Our liason office & representative in the world (S & F CONSULTING FIRM LIMITED)

S & F CONSULTING FIRM LIMITED

www.sfconsultingbd.com

info@sfconsultingbd.com

Dhaka, Bangladesh

An international business service company in Bangladesh

German Arifur Rahman Email: german.office@sfconsultingbd.com MSC in business administration, University of Duisburg-Essen, Mönchengladbach, Germany Australia Mahbub Siraz Tuhin Email: australia.office@sfconsultingbd.com Post Graduate, Australian Human Resource Institution Adelaide, South Australia UK Rezaul Islam Sakib Email: uk.office@sfconsultingbd.com PhD, University of Nottingham, UK Flat C102 ,Newark Hall Jubilee Campus , The University of Nottingham , UK. NG8 1BB.

Sweden Md. Nur Hossain Email: sweden.office@sfconsultingbd.com MSc International Marketing & Brand Management Lund University MBA in SMIO, Linkoping, Sweden Malaysia Sujat Sikder Email: malaysia.office@sfconsultingbd.com Kualalampur, Malaysia Canada Mahbubur Rahman Email: canada.office@sfconsultingbd.com Toronto, Canada USA Md. Alamgir Hossain Email: usa.office@sfconsultingbd.com Business Graduate Sunnyside,

Our professional people (S & F CONSULTING FIRM LIMITED)

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Company Matter Md. Forhad Hossain,  MBA, LL.B, LL.M Accounts Services Shams Rezanur Iqbal,  ACMA Md. Shahadat Hossain,  ACMA Initial Public Offer (IPO) Reazul Haque Sikder,  ACS Associate of Chartered Secretary  IPO specialist & Tax Consultant TAX, VAT & Custom Zulfiquer Ali Babul, Tax & Company Law advisor Md. Abdus Sabur, LL.B (Hons), LL.M,  Tax & Company Law advisor Md. Kamruzzaman (Kammal), LL.B (Hons), LL.M,  Tax & Company Law advisor Md. Masum, Income Tax Practitioner

Company matter & Legal Service M. Mosharof Hossain Sikder, MBA, MSS, LL.B Supreme court of Bangladesh AKM Shafiuddin, Barrister at Law Supreme Court of Bangladesh Nirmal Chandra Paul, Retd. Judge Supreme Court of Bangladesh Fahima Akter, LL.B, LL.M Supreme Court of Bangladesh Bulbul Ahmed, LL.B, LL.M Supreme Court of Bangladesh Abdul Malek (Emon) Supreme Court of Bangladesh Mustafizur Rahman, LL.B (Hons), LL.M Supreme Court of Bangladesh Kamruzzaman (Kachi), LL.B (Hons), LL.M Supreme Court of Bangladesh

Capital machinery, 100 % export company, develop area

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Concessionary Duty on Imported Capital Machinery

Import duty at the rate of 7.5% ad valorem is payable on Capital Machinery and Spares imported for initial installation or ‘Balancing, Modernization, Rehabilitation and Expansion’ (BMR/BMRE) of the existing industries. The value of spare parts should not, however, exceed 10% of the total cost and freight value of the machinery. Out of this, 7.5% rate of duty payable, export-oriented industries and industries in the under developed areas, may enjoy a further concession of the import duty in the following manner:

100% export oriented industries:

No import duty is charged in case of capital machinery and spares listed in NBR’s relevant notification. However, import duty at 7.5% is secured in the form of a bank guarantee or an indemnity bond to be returned after installation of the machinery.

Minimum 70% export oriented industries in developed areas:

Import duty at 2.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional duty at 5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.

Minimum 70% export oriented industries in developed areas:

Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the norm of a bank guarantee or cash deposit to be returned after installation of the machinery.

Other industries outside developed areas:

Import duty at 5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Additional import duty at 2.5% is secured in the form of a bank guarantee or cash deposit to be returned after installation of the machinery.

Other industries in developed areas:

Import duty at 7.5% is charged in case of capital machinery and spares listed in NBR’s relevant notification. Value Added Tax (VAT) is not payable for imported capital machinery and spares.  Duties and taxes on import of goods which are produced locally will be higher than those applicable to import of raw materials for producing such goods.

