FREQUENTLY
ASKED QUESTIONS

• Domestic Investment Projects
• 100% Foreign Investment Projects
• Joint Venture Entities
• Branch, Liaison, Representative, Project, and other offices

Important Notes:

• Both manufacturing and service industries can register with Invest Bangladesh.
• Invest Bangladesh registration is not a requirement for commercial and trading activities.

Invest Bangladesh-registered businesses are eligible for:

• Access to financial and non-financial incentives declared by the government
• Get business licenses and approvals from Invest Bangladesh and other regulators, facilitation and aftercare services of Invest Bangladesh.

Export Diversification Sectors

• Agribusiness and Food Processing
• Ready-made Garments
• Manmade Fiber
• Apparel Accessories and Packaging
• Pharmaceuticals
• Plastics
• Jute and Jute Products
• Leather and Leather Goods
• Light Engineering
• Shipbuilding
• Furniture
• Home Textile
• Active Pharmaceutical Ingredients
• Automobile Manufacturing and Repair Services
• Logistics

*As per the Industrial Policy 2022

Priority Sectors

• Manpower Export
• Tourism
• Environment-friendly Ship Recycling
• Hospital and Clinic
• Seed
• Medical Equipment and Devices
• Herbal Medicine
• Hi-Tech Industries
• Agro-machineries
• Tea
• Cosmetics and Toiletries
• Logistics
• Home Textile
• Cement
• Wind Energy
• Rice Bran Oil Manufacturing
• LED, CFL Bulb Manufacturing

*As per the Industrial Policy 2022

1. Apply for Name Clearance to the Registrar of Joint Stock Companies and Firms (RJSC&F) throu OSS. The foreign companies need to pay BDT 230 including VAT to get the name clearance. However, local company name clearance will be validated at the time of incorporation
2. Open a temporary bank account to deposit capital equal to shareholding position and collect encashment certificate from the bank

3. Rent office space in any commercial area

4. Prepare Article of Association (AoA) and Memorandum of Association (MoA), Form IX, Form I, Subscription Page, and submit to OSS for incorporation

5. Pay registration fees along with stamp duty

6. When RJSC&F approves the application, the applicant will get Incorporation Certificate, MoA, AoA and Form XII

7. Register with Income Tax Authority and collect E-TIN

8. Register for Trade License

9. Obtain VAT Registration


*If a company engages in export and import, Export and Import Registration Certificates are required."

*One-Stop Service (OSS): https://bidaquickserv.org/

• Log in to OSS
• Get approval of Invest Bangladesh through OSS. Upload necessary documents and later submit them physically at Invest Bangladesh (Initial approval for 3 years).
• Rent an office space.
• Open a bank account in Bangladesh and an amount of foreign exchange equivalent to US$ 50,000 or more must be brought within 2 months from the date of getting approval from Invest Bangladesh.
• Notify Bangladesh Bank under Section 18B of the Foreign Exchange Regulation Act, 1947 within 30 (thirty) days of obtaining permission from Invest Bangladesh via the bank of the office.
• Obtain a Tax Identification Number (TIN) Certificate.
• Apply to RJSC&F within 30 days from receiving permission from Invest Bangladesh for certificate of filing as per Section 379 of the Companies Act, 1994.
• Obtain a Trade License.
• Obtain VAT Registration (E-BIN) from National Board of Revenue (NBR).

*If a Branch Office is engaged in export and import, Export and Import Registration Certificates are required.

*Find checklist of required documents https://bida.webflow.io/commercial-offices

*One-Stop Service (OSS): https://bidaquickserv.org/

• Trade licenses are issued by the local government, i.e. by the City Corporation, Paurashava and Union Parishad.
• The trade licensing services of Dhaka North City Corporation, South City Corporation, and Chattogram City Corporation are available on OSS.

