Setting Up a Company in Bangladesh
Bangladesh is South Asia's fastest-growing large economy, with a dominant garment sector, rising technology industry, and 100% foreign ownership available in most sectors through BIDA.
Bangladesh's 170 million consumers, young workforce and position as the world's second-largest garment exporter make it a significant sourcing and market-entry destination. The Bangladesh Investment Development Authority (BIDA) administers foreign investment registration and provides a one-stop service for approvals. The Companies Act 1994 governs corporate registration through the RJSC.
Key facts for 2026
| Parameter | Detail |
|---|---|
| Corporate tax (listed) | 20% |
| Corporate tax (unlisted) | 27.5% |
| VAT | 15% (standard); reduced rates for specific categories |
| Foreign ownership | 100% in most sectors; BIDA registration required |
| EPZ corporate tax | 0% for first 10 years, 10% thereafter (manufacturing) |
Corporate structures and BIDA registration
The Private Limited Company is the standard vehicle for foreign investors — registered with the RJSC, with a minimum of 2 shareholders and no minimum paid-up capital for most activities. Foreign-invested companies must also register with BIDA, which issues an Investment Registration Certificate (IRC) and facilitates sector-specific approvals, work permits and utility connections through its one-stop service. BIDA registration is free and typically completed within 1–3 business days online.
Export Processing Zones (EPZs)
Bangladesh operates 8 EPZs administered by the Bangladesh Export Processing Zones Authority (BEPZA) — located in Dhaka, Chittagong, Comilla, Jessore, Adamjee, Uttara, Ishwardi and Mongla. EPZ entities benefit from a 10-year corporate tax holiday (0%), duty-free importation of machinery and raw materials, and 100% repatriation of profits. EPZs are suited primarily to export-oriented manufacturing (garments, footwear, electronics). Foreign investors can own 100% of an EPZ entity.
The incorporation process
- Register online with the RJSC for a Private Limited Company — submit Memorandum and Articles of Association, director details and share structure.
- Obtain a Certificate of Incorporation and a Trade Licence from the local City Corporation or Pourasabha.
- Register with BIDA and obtain the Investment Registration Certificate (IRC) for foreign-invested entities.
- Register for VAT with the National Board of Revenue (NBR) if applicable.
- Open a corporate bank account and register with the Bangladesh Bank for foreign-currency accounts.
- Register with the Registrar of Taxes for corporate income tax.
Frequently asked questions
Can a foreigner own 100% of a Bangladesh company?
Yes, for most sectors. Restricted activities include telecommunications, banking and certain media. BIDA publishes the restricted sectors list. EPZ entities are always 100% foreign-ownable.
What is the corporate tax rate in Bangladesh?
27.5% for unlisted companies; 20% for listed companies. EPZ manufacturing entities pay 0% for the first 10 years, 10% thereafter. Garment exporters have historically benefited from reduced effective rates.
What is the VAT rate in Bangladesh?
15% standard rate. Exports are zero-rated. Many production inputs for export-oriented manufacturers are exempt or covered by duty-drawback schemes.
Official sources
- Bangladesh Investment Development Authority (BIDA)
- Registrar of Joint Stock Companies & Firms (RJSC)
- Bangladesh Export Processing Zones Authority (BEPZA)
This guide is general information prepared by ARM Management and is current as at July 2026. It is not legal advice. Confirm with BIDA or an advisor before incorporating.
Enter Bangladesh's high-growth market through the right structure.
ARM Management advises on Bangladesh Private Limited Company formation, BIDA registration, EPZ licensing and ongoing compliance.