INCENTIVES TO NON-RESIDENT BANGLADESHIS (NRBs)
The Bangladesh
government offers special incentives to
Non-resident Bangladeshis (NRBs) to encourage them
invest in the country. Board of Investment (BOI),
the government body to accelerate private
investment, is the facilitator of the incentives,
which the government provides to the NRBs and to
the foreign investors as well.
One-Stop Service
Like foreign investors, the NRBs are entitled to
get one-stop service (OSS) extended by BOI in
obtaining electricity, gas, water and sewerage
connections, telecommunication, customs and
environment clearances and other facilities for
speedy setting up and operation of the industry.
Special Service for Export-oriented Industries
For export-oriented enterprises, Export Processing
Zones (EPZs), one at Savar, near capital Dhaka and
another in the port-city, Chittagong, provide
necessary fiscal, non-fiscal and infrastructure
facilities. The construction of five more EPZs
each in Chittagong, Mongla (Kulna), Ishwardi (Pabna),
Comilla and Syedpur are being implemented.
Bangladesh Export Processing Zones Authority (BEPZA)
is the regulator of the EPZs and it approves all
projects to be located in the particular areas.
Investment Opportunities in the Capital Market
The NRBs can buy shares from both the primary
market and the secondary market and can also
invest in the debentures of Bangladeshi companies.
Ten percent quota of primary public shares has
also been fixed for them.
Banking
Banks provide NRBs with facilities of maintaining
foreign currency deposits in the non-resident
foreign currency deposits (NFCD) account. Besides,
they can avail of the opportunities to invest in
'Industrial Development Bond' scheme of Agrani
Bank, one of the NCBs.
Investment Incentives
- Tax holiday for 5-10 years depending on
location of Industries
- 15 years' tax exemption on income for
private power generation companies
- Facilities for repatriation of invested
capital, profit & dividend
- Tax exemption on the interest on foreign
loans
- Tax exemption on royalties, technical
know-how & technical assistance fees
Six months multiple entry visa for the new
investors
Working capital loan as well as term loan from
local commercial banks is allowed to the
industries set up with foreign capital
- Citizenship by investing a minimum of US$
5,00,000 or by transferring US$ 10,00,000 to any
recognised financial institution (non-repatriable)
- Permanent residentship by investing a
minimum of US$ 75,000 (non-repatriable)
- Tax deduction is made on dividend @ 15% for
institutional investors
Special facilities and venture capital support
will be provided to export-oriented industries
under "Thrust sectors".
Investment Guarantee
Foreign Private Investment (Promotion &
Protection) Act, 1980 ensures legal protection to
foreign investment in Bangladesh against
nationalisation and expropriation. It also
guarantees repatriation of capital & dividend and
equitable treatment with local investors
Rules and Regulations
No permission from the government is required to
set up new industries. For obtaining institutional
facilities -procurement of land, electricity, gas
and sewerage connections, import capital machinery
and raw materials, tax rebate, duty drawback
facilities and so on -industries only need to be
registered with the Board of Investment (BOI) in a
simple prescribed form. BOI is the government body
to accelerate private investment.
Source:
Board of Investment (BOI)
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