Start and Grow Your Business in Bangladesh

<p>VJM Global provides end-to-end professional services for companies operating in Bangladesh, delivered through our team in Dhaka. Services span entity setup (RJSC company registration, BIDA investment registration, BEZA and BEPZA licensing), ongoing statutory compliance (corporate tax under the Income Tax Act 2023, monthly VAT under the VAT and Supplementary Duty Act 2012, statutory audit under the Companies Act 1994), payroll and HR compliance under the Bangladesh Labour Act 2006, AML compliance for regulated entities, and cross-border advisory for companies managing Bangladesh operations alongside India, Singapore, UK, or South Korean home jurisdictions.</p>

<p>A Bangladesh-registered CA firm provides strong local compliance capability but has limited cross-border reach. For a UK company managing a Bangladesh subsidiary alongside UK group audit requirements, or an Indian company needing FEMA and RBI compliance on the India side simultaneously, a local-only firm cannot cover both dimensions. VJM Global’s Dhaka team provides the same on-ground regulatory access as a local firm, while the India-based team manages cross-border dimensions — FEMA, RBI, transfer pricing, DTAA applications — without the client needing to coordinate between two separate providers.</p>

<p>A private limited company registered with the Registrar of Joint Stock Companies and Firms typically takes 4–8 weeks from submission of complete documentation, including MOA/AOA preparation, name clearance, RJSC filing, and receipt of the Certificate of Incorporation. Foreign investment projects additionally require Bangladesh Investment Development Authority registration, adding 2–4 weeks. BEZA Special Economic Zone entities and BEPZA Export Processing Zone entities require separate approvals and typically take 8–16 weeks depending on project size. All timelines are indicative and subject to the processing times of the relevant regulatory authority.</p>

<p>Annual compliance for a foreign-owned private limited company in Bangladesh includes: corporate tax return filing within 6 months of the financial year end (Bangladesh financial year runs 1 July to 30 June); monthly VAT return filing if registered; monthly TDS filing and Challan management; annual statutory audit under the Companies Act 1994; annual return filing with RJSC within 21 days of the Annual General Meeting; Bangladesh Investment Development Authority annual reporting for registered foreign investments; and Bangladesh Bank reporting for foreign exchange transactions. Companies in regulated sectors — banking, insurance, pharmaceuticals — face additional sector-specific filing requirements with their respective regulators.</p>

<p>Bangladesh offers sector-specific tax incentives for qualifying investors. Export-oriented manufacturers in BEPZA Export Processing Zones receive corporate tax holidays of 5–12 years depending on location and investment size. BEZA Special Economic Zone entities receive income tax exemption of up to 10 years from commencement of commercial production. The National Board of Revenue offers tax holidays for new industrial enterprises in specific sectors and regions. Separately, RMG and export-oriented manufacturers qualify for a 15% concessional corporate tax rate — significantly below the standard 32.5% for non-listed companies. All incentives are subject to NBR approval and must be applied for formally before operations begin.</p>

<p>Foreign nationals working in Bangladesh require a work permit issued by the Bangladesh Investment Development Authority for general commercial entities, or by the relevant BEZA or BEPZA authority for zone-based operations. As a general rule, companies must maintain a ratio of approximately five Bangladeshi nationals for every one foreign national employed, though this varies by sector and approval authority. Work permits are typically granted for 1–2 years and are renewable. The processing time is indicative at 6–12 weeks. VJM Global’s Dhaka team manages the BIDA application process, coordinates required documentation, and provides advisory on expatriate tax compliance.</p>

<p>VJM Global’s Bangladesh accounting service operates on a dual-track model. The Dhaka team manages day-to-day bookkeeping compliant with Bangladesh Financial Reporting Standards, monthly VAT return filing, TDS management, and vendor payments. Where the parent company is based in India, the UK, or another jurisdiction, the relevant VJM specialist team produces consolidated management accounts in the parent’s preferred format — IFRS, Indian Accounting Standards, or GAAP — and delivers a single monthly report pack reconciling Bangladesh local compliance with group reporting requirements. The client receives one consolidated output, not two separate reports from two separate firms.</p>

<p>Bangladesh is expected to graduate from the United Nations’ Least Developed Country category by 2026. This triggers the loss of LDC-specific trade preferences — most significantly, duty-free access to the European Union under the Everything But Arms scheme, which currently gives Bangladeshi RMG and pharmaceutical exporters a material tariff advantage over competitors in Vietnam and Cambodia. Post-graduation, Bangladesh will seek standard GSP+ status with the EU, subject to meeting governance and labour standards. VJM Global’s regulatory advisory team helps export-oriented companies assess the commercial impact and restructure supply chain and tax arrangements in advance of the transition.</p>