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Residence, Tax holiday & depreciation allowance

S & F CONSULTING FIRM LIMITED

An international business service company in Bangladesh

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Residence

Permanent resident permits on investing US$ 75,000 and citizenship on investing US$

500,000

Tax holidays:

1. In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three  and four: and 25% in the year five.
2. In the Rajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts:

100% for first three years, 50% for next three years, and 25% for year seven

Depreciation allowances

1. Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery
2. Cash and added incentives to exporting industries
3. Businesses exporting 80% or more of goods or services qualify for duty free import  of machinery and spares, bonded warehousing
4. 90% loans against letters of credit and funds for export promotion
5. Export credit guarantee scheme
6. Domestic market sales of up to 20% is allowed to export oriented business located  outside an Export Processing Zone (EPZ) on payment of relevant duties
7. Cash incentives and export subsidies are granted on the Free on Board (FOOB) value  of selected exports ranging from 5% to 20% on selected products. 

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Visa & Work Permit in Bangladesh

S & F CONSULTING FIRM LIMITED

An international company service firm in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

 BOI Recommendation Letter (for Visa)

Two types of Visa exist: the PI-type for a Private investor, and the E-type for an Employee.

An application has to be made to the BOI for a PI Visa for foreign investors. The documents  required are:

a. Business introduction letter

b. Forwarding letter

c. Passport photocopies

Visa Application

Foreign Nationals have to apply for Visa in any foreign mission of GoB,

a. BOI recommendation letter

b. Company letter introducing the business

This Visa must be renewed yearly or bi-yearly depending on various factors (e.g. country of

origin).

Work Permit

A work permit for foreign nationals is a prerequisite for employment in Bangladesh. Private sector industrial enterprises desiring to employ foreign nationals are required to apply in advance to the BOI in the prescribed from. For expatriate employment the guidelines are as follows:

1. Nationals of countries recognized by Bangladesh are considered for employment.

2. Employment of expatriate personnel will be considered only in industrial establishments which are registered by the appropriate authority.

3. Employment of foreign nationals is normally considered for the job for which local experts/technicians are not available.

4. Persons below 18 years of age are not eligible for employment.

5. A decision of the board of directors of the concerned company for new employment/ employment extension is to be furnished in each case.

6. The number of foreign employees should not exceed 5% of the total employees,  including top management personnel.

7. Initially employment of any foreign national is considered for a term of two years,  which may be extended on the basis of merit of the case.

8. Necessary security clearance has to be obtained from the Ministry of Home Affairs.

BOI Form: See Website: http://www.boi.gov.bd/how-to-invest/forms-a-procedures/ obtaining-a-work-permit:

Papers/documents needed for recommendation of PI or E type visa application in favour of the expatriate(s) to be employed in Branch/Liaison Office and other Private and Public Enterprise

1. Copy of the permission letter for Branch/Liaison Office if not submitted earlier
2. Board resolution for employment of foreign nation(s) mentioning salary & other benefit.
3. Passport size photographs of the expatriate(s)
4. Memorandum & Article of Association and Certificate of Incorporation of the company duly signed by Shareholders, if not submitted earlier.
5. Photocopy of passport.
6. Service contract/agreement or appointment letter in case of employee.
7. Certificates of all academic professional & experience for employees.
8. Paper clipping showing advertisement made for recruitment of local personal prior to appointment of the expatriate(s).
9. Statement of manpower showing list of local & expatriate personal employed with designation, salary break-up, nationality and date of first appointment.
10. Encashment certificate of inward remittance of minimum US$ 50,000 as initial establishment cost for branch/liaison offices and locally incorporated/join-venture and 100% foreign ownership companies.

 Note:    All documents to be attested by the Managing Director/Managing Partner/Proprietor of the Company/Firm.  

Work Permit

Documents

 The following papers/documents are required for New Work Permit in favour of the expatriate (s) employment in Branch/Liaison Office and other private Public Enterprise  

