USEFUL INFORMATION : SETTING UP A BUSINESS

Nowhere else offers you this winning combination.So here’s how to set up a business in Bangladesh.

Bangladesh Board of InvestmentJiban Bima Tower, Dilkusha C/A, DHAKA, BangladeshTel + 880 2 716 95 80 Fax + 880 2 956 2312Email: service@boi.gov.bd

BANGLADESH

Official Name:The People’s Republic of Bangladesh

Location:20° 34' to 26°38' north88°01' and 92°41' east

Political System:Parliamentary Democracy

Population (est 2007):144 million (BBS*)

Area:147,570 km2 (BBS*)

Population Density:976 per km2

Time Zone:GMT + 6 hours

Currency:Taka (BDT)

GDP 2008:USD 79bn totalUSD 554 per capita

Exchange Rate (Sep 2008):BDT 1 = EUR 0.01011BDT 1 = USD 0.01457

Largest Cities (2007est*)Dhaka (Capital: 9.7m)Chittagong (3.9m)Khulna (1.5m)Rajshahi (0.7m)Sylhet (0.3m)Barisal (0.3m)

Major Maritime Ports:ChittagongMongla

Internet TLD: _.bd

Dialling code: + 880

CHINA

INDIA

RAJSHAHI

BARISAL

SYLHET

DHAKA

KHULNA CHITTAGONG

Global economic change continues apaceand new opportunities are emerging forcountries like Bangladesh.

China, India, Korea, Russia and Vietnam,who were struggling less than 20 years agoare now the dynamic engines of modern in-ternational business. Like them, Bangladeshis on that same path of GDP growth andmodernisation.

Foreign investment has been crucial to oursteady economic growth in the last decade.We know Bangladesh now needs to com-pete even harder to win more investmentthan ever.

Here is why we believe we will succeed.

The following four key ingredients add upto an investment opportunity unique toBangladesh:

1. An abundant supply of young, compet-itively paid, educated, skilled and train-able labour with English widely spoken.

2. A strategic location close to China andthe ASEAN markets and, increasingly, asthe South Asian Free Trade Area agree-ments enter into force, tariff free accessto India.

3. A track record of proven export compet-itivenes and growth with successful,long-term investors.

4. A truly competitive business cost basewith excellent returns on investments.

Then consider these facts:

• We have seen significant growth in off-

shoring and outsourcing investments inboth manufacturing and service businesses.

• Our core infrastructure is developingrapidly with new roads, port facilitiesand economic zones.

• We have substantial reserves of naturalgas and coal.

• Bangladesh has maintained consistentlyhigh GDP growth and has never de-faulted on its international commit-ments.

For these reasons and more, both GoldmanSachs and JP Morgan have includedBangladesh among their shortlists of "tran-sitional states likely to succeed”.

The Board of Investment is working with theExport Processing Zones Authority, with theprivate sector and other government agen-cies to make it as simple as possible to in-vest in Bangladesh: with the least red tape,the shortest time and the lowest cost.

Please visit the BOI website or contact ustoday for more information.

We hope you will join the thousands of for-eign investors who are already benefitingfrom doing business in our country.

To help you on your way we show you over-leaf just how simple it is to set up a business,a buying organisation or a manufacturingenterprise in Bangladesh, or a company pri-marlity concerened with exports from one ofour Export Processing Zones.

Textile Industry, Bangladesh

www.boi.gov.bd

*BBS = Bangladesh Bureau of Statistics

Setting up a business.The Board of Investment (BOI) is the govern-ment agency responsible for promotingbusiness opportunities in Bangladesh to in-vestors everywhere.

We are here to facilitate the process fromfirst enquiry through registration to imple-mentation and beyond. We can:

• Help with information tailor-made toyour business area

• Advise you about the best place to lo-cate your business

• Introduce you to the most relevant or-ganisations government agencies and-BEPZA, the agency responsible for ourExport Processing Zones.

To qualify for all the various incentives onoffer you need to register your investmentintentions with the BOI, (unless your invest-ment proves to be best located in an EPZ).

The chart shows the five basic steps you willprobably want to go through to get startedin business.

Step 1. Information Searches and Registration

There are many information sources. Thesedays you will probably start with the Inter-net. BOI can also help and suggest othergovernment agencies, chambers of com-merce, and professional associations, inter-national organisations such as the WorldBank, UNCTAD and IFC.

There are independent consultants, too. Ourcontact details and how to get in touch withany of our missions abroad can be found onthe reverse of this leaflet and below.

REGISTER YOUR INTENTIONS Investors are advised to apply to the BOI forregistration as early as possible in order to-

benefit from the many incentives and taxconcessions available. The application formcan be found online at the BOI website.

Step 2. A fact-finding visit

Make a physical verification of your re-searches from afar by visiting Bangladesh.

Make your own travel arrangements or letBOI arrange things for you and benefit fromour Welcoming Service.

Business travellers may request a visa for limited or multiple entries which can varyfrom 1 month to 5 years. Given certain con-ditions there is also the possibility of a Land-ing Permit and Visa on Arrival. BOI or theBangladesh mission in your country can advise you.

COUNSELLING. On arrival investors can takeadvantage of in-depth BOI counselling. Professional Investment and Business Coun-sellors can offer advice and practical assis-tance over the phone, via email or fax or,best of all, at a personal meeting in the BOIoffices here in Dhaka.

Step 3. Getting Started

You will need to set up an approprate com-pany structure.

By this stage you will know if you are goingto operate as a branch/liaison representativeoffice (or Buying House) or if you will be es-tablishing an industrial project. This is rele-vant to the type of business structure youwill then need to form.

INCORPORATION Business in Bangladesh can be carried out bya company formed and incorporated locallyor by a company incorporated abroad butregistered in Bangladesh. The incorporationor registration is done by the Registrar of

Joint Stock Companies and Firms (RJSC&F).Companies may be Private or Public LimitedCompanies or Unlimited Companies.

In establishing a place of business of a foreign company, the company has to beregistered with the RJSC&F as the place ofbusiness. Such registration is required in re-spect of capital issue and obtaining clear-ance from the Bangladesh Bank.

To open or extend a Branch/Liaison Repre-sentative Office of a foreign company, thecompany has to apply to the BOI.

Step 4. Business/Plant Set-up

Now you’ll want to get the right premisesand staff.

BOI can help with the following:

• Obtaining Industrial Plots

• Approval of foreign loans, supplier’scredit, PAYE schemes etc

• Obtaining utility connections: water,gas, electricity, phones

• Registration Certification for importingraw materials

• Work permits for foreign nationals andkey staff

• Registration with the Factories Actwhich regulates conditions

• Registration with Environmental Legis-lation

• Remittance of Royalty, Technical Know-How and Technical Assistance Fees

Step 5. Commercial Operation

Following up what you’ll need to do so wecan keep helping.

Investors need to submit half-yearly performance report to BOI on productionand employment in their projects and anychanges to the information provided in theregistration should beindicated to theBOI.

‘We’re hereto help’

www.boi.gov.bd

Getting Started/Registered

Business/Plant Set-up

Commercial Operation

Information Search

Physical Verification

BANGLADESH MISSIONS ABROADAddress and contact details of our many

Embassies, High Commissions and Consulatesaround the world can be found at:

www.mofa.gov.bd