BIDA Permission Process/Procedure for local & foreign companies in Bangladesh:
For the first time, Bangladesh has been recognized as a Top-20 improver and secured a ranking of 168th position in Doing Business (DB) 2020, an improvement of eight rankings from that of last year. The 2020 DB score is 45.0, which is 3.03 points higher than that of last year BIDA Permission .
Improvements were made in three of the DB indicators:
- Starting a business: Bangladesh made starting a business less expensive by reducing name clearance and registration fees, and abolishing the fee for certifying digital certificates. This reform applies to both Dhaka and Chittagong.
- Getting electricity: Bangladesh made getting electricity faster by investing in digitization and human capital at the utility. Bangladesh also made getting electricity less costly by reducing the amount of the security deposit for a new connection. This reform applies to Dhaka.
- Getting credit: Bangladesh improved access to credit information by expanding the coverage of the credit information bureau.
The Government of Bangladesh has taken a number of positive initiatives to drive DB reforms including developing Action Plans, forming Taskforces, coordinating reform initiatives among relevant government agencies, providing reform support to line agencies, conducting dialogues with private sector stakeholders, and monitoring reform progress.
The Government of Bangladesh, in partnership with the International Finance Corporation (IFC), has been working on the DB reforms agenda. IFC has been providing necessary technical support in developing the DB Reform Action Plan and its implementation BIDA Permission.
The Government aims to achieve double-digit DB ranking by 2021 for which reform momentum requires acceleration and big-ticket reforms need successful implementation including amendment of Companies Act, Bankruptcy Act, Arbitration Act and Imarat Nirman Bidhimalas, enactment of Secured Transaction Bill, the establishment of Commercial Dispute Resolution Court, and introduction of efficient inspection systems for border compliance by developing risk-profiles of businesses (BIDA Permission)
Investment in Bangladesh:
Bangladesh offers an unparalleled investment climate compared to the other South Asian economies. Eight key pointers are given below:
- Bangladesh is a largely homogeneous society with no major internal or external tensions and a population with great resilience in the face of adversity (e.g. natural calamities).
- Bangladesh maintains a liberal democracy. The population of this country irrespective of race or religion has been living in harmony and understanding for thousands of years.
- Broad non-partisan political support for market-oriented reforms and the most investor-friendly regulatory regime in South Asia.
- Trainable, enthusiastic, hardworking, and low-cost (even by regional standards) labor force suitable for any labor-intensive industry.
- The geographic location of the country is ideal for global trade, with very convenient access to international sea and air routes.
- Bangladesh is endowed with an abundant supply of natural gas, water, and its soil is very fertile.
- Although Bengali (Bangla) is the official language, English is generally used as a second language. The majority of the educated population can read, write and speak in English.
- As a result of low per capita GDP, the present domestic consumption is not significant. However, it should always be considered that there exists a middle class with over 10% of the population. As economic growth picks up, the purchasing power will also grow substantially.
Bangladeshi products enjoy duty free and quota free access to almost all the developed countries. This access to the global market is further helped by the fact that the policy regime of Bangladesh for foreign direct investment is by far the best in South Asia. Most Bangladeshi products enjoy complete duty and quota free access to EU, Canada, Australia and Norway. Though in limited scale, Bangladesh products already found their access with lower duty in the markets of Thailand, India and Pakistan. However, talks are underway with China, Russia, Malaysia and other neighboring countries in this regard.
Bangladesh Export Competitiveness
Bangladesh, despite being the least developed economy, has a proven record in export competitiveness. Here is a summary of the facts. From 2003 to 2017 Bangladesh achieved annual export value growth of 19.6%, a testimony to its export competitiveness. Whilst not wishing to be complacent, and being mindful of difficult global trade conditions in 2008-2010, these positive trade differentials are likely to be with Bangladesh well into the future.
Competitive Cost Base
In January 2010, JETRO conducted a comparative survey of investment-related costs in 29 major cities and regions in Asia. The following comparison is based on that survey with some selected cities. Bangladesh offers a truly low competitive cost base. Wages and salaries are still the lowest in the region, a strong business advantage. Yet this is an increasingly well-educated, adaptive, and peaceful population with many skilled workers.
- Dhaka’s skilled labor cost base is still less than the other major cities.
- Dhaka’s management grades are 2-3 times less than Singapore, Shanghai, Bangkok.
- Industrial estate rent in Dhaka is cost-effective than Shanghai, Jakarta, Bangkok.
- Office rents are also very competitive with other international cities.
- Dhaka’s housing rent for foreigners is less expensive than Singapore, Mumbai, Karachi, Hanoi.
- Cost of diesel in Dhaka is found to be more competitively priced than most other large cities.
