Foreign Direct Investment Project in Bangladesh

Foreign investors are free to make investment in Bangladesh in the industrial enterprises excepting a few reserved sectors as mentioned in the “Industrial Policy” of the government in force.An industrial enterprise in Bangladesh can be in collaboration with local investors or may even be wholly owned by the foreign investors. There are several government/autonomous bodies from which variety of license/permission/clearance would be required for investing in Bangladesh. The followings are the relevant legal requirements:


Sl# Name of the License/permit Issuing Authority Documents/Conditions for getting the license/permit or pre-requisites in getting the license/permits Applicable Law Required time


Renewal process

1 Name Clearance Certificate RJSC ·     Application through online after opening an E-account on RJSC Website.

·     Payment of fees after preliminary name search

Companies Act 1994 01-02 working day


Not required

2 Incorporation of 100% foreign company RJSC ·     Name Clearance Certificate issued by RJSC

·     Filled-in Form – XXXVI: Documents (Memorandum of Association and Articles of Association)

·     Filled-in Form VI Notice of the address of the registered or principal office of the Company.

·     Filled-in Form IX Director’s Consent

·     Passport size photo of shareholders & Directors

·     Photo ID and Passport Info page of Shareholder and Directors

·     Foreign Currency Encashment Certificate from a schedule Bank [transfer of paid up capital]

·     Treasury Challan [Government Fees]

·     Permission from BIDA

Companies Act 1994  07-15 working days


Not required. Automatically renewed with filing of returns.

3. Tax Identification Number National Board of Revenue ·     A mobile phone number

·     Incorporation number of the company

·     Date of incorporation of the company

·     Name of the authorized person

Income Tax Ordinance 1984 15-20 minutes


Not required.

4. Trade License for manufacturing firms Dhaka North/South City Corporation ·     Application form

·     National ID Card

·     Rent receipt or ownership proof

·     Holding tax payment receipt

·     Passport size photograph of the entrepreneur

·     Declaration on non-judicial stamp to abide by the rules & regulation of city corporation/municipality/union parishad

·     NOC declaration from the locality

·     Location map

·     Sketch along with details of the proposed factory/surrounding of the factory

·     Fire License

·     Environment clearance License Memorandum f Association and Articles of Association

·     Certificate of incorporation

·     Work permit from BIDA

·     Statement of Bank Solvency

·     TIN Certificate

Dhaka City Corporation Ordinance 1983

Municipal Taxation Rules 1986

10-20 working days



Yearly renewal required

5. BIDA Registration of Foreign Investment Project Bangladesh Investment Development

Authority (BIDA)

·     Forwarding letter to be submitted by the Managing Director of the Company in official letter head.

·     Two copies of Application in the Prescribed Form duly filled in

·     Certificate of Incorporation

·     Trade License in favour of factory address

·     TIN Certificate

·     List of machineries local and imported to be submitted in official pad of the company (SL no., name of Machine, H.S. Code, quantity and value in Million Taka)

·     Encashment Certificate

·     NOC from concerned Ministry

·     Pay order for applicable registration fee

BIDA Act 2016

Guideline 2011

2-4 working days


Not required

6. IRC Office of Chief Controller of Imports & Exports (CCI&E) ·     Passport  size photograph of the Applicant

·     Trade License

·     Membership Certificate from a local Chamber of Commerce and Industry or from concerned Trade Associations

·     Financial solvency certificate

·     Citizenship Certificate

·     Treasury Challan

·     TIN Certificate

·     Partnership Deed

·     Certificate of Incorporation, Memorandum and Articles of Association

Import Policy Order 2015-2018  02-05 working days
7. VAT Registration National Board of Revenue ·     Trade License

·     TIN Certificate

·     IRC

·     List of sales shops, sales centers, full address, equipment, machinery, fittings, product features and amendment of the products manufactured

·     List of invoice and stored product

·     Deed of Agreement

·     Bank Solvency Certificate

·     BIDA Registration

·     Memorandum of Association and Articles of Association

VAT and Supplementary Duty Act 2012  2-4 working days


Not required

8. Approval of remittance  BIDA ·     BIDA Registration

·     Technology transfer Agreement

·     Application Form

·     Resolution of Board of Directors

·     Income Tax Certificate and Return

·     Memorandum of Association and Articles of Association

·     Invoices

·     Authenticated banking documents showing export earning, if any

·     Patent right/trade mark/brand name registration in Bangladesh

·     Work completion certificate

9. Environment License Department of Environment ·     Application through prescribed form-3 under Environment Conservation Rules 1997.

·     Prescribed fees under schedule-13 under Environment Conservation Rules 1997 (Amended 2002)

·     Report on the feasibility of the industrial unit or project (applicable only for proposed industrial unit or project);

·     Report on the Initial Environmental Examination (IEE) relating to the industrial unit or project, and also the terms of reference (ToR) for the Environmental Impact Assessment (EIA) of the unit or the project and its Process Flow Diagram; or Environmental Impact Assessment (EIA) report prepared on the basis of terms of reference previously approved by the Department of Environment, along with the Layout Plan (showing location of Effluent Treatment Plant), Process Flow Diagram, design and time schedule of the Effluent Treatment Plant of the unit or project, (these are applicable only for a proposed industrial unit or project);

·     Report on the Environmental Management Plan (EMP) for the industrial unit or project, and also the Process Flow Diagram, Layout Plan (showing location of Effluent Treatment Plant), design and information about the effectiveness of the Effluent Treatment Plan of the unit or project (these are applicable only for an existing industrial unit or project);

·     No objection certificate (Prescribed Form) of the local authority

·     Emergency plan relating adverse environmental impact and plan for mitigation of the effect of pollution

·     Outline of relocation, rehabilitation plan (where applicable)

·     Other necessary information (where applicable).

