A Stress-Free Foreign Entity Setup In Bangladesh
It is a company that provides business setup services to foreign investors in a given country. Our goal is to assist international investors in establishing businesses in any location that is legal and adheres to the country’s foreign investment – FDI policy. If the government makes any changes to its foreign investment policy to encourage and attract overseas entrepreneurs, we research and develop our data. Bangladesh, unlike some other developing markets, allows companies to be form with 100 percent foreign ownership.
A wholly foreign-owned enterprise (WFOE) incorporated in Bangladesh can enter into commercial agreements with other natural or artificial parties in and outside Bangladesh to perform income generation, manufacturing, and commercial activities as a separate legal entity subject to industry regulations.
How We Help Entity to Register in Bangladesh
Bangladesh is home to an increasing number of foreign companies, thanks to a liberal industrial policy that provides foreign investors with a variety of lucrative opportunities, making Bangladesh one of the fastest-growing foreign entity hubs in the world.
Representative Office
Foreign companies can register with the Bangladesh Investment Development Authority to open representative or liaison offices in Bangladesh (which took over from the Board of Investment in 2016). To establish a representative or liaison office, permission from Bangladesh Bank.
Features:
1. By maintaining coordination with the local agent, the liaison office can continue to carry out only a limited number of activities.
2. Foreign entity is not permitted to profit from local business activities, and the entire establishment is prohibited from doing so.
3. The Parent company would be responsible for the operations
Foreign Company
Foreign companies can register with the Registrar of Joint Stock Companies and Firms under section 378 of the Companies Act, 1994 to open a business in Bangladesh. Earlier registration with the BIDA and the central bank is require. A foreign company must first obtain permission.
Features:
1. In Bangladesh, a branch office has more scope and flexibility than a liaison or representative office.
2. With the approval of BIDA and other relevant authorities, a foreign company’s branch office may engage in commercial activities like an independent parent company .
3. A branch office can fund their business with income generated locally.
Local Subsidiary
The Companies Act of 1994 allows foreign companies to form a 100 percent foreign-owned local subsidiary company. Foreign companies and/or foreign nationals would own shares in the local subsidiary. The laws of Bangladesh would apply to the local subsidiary that was formed and established as a foreign incorporation.
Features:
1. In accordance with the Companies Act of 1994, annual general meetings and board meetings would be required.
2. The company would be required to comply with the Companies Act’s annual filing requirements.
3. Upon obtaining the necessary permits, the local subsidiary would be able to engage in a variety of activities, including the opening bank accounts
Foreign Entity in Bangladesh, Cost, Process, Service
Get Exclusive Consultation For Joint Venture Company
Under the Companies Act of 1994, foreign nationals and companies can form joint ventures with local companies and nationals to form a local company. After obtaining the necessary permits, the local company would be able to engage in a variety of activities, including the opening and operation of bank accounts, the employment of staff (including foreign nationals), and the importation of goods.
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Feel Confident While Investing From Abroad
With the exception of the four reserve sectors, private investment from outside the country is welcome in all areas of the economy (mention earlier). Such investments can be made independently or as part of a joint venture on mutually beneficial terms. However, foreign investment is particularly sought after in the following major industries:
Industries that are export-oriented
Industries located in Export Processing Zones (EPZs)
High-tech products that are either import substitutes or export-oriented
As a result, foreign entrepreneurs are entitle to the same benefits as domestic entrepreneurs in terms of tax breaks, royalty payments, and technical know-how fees, among other things.
Our Dynamic Consultation On Locally Registered Company :
The most flexible option for an investor is to incorporate or purchase a locally registered company. In most sectors, foreign investors are permitted to invest, own shares, and form business. Some industries require prior approval. Foreign investors can form a joint venture company with a local partner or another foreign investor. The corporation can be either a private or a public limited company. A locally register company will be treated as a domestic company for tax purpose.
Arms and ammunition, as well as other military equipment and machinery
Nuclear power, security printing and minting, and forestation and mechanized extraction within reserved forest boundaries
Above those are all prohibited from private investment.
Prepare For Your Success With Foreign Office Setup Service
Unlike our competitors, we provide our clients with our 5 star Foreign Entity Setup or Formation Services in a most affordable rate
Simplified Procedure For Establishing A Branch or Liaison office
The Bangladesh Investment Development Authority usually establishes a limit on the number of foreign and local employees who can work in representative offices. Representative offices are not permit to conduct business, and as a result, they are not permit to import equipment or goods except in a limited set of circumstances as specified in the Import Policy Order 2016-2019. A representative office, on the other hand, may open and maintain a bank account. Funds from outside Bangladesh may be remitted to run and operate the representative office, as well as pay salaries to the staff employed there.