1. Attested copy of the permission letter for Brach/Liaison Office/Company.
2. Commercial Enterprise from the appropriate authority, if not submitted earlier
3. Application in prescribed form along with passport size photographs of the expatriate(s) attested by the Managing Director/Managing Partner/Proprietor/appropriate authority.
4. Board resolution regarding employment of foreign national(s) including salary & other benefit to be provided.
5. Memorandum & Article of Association and Certificate of Incorporation of the company duly signed by Shareholders, if not submitted earlier.
6. Attested photocopy of passport with arrival stamp ‘E’ type visa for employee and ‘PI’ type visa for investors.
7. Attested copy of service contract/agreement and appointment letter in case of employee
8. Attested copies of all academic, professional & experience certificate for employee.
9. Paper clipping showing advertisement made for recruitment of local personal prior to appointment of the expatriate(s).
10. Statement of manpower showing list of local & expatriate personal employed with designation, salary break-up, nationality and date of first appointment.
11. Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2 years.
12. Encashment certificate of inward remittance of minimum US$ 50,000 as initial establishment cost for branch/liaison offices and locally incorporated/join-venture and 100% foreign ownership companies.
13. Up-to-date income tax certificate for branch office locally incorporated companies in Bangladesh.

Note:    All documents to be attested by the Managing Director/Managing Partner/Proprietor of the Company/Firm.  

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Dhaka

Tax certificate, IRC, ERC, Factory plan, Environment cert, Fire License,Employment, Labor

S & F CONSULTING FIRM LIMITED

An international company registration service firm in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Import Registration Certificate (IRC)

For the Import Registration Certificate (IRC) one needs to register with the BOI and the Chief Controller of Imports & Exports, CCI&E . The following supporting documents are needed:

a. Trade License photocopy

b. Valid membership of association (e.g. DBCCI)

c. Attested copy of:

i. AOA

ii. MOA

iii. Incorporation certificate

d. Passport photocopy of the Managing Director

e. Bank solvency certificate (original)

f. Original receipt (challan) of bank deposit for the fees

Export Registration Certificate (ERC)

For the Export Registration Certificate (ERC) the following documents are needed :

a. Attested copy of:

i. Trade License

ii. Valid membership of association or chamber

iii. AOA

iv. MOA

v. Incorporation certificate

b. Original of Bank receipt (challan) for deposit of the fees

Environmental Clearance Certificate

The company has to apply to the BOI Utility Service Cell (USC) for Environmental Clearance Certificate. BOI USC will obtain the necessary clearance from the Department of Environment (DOE) who will visit the factory for inspection.

Social Compliance

The registration for Social Compliance can be acquired from the Chief Inspector of  Factories and Establishments (CIFE). Any manufacturing company employing ten or more  workers is required to be registered under the Factories Act 1965 at the office of CIFE. This act is primarily intended to regulate working conditions and to ensure safety in the factory.  The prescribed Application Form has to be collected from the office of CIFE, filled in and submitted with all requirements. The CIFE office issues registration within the stipulated period. A different example concerns the acquisition of the Fire License.

http://www.boi.gov.bd/how-to-invest/forms-a-procedures

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

License,documents & other info

S & F CONSULTING FIRM LIMITED

An international company registration service provider in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Business Registration Requirement permission & Process

The BOI registration makes the company eligible to avail the incentives and facilities provided by the government. Required documents are:

a. Application Forms

b. Certificate of Incorporation

c. MOA

d. AOA

e. Joint Venture Agreement (if any)

f. Attested copy of deed agreement for rental premises

g. Project Profile

h. Background of the promoters (shareholders)

i. List of Machineries indicating quantity and price

j. Copy of the relevant Loan documents

k. Pay Order/Bank draft for the fee

Other:

1. Factory: Approval of Factory Plan
2. Bonded Warehouse License
3. Registration of Local Investment Project

Industrial Registration Application

Application for BOI Industrial Registration with following supporting documents:

a. Project Profile

b. MOA

c. AOA

d. Land Information & Document

e. Machinery Details

f. Financing sources

g. TIN

h. IRC

i) ERC

j) BOI Recommendation Letter (for Visa)

k) Visa Application

l) Work permit

m) Environment Certificate

n) Social Compliance

Business Licenses are required

1 . Approval of Factory Plan

2 . Bonded Warehouse License Customs Bond Commissionerate (CBC)

3 . Certificate of Incorporation

4 . Environmental Clearance Certificate Department of Environment (DOE) http://www.doe-bd.org/

5 . Export Registration Certificate (ERC)

6 . Fire License Fire Service and Civil Defense (FS&CD)

7.  Import Registration Certificate (IRC)- Office of the Chief Controller of Imports & Exports (CCI&E)

8 . Registration of Foreign Investment/ Joint Venture- Board of Investment (BOI)

9 . Registration of Local Investment Projects - Board of Investment (BOI)

