7.3. Foreign Exchange Controls and Repatriation of Profits

Bangladesh maintains a structured foreign exchange regime to regulate the inflow and outflow of foreign funds. The Bangladesh Investment Development Authority (BIDA) oversees foreign investments, ensuring compliance with exchange control regulations. Foreign investors are permitted to repatriate profits, dividends, and capital, subject to adherence to specific guidelines established by the Bangladesh Bank. Branch offices of foreign companies, banking, and insurance institutions incorporated in Bangladesh can remit post-tax profits to their head offices through Authorized Dealers (ADs). However, branch offices other than banks and insurance companies require permission from BIDA and Bangladesh Bank for profit remittance. Additionally, foreign citizens legally employed in Bangladesh can remit up to 75% of their monthly salary through an AD after deducting all admissible expenses, savings, and retirement benefits. Adherence to these regulations ensures compliance and facilitates smooth financial operations for foreign investors.