Options for registering companies in Bangladesh
The growing economy of Bangladesh, coupled with a young and abundant workforce and strategic policies promoting foreign direct investment (FDI), positions the country as an emerging market in South Asia.
The government allows for 100% foreign equity in most sectors, making it an attractive destination for companies seeking manufacturing, sourcing or regional expansion.
Bangladesh offers international companies the following legal structures for establishing a local presence:
Private limited company (Pvt Ltd Company or LLC)
- The private limited company in Bangladesh is the most popular and flexible structure for foreign investors, offering a separate legal entity.
- There are no restrictions on the nationality or residency of the directors and shareholders (minimum of two each).
- A critical requirement for foreign investment is the inward remittance of the paid-up capital through a local bank and the receipt of an Encashment Certificate.
Branch office of a foreign company
- The branch office is established as an extension of the parent company, lacking a separate legal status in Bangladesh.
- Setting up requires approval from the Bangladesh Investment Development Authority (BIDA), which oversees foreign investment facilitation.
- A branch office may only operate within the scope approved by BIDA and in line with its parent company’s business.
Representative/liaison office
- This is the simplest form of presence and is generally limited to liaison activities, such as communication, coordination and promoting the parent company.
- It is prohibited from undertaking any commercial, trading or revenue-generating activities in Bangladesh.
- All administrative expenses must be covered by remittance from the foreign parent company.
Free zone companies (EPZ/EZ enterprises)
- These companies are established in designated Export Processing Zones (EPZs) or Economic Zones (EZs), primarily targeting export-oriented manufacturing.
- Type A companies are those with 100% foreign investment and they enjoy extensive fiscal and non-fiscal incentives.
- Key incentives include a tax holiday (e.g. 10 years for some zones/sectors) and duty-free import of machinery, raw materials, and construction materials.
- They are governed by the Bangladesh Export Processing Zones Authority (BEPZA) or the Bangladesh Economic Zones Authority (BEZA), which offer streamlined "One Stop Service" for quicker approvals.
To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements, and timelines. It serves as a valuable resource for foreign companies looking to setup or expand a business in Bangladesh.
Comparison of the common types of companies in Bangladesh
Information verified against Bangladesh Investment Development Authority