How do I start a business in Bangladesh?

To start a business in Bangladesh, follow 7 steps: Obtain Name Clearance (RJSC), File Incorporation Documents, Register with BIDA, Obtain TIN and BIN, Open Corporate Bank Account, Obtain Trade License, Register with BEPZA (if EPZ). The process takes approximately 67 days and costs around $455 USD.

What types of business entities can I register in Bangladesh?

Bangladesh offers 4 entity types: Private Limited Company (min capital: $1, foreign ownership: 100%); Public Limited Company (min capital: $0, foreign ownership: 100%); Branch Office (min capital: $0, foreign ownership: 100%); Liaison/Representative Office (min capital: $0, foreign ownership: 100%).

Can foreigners own a business in Bangladesh?

Yes, foreigners can own businesses in Bangladesh. Private Limited Company allows up to 100% foreign ownership. Public Limited Company allows up to 100% foreign ownership. Branch Office allows up to 100% foreign ownership. Liaison/Representative Office allows up to 100% foreign ownership.

What visa do I need to start a business in Bangladesh?

The primary business visa for Bangladesh is the Business Visa (B). Single or multiple entry for up to 1 year. Apply at Bangladesh embassy with company invitation letter. For investors: BIDA Investment Visa. Foreign investors registered with BIDA can obtain long-term multiple entry visas and work permits through BIDA one-stop service. Processing takes approximately 4 weeks and costs ~$300.

What is the minimum wage in Bangladesh?

The minimum wage in Bangladesh is $95/month (USD). Average monthly wage is approximately $200. Standard work week is 48 hours with 10 paid leave days per year.

How much does it cost to run a business in Bangladesh?

Estimated monthly overhead for a small business (5-10 employees) in Bangladesh is approximately $4000. Office rent averages $6/sqm/month. Skilled workers average $400/month. Typical break-even: Tech 14 months, Services 7 months, Retail 10 months.

Countries BangladeshBusiness Guide

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Start a Business in Bangladesh

Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis

~67 days

Setup Time

~$455

Setup Cost

27.5%

Corporate Tax

100%

Foreign Ownership

#168

Ease of Business

Entity Types

Entity	Min Capital	Foreign %	Liability	Min Shareholders	Best For
Private Limited Company প্রাইভেট লিমিটেড কোম্পানি	1 BDT	100%	Limited	2	Most common for foreign investors - 100% ownership in most sectors via BIDA registration
Public Limited Company পাবলিক লিমিটেড কোম্পানি	None	100%	Limited	7	Companies planning to list on Dhaka or Chittagong Stock Exchange
Branch Office	None	100%	Unlimited	0	Foreign companies establishing a presence without forming a separate legal entity
Liaison/Representative Office	None	100%	Unlimited	0	Market research and promotional activities only - cannot earn revenue in Bangladesh

Registration Steps

Obtain Name Clearance (RJSC)

Apply for name clearance through the Registrar of Joint Stock Companies and Firms online portal

1-3 days

~$5

Registrar of Joint Stock Companies and Firms (RJSC)

File Incorporation Documents

Submit memorandum and articles of association, director details, and registered address to RJSC

5-10 days

~$150

RJSC

3-7 days

~$50

Bangladesh Investment Development Authority (BIDA)

Obtain TIN and BIN

3-7 days

Free

National Board of Revenue (NBR)

Open Corporate Bank Account

Open a bank account with authorized dealer bank and remit initial capital through proper banking channels

2-5 days

Free

Authorized Dealer Bank

Obtain Trade License

Apply for a trade license from the relevant City Corporation or municipality

5-14 days

~$50

City Corporation / Municipality

Apply for EPZ/EZ enterprise registration if operating in an export processing or economic zone

7-21 days

~$200

Bangladesh Export Processing Zones Authority (BEPZA)

Total Estimated

67 days max$455

Tax Framework

Corporate Income Tax27.5%

Standard rate 27.5% for non-listed companies. Listed companies 22.5%. EPZ/EZ enterprises enjoy tax holidays of 5-10 years. Garments sector gets reduced rates. IT/ITES income exempt until June 2027.

VAT15%

Personal Income Tax0-30%

Capital Gains Tax15%

Dividend Withholding20%

Tax Treaties35 countries

Tax Incentive Zones

8 EPZs under BEPZA offer 5-10 year tax holidays. 100 planned economic zones under BEZA with similar incentives. Hi-Tech Parks offer IT sector tax exemptions.

