Foreign Company Formation in Bangladesh: Guide for Global Investors
Why Choose Bangladesh for Foreign Company Registration?
100% Foreign Ownership
Full control over your business venture with no local partner requirement.
Strategic South Asian Location
Direct access to major trade routes connecting South and Southeast Asia.
170+ Million Consumers
One of the world's largest and fastest-growing domestic markets.
Competitive Labor Market
A skilled, youthful workforce at cost-competitive wage levels.
BIDA Tax Holidays & Incentives
Government-backed fiscal incentives for qualifying investments.
Growing SEZs & Hi-Tech Parks
Rapidly expanding, dedicated infrastructure for export-oriented industry.
One-Stop Service (OSS)
Centralized, faster business setup through BIDA's single-window system.
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. Let's break down the nine major step-by-step procedures required to legally register and operate a foreign company in Bangladesh.
1. 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 the RJSC portal.
- The name must be unique and not resemble any existing company.
- Valid for 30 days.
2. 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, with funds transferred in foreign currency to the interim account. The bank then 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, and applying for work permits and other licenses.
3. Company Registration with RJSC
Register your company formally through RJSC. This step includes:
- Draft MOA & AOA.
- Prepare Forms I, VI, IX, X, XII with the necessary information.
- Print the documents, sign, and upload them on the RJSC portal.
- Pay registration fees, VAT, and stamp duty at the designated bank.
4. 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, and photographs.
5. 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.
6. Company Seal Creation
Get an official company seal from a seal maker. This typically costs between BDT 100–500.
7. Open Company Bank Account
Open a corporate bank account with any scheduled bank in Bangladesh. Transfer all the equity investment of foreign shareholders from the 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 and photographs of all directors, and a Board Resolution.
8. 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, and the rent deed or ownership deed.
9. Register with Bangladesh Investment Development Authority (BIDA)
Steps
- Fill out the BIDA Registration Form at the online portal.
- Pay the registration fee through a scheduled bank.
- Submit the completed form with supporting documents.
- BIDA reviews the application and issues the Investment Registration Certificate.
Documents required: Certificate of Incorporation; MoA & AoA; TIN and Trade License; Project Profile (if investment exceeds BDT 100 million); land deed and background of directors.
Why BIDA?
For foreign investors, BIDA registration is mandatory. It facilitates:
- Import & export licenses
- Bond licenses
- Industrial plot allocation
- Utility connections
- Visa & work permits
BIDA's One-Stop Service: Faster Business Setup
To streamline foreign investment, BIDA offers a One-Stop Service (OSS) covering the following approvals:
| Service | Time |
|---|---|
| Company Registration (RJSC) | 48 hours |
| Trade License | 48 hours |
| TIN & VAT | Instant to 10 days |
| Electricity & Gas Connection | 10 days |
| Environmental Certificate | 10 days |
| Foreign Loan Clearance | 30 days |
Additional support from BIDA
- Land acquisition
- Work permits & visas
- Online service tracking
Special Economic Zones & Hi-Tech Parks
- Bangladesh plans to launch 100 Special Economic Zones (SEZs) by 2030.
- Dedicated zones like Bangabandhu Sheikh Mujib Shilpa Nagar are in development.
- The Bangladesh Hi-Tech Park Authority (BHTPA) offers IT and tech-zone benefits.
Disclaimer: This article is intended for general information and educational purposes only and does not constitute legal, tax, or investment advice. Requirements, fees, timelines, and procedures for foreign company registration, RJSC filings, NBR registrations, and BIDA approvals are governed by applicable laws and the directions of the competent authorities, and may change over time. Verify current requirements with the relevant authority or a licensed professional before acting.
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