For trade license services available on OSS:

01. Sign up on OSS

02. Fill-up the prescribed form

03. Submit necessary documents

04. Submit Fees

05. Get a trade license online

For trade license services outside of OSS:

01. Get the proper form from the proper office*

02. Get No Objection Certificate (NOC) from the local Ward Commissioner or Chairman

03. Submit application with supporting documentation and signboard fees to City Corporation, Paurashava and Union Parishad Offices

04. Await enquiry by the licensing supervisor

05. Pay necessary fee and collect trade license

*The application form is available on the websites of local government offices.

*One-Stop Service (OSS): https://bidaquickserv.org/

TIN registration service of the National Board of Revenue (NBR) is available on OSS.

• Sign in to OSS
• Select TIN Certificate
• Fill-up the prescribed form
• Upload Trade License, Invest Bangladesh registration letter, Company Incorporation Certificate, Copy of Memorandum of Association and Articles of Association, photograph of Managing Director, Bank Solvency Certificate
• Submit application
• Receive certificate online in 3 days, if all documents are duly submitted*One-Stop Service (OSS): https://bidaquickserv.org/

TIN registration service of the National Board of Revenue (NBR) is available on OSS.

1. Sign in to OSS
2. Select TIN Certificate
3. Fill-up the prescribed form
4. Need an active phone number
5. Upload required documents
   
   • Academic Certificate/Birth Certificate
   • Passport info page
   • Passport visa page
   • Appointment letter of the service contract
   • Work permit
   • Memorandum of company
6. Submit application
7. Receive certificate online in 3 days, if all documents are duly submitted

*One-Stop Service (OSS): https://bidaquickserv.org/

1. Sign in to OSS
2. Upload required documents

• Trade License
• TIN Certificate
• Import Registration Certificate/Export Registration Certificate (if any)
• List of all sales shops; sales centers, full address, equipment, machinery, fittings, product features and     amendment of the products manufactured
• RJSC&F Incorporation number (if any)
• Deed of Agreement
• Bank Statement
• Invest Bangladesh Registration Letter

• Memorandum of Association (MOA) and Articles of Association (AoA)
• List of invoice and stored product

3.  Get VAT Registration Certificate Online

*One-Stop Service (OSS): https://bidaquickserv.org/

Import Permit is necessary for foreign investor who wants to import capital machinery without opening a Letter of Credit (LC) in Bangladesh. The value of the capital machinery is considered equity investment.

• Sign in to OSS
• Select recommendation for IP
• Fill-up the prescribed form
• Upload required documents
• Submit application
• Receive IP recommendation in 3 days, if all documents are duly submitted

*Checklist of required documents:

Import Permission (Capital machineries)

*One-Stop Service (OSS): https://bidaquickserv.org/

1. New industries are provided IRC on ad hoc basis based on Invest Bangladesh recommendation.

• Sign in on OSS
• Select ad hoc IRC recommendation
• Fill- up prescribed form
• Upload required documents
• If the report is approved by Invest Bangladesh, the applicant will be notified by SMS and email
• The applicant will log in OSS for payment of fees
• If required documents are duly submitted, the applicant will get the certificate

*Checklist of required documents:

• Domestic Projects
• Foreign & Joint Venture Projects

*One-Stop Service (OSS): https://bidaquickserv.org/

1. Sign in on OSS
2. Select 2nd ad hoc, 3rd ad hoc and regular IRC recommendation

• Fill-up the prescribed form
• Upload required documents
• Submit application
• Invest Bangladesh's assigned official will inspect factory and submit report

• If the report is positive, will notify the applicant and send the recommendation through OSS for and 2nd/ 3rd ad hoc or regular IRC to the Chief Controller of Imports & Exports (CCI&E)

*The next step is to apply for IRC from CCI&E through OSS.

