Investing from Japan
Investing in Bangladesh from Japan
In short
A Japanese 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. Japanese groups more often than most begin with a liaison office while they assess the market, which is permitted but cannot trade — the move to a trading entity is a separate approval and is best planned from the outset.
Key takeaways
- Japanese groups commonly begin with a liaison office, which is permitted but may not trade or earn income in Bangladesh.
- Moving from a liaison office to a trading entity is a separate approval, not an amendment, so it is worth deciding the destination at the start.
- Employing Japanese staff in Bangladesh requires work permits, which are tied to the entity and have to be planned with it.
- Zone units are supervised by BEPZA or BEZA rather than BIDA, with their own licensing and labour rules.
Tax treaty position between Bangladesh and Japan
- Double taxation agreement
- The National Board of Revenue lists a bilateral double taxation avoidance agreement.
Source: National Board of Revenue, Double Taxation Avoidance Agreements , as at 12 August 2026. Treaty positions change; confirm before relying on this.
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 Japanese clients ask us for
Sectors we see most from Japan
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 (The Invest Bangladesh Act 2026)
- 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 Japanese company open a liaison office in Bangladesh?
Yes, with BIDA's permission. A liaison office may represent the parent, gather information and coordinate, but it may not trade, invoice or earn income in Bangladesh, and it is funded by remittance from the parent. Groups that expect to sell need a different entity.
What does a Japanese parent need to send us to incorporate in Bangladesh?
Corporate documents of the parent, legalised for use in Bangladesh, together with board authority and identification for the proposed directors and shareholders. The legalisation step is the one that most often sets the timetable, so we start it first.
Can Japanese nationals be employed in the Bangladeshi entity?
Yes, subject to work permits, which are granted against the entity and its approved activity. The permit position is settled alongside the incorporation rather than after it, because the entity's approval affects what permits it can support.
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.