Bangladesh
Form a Bangladesh Pvt Ltd in 6–10 weeks — 27.5% CIT or 0% in EPZs for 10 years.
Foreign Ownership Eligibility
Bangladesh welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors — no local partner required under the BIDA Act, 2016
- No statutory minimum paid-up capital under the Companies Act, 1994
- Minimum 2 shareholders required for a Private Limited Company (One Person Company is reserved for Bangladesh nationals only)
- Dual registration mandatory: RJSC (incorporation) + BIDA (foreign investor registration) for all foreign-owned companies
- Foreign shareholders' documents (passport, proof of address) must be notarised and apostilled
- Certain sectors are prohibited or restricted — verify against the BIDA Act, 2016 Schedule IV and sector-specific rules before incorporating
- Branch Offices must obtain Bangladesh Bank approval for remittances — allow 4–8 additional weeks
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required for incorporation. However, a corporate bank account requires in-person KYC or an authorised local representative with notarised power of attorney. BIDA registration is mandatory for all foreign-owned companies and cannot be skipped — factor 15–30 additional days into your setup timeline.
Tax at a glance
Bangladesh Tax Overview
27.5%
Standard corporate income tax (non-publicly traded)
Rate for AY 2026–27; applicable to most foreign-owned Private Limited Companies
25%
Reduced CIT with cashless condition
Available if all transactions above BDT 12 lakh are via banking channel and receipts above BDT 36 lakh are electronically receipted
22.5%
Publicly traded company CIT rate
For companies that transferred more than 10% of shares at IPO, subject to cashless condition
0%
EPZ companies — first 10 years
Tax holiday for manufacturing companies in BEPZA Export Processing Zones; 50% concession for years 11–12, then standard rate
0%
Bangladesh Economic Zone (BEZ) companies
0% CIT for 10 years for qualifying manufacturing operations under BEZA Act, 2010
12%
RMG exporters (green-certified factories)
Reduced CIT rate for Ready-Made Garment sector exporters meeting green factory/certification conditions
15%
Value Added Tax (VAT)
Standard VAT rate; monthly filing due 15th of following month; lower turnover tax rates apply for small entities
20%
Withholding tax on dividends
Applies to both resident and non-resident shareholders; subject to applicable Double Taxation Treaty rates
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors under the BIDA Act, 2016 — no mandatory local partner required. A single foreign investor can be the majority or sole shareholder of a Bangladesh Pvt Ltd.
EPZ companies under BEPZA enjoy a 10-year corporate income tax holiday (0%), followed by a 50% concession for years 11–12. Bangladesh Economic Zone (BEZ) companies receive 0% CIT for 10 years for qualifying manufacturing operations.
Bangladesh is the world's 2nd largest garment and textile exporter. The RMG sector benefits from a 12% CIT rate for certified green factories and preferential EU/UK market access via GSP+.
Consistent GDP growth: Bangladesh maintained 6–7% annual GDP growth over the past decade (World Bank data) with a domestic market of 170+ million people.
Low-cost, young workforce: median age ~27 years; among the most competitive manufacturing labour costs in Asia; English-speaking graduate supply in tech, accounting, and management.
Import duty waivers on capital machinery for BIDA-registered and EPZ companies reduce upfront investment costs materially.
Government 'Smart Bangladesh' agenda and Hi-Tech Parks create investment incentives in IT, BPO, and digital services — with separate tax concessions for software and IT-enabled services.
Bangladesh-EU GSP+ beneficiary status: preferential tariff access for exports to the EU, directly relevant for manufacturing and RMG investors targeting European markets.
USD 22+ billion in annual remittance inflows (World Bank) provide a stable foreign exchange base; dividends and capital repatriation generally permitted after payment of taxes.
BIDA One-Stop Service (OSS) portal centralises registration for foreign investors: company incorporation, work permits, land allocation, and utility connections through a single platform.
Considerations
Mandatory dual registration: every foreign-owned company must register with both RJSC (incorporation) and BIDA (foreign investor registration) — two separate processes, two separate agencies, sequenced in a specific order. Most competitor guides omit this, creating costly surprises.
Branch Offices require Bangladesh Bank approval for remittances — a step that adds 4–8 weeks to setup and is entirely absent from most incorporation guides. Investors structuring as branches must budget for this delay.
