Setting up a Company
• Setting up a Company
• Board of Investment
• Foreign Investment
• Type of Companies
• Incorporation of a Company
• Setting up a Joint Venture
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Setting up a Company
Bangladesh has some of the most liberal investment incentives in Asia, with an absence of any prior approval requirements or limits on any foreign equity participation, except registration with the Bangladesh Board of Investment (BOI). The government actively seeks to attract European investors by reducing bureaucratic control over private investment and opening up many areas that were previously reserved for the public sector. The government, in order to streamline bureaucratic procedures and controls, has restructured the BOI to facilitate investment, rather than regulate it, offering investors a variety of different services and within a prescribed time period. The Industrial Policy, 1991 (revised in 1992) has clearly emphasized importance of the role of the private sector in industrial development in Bangladesh. The role of the government has been changed from regulatory to promotional. As a result of this policy, sanctioning and other procedures for obtaining different facilities and services have been simplified. Industrial Policy ensures equal treatment for local and foreign investment. Please note that information provided is for guideline purposes only. For further information please contact a member of the IPTU Team.
Board of Investment
The Board of Investment (BOI) was established by the Investment Board Act of 1989 to promote and facilitate investment in the private sector both from domestic and overseas sources with a view to contribute to the socio-economic development of Bangladesh. The Board, which is headed by the Prime Minister and includes various ministers and ministry secretaries, is vested with the necessary powers to take decisions for the speedy implementation of new industrial projects and to provide operational support services to existing projects. The Executive Council of the BOI is entrusted with the responsibility of creating a congenial climate for industrial investment in Bangladesh by simplifying procedures and providing the necessary facilities and services to investors. Any decision by the Board of Investment is deemed as a decision of the Government and is required to be implemented by all concerned agencies. For further information, please read the Board of Investment at a glance
Foreign Investment with particular preference to foreign direct investment is encouraged in all industrial activities excluding those in the list of "Reserved Industries" (production of arms and ammunitions, forest plantation and mechanized extraction within the bounds of a reserved forest, production of nuclear energy and printing and minting currency notes). Such investment may be undertaken either independently or through joint ventures, either with the local private or public sector. The policy framework for foreign investment in Bangladesh is based on Foreign Private Investment (Promotion and Protection) Act, 570 1980 which provides for: • Non-discriminatory treatment between foreign and local investment • Protection of foreign investment from expropriation by the state, and • Ensuring of proceeds from sale of repatriation shares and profit. For further information, please read Bangladesh Economy, the Foreign Investment from the Bangladesh Embassy
Type of Companies
There are three types of Companies:
• Company Limited by Shares
• Company Limited by Guarantees.
• Unlimited Companies
Companies limited by shares may further be classified as Public Limited and Private Limites. For further information, please read the Guidebook for European Investor in Bangladesh - Chapter V
Incorporation of a Company
Incorporation options to a foreign investor include:
• Setting up a 100% foreign-owned company...