Investing from India
Investing in Bangladesh from India
In short
An Indian 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 joint venture with a local partner. Proximity makes cross-border trading arrangements common alongside investment, and the two are governed differently — an importer and an investor answer to different regulators for different things.
Key takeaways
- Indian businesses often trade with Bangladesh before investing in it, and the two are regulated differently.
- An importer or exporter deals with customs and the trade regime; an investor deals with BIDA, the RJSC and the exchange control rules.
- A joint venture with a local partner is common, and the shareholders' agreement matters more than the company's constitution.
- How profits leave Bangladesh depends on how the investment came in and was recorded with the central bank.
Tax treaty position between Bangladesh and India
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of Revenue's own list for your facts rather than stating a general rule here, because a treaty summary that has gone out of date is worse than none.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 Indian clients ask us for
Sectors we see most from India
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
Do we need to incorporate in Bangladesh to sell there from India?
Not necessarily. Selling into Bangladesh through an importer is a trading relationship, not an investment, and is governed by the import regime and the contract. Incorporation becomes necessary when the business needs a presence that can contract, employ and invoice locally.
How is an Indian joint venture in Bangladesh usually structured?
As a Bangladeshi private limited company held by the Indian party and the local partner. What protects the Indian party is the shareholders' agreement — board control, reserved matters, deadlock, exit — rather than the ownership percentage alone.
Can an Indian company repatriate profits from Bangladesh?
Profits and capital can be remitted, subject to exchange control and to the investment having been properly brought in and recorded. Problems at the exit are almost always created at the entry, which is why the route is settled before the money moves.
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.