A foreign-owned company in Bangladesh opens two bank accounts, in order. First, before incorporation, a temporary account receives the share capital from abroad and produces the encashment certificate that RJSC requires. Second, after incorporation, the company opens its operating account, often by converting the temporary one, once it has its trade license and e-TIN. A local currency account usually opens within 5–7 business days of a complete application.
Temporary account vs operating account
| Factor | Temporary account | Operating account |
|---|---|---|
|
When |
Before incorporation
|
After incorporation, trade license and e-TIN
|
|
Opened in the name of
|
The proposed company
|
The incorporated company
|
|
Purpose
|
Receive paid-up capital from foreign shareholders
|
Day-to-day banking: payroll, suppliers, tax, receipts
|
|
What it produces
|
The encashment certificate for RJSC
|
Statements, cheque book, online banking
|
|
Transactions allowed
|
Inward capital remittance only
|
Full banking
|
The encashment certificate is the bank’s proof that foreign capital arrived through official channels. It matters long after incorporation: you’ll need it again for BIDA registration, work permits and repatriating profits, so keep certified copies safe.
Documents you'll need
Banks follow Bangladesh Bank’s know-your-customer (KYC) and anti-money-laundering rules, so expect a long list. Exact requirements vary by bank; these are typical.
For the temporary account (before incorporation)
- RJSC name clearance certificate
- Draft Memorandum and Articles of Association
- Board resolution or promoters’ minutes authorising the account and naming signatories
- Passport copies and photographs of all shareholders and directors
- For corporate shareholders: parent company incorporation documents and a board resolution approving the investment
- The bank’s account opening form and KYC profile, signed
For the operating account (after incorporation)
- Certificate of incorporation
- RJSC-certified MoA and AoA
- Certified Form XII (list of directors)
- Board resolution to open the account and appoint signatories
- Valid trade license
- e-TIN certificate of the company, and of each director and account operator
- Passport copies of foreign directors and national ID copies of local directors
- Attested photographs of all signatories
- Proof of the registered office address
- Import or export registration certificate, if the company trades internationally
Documents issued abroad usually need notarisation and attestation by the Bangladesh embassy or high commission, as explained in our company registration guide. Branch and liaison offices also need their BIDA permission letter.
Step by step
- Choose your bank before name clearance expires, so the account is ready when the capital needs to arrive.
- Open the temporary account in the proposed company’s name, using the name clearance certificate and draft MoA and AoA.
- Remit the share capital by SWIFT from each foreign shareholder, with the purpose stated as “equity investment” or “share capital”. Funds usually land in 2–3 working days.
- Collect the encashment certificate from the bank, and file it with RJSC to complete incorporation.
- Get your post-incorporation registrations: trade license and e-TIN, which the bank needs for the operating account.
- Convert or open the operating account. Submit the post-incorporation documents. The bank releases the capital for use once the account is regularised.
- Set up signatories and online banking, including payment limits and approvers for payroll and supplier payments.
Foreign currency accounts and FX rules
Most companies on the mainland operate in Bangladeshi taka. Foreign currency accounts are only allowed in specific cases under Bangladesh Bank’s foreign exchange rules, for example:
- Exporters, who can keep part of their export earnings in an Exporters’ Retention Quota (ERQ) account
- Companies in export processing zones and economic zones
- Accounts for receiving approved foreign loans
Foreign currency accounts usually take longer to open, often 10–15 business days. Even without one, you can still pay foreign suppliers, remit dividends and pay approved royalties or fees. Your bank converts taka and sends the payment once you provide the supporting documents.
Choosing a bank
Bangladesh has both local private banks and branches of international banks. When you compare them, check:
- Experience with foreign-owned companies, including handling encashment certificates and inward remittances
- A relationship manager who can handle foreign exchange documentation
- Online banking with multi-user approvals for payroll and payments
- Trade services such as letters of credit, if you import or export
- Correspondent banks in your home country, for faster transfers and lower fees
Ask two or three banks for their document lists before you start. Requirements differ, and picking the bank early avoids reopening the account later.
Common delays
- Name mismatches. The company name, director names and shareholdings must match exactly across RJSC records, the bank form and foreign documents.
- Wrong remittance purpose. A transfer not marked as share capital may not qualify for an encashment certificate.
- Unattested foreign documents. Banks reject copies that aren’t notarised and attested.
- Missing trade license or e-TIN when converting to the operating account.
Frequently asked questions
Can a foreign company open a bank account in Bangladesh before incorporation?
How long does it take to open a corporate bank account?
Do foreign directors need to visit Bangladesh?
Get your bank account set up with AccouSource
AccouSource coordinates the temporary account, capital remittance and encashment certificate as part of company registration, then sets up your operating account. Talk to our team.
