Bangladesh: Emerging Market Scale with Manufacturing Heritage

Bangladesh, a South Asian nation with over 170 million people, offers access to one of the world's most dynamic emerging markets. While company registration involves bureaucratic complexity, the country's growth trajectory and labor cost advantages create opportunities for specific business setup strategies.

Living in Bangladesh

Dhaka, the capital, is one of the world's most densely populated cities, creating infrastructure challenges but also commercial intensity. Bengali is the official language; English is used in business and education. The climate is tropical with monsoon seasons affecting operations.

Healthcare varies significantly between public and private facilities, with international-standard care available at private hospitals in Dhaka. Safety is generally manageable with appropriate precautions. The cost of living is low by global standards, though expatriate-oriented housing commands premium prices.

Cultural richness and the warmth of Bangladeshi hospitality appeal to those who adapt to local conditions. Infrastructure limitations, including traffic congestion and power reliability, require patience and planning.

Doing Business in Bangladesh

Corporate tax rates range from 22.5% to 27.5% for most companies, with higher rates for banks and mobile operators. Personal income tax reaches 30% on higher incomes. VAT applies at 15%. Export-oriented sectors often benefit from tax holidays and incentive schemes.

Bangladesh has transformed through ready-made garment manufacturing, creating extensive supply chain infrastructure. The Board of Investment supports foreign investment in priority sectors. The central bank manages currency controls affecting international transactions.

Company Formation and Registration

Company registration occurs through the Registrar of Joint Stock Companies and Firms. Private limited companies are the standard vehicle, requiring minimum two shareholders and two directors, at least one locally resident. Foreign ownership is permitted in most sectors but may require BOI approval.

Company formation typically takes 2-4 weeks with proper documentation. Minimum capital requirements are nominal. The process involves multiple registrations including trade license, tax identification, and VAT. Bureaucratic navigation often benefits from local expertise.

Crypto License Opportunities

Bangladesh has not established a crypto license framework, with the central bank maintaining restrictions on cryptocurrency transactions. Digital asset businesses face regulatory uncertainty. The legal status remains ambiguous, limiting legitimate crypto business formation.

Entrepreneurs interested in blockchain technology must carefully navigate the regulatory environment and may need to structure operations across jurisdictions.

Gambling License Framework

Gambling is prohibited under Bangladeshi law, with no gambling license available. The cultural and legal environment does not support gaming businesses. Operators must look elsewhere entirely.

Considerations

Currency controls, bureaucracy, and infrastructure limitations require realistic expectations and local partnerships. The business environment rewards long-term relationship building over quick entry strategies.

Banking access is available but documentation-intensive for foreign-owned entities. The Bangladeshi taka is managed by the central bank with limited convertibility. Professional services are developing but may lack specialization for complex international structures.

Bangladesh suits manufacturers, exporters, and businesses committed to developing markets with long-term perspectives on their business setup investments.