Foreign Company Formation in Bangladesh: Guide for Global Investors

 Foreign Company Formation in Bangladesh: A Step-by-Step Guide for Global Investors

Bangladesh is increasingly becoming a hotspot for foreign investment due to its strategic location, youthful workforce, booming economy, competitive labor costs, and government-backed incentives. One of the most appealing features is that 100% foreign ownership is allowed, enabling international entrepreneurs to fully control their business ventures in Bangladesh.

In this comprehensive guide, we outline the steps required to register a foreign company in Bangladesh—from securing the company name to obtaining government permits and investment licenses.

 Why Choose Bangladesh for Foreign Company Registration?

• 100% foreign ownership permitted
• Strategic South Asian location
• Access to 170+ million consumers
• Competitive labor market
• Tax holidays and incentives from BIDA
• Rapidly growing Special Economic Zones (SEZs) and Hi-Tech Parks
• One-Stop Service (OSS) for quick business setup

 9-Step Foreign Company Registration Process in Bangladesh

Let’s break down the nine major Step-by-Step procedures required to legally register and operate a foreign company in Bangladesh.

1️⃣ Name Clearance from RJSC

The first step is to obtain Name Clearance from the Registrar of Joint Stock Companies and Firms (RJSC).

• Apply online at RJSC portal.
• The name must be unique and not resemble any existing company
• Valid for 30 days

2️⃣  Interim Bank Account & Encashment Certificate

• Open an interim bank account with any Authorized Dealer (AD) bank in Bangladesh.
• Foreign shareholders remit their respective equity amounts from their overseas accounts. Funds must be transferred in foreign currency to the interim account.
• The bank issues an Encashment Certificate after converting the funds into BDT.
• Documents Required: Name Clearance Certificate (printout)
• This certificate is mandatory for:
  • BIDA registration
  • VAT registration
  • Applying for work permits and other licenses.

3️⃣ Company Registration with RJSC

Register your company formally through RJSC.

Steps Include:

• Draft MOA & AOA

• Prepare Forms I, VI, IX, X, XII with necessary information

• Print documents, sign and Upload on RJSC portal
• Pay registration fees, VAT and Stamp Duty at Designated Bank

4️⃣ Obtain Trade License

Apply for a Trade License from the local City Corporation or Municipal Authority.

 Documents Required:

• Application form
• MoA/AoA
• Rental agreement or office ownership proof
• NID or Passport & photographs

5️⃣ Obtain TIN Certificate

Register for a Tax Identification Number (TIN) through the National Board of Revenue (NBR).

• Apply online or at the local tax office
• Issued instantly after verification of incorporation with RJSC

6️⃣Company Seal Creation

Get an official company seal from a seal maker. This typically costs between BDT 100–500.

7️⃣ Open Company Bank Account

Open a corporate bank account with any scheduled bank in Bangladesh. Transfer all the equity investment of foreign shareholders from Interim Bank Account. This account must be used for all official financial transactions of the company.

 Documents Required:

• Account Opening form
• MoA/AoA
• Trade License
• NID or Passport & photographs of all Director
• Board Resolution

8️⃣ Register for VAT/BIN

Register the company under the Customs, Excise, and VAT Commissionerate of NBR.

Documents Required:

• Trade License
• Bank Solvency Certificate
• TIN Certificate
• RJSC documents
• Rent deed or ownership deed

9️⃣ Register with Bangladesh Investment Development Authority (BIDA)

For foreign investors, BIDA registration is mandatory. It facilitates:

• Import & Export licenses
• Bond licenses
• Industrial plot allocation
• Utility connections
• Visa & work permits

Steps:

1. Fill out BIDA Registration Form at online portal
2. Pay registration fee through scheduled bank
3. Submit completed form with documents
4. BIDA reviews and issues Investment Registration Certificate

 Documents Required:

• Certificate of Incorporation
• MoA & AoA
• TIN, Trade License
• Project Profile (if investment > BDT 100 million)
• Land deed, background of directors

 BIDA’s One-Stop Service: Faster Business Setup

To streamline foreign investment, BIDA offers One-Stop Service (OSS), covering:

Additional Support from BIDA:

• Land acquisition
• Work permits & visas
• Online service tracking

 Special Economic Zones & Hi-Tech Parks

• Bangladesh plans to launch 100 SEZs by 2030
• Dedicated zones like Bangabandhu Sheikh Mujib Shilpa Nagar are in development
• Bangladesh Hi-Tech Park Authority (BHTPA) offers IT/Tech zone benefits

 Final Thoughts: Bangladesh—A Gateway for Global Investment

Forming a foreign company in Bangladesh is structured, transparent, and investor-friendly. From 100% ownership to fast-track approvals through BIDA, the process is designed to support global entrepreneurs.

Whether you are setting up a tech firm, manufacturing unit, or service business, Bangladesh offers a wide canvas of opportunity backed by incentives, infrastructure, and an emerging consumer market.