Bangladesh offers one of Asia's most dynamic investment environments — with 100% foreign equity permitted in most sectors, competitive labour costs, and a strategic location connecting South and Southeast Asia. LegalBD provides comprehensive legal support to foreign investors from market entry through to operational compliance and exit.
The Foreign Investment Legal Framework
Foreign direct investment in Bangladesh is governed by the Bangladesh Investment Development Authority Act 2016, the Foreign Private Investment (Promotion and Protection) Act 1980, the Companies Act 1994, the Foreign Exchange Regulation Act 1947, and sector-specific regulations issued by BIDA and the Bangladesh Bank.
100% Foreign Equity
Bangladesh permits 100% foreign ownership in most sectors. Foreign investors may establish a wholly-owned private limited company, branch office, or liaison/representative office. Certain sectors require joint venture arrangements or are reserved for Bangladeshi nationals — telecommunications, broadcasting, and defence-related industries carry specific restrictions that must be assessed at the pre-entry stage.
Investment Incentives
Bangladesh offers significant incentives: tax holidays of up to 10 years in designated sectors and EPZs, exemption from double taxation under Bangladesh's bilateral tax treaty network, repatriation of profits and dividends with minimal restrictions, and concessionary duties on capital machinery imports.
BIDA One-Stop Service
The Bangladesh Investment Development Authority operates a One-Stop Service (OSS) providing access to over 150 government services from a single platform — including utility connections, visa facilitation, work permits, and regulatory clearances. LegalBD navigates the OSS on behalf of clients, tracking applications and escalating delays.
How LegalBD Assists
We advise on the full investment lifecycle: pre-entry regulatory mapping and structure selection, BIDA registration, RJSC incorporation, Bangladesh Bank approvals, sector-specific licence applications, expatriate employment and work permits, annual compliance, and exit planning including profit repatriation and winding up.