Bangladesh allows 100% foreign ownership in most sectors. Only four activities are closed to private investors: arms, nuclear power, security printing, and forestry in reserved forests. About 20 more, including banking, insurance, telecoms and power, are open but need a no-objection certificate from the relevant ministry first. Everything else is open, and foreign investors get the same treatment as local ones.
This guide covers the legal framework, which sectors are open or controlled, how BIDA registration works, the main incentives, and how you take profits out.
The legal framework
- Foreign Private Investment (Promotion and Protection) Act 1980. Guarantees fair treatment, protection against expropriation without compensation, and the right to repatriate capital and profits.
- Bangladesh Investment Development Authority Act 2016. Created BIDA as the main investment promotion and registration agency outside the special zones.
- Foreign Exchange Regulation Act 1947. Governs how capital comes in and how profits go out, through Bangladesh Bank.
- Industrial Policy. Sets out which sectors are reserved, controlled or open.
- Bangladesh Economic Zones Act 2010 and the BEPZA Act. Set separate rules and incentives for economic zones and export processing zones.
Which sectors are open to foreign investors?
Bangladesh sorts industries into three groups.
| Category | What it means | Sectors |
|---|---|---|
|
Reserved
|
Closed to private investment, local or foreign
|
Arms, ammunition and military equipment; nuclear power; security printing and minting; forestation and mechanised extraction in reserved forests
|
|
Controlled
|
Open, but you need a no-objection certificate (NOC) from the relevant ministry before BIDA registration
|
Banking and finance; insurance; power generation and distribution; oil, gas, coal and mineral exploration; telecoms (mobile and fixed); satellite TV channels; VoIP; cargo and passenger aviation; sea transport and seaports; deep-sea fishing; large infrastructure (expressways, monorail, economic zones); crude oil refining; explosives, acid and chemicals; stone crushing; sludge-based fertiliser
|
|
Open
|
No special approval beyond normal registration and licences
|
Everything else, including manufacturing, IT and software, garments and textiles, pharmaceuticals, light engineering, agro-processing, logistics, trading and services
|
The lists come from the National Industrial Policy, as published by BIDA. Some controlled sectors also have their own regulator and ownership rules. Banks are licensed by Bangladesh Bank, telecoms by BTRC and insurers by IDRA. Check those rules before you plan the shareholding.
Foreign companies generally can’t own land outright. A Bangladeshi subsidiary, even one that is 100% foreign-owned, can buy or lease land for its business. In practice, most foreign investors lease, or take plots in an economic zone or EPZ.
Registering your investment with BIDA
After you incorporate with RJSC, register the project with BIDA, the Bangladesh Investment Development Authority. Registration isn’t a licence to operate, but it unlocks the services foreign investors rely on:
- Work permits and visa recommendations for foreign staff
- Approval of royalty, technical fee and foreign loan arrangements
- Import of capital machinery and access to some incentives
- A smoother path for profit and capital repatriation
BIDA’s One Stop Service (OSS) portal handles registration and many follow-on approvals online. Companies in an economic zone or EPZ register with BEZA or BEPZA instead. For the incorporation steps, see How to Register a Company in Bangladesh, and for sector approvals, our licences and BIDA approval guide.
Investment incentives
Which incentives you get depends mainly on where you set up.
| Location | Regulator | Main incentives |
|---|---|---|
|
Export Processing Zone (EPZ)
|
BEPZA
|
Time-limited corporate tax exemptions, duty-free import of machinery and raw materials, ready factory space, a single regulator for permits
|
|
Economic Zone (EZ)
|
BEZA
|
Graduated tax exemptions over several years, duty-free capital machinery, serviced land, OSS within the zone
|
|
Hi-Tech Park
|
BHTPA
|
Tax exemptions for tech firms, duty benefits, plug-and-play office space
|
|
Outside the zones
|
BIDA
|
Duty concessions on capital machinery, accelerated depreciation, sector-specific exemptions set by each year’s Finance Act
|
Tax holiday rules have changed several times in recent budgets, so confirm the current terms for your sector and location before you build them into a business case. Our guide to legally reducing corporate tax in Bangladesh covers how to combine them with other planning.
Taking profits and capital out
Foreign investors can repatriate post-tax profits, dividends, capital and capital gains in full. Dividends to foreign shareholders don’t need prior Bangladesh Bank approval; your bank remits them once tax is paid. The profit repatriation guide walks through the documents and withholding tax.
One rule protects all of this: bring your capital in through banking channels and get an encashment certificate. Without that record, proving foreign ownership later is difficult.
Frequently asked questions
Can foreigners own 100% of a business in Bangladesh?
Which sectors are restricted for foreign investment in Bangladesh?
Do I have to register with BIDA?
Is there a minimum investment for foreign companies?
Can I repatriate my profits from Bangladesh?
Plan your Bangladesh market entry with AccouSource
AccouSource helps foreign investors choose the right structure, check sector rules, register with RJSC and BIDA, and set up tax and accounting from day one. Book a consultation to plan your entry.
