Statutory Framework of EPZs in Bangladesh
Investment Categories
Under the BEPZA guidelines, investments are classified into three distinct categories:
- Type A: 100% Foreign Owned (including NRBs).
- Type B: Joint Venture between Foreign and Local Investors.
- Type C: 100% Local Bangladeshi Investors.
| Incentive Type | Statutory Provision / Authority | Duration/Benefit |
|---|---|---|
| Tax Holiday | Income Tax Act 2023 / SROs | 5 to 7 years (Location dependent) |
| Duty-Free Import | Customs Act 2023 | Machinery, Equipment & Raw Materials |
| Dividend Tax | Income Tax Act 2023 | Exempted during Tax Holiday |
| Foreign Exchange | Foreign Exchange Regulation Act 1947 | Full repatriation of profit & capital |
Registration and Compliance Roadmap
Operational Procedures
- Application: Submission of the project proposal to BEPZA along with a non-refundable application fee.
- Sanction: Issuance of the Sanction Letter by BEPZA detailing the terms of investment.
- Incorporation: Registration of the entity as a Private Limited Company under the Companies Act 1994.
- Utility & Customs: Obtaining Import/Export Permits (IP/EP) and connection to utility services (Gas/Power) provided within the zone.
Consult Barrister Liton Sarkar
For specialized legal assistance in BEPZA compliance and foreign investment structuring.
Schedule Scoping MeetingFrequently Asked Questions
Are EPZ companies subject to the standard Bangladesh Labour Act 2006?
No. Pursuant to Section 1(4) of the Bangladesh Labour Act 2006, the general labor law does not apply to EPZs. Instead, industrial relations and worker rights are governed by the Bangladesh EPZ Labour Act 2019.
Can an EPZ unit sell products in the local market?
Under the BEPZA Rules and Customs regulations, EPZ units may sell up to 10% of their annual production to the Domestic Tariff Area (DTA) subject to payment of applicable duties and taxes as per the Customs Act 2023.
What is the statutory minimum investment for an EPZ unit?
While the BEPZA Act 1980 does not fix a rigid amount, BEPZA policy currently requires a minimum investment of USD 0.5 million for new projects to ensure industrial viability.
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