Doing Business in Bangladesh

Bangladesh imposes withholding taxes on various payments, including dividends, interest, royalties, and technical service fees. Rates range from 10% to 20% for residents and 20% to 30% for non-residents, with possible reductions under Double Taxation Agreements (DTAs). Capital gains tax depends on the nature of the asset and holding period. Gains from the sale of listed securities are taxed at 10% for individuals and 15% […]

Corporate tax rates in Bangladesh differ based on business type and listing status. Listed companies generally face a 22.5% corporate tax, whereas unlisted ones pay 30%. Higher rates apply to specific sectors: banks, insurance companies, and financial institutions pay 37.5% (listed) or 40% (unlisted), while telecom operators pay up to 45%. Non-resident companies are taxed at 30% on Bangladesh-sourced income. A minimum tax

Bangladesh operates a dual taxation system comprising direct and indirect taxes. The Income Tax Act, 2023, and Income Tax Rules, 1984 govern direct taxation, which includes corporate and individual income taxes. Indirect taxes, primarily Value-Added Tax (VAT) and customs duties, are levied on the supply of goods and services. The National Board of Revenue (NBR) is the key regulatory body overseeing tax administration. Bangladesh has

Bangladesh offers Special Economic Zones (SEZs) to attract local and foreign investments. Managed by the Bangladesh Economic Zones Authority (BEZA), SEZs provide tax exemptions, customs duty waivers, and streamlined regulatory processes. Businesses in SEZs enjoy up to 10 years of corporate tax holidays, reduced VAT rates, and import duty exemptions on raw materials and machinery.

Different industries in Bangladesh require specific licenses and permits. Manufacturing companies need environmental clearances and fire safety approvals. The Bangladesh Bank must license financial institutions. Businesses in the food sector require certification from the Bangladesh Food Safety Authority (BFSA). Export-import companies must obtain an Export Registration Certificate (ERC) or an Import Registration Certificate (IRC). Businesses

Capital requirements and ownership regulations vary based on business structure and industry. For a Private Limited Company, there is no minimum capital requirement, but an initial investment is needed to open a bank account. Public Limited Companies must meet capital thresholds to be listed on the stock exchange. Foreign-owned businesses can generally hold up to

Registering a business in Bangladesh involves multiple steps. First, companies must obtain name clearance from the Registrar of Joint Stock Companies and Firms (RJSC). After submitting incorporation documents, businesses must acquire a Tax Identification Number (TIN) from the National Board of Revenue (NBR). Additionally, Value Added Tax (VAT) registration is required for applicable businesses. A

Bangladesh offers various business structures, each catering to different needs. A Private Limited Company (LTD) is the most common, requiring at least two shareholders and offering limited liability. A Public Limited Company (PLC) can raise capital from the public and must have at least seven shareholders. A Branch Office allows foreign companies to operate without

Bangladesh’s minimum wage structure varies by industry and is periodically revised by the government. As of recent updates, the minimum wage for the garment sector, the country’s largest employer, has been set at BDT 12,500 per month. Salaries for skilled workers and professionals depend on industry demand, experience, and economic conditions. Foreign employees generally receive