Trade ( Incentives to Foreign Companies )

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Incentives to Foreign Companies

 Opportunities for the Foreigners

The Industrial Policy 1991 and its recently announced amendments, the associated reforms in trade policies and fiscal and taxation policies now augur well for investment by the foreign nationals and companies and also non-resident Bangladeshi nationals. No approval is required for any investment by the foreign investors in any sectors of the economy except for a few areas (strategic ones) which are still reserved for public investment only. The foreign investment (promotion & protection) Act, 1980 guarantees protection to foreign investment against nationalization and also guarantees equitable treatment. Bangladesh is a signatory of Multilateral Investment Guarantee Agency (MIGA) of the World Bank group, Overseas Private Investment Corporation (OPIC) and International Center for Settlement of Investment Disputes (ISCID) and therefore, also gurantees investors protection against political and other risks. Following facilities are also available for foreigners and non-resident Bangladeshis:

* Foreign investment with 100% foreign equity holding;

* Repatriation of all post tax dividends, capital, and capital gains is permitted fully;

* Employment of expatriate technical and professional personnel is allowed;

* Remittances of 50% of the salary of foreign nationals employed in local companies is allowed;

* Remittances of savings from earnings, retirement benifits, personal assets of individuals employed in recognized industries on retirement/termination of service is allowed;

* Foreigners employed in recognized industries are exempted from income taxes for first 3 years;

* Multiple entry visas are allowed;

* Relief is given from double taxation;

* Re-investment of reportable dividends is treated as new investment;

* Foreign investors have unhindered access to local banks and financial institutions for obtaining long term loans and working capital loans;

* Enterprises with foreign ownership may remain private limited companies. In the case of public limited companies, the public offering of shares is optional;

* Foreigners are allowed to invest in shares and securities through stock exchange etc.