- Vehicles increasingly use LPG as Dhaka gasoline costs are competitive with most other cities.
BIDA Permission notes that the figures are not absolutes, but serve as a guide. Whilst the actual costs vary each month the general trends remain similar. No precise figures are shown with the graphs because they are only a ‘snapshot’ of costs on the day of survey.
Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BIDA can advise further on this matter. In summary and in most cases, these amount to the following:
Remittance of royalty, technical know-how, and technical assistance fees.
Repatriation facilities of dividend and capital at exit.
Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.
If you wish to set up an operation in Bangladesh, your best contact point is the Office of the Bangladesh Investment Development Authority (BIDA), which operates under the Prime Minister’s office and is the principal government agency for encouraging investment. The BIDA Permission is available to assist you in numerous ways, including:
Enhancing Competitiveness and Investment Facilitation
- Offers an attractive and competitive package of tax incentives.
- Imposes no foreign equity restrictions on manufacturing activities or on some service.
- Provide assistance in the provision of visas and work permits to facilitate entry and subsequent operation for a foreign-owned business.
- Waives restrictions on land ownership by foreign entities.
Business Support Services
- Provides comprehensive information and advice on establishing operations in Bangladesh.
- Arranges site visits.
- Identifies potential suppliers, subcontractors, joint-venture partners.
- Provides useful contacts with key public and private organizations.
- Coordinates between the foreign business community and other public agencies.
Assistance in Setting up a Business (BIDA Permission)
The BIDA Permission offers a range of valuable business-related services to the international and national investment community. The office helps prospective investors and promoted firms in obtaining official permits and documents required for conducting business, including visas, work permits, and permanent residency permits. The BIDA also assists investors in gaining access to utilities such as water, electricity, gas, land, and telecommunications.
Information on Investment Opportunities
The Investment Services Center maintains comprehensive information on investment opportunities in Bangladesh, both by sector and by the district. Information and investment advice is readily available to both Bangladeshi and foreign investors at no charge.
One-Stop Service Center
The BIDA Permission coordinated the establishment of a One-Stop Service Center for
- Trade License from respective city corporations and local government bodies are given within 48 hours, assuming all required documents are provided. Bangladesh Investment Development Authority with local government division insures this service.
- Company registration from Joint Stock Register’s office company registration complete within 48 hours.
- Registration of Bangladesh Investment Development Authority is complete within a day, assuming all required documents are provided.
- Electricity connection’s results are given within 10 days after receiving the application from BIDA where a representative of power development board authority is working.
- Assistance for Land acquire is supported by BIDA.
- Environmental certificates are given within 10 days from BIDA where respective officers from the Environment Department are working.
- From Bangladesh Investment Development Authority representative of Titas Gas Authority, the result of gas connection is given within 10 days from the date of application received.
- Foreign loan borrowing application disposed within 30 days assuming all required documents are provided.
- Tax-related complication is taken from BIDA by respective National Board of Revenue officer after getting an application from entrepreneur and result are given within 10 days.
- Online services also provided by BIDA.
Visa Processing Service for foreign Nationals in Bangladesh.
Experts/advisers/employees/individuals appointed in government/semi-government/autonomous bodies/ projects and equivalent organizations. Or Individuals employed in local/foreign government/semi-government/liaison/Industrial/commercial organizations or other equivalent organizations. The Bangladesh Investment Development Authority (BIDA) has slapped a restriction on recruitment of low-skilled foreign workers in the country’s industrial and commercial enterprises.
Applicable to individual visiting for:
- Maintenance of equipment and software
- Supervision of projects
Main purpose/objective of the visa
Supply of software and machineries/ installation/maintenance/training/supervision/project visit
Maximum of Three Months
Extension in Bangladesh
Once the expatriate into Bangladesh with the short visa, he needs to obtain the work-permit from BIDA/BEPZA. The work-permit can be granted for a period of One to two years.
Then the expatriate needs to apply to the Department of Immigration and Passport (DIP) along with relevant documents for extending the visa.
The DIP upon receiving the Security clearance and the work-permit can extend the visa for the full employment period or maximum three years, whichever is shorter.
Visa Requirement under as follows:
- 2 recent pp size photographs (for all)
- Dollar endorsement $150.00 from Gov. Authorized bank or 3-month bank statement (Till to Currant Date)
- Company forwarding latter (for privet service)
- Company visiting card (for all over)
- Trade License Certificates photocopy (for Provider)
- Visa processing for1 to 4 working days.
- Electric Bill copy /Phone Bill/ Gas bill/ nationality certificate(last moth Photocopy)
- All document 2 seat, 1 seat original & 1 seat photocopy with passport.
- Authorization latter to Embassy (I D Card/ Visiting Card & authorized Signature as per passport)