Apart from being one of the fastest-growing economies in the world, there are also several key advantages of business registration in Bangladesh. We have classified these advantages into three key phases: setting up your company and the prevailing economic environment, operating your business, and exporting finished products. Tetra Consultants will help you to register company in Bangladesh within 2 weeks. Throughout the whole set up process, you are not required to travel for Bangladesh company registration or corporate bank account opening. After company registration, our banking team will proceed to open a Bangladesh corporate bank account for your business. Depending on the nature of your organisation and its long-term goals, we are also able to open overseas offshore corporate bank accounts. This process will take approximately 4 weeks. Thus, within 6 weeks from our engagement, you can expect to commence operations with your new Bangladesh company.
3 main advantages of business registration in Bangladesh
#1 Setting up your company and the prevailing economic environment
- Bangladesh is part of a group of developing countries known as the Next Eleven, representing its strong potential for development and growth. Coined by the same economist that came up with the acronym BRIC used to refer to Brazil, Russia, India and China, four countries that were expected to become major players in the global economy, the Next Eleven economies were chosen for their promising outlook for investment and future growth, which is based on criteria such as macroeconomic and political stability, quality of education and openness to trade and investment policies.
- This prediction was made in 2005, and despite the many disruptions to the global economy since then, Bangladesh has lived up to the expectations that came with their inclusion in the Next Eleven, achieving an annual real Gross Domestic Product growth rate of 8.3% in the first quarter of 2019. This was the seventh highest in the world. This economic growth represents an increasing number of opportunities for your newly established business to capitalize on, providing a key advantage as to why you should register company in Bangladesh.
Easy foreign ownership
- On top of offering such opportunities to your business, Bangladesh also has a high degree of openness to foreign investment and trade. This allows you to easily incorporate your company with full foreign ownership, and not face regulatory barriers whilst doing so. Being fully owned, you will have the independence to freely operate and manage your own affairs and will not need to source for a local partner. Additionally, unlike most countries, your company’s directors and shareholders can be of any nationality, and do not need to be Bangladeshi residents, making it even easier for foreigners to set up and own businesses.
Attractiveness for foreign direct investments
- In terms of foreign direct investment, the East Asian region has performed significantly better than the rest of the world even in this pandemic period, showing the strong potential for growth that Bangladesh holds not only within the region, but also on a global scale. Even though the 2020 Global Investment Trends Monitor by the United Nations Conference on Trade and Development showed that global foreign direct investment inflows fell by 42%, inflows for East Asia rose by 12% instead. This shows the potential for Bangladesh to play a key role in the economic development of the East Asian region and its ability to attract and retain foreign talent despite the uncertain economic outlook.
#2 Operating your business
- Bangladesh is traditionally known as a low-cost producer for textiles and garments, with the monthly labour costing as little as $101. This is much lower than other competitors, such as $135 for Myanmar and $170 for Cambodia. Bangladesh has had a bad name in these industries for poor working conditions, with high profile incidents such as the collapse of Rana Plaza in 2013 marring the reputation of the country and leading to boycotts from international retailers. Hopefully, with stricter enforcement by The Bangladesh Garment Manufacturers and Exporters Association, working conditions will improve.
- Bangladesh also offers higher-skilled labour as part of their “Digital Bangladesh” initiative. By training their citizens in several key areas such as Intelligent Enterprise, Digital Trust, Cyber Security, Robotics, and Social Media, Mobility, Analytics and Cloud (SMAC), they have managed to upskill their workforce and equip them with the necessary skills to keep up with the digitalization of the economy. These initiatives have been supported by the establishment of tech-centric economic free zones in the country that would offer good synergy for your businesses dealing in a related field.
Tax incentives for firms in Economic Zones
- Firms that choose to do so will be able to enjoy full tax exemption on a large number of areas, including income tax, dividend tax, capital gains tax and duty-free imports. The exemption on duty-free imports will not only benefit import-export firms, but also manufacturing firms since these duty-free imports can be further processed or value-added and subsequently exported tax-free as well.
#3 Exporting finished products
Bangladeshi Economic Zones
- Apart from such tax benefits, these economic zones also increase the ease of doing business since they allow for a simplification of customs declaration requirements that facilitate the flow of goods. Not only does this make it cheaper to do so, but compliancy is also made easier since the process is now less time-consuming.
Strategic location for land and sea trade
- Located along the Bay of Bengal, Bangladesh enjoys access to many maritime trading routes. In addition, it also serves as a conduit for maritime trade for its neighbours, Bhutan, Nepal and the Southwestern region of China. These regions must go through Bangladesh in order to access these routes.
- With its location in East Asia, it is also close to other major economies such as India and China, whilst being decently close to countries in Southeast Asia and the Middle East. This makes it a regional hub for trade in the region.
Free Trade Agreements
- Being a member of several influential international organizations such as the World Trade Organization, World Bank and International Monetary Fund, as well as equally important regional organizations such as the South Asian Association for Regional Cooperation, it is able to attain a certain degree of political and economic stability. It also makes it a party to free trade agreements such as Asia-Pacific Trade Agreement and the South Asian Free Trade Area. Such agreements work in conjunction with the above-mentioned factors to enable your Bangladesh company to easily and cheaply export goods or engage in international trade.
How can Tetra Consultants assist you with business registration in Bangladesh?
Bangladesh company registration is hassle-free if you are familiar with the steps. With Tetra Consultants at the wheel, you will be able to channel your time and energy into other more important aspects of your firm.
With our lean-and-mean mentality, you can rely on our team of experts to provide you with a seamless experience throughout the company registration process in Bangladesh. Our ultimate goal is for your company to be operationally ready within 6 weeks. Thereafter, Tetra Consultants will ensure that your company stays compliant with local regulations.
Our service package includes everything you will require for business registration in Bangladesh:
- Company registration with Registrar of Joint Stock Companies and Firms
- Local company secretary and registered address
- Opening local or international corporate bank account
- Tax registration
- Annual accounting and tax services
Contact us to find out more about company registration in Bangladesh. Our team of experts will revert within the next 24 hours.