Doing Business in Bangladesh

Bangladesh has entered several Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) to enhance trade relations and market access. Existing agreements include the Bangladesh-Bhutan Preferential Trade Agreement (BB-PTA) implemented in 2022, the South Asian Free Trade Area (SAFTA), and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Additionally, Bangladesh is […]

Bangladesh levies different tariff rates based on the type of goods imported. Customs duty ranges from 2–5% for essential raw materials and capital goods, 10% for intermediate goods, and 25% for final consumer products. The government recently increased the value-added tax (VAT) rate to 15% for various goods and services, including food and industrial products.

Bangladesh enforces strict trade regulations, requiring businesses to obtain valid trade licenses and comply with import/export laws. To submit an Expression of Interest, firms must possess an updated trade license valid until June 30, 2025, alongside essential documents such as a TIN certificate, VAT registration, a firm registration certificate, and bank solvency proof. Importers must

In Bangladesh, businesses have access to various financing options, including equity financing, debt financing, government grants, and digital financial services. Equity financing avenues encompass direct foreign investments through venture capital and private equity funds, capital injections by promoters into private companies, and rights issuances by listed companies to raise equity. Debt financing is available through

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

Establishing a corporate bank account in Bangladesh requires several key documents: a certificate of incorporation, a valid trade license, a board resolution authorizing the account opening, national ID or passport copies of owners and shareholders, a 12-digit e-TIN certificate, personal information forms and photo IDs for proprietors, directors, and signatories, the Memorandum of Association, updated

In 2025, Bangladesh’s banking sector comprises state-owned commercial banks (SOCBs), specialized banks (SDBs), private commercial banks (PCBs), and foreign commercial banks (FCBs). SOCBs, fully or majority government-owned, account for less than 30% of total banking assets and have higher non-performing loan ratios compared to private banks. S&P classifies Bangladesh’s banking sector risk as ‘9’ out

To prevent double taxation and promote cross-border trade, Bangladesh has 36 Double Taxation Agreements (DTAs)with countries such as India, the United States, the United Kingdom, Japan, and China. These treaties help avoid double taxation on income, dividends, royalties, and capital gains while providing reduced withholding tax rates for foreign investors. Foreign companies operating in Bangladesh must consider branch remittance tax (20%) if repatriating

Zakat, an Islamic charitable levy, is applicable to Muslims with eligible wealth. The government administers mandatory Zakat collection on certain assets, including bank deposits and shares. Other levies include stamp duties, property taxes, and excise duties on specific goods like tobacco and alcohol. To support economic growth, the government periodically introduces sectoral tax reliefs and incentives for industries such as manufacturing, export-oriented businesses, and IT.

The Value-Added Tax and Supplementary Duty Act 2012 mandates a 15% standard VAT rate on most goods and services, with some zero-rated or exempt categories. Specific sectors, such as telecommunications and luxury goods, face supplementary duties in addition to VAT. Import duties range from 3% to 5% based on the type of importer. VAT filings must be submitted monthly by the 15th of the following month. The