*Checklist of required documents:

• Domestic Projects
• Foreign & Joint Venture Projects

*One-Stop Service (OSS): https://bidaquickserv.org

1. Sign in on OSS
2. Select Import Registration Certificate (IRC)
3. Fill-up the prescribed form
4. Upload required documents
5. Submit fee
6. CCI&E will issue digital IRC

*Invest Bangladesh will send a letter recommending regularization of ad hoc IRC to CCI&E if 70% of the entitled import value mentioned in ad hoc IRC is utilized. Otherwise the company will apply for 2nd/3rd ad hoc.

*One-Stop Service (OSS): https://bidaquickserv.org/

Before setting up a factory in Bangladesh, an investor must secure an Environment Clearance Certificate from the Department of Environment (DOE)

1. Apply through OSS

2. Upload the documents

• A Feasibility Study Report for the proposed industrial unit or project
• Initial Environmental Examination (IEE) for the proposed industrial unit or project
• The process flow diagram, Layout Plan (showing location of Effluent Treatment Plant), and design
• An Environmental Management Plan (EMP) and a Report for the existing industrial unit or project
• An Impact Assessment Report for the proposed industrial unit or project
• No Objection Certificate (NOC) from the local authority
• Outline of the relocation, and rehabilitation plan
• An Emergency plan on pollution minimization and adverse environmental impact
• Other necessary information (if required)

3. Submit application along with the supporting documents through OSS to the DOE

4. Verification of application and supporting documents by DOE

5. An Inspection Officer from DOE will further inspect after verification of all the documents

6. A meeting will be held by Environmental Clearance Committee (only for Orange-B and Red Category)

7. Decision will be taken at the meeting by the Environmental Clearance Committee

8. After all the above steps are completed, if DOE is satisfied then it shall issue an Environmental Clearance Certificate

ECC Categories

• Green
• Orange (Orange 'A'  & Orange 'B')
• Red

*One-Stop Service (OSS): https://bidaquickserv.org/

Fire License is another obligatory permit required by all factories, according to the Fire Prevention and Fire Fighting Act, 2003. The permit is issued by the Department of Fire Service & Civil Defense (FSCD).

1. Log in to OSS
2. Apply for No Objection Certificate
3. Upload required documents

• Attested Copy of the Trade License of the company
• Attested Copy of Company Incorporation Certificate
• Attested Copy of Memorandum of Association and Articles of Association
• Copy of Financial/Bank Solvency Certificate of the establishment
• Tax Identification Number (TIN)
• Valuation Certificate from relevant Municipality or City Corporation
• A NOC from a local representative (If Plastic Industry)
• Deed of Agreement with rental receipt
• A Clearance Certificate from the FSCD
• Layout plans of the establishment/factory/building authorized by RAJUK or City Corporation
• Completely filled-in additional form (In the case of garments factories)
  4. Submit the application along with the supporting documents
  5. An Inspection Officer from FSCD will inspect the factory
  6. After inspection is completed, a Demand Note will be issued stating the amount of fee that needs to be paid by the applicant
  7. If there is any points of violation, then a specific time will be given to address these issues to the applicant
  8. Later, the factory will be re-inspected to check if the flagged violations have been addressed
  9.  After all the above steps are completed, if FSDC is satisfied that the factory fulfills the requirements of fire safety, it shall issue a Fire License to the applicant
  10. Obtain the Fire License Certificate online

*One-Stop Service (OSS): https://bidaquickserv.org
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1. Newly established industrial undertakings
2. Newly established physical infrastructures
3. Public Private Partnership (PPP) projects
4. Private sector power generation companies (excluding coal-based power generation)
5. Businesses of software development and Information Technology-Enabled Services (ITES)
   
   • Technology park established in High-Tech Park
   • Investment in ICT Sector
   • Investment in Light Engineering Sector

1. Newly-established companies are eligible for the following incentives*:
   a. Corporate Income Tax (CIT) exemption (holiday and rebate) based on the type of business and on the geographical location of the undertaking
   b. Bonded Warehouse facility
   c. Reduced total tax incidence

*Incentives are subject to change as per the Finance Act and Statutory Regulatory Orders.