Environment Conservation Rules 1997 (Amended 2002)  30 working days.


Yearly renewal

10. Approval of Layout plan and registration / license for factories and establishment Department of Inspection of Factories and Establishments (DIFE) ·     Land documents, if rental, rent receipt and agreement is required. If owned, tax receipt is required

·     Site plan/layout master plan

·     Detailed construction plan

·     Machine layout and flow chart of manufacturing process

As per ILO Convention Maximum 2 months.


Yearly renewal required

11. Fire License Fire Service and Civil Defence ·     Filled in prescribed Application Form. Application form can be collected either from office of Fire Service and Civil Defence or from internet.

·     Trade License

·     Description of the products including their quantity.

·     Annual value of the warehouse (determined by the City Corporation/ Municipality/Union Parishad).

·     2 copies of layout plan of the Fire Prevention and Fire Fighting system.

·     No-Objection-Certificate from local (elected) representative

·     Certificate of Incorporation and Memorandum of Association and Articles of Association of the Company.

·     Name address of the Directors of the Company.

   120 working days


Yearly renewal required

12. Membership of Chambers/trade body?  Dhaka Chamber of Commerce and Industries ·     Trade License

·     TIN

·     Bank Certificate

·     Memorandum of Association and Articles of Association.

·     Certificate of Incorporation

·     Photograph of the applicant

·     Visiting card of the applicant

·     National ID / Passport

·     IRC

·     VAT

·     BIDA Certificate

·     Work Permit

·     Bank pay order

The Trade Organization Ordinance  1961  1-3 working days.


Yearly Renewal

13 PI/E VISA for Foreign Investors/ Employee respectively BIDA and concerned Bangladesh Embassy/High Commission ·     BIDA Registration Number

·     Memorandum and Articles of Association and Certificate of Incorporation

·     Board Resolution

·     Photograph of the Investor

·     Copy of Passport (whole of the each part, each of the pages chronologically)

·     Specific activity of the company

·     Income Tax Clearance certificate of the Company

·     Encashment certificate of inward remittance of minimum US$ 5,0000.00 as initial establishment cost for branch/ liaison/ joint-venture and 100% foreign ownership company incorporation in Bangladesh

BIDA Act 2006

Guideline 2011.


After obtaining recommendation letter the Investor may apply for PI Visa.

It may take 3 working days to get recommendation letter.


7 working days to obtain visa


1 + 2 + 2 years in phases for PI Visa


1 year for E Visa

14 Work Permit BIDA ·     Copy of Memorandum & Articles of Association and Certificate of Incorporation of the company duly signed by the shareholders in case of locally incorporated.


·     Board resolution regarding employment of foreign national(s) including honorarium & other benefit to be provided.

·     Copy of passport (whole Used part)with arrival stamp, E-type visa for employees and PI-type visa for investors each of the pages chronologically

·     Service contract/ agreement and appointment letter/ transfer order in case of employee

·     Copies of all academic qualification & professional experience certificate for the employee

·     Statement of the manpower showing list of local & expatriate personnel employed with designation, salary break-up, nationality and date of first appointment

·     Up-to-date income tax clearance certificate of the company

·     Encashment certificate of inward remittance of minimum US$ 5,0000.00 as initial establishment cost for branch/ liaison/ joint-venture and 100% foreign ownership company incorporation in Bangladesh

·     Visa Recommendation Letter of the Investors/Employee.

·     Attachment of company’s comments as per remarks (if any)

BIDA Act 2006

Guideline 2011.

3-5 working days



1 + 2 + 2 years in phases for PI Visa


1 year for E Visa

15. Remittance of dividend to non-resident shareholders Bangladesh Bank ·     The Ads are allowed to remit dividends (both final and interim) to the non-resident shareholders on receipt of the application in the prescribed form (Appendix 5/75) in triplicate from the companies concerned duly certified by their Auditors and supported by the following document:

·     Attested copy of the certificate of incorporation of the company (to be   submitted only once).

·     Audited Balance Sheet and Profit & Loss Account of the Company for the year to which the dividend relates.

·     Copy, certified by the Auditor, of the Board resolution declaring the dividend.

·     List of non-resident shareholders to whom dividend is payable.

·     Certificate from the Auditor of the company to the effect that the taxes payable by the nonresident shareholder on account of the dividend earned has been deducted.

·     Auditor’s certificate to the effect that the provision for income tax and/or any additional liability (such as surcharge etc.) in connection with such taxes made in the accounts of the company is sufficient to meet all past and present tax liabilities of the company in Bangladesh upto the period for which remittance of dividend is applied for i.e. the provision should cover not only current year but also the previous years for which taxes have not yet been finally assessed and paid.

·     Final income tax assessment order as and when obtained.

·     Undertaking to the effect that in case of remittance of any ineligible amount, the amount so remitted will be repatriated to Bangladesh on demand by Bangladesh Bank/the AD.

Guidelines for Foreign Exchange Transactions  




Renewal N/A



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