Looking to invest in Bangladesh? Foreign nationals have three distinct options for setting up a business, each with unique advantages and limitations. This guide explores these options to help you choose the one that best aligns with your goals.

1. 100% Foreign-Owned Company or Joint Venture:

• Full ownership and control: This option allows you to establish a company wholly owned by your foreign entity or form a joint venture with a local or foreign partner.
• Profit repatriation: You can generate income, incur expenses, and repatriate all post-tax profits and capital.
• Flexible investment: There’s no minimum or maximum capital requirement for registration.
• Wide range of activities: Most sectors in Bangladesh allow 100% foreign ownership, with business activities subject to government approval.

2. Branch Office:

• Ideal for established businesses: This option suits existing companies seeking to expand their presence in Bangladesh.
• Limited income generation: Income generated by the branch office requires approval from the Bangladesh Investment Development Authority (BIDA).
• Funding and repatriation: You can fund expenses through inward remittances or approved business activities, and repatriate post-tax profits with BIDA and Bangladesh Bank approval.
• Establishment process: Setting up a branch office involves obtaining BIDA approval and registering with the Registrar of Joint Stock Companies and Firms (RJSC&F).

3. Liaison/Representative Office:

• Market research and relationship building: This option is suitable for establishing a presence for market research, promotion, and building relationships with local entities.
• No income generation: Liaison offices cannot generate income in Bangladesh.
• Limited financial transactions: All expenses must be met through inward remittances, and outward remittances are only allowed for unspent funds brought in from abroad.

Choosing the Right Option:

The best structure for your business depends on your specific goals and objectives. Consider factors like:

• Level of control desired
• Investment flexibility
• Business activity restrictions
• Need for income generation

Seek Professional Guidance:

Navigating the legalities of establishing a business in a new country can be complex. Consider seeking legal and professional advice to ensure a smooth and compliant setup process.

Contact us for further information or assistance with setting up your business in Bangladesh.