Import duty exemption

• 1% on capital machinery/ spares for export-oriented industries and allowed to import spare parts free of duty for up to 10% of the machinery value every two years
• 3% on capital machinery/ spares for other industries
• Exemption of VAT for import of capital machinery/ spares

Accelerated depreciation

• Allowed for newly established industrial undertakings in lieu of tax exemption on factory, machinery/ plant; 50% for the 1st year, 30% for the 2nd year, and 20% for the 3rd year
• Initial depreciation allowance is also available on machinery/ plant

Other tax exemptions

• On royalty, franchise, technical knowledge/ know-how/ assistance fees for foreign entities (up to a certain level as decided by National Board of Revenue (NBR))
• On personal income tax up to three years for foreign technicians employed in BEZA and High-Tech industries

Companies located in economic zones and export processing zones are entitled to different sets of incentive packages of tax exemption.

1. Dividends/Profits:
   
   • Dividend/profit income (both final and interim) can be remitted through an authorized dealer of non-resident shareholders.
   • Remittable dividends/profits can be credited to foreign currency accounts maintained by the non-resident shareholders.

1. Submit application manually to the International Taxation Wing of NBR with the following documents:

• E-TIN
• Incorporation Certificate
• MoA and AoA
• Form XII
• Copy of Dividend Declaration
• Copy of Tax Residency
• Copy of profit after tax for the latest income year
• Detailed bank information through which the monetary activities will be done
• AGM resolution regarding dividend
• Schedule X
• Auditor's Certificate for the amount of paid up capital by the individuals
• Statement on mode of payment of paid up capital by individuals
• Company's last 5 years Income Tax Certificate
• Copy of paid dividend of last year
• Copy of cumulative amount of dividend paid in the last year
• Auditor's Certificate and Challan copies of dividend remitted in the previous year
• Copy of short-term bank loan
• Copy of DTT with Bangladesh
• Latest financial statement

2. Upon verification of the documents, NBR will issue a non-deduction or reduced rated deduction certificate within 30 days of application.

1. Dividends/ Profits: Branches of foreign companies, banking, and insurance institutions incorporated in Bangladesh can remit post-tax profits to the head offices through an authorized dealer.
2. Repatriation of savings, retirement benefits, and salary of expatriate employee: Foreigners employed in Bangladesh can remit 80% of their monthly salary after deducting all admissible expenses, savings, and admissible retirement benefits through an authorized dealer.

Invest Bangladesh's approval is required for foreign currency borrowing (commercial loan, buyer's and supplier's credit) to import capital goods for new projects, replacement, or expansion of the existing production facilities.

• Apply manually to Invest Bangladesh with required documents
• A Scrutiny Committee on Foreign Loan/ Supplier's Credit verifies the application and approves the loan proposal

*Permission is not provided for the foreign loan to be used exclusively for working capital.

List of required documents is available here: https://bida.gov.bd/storage/app/media/pdf/Citizen-Charter-Foreign-Industry~English.pdf

Invest Bangladesh provides recommendations for E-Visa, E1-Visa, P1-Visa and Visa on Arrival for foreign investors.

• Sign in to OSS
• Upload information and necessary documents as listed in OSS
• Get approval online within 24 hours, provided that all required information and documents are duly submitted

Visa Types:

• 'P1' visa is for foreign private investors for industrial and commercial enterprises.
• 'E' visa is for the employees of private or public organizations, both foreign and local companies.
• 'E1' visa is for the persons who are engaged with machinery and software installation project inspection services.

*Checklist of required documents: https://bida.webflow.io/foreign-joint-venture-projects

*One-Stop Service (OSS): https://bidaquickserv.org/

1. The employer of the expatriate will log in to OSS for work permit*
2. The employer must submit the application and documents including a copy of appropriate visa within 15 days of arrival of the expatriate
3. Pay fees for work permit
4. Get the work permit

*Checklist of required documents:

https://bidaquickserv.org

*One-Stop Service (OSS): https://bidaquickserv.org/

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