Bureaucratic complexity: multiple registrations required (RJSC, BIDA, NBR TIN, VAT, Trade License, and Bangladesh Bank for branches). Total practical timeline of 6–10 weeks is longer than Singapore, Malaysia, or Vietnam.
Political risk: political transitions can create business disruption; general strikes ('hartals') have historically affected operations in Dhaka and Chittagong. Investors must assess current political climate.
Infrastructure variability: energy supply reliability is improving but inconsistent outside major industrial zones; logistics infrastructure is stronger in Chittagong and Dhaka than in secondary cities.
Foreign worker quota: maximum 5% of workforce may be foreign nationals in most sectors (with exceptions for senior management), restricting staffing flexibility for foreign-owned ventures.
Banking sector quality varies: some Bangladeshi banks have had non-performing loan (NPL) issues. Careful selection of banking partner is important; international banks (HSBC, Standard Chartered) are safer for foreign-owned companies.
BDT is a managed float currency — not fully convertible. Exchange rate fluctuations and capital control risk are real considerations for USD- or EUR-denominated businesses.
NBR tax compliance complexity: advance income tax quarterly, VAT monthly, TDS monthly, and annual income tax return. Transfer pricing documentation required for related-party transactions.
Natural disaster exposure: Bangladesh faces cyclone and flooding risk, affecting agricultural and infrastructure assets particularly outside major urban zones.
Structural Comparison
Private Limited Company (Pvt Ltd)
Public Limited Company
Branch Office
Liaison / Representative Office
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity (Pvt Ltd, Branch, or EPZ company), identify restricted sectors, and clarify whether EPZ/BEZ incentives apply to your business model.
Clear the company name with RJSC via the online portal or in person. Name availability is checked against the existing register; clearance typically takes 1–2 days.
Prepare the Memorandum and Articles of Association with a Bangladesh-licensed legal firm. Foreign shareholders must notarise and apostille documents from their home country.
XBandGlobal's Bangladesh partner files the full incorporation package with the Registrar of Joint Stock Companies & Firms (RJSC). The Certificate of Incorporation is issued within 7–14 days of filing.
Obtain a Trade License from the relevant City Corporation or Union Parishad. Required for business operations; issued within 5–10 days.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government fees in Bangladesh are low — total RJSC fees are under USD 100 for most company sizes. The real cost is the BIDA registration fee (USD 91–455), professional services for the mandatory dual registration process (USD 1,500–5,000 for full foreign investor setup), and the 6–10 week timeline. For Branch Offices, Bangladesh Bank approval adds 4–8 weeks and USD 500–2,000 in professional fees that most competitor quotes do not include.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Bangladesh setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Bangladesh. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| HSBC Bangladesh | International bank | Low (Visit Required) | Preferred by foreign-owned companies and MNC subsidiaries for trade finance, cross-border transfers, and treasury management. Thorough AML/KYC process. In-person or authorised representative required. |
| Standard Chartered Bangladesh | International bank | Low (Visit Required) | Strong international trade finance and cross-border transaction capability. Well-suited to export-oriented foreign-owned companies. In-person KYC required. |
| BRAC Bank | Local commercial bank | Low (Visit Required) | One of Bangladesh's most respected private commercial banks. Strong SME banking and digital infrastructure. Active lending to BIDA-registered businesses. In-person KYC required. |
| Dutch-Bangla Bank | Local commercial bank | Low (Visit Required) | Pioneer in digital and mobile banking in Bangladesh. Extensive ATM network. Good digital infrastructure for day-to-day business banking. In-person KYC required. |
| City Bank | Local commercial bank | Low (Visit Required) | Well-regarded private commercial bank; active in SME and corporate banking. American Express card issuer in Bangladesh. In-person KYC required. |
| Prime Bank | Local commercial bank | Low (Visit Required) | Full-service commercial bank with trade finance capabilities. Used by mid-size foreign-owned manufacturing and trading companies. In-person KYC required. |
| Islami Bank Bangladesh | Islamic bank | Low (Visit Required) | Largest Islamic bank in Bangladesh by deposits. Sharia-compliant products. Relevant for investors with Islamic finance requirements. In-person KYC required. |
Frequently Asked
Speak with a Bangladesh specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.