Bangladesh has emerged as a dynamic hub for foreign investment, thanks to its strategic location, youthful population, competitive labor costs, and consistent economic growth. With a market of over 170 million people and a steady GDP rise, global investors are increasingly eyeing Bangladesh as a viable destination to set up and expand their businesses.
In this article, we’ll explore the growing business opportunities in Bangladesh, the legal framework that governs foreign investment, and how a professional legal partner like Lawyer Bangladesh can help you navigate the entire process with confidence.
Why Invest in Bangladesh?
1. Strategic Location & Market Access:
Bangladesh offers direct access to key South and Southeast Asian markets, including India, China, and ASEAN nations. This makes it an ideal regional manufacturing and export base.
2. Economic Growth:
The country has maintained steady GDP growth (averaging over 6%) over the last decade, supported by a thriving garments sector, remittances, and infrastructure development.
3. Business Incentives:
The Bangladesh Investment Development Authority (BIDA) and various export processing zones (EPZs) offer attractive incentives such as tax holidays, duty-free import of machinery, and full repatriation of profits.
How Easy Is It to Start a Business in Bangladesh?
While Bangladesh offers numerous business opportunities, foreign investors must navigate a series of regulatory steps to set up operations. The key procedures include:
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Choosing the right business structure (Private Limited Company, Branch Office, Liaison Office)
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Obtaining approval from BIDA (where applicable)
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Registering the company with the Registrar of Joint Stock Companies and Firms (RJSC)
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Securing tax identification numbers (TINs) and VAT registration
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Opening bank accounts and remitting initial capital
Although the process is standardized and improving under digitalization efforts by the government, it can be complex without local legal assistance—especially for foreign stakeholders unfamiliar with local compliance norms.
Role of a Lawyer and Law Firm in Foreign Investment
This is where the expertise of a specialized law firm like Lawyer Bangladesh becomes crucial.
Our Key Responsibilities Include:
1. Legal Advisory:
We help you understand local investment laws, company structures, and regulatory requirements.
2. Company Registration & Setup:
From preparing Articles of Association to filing registration documents, we ensure full compliance with RJSC and BIDA procedures.
3. Contract Drafting & Negotiation:
We draft shareholder agreements, joint venture contracts, employment terms, and supply chain contracts to protect your interests.
4. Regulatory Compliance:
We help secure business licenses, environmental clearances, export-import licenses, and ensure ongoing tax and labor law compliance.
5. Dispute Resolution:
In case of conflicts, we offer strategic litigation and arbitration services tailored to cross-border business disputes.
Legal Aspects of Foreign Investment in Bangladesh
Foreign investment in Bangladesh is governed primarily by:
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Foreign Private Investment (Promotion and Protection) Act, 1980
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Companies Act, 1994
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BIDA Act, 2016
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Income Tax Ordinance, 1984
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Labour Act, 2006
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Bangladesh Bank guidelines for remittances, capital repatriation, and foreign exchange controls
Key Legal Considerations:
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100% foreign ownership is allowed in most sectors
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Repatriation of capital and profits is allowed, subject to approval by Bangladesh Bank
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Sector-specific licensing and regulatory approvals may apply (e.g., telecom, banking, energy)
Investors are encouraged to perform thorough due diligence and comply with all corporate and regulatory obligations to mitigate risk.
Final Thoughts
Bangladesh offers a wealth of untapped investment potential across sectors like textiles, IT, energy, agriculture, and logistics. With the right legal support, the process of entering the Bangladeshi market can be smooth, secure, and rewarding.
At Lawyer Bangladesh, we provide end-to-end legal assistance for foreign investors—from initial consultation to full operational setup and ongoing support.
📞 Contact us today at lawyerbangladesh.com to schedule a consultation and take the first confident step into the Bangladeshi market.
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