Foreign Direct Investment: How to register a company in Bangladesh

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Foreign Direct Investment: How to register a company in Bangladesh


According to economists, stakeholders, and regulators, Bangladesh has been able to attract the increasing amount of FDI thanks to consistent policy support from the government

Bangladesh’s openness to foreign investment, competitive labor costs, and rapid economic growth are rapidly turning it into one of the most promising markets in the world.

Data by the Bangladesh Bank (BB) shows that the country received $961 million in the fiscal year 2008-09, while FDI inflow increased to $2.54 billion in FY16-17.

Bangladesh received $2.60 billion worth of foreign investment from July to May in FY17-18, according to the latest data of BB.

According to economists, stakeholders, and regulators, Bangladesh has been able to attract the increasing amount of FDI thanks to consistent policy support from the government.

Emerhub—full-service market entry firm that aims to ease brands to enter and expand in South East Asia—created a guideline to help foreign investors know what legal entities are available in Bangladesh.

Types of legal entities in Bangladesh

Limited liability companies: Limited liability companies (LLC)—a company where liability is limited to shareholders’ shared capital—make up a large number of companies in Bangladesh. LLCs in Bangladesh can be fully foreign-owned.

Any person who is above the age of 18 is eligible to register an LLC .

Additionally, Bangladeshi law prescribes a minimum of two and a maximum of 50 shareholders, along with two directors.

However, it is possible to form a joint venture with a local entity to share strengths and lessen risks.

Public limited company

A public limited company (PLC) can invite the public to hold shares to raise funds from them, and is usually registered on a stock exchange.

A PLC has a minimum of seven members, three directors, without any maximum number of shareholders. Its shareholders can be any legal person or any individual who is above the age of 18.

Source:https://www.dhakatribune.com/business/2018/12/19/foreign-direct-investment-how-to-register-a-company-in-bangladesh
Reyed Mia (BBA & MBA in Finance)
Assistant Director
Daffodil International University
Daffodil Smart City, Ashulia, Savar, Dhaka
Cell: +88 01671041005
Email: reyed.a@daffodilvarsity.edu.bd