Labor Laws & Costs

$95/mo

Minimum Wage

$200/mo

Average Wage

48 hrs/week

Work Hours

10 days/year

Paid Leave

2 weeks/year

Severance

0% of salary

Employer Social Security

0% of salary

Employee Social Security

Required

Foreign Worker Permit

Foreign Worker Quota: Foreign workers generally limited to 5% of total workforce. Higher ratio possible for EPZ enterprises and specialized roles.

Visa & Immigration

Business Visa (B)

Single or multiple entry for up to 1 year. Apply at Bangladesh embassy with company invitation letter.

4 weeks

Processing time

$300

Estimated cost

BIDA Investment Visa

Investor

Foreign investors registered with BIDA can obtain long-term multiple entry visas and work permits through BIDA one-stop service.

Work Permit Process: Employer applies through BIDA One-Stop Service or directly to the Board of Investment. Work permit typically tied to investment registration.

Business Environment

#168/190

Ease of Business Rank

19 days

Starting a Business

244 days

Registering Property

1442 days

Enforcing Contracts

25/100

Corruption Perception

39%

Internet Penetration

BDT

Currency

UTC+6

Time Zone

GoodCould be betterHover a dot for the threshold and source. Sources: World Bank, Transparency International, ITU.

Bengali

Investment Zones & Provinces

Dhaka EPZ

SEZ

Savar, Dhaka

Incentives

5-10 year corporate tax holidayDuty-free import of machinery and raw materials100% foreign ownershipFull repatriation of profitsNo import duty on construction materials

Key Sectors

Ready-Made GarmentsTextilesElectronics AssemblyLeather Goods

Tax holiday and duty-free imports reduce costs by 40-55%

Bangabandhu Hi-Tech City

Tech Hub

Kaliakair, Gazipur

Incentives

IT/ITES income tax exemption until 2027Subsidized land and utilitiesGovernment broadband infrastructureStartup incubation support

Key Sectors

Software DevelopmentIT ServicesBPOData CentersFintech

Subsidized rent and IT tax exemption reduce operating costs by 50-60%

Mirsarai Economic Zone

SEZ

Mirsarai, Chittagong

Incentives

10-year tax holidayDuty-free importsOne-stop licensing from BEZAProximity to Chittagong portSubsidized land lease

Key Sectors

Heavy ManufacturingAutomotivePharmaceuticalsAgro-ProcessingShipbuilding

Low land cost and tax holiday cut total costs by 45-55%

Break-Even Analysis

Retail (months)

F&B (months)

Tech (months)

Manufacturing (months)

Services (months)

Typical Operating Costs in Bangladesh

Per-person or per-unit costs. Multiply by your team size for total estimates.

Office Rent	$6	per sqm/month
Skilled Worker Salary	$400	per 1 worker/month
Unskilled Worker Salary	$100	per 1 worker/month
Electricity	$0.08	per kWh
Business Internet	$15	per 1 connection/month
Est. Monthly Overhead (5-10 staff)	$4,000	total/month

Sources: World Bank Open Data, ILO, Numbeo Cost of Living Index, local government publications. Salaries reflect market averages and may vary by city, industry, and experience level. Last updated 2025.

Break-Even Calculator

Total Investment (USD)

Monthly Revenue (USD)

Monthly Costs (USD)

Tax rate applied: 27.5% (corporate rate)

months to break even

$7,975

monthly net profit

191.4%

annual ROI

$78,000

total cost to break even

Break-even progressFast recovery

Next Steps

Your Action Checklist

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Key Considerations for Foreign Investors

170+ million consumer market with a rapidly growing middle class and one of the fastest GDP growth rates in South Asia

World's second-largest ready-made garment (RMG) exporter - deep supply chain infrastructure for textiles and apparel

BIDA one-stop service streamlines business registration, work permits, and utility connections for foreign investors

IT/ITES sector income is tax-exempt until June 2027 - strong government push to develop the digital economy

EPZ and economic zone programs offer 5-10 year tax holidays with 100% foreign ownership and profit repatriation

Foreign exchange controls exist - capital remittance requires Bangladesh Bank approval through authorized dealer banks

Infrastructure challenges remain in power supply and logistics outside major cities - EPZs mitigate this with dedicated utilities

Last updated: 2025-Q4

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Start a Business in Bangladesh

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors

Start a Business in Bangladesh

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors