Entrepreneurship > Registration of Company
Cost of doing business in Bangladesh
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Golam Kibria:
If a entrepreneur invest or start his/her business, he/she will face the costs for doing their business in Bangladesh.
Human Resources
Bangladesh gains its competitive edge mainly from its low labor costs of semi-skilled workers. The country has a adequate pool of semi-skilled as well as unskilled workers who are willing to work at very competitive rates, thus enabling Bangladesh to penetrate deep into the hearts of the international markets, with comparative and competitive cost advantages.
The government supports the principle of fair wages to the workers linked to increased levels of production. Wages may be fixed through collective bargaining processes. In case of inadequacy of the collective bargaining procedure, wages can be set by the Minimum Wages Board. The Minimum Wages Board strives to ensure a balanced view of both the interests of the management and the workers. The following examples indicate the average monthly basic wages and fringe benefits in US$ per worker in a private sector organization. In the final analysis, wages and others compensations are market set.
Wage (monthly in US$)
Wage (monthly in US$) Unskilled Semi-skilled Skilled
Basic wages 30 50 70
Fringe benefits 20 25 30
Total 50 75 100
Golam Kibria:
Utilities
Electricity
Generation, transmission and distribution of electricity in Bangladesh is the responsibility of the Bangladesh Power Development Board (BPDB). In Bangladesh, electric power is generated in hydro, steam, gas-turbine and diesel power plants, All the generating stations are interconnected through a national grid. The Dhaka Electric Supply Authority (DESA) started operation to maintain uninterrupted supply of electricity in the capital city. The industrial consumption rate of electricity varies from Tk.5.15 to Tk. 8.87 per kW depending on the size of the industries, load capacity and peak/off peak hour consumption.
Key statistics
Total installed capacity 6658 MW February, 2011
Maximum generation 4699 MW February, 2011
Source: Bangladesh Economic Review 2011 (Bangla Version)
Gas
Natural gas supply is available in major industrial areas of Dhaka and Chittagong Divisions. Gas tariff for industrial consumption is Tk. 165.91 (US$ 2.39) per MCF including supplementary duty and VAT.
Water and sewerage
Water is supplied by the Water Supply and Sewerage Authority (WASA) in metropolitan areas of Dhaka and Chittagong. For other municipal areas the local municipalities are responsible for the task
Telecommunications
Comprehensive telecommunications services such as fully automatic telex, fax, e-mail, internet, telephone including international direct dialing are available with important international carriers. The total number of mobile phone active subscribers has reached 56.36 m at the end of April 2010.
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