10 . Tax Holiday Certificate National Board of Revenue (NBR)

11 . Tax Identification Number (TIN) National Board of Revenue (NBR)

12 . Trade License for a Commercial Firm-  Dhaka City Corporation

13 . Trade License for a Manufacturing Firm - Dhaka City Corporation

14 . Trade Marks Registration - Department of Patents, Designs & Trademarks (DPDT)

15.  VAT Registration National Board of Revenue (NBR)

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Dhaka

Required documents for company registration in Bangladesh

S & F CONSULTING FIRM LIMITED

An international company formation service provider in Bangladesh

www.sfconsultingbd.com

Mobile: +880 01790220729

Dhaka, Bangladesh

Papers & information are required to open a branch office in Dhaka

In order to establish your branch office in Bangladesh, necessary application in prescribed form has to be submitted to the concerned authorities of the Government for obtaining permission/approvals. The concerned authorities are listed below:

1.    Government of Bangladesh (Ministry of Industries), Dhaka;

2.     Bangladesh Bank, Dhaka;

To obtain the permissions/approvals of the above authorities, the following information and papers/documents will be required as shown against each authority. The information mentioned below requires to be filed with the said application under the signature and seal of the Managing Director of the principal company. The seal of the Company also has to be affixed thereon.

1.   Government of Bangladesh (Ministry of Industries)

1. Full name, address, telephone, fax numbers of the principal company, with country of origin;
2. Intended field of business in Bangladesh through proposed Branch Office;
3. Function of the principal company/firm in brief;
4. Date of operation of the proposed Branch Office;
5. Period for which permission is sought;
6. Proposed organizational set up of the company's Branch Office;
7. Initial approximate expenditure and operational expenses of the company's Branch Office and source and nature of inflow of money required for running the Branch Office for the purpose; $ 50,000 have to show in Bank account for inward remittance, office expense, employees salary & other.
8. Certificate of Incorporation of the principal company and resolution of the Board of Directors to establish a Branch Office in Bangladesh, duly notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin
9. Memorandum and Articles of Association of the principal company, duly executed, notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin

10. Power of Attorney given in favour of The Law Assistant duly notarized and authenticated by the High Commission of Bangladesh in the country of origin.

2.   Bangladesh Bank

1. Full name, address, telephone, fax numbers of the principal company, with country of origin;
2. Place of incorporation and registration of the principal company in the country of origin;
3. Authorized and paid-up share capital of the principal company, both equity and preferential (if applicable);
4. Name, address and nationality of the Directors of the principal company as well as their place of permanent residence;
5. Any share held in the principal company by Bangladeshi national or company registered in Bangladesh with full particulars (name of the shareholder, nationality, number and value of shares held);
6. Particulars of the activity (trading/commercial/industrial/consultancy) of the Principal Company;
7. Name and address of the Bangladeshi agent/representative if any (including nature of activities undertaken or the services rendered by Bangladeshi agent/representative and term including remuneration payable to agent/representative);
8. Source of finance to the Branch Office in Bangladesh;
9. Whether surplus earning, if any in Bangladesh, to be remitted abroad;
10. Whether any foreign personnel will be employed; if so, a list giving the names and nationalities of such persons, their designation, period of employment, for working in Bangladesh and particulars of government approval for their employment;
11. Certificate of Incorporation of the principal company, duly notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin-two copies including one original;
12. Memorandum and Articles of Association of the principal company, duly notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin - two copies including one original;
13. Resolution passed by the Board of Directors for establishment of branch/liaison office in Bangladesh duly notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin-two copies including one original;
14. Appointment letter of the local Manager/Branch Representative, if any, in the line of a Board Resolution duly notarized and authenticated by the High Commission/Embassy of Bangladesh in the country of origin;
15. List of local employees if appointed;
16. Power of Attorney favouring the legal representative duly executed.

www.sfconsultingbd.com

Email: info@sfconsultingbd.com

Dhaka

Facilities & Tax incentives

S & F CONSULTING FIRM LIMITED

An international company formation service provider in Bangladesh

www.sfconsultingbd.com

Dhaka, Bangladesh

Mobile: +880 01790220729

Tax exemption

Tax exemptions are allowed in the following cases: 

* Tax exemption on royalties, technical know-how fees received by any foreign collaborator, firm, company and expert. 