Step 01: Obtaining Permission from the Bangladesh Investment and Development Authority (BIDA) is the first step (BIDA) It is necessary to obtain permission from BIDA in order to open a branch office or a liaison office in Bangladesh.
Step 2: Remitting Establishment and Initial Operational Costs by Opening a Bank. A bank account must be opened after BIDA approval. The bank account was opened with the intention of remitting at least USD 50,000. The money will be used to cover the first six months’ worth of startup and operational costs. The foreign investor must pay this amount within two months of receiving BIDA approval.
Step 3: Become a member of the RJSC. The RJSC must be notified of the branch or liaison office’s existence.
Our consultation simplifies that registration, income tax, accounts or audit, return submission of the business, tax free trade service, remittance, dividend declaration, public listing company, banking services, visa, rent or lease office or land, industry set up, manufacture, trade, VAT, export, import, and many more, the Foreign Private Investment (Promotion and Protection) Act 1980 rules differ from local investment law.
Company Formation in Bangladesh
Bangladesh has been very welcoming to foreign investors, allowing foreign investment in almost all sectors and providing favorable business conditions.
Bangladesh offers foreign investors a variety of incentives, including:
- Exemptions and tax holidays
- Facilitation of utility connections 2. Also Simplified import of raw materials and machinery
- In the next 15 years, hence the Bangladesh Economic Zone Authority (BEZA) plans to establish 100 economic zones across the country.
Foreign direct investment has been steadily increasing, reaching a high of US$ 2.4 billion in 2017.
Bangladesh is now one of the world’s most promising emerging markets, and also foreign investors are beginning to recognize it as one to watch. Bangladesh is close to other major markets in the region, such as China, due to its location on the border of South and Southeast Asia.
Register / Incorporate a Entity Setup in Bangladesh
Bangladesh is home to an increasing number of foreign companies, thanks to a liberal industrial policy that provides foreign investors with a variety of lucrative opportunities, making Bangladesh one of the fastest-growing foreign investment hubs in the world. The economy has been consistently growing at over 6% over the last decade, and it has a large local consumer base, making it an appealing destination for investment in a wide range of sectors. Although it is a global company, services are provided by a local partner with a global flavor. Our expertise is well-known in the practical application of local company registration law and also the entire business setup process.
FAQs For Entity Setup Services
The following documents are require to apply for permission:
- An application form has been fill out and also sign.
- The foreign company certificate of incorporation
- The foreign company both MOA and AOA
- Information about the foreign company directors/promoters.
- Also The foreign company audited financial statements for the previous fiscal year.
- Board resolution approving the branch or liaison office establishment
- Proposed office organogram which positions are occupied by local and also foreign personnel.
Specifics of the proposed activities.
The Bangladesh Embassy or High Commission in the country of origin must certify the documents. Alternatively, it could be attest by the country Apex Chamber of Commerce. BDT 25,000 must also be paid, and also a Pay Order must be submit to BIDA. As part of the application process, BIDA may ask for additional documents or information. The Inter-Ministerial Committee will review the application as well as the supporting documents. BIDA will send you an approval letter if your application is approve. The authorization is good for three years.
Foreign Entity company
The promoters must open a temporary bank account in the proposed company’s name with any scheduled bank, with the understanding that the account will be regularized once the company has been properly registered with the company house. The capital contribution must be remit to the temporary account after the account has been created. And also an Encashment certificate must be obtain from the bank stating that the amount required for the capital contribution has been duly remit and receive.
Following the completion of the registration process. A private Limited Company may be require to obtain any or all of the following documents:
- Investment Registration Board
- A trade license from the local government.
- The National Board of Revenue’s Tax Identification Number (TIN) (NBR)
- NBR Vat Registration Certificate
- Bangladesh Fire Service and Civil Defense Authority Fire Certificate (for industrial ventures)
- If the company is involve in industrial projects. An Environment Clearance Certificate from the Department of Environment is require (for industrial ventures)
- Also Foreign nationals can apply for visas, work permits, and also employee visas.
Company Registration and Formation With Our Foreign Entity Setup Services.
Online Company Registration, Tax Filing, Valuation reports and Secretarial Services in Dhaka, Bangladesh. We are a team of Chartered Accountants, Company Secretaries, and Lawyers and we have offices in Dhaka and Chittagong. And with spread across the country.