Tax Incentives and Investment Conditions
2.1 Investment options
Social development institutions and not-for-
profit organisations working with foreign
donations operate under specific regulations of
NGO Affairs Bureau of Bangladesh.
- Although not common, a general partnership
may be formed with local individual or other
registered entities under the Partnership Act,
1932. Its formation is easier than both office or
a company. It has no legal entity and
registration is not mandatory. There is only an
agreemental relationship among the partners
detailing the share of capital, profit and
liability. The minimum number of partners is 2
and the maximum number is 20 in ordinary
cases and 10 in case of banking business.
Member's liability is unlimited for such
formation.
KPMG
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Operate as a foreign company
Open an office as a foreign company by
registering with Bangladesh Investment
Development Authority (BIDA).
Office structures include Representative
Office, Liaison Office and Branch Office.
The office has to comply with the
requirements mentioned in BIDA
permission letter along with other
Bangladeshi legislations.
- Operations and locations of BO/ LO are
limited to as stated in BIDA permission
letter. For any new locations/customers
and operations a new application will
have to be submitted to BIDA.
- Operating lives of these offices are
limited to 2-3 years which is renewable
upon expiry.
Incorporate a subsidiary
Investors can incorporate a fully-owned
subsidiary subject to industry regulations
or have a jointly owned company.
Incorporated companies are governed by
Registrar of Joint Stock Companies and
Firms (RJSC).
The most common types of company are
Public Limited Company and Private
Limited Company.
Incorporated company can carry out any
legally permissible business and expand
their operations and location to any place
in Bangladesh.
Incorporated company has to comply with
the regulations of the Companies Act
1994 and other legislations applicable in
Bangladesh.
© 2023 Rahman Rahman Huq and KPMG Advisory Services Limited are entities registered in Bangladesh, and member firms of the KPMG global organisation of independent member
firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in Bangladesh.
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