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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)