery or plant if the industrial undertaking is established within the municipal limits of Dhaka, Narayanganj, Chittagong, and Khulna, or within a 10-mile radius.
  • If the industrial enterprise is established elsewhere in the country, accelerated depreciation of 80% in the first year and 20% in the second year is permitted.

Ownership

  • Total ownership is permitted

Investing on the stock exchange

  • Participation by foreign investors in Initial Public Offerings (IPOs) is permitted without regulatory restrictions.
  • Capital gains from listed shares are exempt from taxation for individual investors, while a lower tax rate applies to corporations and other entities.

Other inducements

  • Citizenship by making an investment of at least USD 500,000 or by transferring USD 1,000,000 to any recognized financial institution (non-repatriable).

How to Enter the Market in Bangladesh?

  • Foreign investors can establish a wholly-owned subsidiary, a branch office, or a liaison office to conduct business in Bangladesh. The formation of the entity would depend on the investor’s medium- and long-term market penetration strategy. It safe to hire the most well-versed law firm when you are deciding to invest in Bangladesh. Barrister Tahmidur Rahman is widely considered as the best FDI lawyer in Bangladesh.

Foreign companies are permitted to establish wholly owned subsidiaries in Bangladesh under the ‘Companies Act 1994’, for establishing either a private limited or a public limited company.

  • Company registration documentation and its approval are handled by the Registrar of Joint Stock Companies and Firms (RJSC), and foreign entities can incorporate a new company in accordance with the RJSC’s requirements. Foreign entities may also acquire Bangladeshi companies in their entirety.
  • Joint venture • Similar to wholly-owned subsidiaries, foreign companies can form joint ventures with Bangladeshi partners. Depending on the amount invested by each entity, the equity stake in the foreign company will differ.
  • Limited liability through the purchase of stock in an existing Bangladeshi firm
  • Foreign investors are permitted to invest in domestic companies (subject to sector-specific restrictions). No restrictions exist regarding the transmission of shares to non-residents.

Foreign investors may transfer their shares regardless of their ownership percentage.

  • The government of Bangladesh exempts international investors from taxes for five to ten years if they intend to operate in certain sectors. Investing in certain priority sectors, such as Power, is exempt from taxation for up to fifteen years.

TAHMIDUR RAHMAN REMUA Bangladesh is a full-service law firm in Dhaka that combines international offshore expertise with local knowledge and experience in a number of practice areas, such as dispute and litigation, energy and infrastructure, banking and finance, and tax.

The team of Bangladeshi lawyers and professionals at TAHMIDUR RAHMAN REMURA WAHID has extensive expertise in project development, international trade, corporate and structured finance, mergers and acquisitions, employment, and general commercial affairs. In this dynamic market, our dedicated and diligent Bangladeshi attorneys collaborate with an international and local partner-led team to provide clients with practical, dependable, flexible, and forward-thinking solutions.

The team advises multinational corporations on a variety of significant initiatives. It is currently advising a number of well-known global institutions and investors on numerous offshore and onshore financings, mergers and acquisitions, and other projects. The team has also advised on a variety of corporate and financial transactions, as well as significant greenfield independent power projects.

Extremely informed and proactive group. TAHMIDUR RAHMAN REMURA WAHID has extensive experience working with foreign clients and foreign law firms. The company has a very optimistic and solution-oriented outlook. TAHMIDUR RAHMAN REMURA WAHID has been useful in both legal due diligence and ethics and compliance reviews, as well as deal negotiations. Excellent national and international network. Clearly the firm of choice for foreign investors in Dhaka. – Legal 500 2023

The team is renowned for its expertise in infrastructure, energy, and infrastructure initiatives, as well as mergers and acquisitions. Utilizes its network throughout the ASEAN region to complete international assignments.” – Asia Pacific Chambers 2022

 

OVERSEAS INVESTMENT Experience by Tahmidur Rahman law firm In Dhaka

TAHMIDUR RAHMAN REMUA A Bangladeshi law firm advises foreign investors on all business-related matters in Bangladesh.

  • Counseling foreign companies on the legal, regulatory, and tax facets of conducting business in Bangladesh
  • Organization and establishment of operations in Bangladesh, including application for and receipt of necessary approvals.
  • Establishing liaison and auxiliary offices in Bangladesh.
  • Advising international businesses on legal and regulatory matters.
  • Structuring, composing, and negotiating various commercial and business agreements, such as employment, consulting, confidentiality, services, strategic alliances, distribution, franchising, marketing, teaming, joint ventures, technology licensing, reseller, and consortium agreements.
  • Compliance with commercial laws, such as property and labor regulations.
  • Restructuring, mergers, capital structures, liquidation, and repatriation of earnings.
  • Assistance with obtaining a work permit and other immigration-related matters.
  • Assisting and assisting Sungrow, one of the largest manufacturers of solar photovoltaic (PV) inverters, with the establishment of their entity in Bangladesh and all aspects of their business in Bangladesh. And with DLC Limited with corporate secretarial and employment-related matters.
  • Advise ATAD Steel Structure Corporation on the Bangladesh incorporation of their subsidiary.
  • Advise and assist Infobip in Bangladesh with their corporate matters.
  • Advise and assist ESRI with the establishment of their Bangladeshi entity.
  • Advising Robert Bosch (Bangladesh) Ltd on matters pertaining to employment in Bangladesh.
  • Advise and assist Waldner India Private Limited with the establishment of their entity in Bangladesh.
  • Advised General Satellite Group AG on all aspects of its investment in Bangladesh’s first Direct-to-Home (DTH) Project.
  • Advise a pharmaceutical company based in Switzerland on all regulatory aspects of importing and distributing pharmaceutical products in Bangladesh and assist it in establishing its local operations.
  • Advise and assist one of the largest Japanese automobile suppliers in establishing a subsidiary in Bangladesh and obtaining all necessary licenses.
  • Advised a Singaporean investment fund on its project implementation in Bangladesh.
  • Providing guidance to a Singapore-based consulting firm regarding its clients’ activities in Bangladesh.
  • Advise an international law firm based in the United Kingdom on immigration-related matters in Bangladesh.
  • Advise an international law firm based in the United States on immigration-related matters in Bangladesh.
  • Advise a UK-based IT firm on establishing a local subsidiary in Bangladesh.
  • Advise and facilitate an Indian business in establishing its Bangladeshi subsidiary.

Contact information of Tahmidur Rahman Remura Wahid law firm:

GLOBAL OFFICES:
DHAKA: House 410, ROAD 29, Mohakhali DOHS
DUBAI: Rolex Building, L-12 Sheikh Zayed Road
LONDON: 1156, St Giles Avenue, Dagenham

 Email Addresses:
[email protected]
[email protected]
[email protected]

24/7 Contact Numbers, Even During Holidays:
+8801708000660
+8801847220062
+8801708080817

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