Investing from China
Investing in Bangladesh from China
In short
A Chinese company entering Bangladesh usually does so through a private limited company registered with the RJSC, a branch or liaison office permitted by BIDA, or a unit inside an economic zone or export processing zone. The route determines what may be done, how profits leave the country, and which regulator supervises it, so it is chosen before anything is filed rather than after.
Key takeaways
- A Chinese investor chooses between a registered company, a branch or liaison office, and a unit inside an economic zone — and the choice governs what the entity may do.
- A liaison office may not trade. Groups that begin with one and later want to sell have to convert or incorporate, which is a fresh approval.
- Zone units are supervised by BEPZA or BEZA rather than BIDA, and carry their own licensing, labour and customs rules.
- How profits leave Bangladesh depends on how the investment came in, so the exit is planned at the point of entry.
Tax treaty position between Bangladesh and China
Whether a double taxation agreement applies to your position, and what it gives you, depends on the structure and on the agreement in force at the time. We confirm the current position against the National Board of Revenue's own list for your facts rather than stating a general rule here, because a treaty summary that has gone out of date is worse than none.
The guide chapter on double taxation agreements and foreign tax implications sets out how the regime works.
Setting up, according to BIDA
- A branch, liaison, representative or project office must bring in foreign exchange equivalent to US$50,000 or more within two months of BIDA approval.
- It is a deadline that starts on approval rather than on opening, and it is missed by groups who treat approval as the finish line.
- A company is registered with the Registrar of Joint Stock Companies and Firms (RJSC&F) through the BIDA One Stop Service: name clearance, verification of the capital deposit, office address, documents, fees, then tax and trade registrations.
- The order is fixed. Capital has to be in and evidenced before the registration completes.
- The employer applies for an expatriate work permit through BIDA OSS, and must submit the application and documents including a copy of the appropriate visa within 15 days of the expatriate arriving.
- Fifteen days from arrival, and the duty is the employer's rather than the individual's.
Source: Bangladesh Investment Development Authority, investment FAQ, read 3 August 2026. Rules change; check the current position before acting.
Taking money out, according to BIDA
- Registered investors may repatriate invested capital, profit and dividend, and may remit royalties and franchise, technical licence, know-how and technical assistance fees.
- The permission exists; what governs it in practice is how the investment was brought in and recorded.
- Dividend and profit income, both final and interim, may be remitted to non-resident shareholders through an authorised dealer. A branch of a foreign company may remit post-tax profits to its head office the same way.
- An authorised dealer bank is the route in both cases, and it will ask for the evidence the route requires.
- A foreign national employed in Bangladesh may remit up to 80% of monthly salary, after deducting admissible expenses, savings and retirement benefits, through an authorised dealer.
- It is a ceiling on the monthly figure, not on the total, and it is worth knowing before an employment package is agreed.
Source: Bangladesh Investment Development Authority, investment FAQ and incentives, read 3 August 2026. Rules change; check the current position before acting.
What Chinese clients ask us for
Sectors we see most from China
The detail, from our Bangladesh guide
The law is the same wherever the investor is from. These are the chapters that matter most on the way in, in the order they arise.
- 3.1. Overview of foreign direct investment (FDI) policies
- 3.2. Investment promotion authorities (BIDA, BEPZA, BEZA, Hi-Tech Park Authority, BSCIC)
- 5.1. Business Structures
- 5.2. Registration Requirements and Procedures
- 5.3. Capital Requirements and Ownership Rules
- 6.6 Double Taxation Agreements and Foreign Tax Implications
- 7.3. Foreign Exchange Controls and Repatriation of Profits
- 4.1. Work Visas and Entry Permits
Common questions
Can a Chinese company own 100% of a Bangladeshi company?
Foreign ownership of a Bangladeshi private limited company is permitted in most sectors, and a small number of sectors are reserved or restricted. Which category a business falls into is settled before incorporation, because the answer determines whether a joint venture is needed at all.
What is the difference between a branch office and a subsidiary for a Chinese group?
A branch is the same legal person as the parent, permitted to do only what BIDA's approval says, with the parent exposed to its liabilities. A subsidiary is a separate Bangladeshi company that can trade generally and contains its own liabilities. Groups that expect to contract locally usually want the subsidiary.
How long does it take to set up in Bangladesh from China?
It depends on the route and on how quickly corporate documents from China can be legalised for use in Bangladesh, which is often the longest single step. We give a timetable for your facts rather than a general figure, because a general figure is wrong for most cases.
Please note. This is general information about doing business in Bangladesh, not legal advice, and no solicitor–client relationship arises from reading it. Law, policy and treaty positions change; take advice on your own facts before acting.