Legal Requirements for Foreign Investors in Bangladesh

legal requirements for foreign investors in Bangladesh
Author: SRCO Business Insights | August 11, 2025

Bangladesh is one of the fastest-growing economies in South Asia, attracting increasing foreign investment in sectors like textiles, manufacturing, IT, power, and infrastructure. However, before investing, it’s important to understand the legal requirements for foreign investors in Bangladesh to ensure compliance and avoid penalties.


1. Company Registration

Foreign investors can operate in Bangladesh by registering:

  • Private Limited Company under the Registrar of Joint Stock Companies and Firms (RJSC)

  • Branch Office or Liaison Office with approval from the Bangladesh Investment Development Authority (BIDA)


2. BIDA Approval

BIDA approval is mandatory for:

  • 100% foreign-owned entities

  • Branch offices and liaison offices

  • Industrial and service sector projects with foreign investment


3. Trade License

A trade license from the local city corporation or municipality is required to legally conduct business operations.


4. Tax Identification Number (TIN) & VAT Registration

Foreign investors must obtain:

  • TIN for corporate tax purposes

  • VAT registration for businesses dealing in taxable goods and services


5. Bangladesh Bank Registration

All foreign investments must be reported to the Bangladesh Bank for approval of:

  • Equity investment inflow

  • Repatriation of profits and capital


6. Environmental Clearance (If Applicable)

For industrial or manufacturing projects, an Environmental Clearance Certificate from the Department of Environment (DOE) is required.


7. Sector-Specific Licenses

Some sectors require special licenses:

  • Telecommunications → BTRC license

  • Banking & Finance → Bangladesh Bank approval

  • Energy → Ministry of Power and Energy permits


8. Labor Law Compliance

Investors must comply with Bangladesh Labor Act 2006 regarding employee contracts, wages, safety, and workplace standards.


9. Intellectual Property Protection

Businesses are encouraged to register trademarks, patents, or copyrights with the Department of Patents, Designs, and Trademarks (DPDT).


Why Work with SRCO?

At S. Rahman & Co. Chartered Accountants, we assist foreign investors with:

  • Company registration and BIDA approval

  • Tax compliance and legal advisory

  • Licensing and documentation support

  • Ongoing accounting and audit services


✅ Planning to invest in Bangladesh?
Contact S. Rahman & Co. today for end-to-end legal and financial guidance.
📞 Call: +880-1880-200 222| 🌐 Visit: srcobd.com

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