* Exemption of income tax up to 3 years for foreign technicians employed in industries specified in the relevant schedule of the income tax ordinance. 

* Tax exemption on income of the private sector power generation company for 15 years from the date of commercial production. 

* Tax exemption on capital gains from the transfer of shares of public limited companies listed with a stock exchange.

Accelerated depreciation

Industrial undertakings not enjoying tax holiday will enjoy accelerated depreciation allowance. Such allowance is available at the rate of 100 per cent of the cost of the machinery or plant if the industrial undertaking is set up in the areas falling within the cities of Dhaka, Narayangonj, Chittagong and Khulna and areas within a radius of 10 miles from the municipal limits of those cities. If the industrial undertaking is set up elsewhere in the country, accelerated depreciation is allowed at the rate of 80 per cent in the first year and 20 per cent in the second year.

Concessionary duty on imported capital machinery

Import duty, at the rate of 5% ad valorem, is payable on capital machinery and spares imported for initial installation or BMR/BMRE of the existing industries . The value of spare parts should not, however, exceed 10% of the total C & F value of the machinery. For 100%  export oriented industries, no import duty is charged  in case of capital machinery and spares. However, import duty @ 5% is secured in the form of bank guarantee or an indemnity bond will be returned after installation of the machinery. Value added Tax ( Vat)  is not payable for imported capital machinery and spares.

Foreign Investment 

Private investment from overseas sources is welcome in all areas of the economy with the exception of the four reserved sectors (mentioned earlier). Such investments can be made either independently or through venture on mutually beneficial terms and conditions. Foreign investment is, however, especially desired in the following major categories of industries: 

*  Export oriented industries 

*  Industries in the Export Processing Zones ( EPZs) 

*  High technology products that will be either import substitute or export oriented.

Facilities/Incentives

(a) For foreign direct investment, there is no limitation pertaining to foreign equity participation, i.e. 100 percent foreign equity is allowed. Non-resident institutional or individual investors can make portfolio investments in stock exchanges in Bangladesh. Foreign investors or companies may obtain full working loans from local banks. The terms of such loans will be determined on the basis of bank-client relationship.

(b) A foreign technician employed in foreign companies will  not be subjected to personal tax up to 3 (three) years , and beyond that period his/ her personal income tax payment will be governed by the existence or non-existence of agreement on avoidance of double taxation with country of citizenship.

(c) Full repatriation of capital invested from foreign sources will be allowed. Similarly, profits and dividend accruing to foreign investment may be transferred in full. If foreign investors reinvest their repatriable dividends and or retained earnings, those will be treated as new investment. Foreigners employed in Bangladesh are entitled to remit up to 50 percent of their salary and will enjoy facilities for full repatriation of their savings and retirement benefits.

(d) Foreign entrepreneurs are, therefore, entitled to the same facilities as domestic entrepreneurs with respect to tax holiday, payment of royalty, technical know-how fees etc.

(e) The process of issuing work permits to foreign experts on the recommendation of investing foreign companies or joint ventures will operate without any hindrance or restriction. Multiple entry visa" will be issued to prospective foreign investors for 3 years. In the case of experts," multiple entry visa" will be issued for the whole tenure of their assignments.

Other Incentives

Citizenship by investing a minimum of US $ 500,000 or by transferring US$ 1,000,000 to any recognised financial institution ( Non-repatriable ).

Permanent residentship by investing a minimum of US$ 75,000 ( non-repatriable).

Special facilities and venture capital support will be provided to export-oriented industries  under "Thrust sectors" . Thrust Sectors include Agro-based industries, Artificial flower-making, Computer software and information technology, Electronics, Frozen food, Floriculture, Gift items, Infrastructure, Jute goods, Jewellery and diamond cutting and polishing, leather, Oil and gas, Sericulture and silk industry, Stuffed toys, Textiles, Tourism.

Investment Protections / International Agreements

Legal Protection: The policy framework for foreign investment in Bangladesh is based on 'The Foreign Private Investment  (Promotion & Protection ) Act. 1980,'  which ensures legal protection to foreign investment in Bangladesh against nationalisation and expropriation. It also guarantees non-discriminatory treatment between foreign and local investment, and repatriation of proceeds from sales of shares and profit. 

