Find Your Business Opportunities in Bangladesh with Us
There are a huge investment or business opportunities in Bangladesh due to its liberalized Industrial Policy and export-led growth strategy. A total of 23 sectors are open for private investment in Bangladesh, with the exception of 4 – arms and ammunition, machinery, and other defense equipment; forest plantation and mechanized logging within the boundaries of reserved forests; nuclear energy production; and security printing and mining. Creating an environment that encourages foreign and domestic private investments is the government’s role as a facilitator.
Why Invest In Bangladesh?
- A high growth rate of around 8% characterizes good macroeconomic stability;
- Bangladesh was ranked second on Goldman Sachs’ list of the “Next 11” countries after the BRIC nations;
- A diverse and open economy;
- Young, skilled, and very low-cost workforce;
- Strategic and competitive position in the global economy’s value chain;
- Globally favourable economic and legislative conditions for business;
- Strategically located near countries in the Asia-Pacific region.
7 Surprising Incentives For Promoting Investments In Bangladesh
Investments in certain sectors have been eligible for several government benefits under the liberal policy. That makes the business opportunities in Bangladesh easier.
1. 6 Tax Holiday And Exemptions
- In some areas, there is a tax holiday of 5-10 years and tax reduction.
- For 10 years, certain projects under Public-Private Partnership (PPP) are exempt from income and capital gains taxes.
- The tax exemption for software development, nationwide telecommunications networks, and computer-based services is 100%.
- The income from exports is tax-exempt to the extent of 50%.
- Exemption from taxation on royalties, technical know-how, and technical assistance fees as well as facilities for their repatriation.
- Interest paid on foreign loans is exempt from tax.
2. Duty-free Imports
- Exemption of customs duties on capital machinery;
- The exemption of import duties on raw materials used in the production of export goods;
3. Double Taxation Regime
- Double taxation avoidance agreements exist with more than 30 major trading partners in Bangladesh.
- Certain sectors provide employees with income tax exemptions for up to three years.
4. Expats Repatriating their Capital
- There will be no restriction on the repatriation of foreign capital.
- Profits and dividends from foreign investments may be transferred in full.
- The reinvestment of dividends and retained earnings by foreign investors will be treated as new investments.
5. Storage Facilities with Bonds
- For industries that export
- The bond period varies from industry to industry
6. The Reduction of Tariffs
Refund of tariffs paid on imports of raw materials for export.
7. Accelerated Depreciation
- A depreciation allowance will be granted to industrial undertakings not enjoying a tax holiday.
- This allowance is available at the rate of 100 percent of the cost of the machinery or plant if the industrial undertaking is established in the cities of Dhaka, Narayanganj, Chittagong, and Khulna, and within a radius of 10 miles of those cities.
- The amount of accelerated depreciation allows 80 percent in the first year and 20 percent in the second year if the industrial undertaking is located elsewhere in the country.
How Successful Is The Bangladeshi Business Opportunity?
In comparison to other South Asian economies, Bangladesh has a favorable investment climate. So you can easily get world-class business opportunities in Bangladesh. The following are some key indicators of Bangladesh’s investment climate:
1. Bangladesh is a fairly homogeneous society with few internal or foreign conflicts and a populace that has shown remarkable endurance in the face of hardship (e.g. natural calamities).
2. Bangladesh is a liberal democratic country. For thousands of years, the people of this country, regardless of race or religion, have lived in peace and tranquility.
3. The most investor-friendly regulatory system in South Asia and broad bipartisan political support for market-oriented change.
4. Trainable, passionate, diligent, and low-cost worker force ideal for any labor-intensive sector (even by area standards).
5. The country’s geographic location is suitable for international trade, having easy access to international sea and air routes.
6. Bangladesh has a plentiful amount of natural gas and water, as well as fertile land.
How NetworkBD Helps You?
We help early-stage companies automate and streamline regulatory and legal operations, HR, and finance so they can focus on what matters most.
Get in touch with us if you want to register your startup in multiple states. We assist startups with state registrations and other legal matters & make you more successful when getting business opportunities in Bangladesh.