International Agreements: Bangladesh has concluded bilateral agreements for avoidance of double taxation and investment treaties for promotion and protection of investment with the following countries: 

Bilateral agreements: Belgium, Canada, China, Denmark, France, Germany, India, Italy, Japan, Poland, Romania, Singapore, South Korea, Sri Lanka, Sweden, Thailand, The Netherlands, United Kingdom ( including  Northern Ireland ). Negotiations are ongoing with U.S.A, Iran, Philippines, Qatar, Australia, Nepal, Turkey, Indonesia, Cyprus, Norway, Finland and Spain. 

Investment treaty: Belgium, Canada, France, Germany, Iran, Italy, Japan, Malaysia, Pakistan, Philippines, Poland, Republic of Korea, Romania, Switzerland, Thailand, The Netherlands, Turkey, United Kingdom, USA, Indonesia. Negotiations are ongoing with India, Hungary, Oman, Maldova, DPRK, Egypt, Austria, Mauritius, Uzbekistan. 

In addition, Bangladesh is a signatory to MIGA ( Multilateral Investment Guarantee Agency), OPIC ( Overseas Private Investment Corporation ) of USA, ICSID  (International Centre for Settlement of Investment Disputes) and a member of the WIPO  (World Intellectual Property Organization) permanent committee on development co-operation related to industrial property.

Incentives to Non-Resident Bangladeshis ( NRBs)

Investment of NRBs will be treated on par with FDI. Special incentives are provided to encourage NRBs to invest in the country. NRBs will enjoy facilities similar to those of foreign investors.  Moreover, they can buy newly issued shares/debentures of Bangladeshi companies . A quota of 10% has been fixed for NRBs in primary public shares. Furthermore, they can maintain foreign currency deposits in the Non-resident Foreign Currency Deposit (NFCD) account.

RELAXATION / LIBERALISATION OF EXCHANGE CONTROL   REGULATIONS

Bangladesh 'Taka' is convertible for current external transactions. Individuals/firms resident in Bangladesh may conduct all current external transactions, including trade and investment related transaction, through banks in Bangladesh authorised to deal in foreign exchange ( Authorised Dealers ) without prior approval of the Bangladesh Bank. Non- resident direct investment in industrial enterprise in Bangladesh and non-resident portfolio investment through  stock exchanges in Bangladesh also do not require prior approval of the Bangladesh Bank. Remittance of post-tax dividend/profit on non resident direct or portfolio investment do not require prior approval. Sale proceeds, including capital gains on non-resident portfolio investment may also be remitted abroad without prior approval. Repatriation of sale proceeds of non-resident investment in unlisted companies is allowed by Bangladesh Bank on the basis of the net asset value of the shares of the company.  Investors may obtain relevant procedural details by contacting any  Authorised Dealer bank in Bangladesh . 

To facilitate investment, prior approval of the Bangladesh Bank is no longer required for : 

*  remittance of profits to their head offices by foreign firms and companies operating in Bangladesh 
*  issuance of shares to non-residents against investment for setting up industries in Bangladesh. 
*  remittance of dividends on such shares to the non-resident investors. 
*  portfolio investment by non-residents including foreign individuals/enterprises in shares and securities through stock exchanges in Bangladesh . 
*  remittance of dividends on portfolio investment by non-residents through stock exchanges in Bangladesh . 
*  remittance of sale proceeds, including capital gains of portfolio investments of non-residents  through stock exchanges in Bangladesh 
*  remittance of principal and interest instalments on loans/suppliers credits obtained by industrial units from foreign lenders with approval of the BOI. 100% foreign owned ( Type A) industrial units in the EPZs (Export Processing Zone) do not require prior permission of BOI for such foreign borrowing. 
*  remittance in repayment of principal and payment of interest of such loans. 
*  remittance of technical fees and royalties against technical assistance/royalty agreements in conformity with BOI guidelines. 
*  remittance of savings of expatriate personnel at the time of their leaving Bangladesh, out of the salaries and benefits stated in their employment contracts as approved by BOI. 
*  extension of term loans by banks on normal banking considerations to foreign firms operating in Bangladesh 
*  extension of working capital loans to all foreign owned/controlled industrial and trading firms/companies by banks on the basis of bank customer relationship and normal banking practice. 
*  obtaining of interest-free repatriable short-term foreign currency loans by foreign firms investing in Bangladesh from their head offices or any other sources through any authorised dealer.

www.sfconsultingbd.com
Dhaka, Bangladesh