The Industrial Policy 1991 and its recently announced amendments, the associated reforms in trade policies and fiscal and taxation policies now augur well for investment by the foreign nationals and companies and also non-resident Bangladeshi nationals. No approval is required for any investment by the foreign investors in any sectors of the economy except for a few areas (strategic ones) which are still reserved for public investment only. The foreign investment (promotion & protection) Act, 1980 guarantees protection to foreign investment against nationalization and also guarantees equitable treatment. Bangladesh is a signatory of Multilateral investment Guarantee Agency (MIGA) of the World Bank group, Overseas Private investment Disputes (ISCID) and therefore, also guarantees investment protection against political and other risks. Following facilities are also available for foreigners and non-resident Bangladeshis :

• Foreign investment with 100% foreign holding ;
• Repatriation of all post tax dividends, capital, and capital gains is permitted fully ;
• Employment of expatriate technical and professional personnel is allowed ;
• Remittances of 50% of the salary of foreign nationals employed in local companies is allowed ;
• Remittances of savings from earnings, retirement benefits, personal assets of individuals employed in recognized industries on retirement/termination of service is allowed ;
• Foreign employed in recognized industries are exempted from income taxes for first 3 years ;
• Multiple entry visas are allowed ;
• Relief is given from double taxation ;
• Re-investment of reportable dividends is treated as new investment ;
• Foreign investment have unhindered access to local banks and financial institutions for obtaining long term loans and working capital loans ;
• Enterprises with foreign ownership may remain limited companies. In the case of public limited companies, the public offering of shares is optional ;
• Foreigners are allowed to investment in shares and securities through stock exchange etc.

Incentives to Non-Resident Bangladeshis (NRBs) :

In recognition to enormous contribution of NRBs to the economy, the Government has established Ministry of Expatriate Welfare and Overseas Employment in early 2002 to look after the interests of the NRBs.

ii. Incentive :

1. Investment of NRBs is treated at par with FDI and enjoy facilities similar to those of foreign investors.
2. NRBs can buy newly issued shares/debentures of Bangladeshi Companies.
3. A quota of 10% has been fixed for NRBs in primary public shares.
4. They can maintain foreign currency deposits in the Non-resident Foreign Currency Deposit (NFCD) account.
5. On fulfillment of certain conditions ''Important Non-Resident Bangladeshi (INRB)'' is selected.

ii. How to Avail :

1. Contact BOI and Ministry of Expatriate Welfare and Overseas Employment.
2. Register your project with BOI.

Other Incentives :

There is no discrimination in case of duties and taxes for the same type of industries set up by foreign and local investors and in the public and private sectors.

• Tax exemption on royalties, technical know-how fees received by any foreign collaborator, firm, company and expert.
• Tax exemption on the interest on foreign loans under certain conditions.
• Exemption income tax up to 3 years for the foreign technicians employed in industries specified in the relevant schedule of income tax ordinance.
• Tax exemption on income of the private sectors power generation company for 15 years from the date of commercial production.
• Multiple entry visa facilities for the prospective new investors.
• Re-investment of repairable dividend treated as new investors.
• Citizenship by investing a minimum of US$ 5,00,000 or by transferring US$ 10,00,000 to any recognized financial institution (non-repairable).
• Permanent resident ship by investing a minimum of US$ 75,000 (non-repairable).
• Tax exemption on capital gains from the transfer of shares of public limited companies listed with a stock exchange.

Incentives to Export-Oriented and Export-Linkage Industries:

Export-oriented industrialization is one of the major objectives of the Industrial policy 2005. Export-oriented industries are given priority and public policy supports are ensured in this respect. An industry exporting at least 80% of its products as an input to finished exportable, and similarly, a business entity exporting at least 80% of services including information technology related products are considered as an export-oriented industry. To make investment in 100% export-oriented industries attractive, the following incentives and facilities will be provided.

Foreign Private Investment (Promotion & Protection) Act 1980 Act No. XI OF 1980. Promalgated

To provide for the promotion and protection of foreign private investment in Bangladesh some important points are :

1. Foreign Private Investment:

(i) The government may, for the promotion of foreign private investment, sanction establishment with foreign capital of any industrial undertaking:
(ii) Sanction of the establishment with foreign capital of an industrial undertaking under sub-section (1) may be subject to such condition as the government my deem fit to impose.

2. Protection and Equitable Treatment:

The government shall accord fair and equitable treatment to foreign private investment which shall enjoy full protection and security in Bangladesh.

3. Terms of Sanction:

The terms of sanction, permission or license granted by government to and industrial undertaking having foreign private investment shall not be unilaterally changed so as to adversely after the conditions under which the establishment be accorded a less favorable treatment than what is accorded to similar private investment by the citizens of Bangladesh in the application of relevant rules and regulations.

4. Indemnification etc.:

In the event of losses of foreign investment owing to civil commotion, insurrection, or not, foreign private investment shall be accorded the same treatment with regard to indemnification, compensation, restitution, or other settlement as is accorded to investment by the citizens of Bangladesh.

5. Expropriation and Nationalization:

(1) Foreign private investment shall not be expropriated or nationalized or be subject to any measures having effect of expropriation or nationalization except for a public purpose against adequate compensation which shall be paid expeditiously and be freely transferable.
(2) Adequate compensation for the purpose of sub-section (1) shall be an amount equivalent to the market value of investment expropriated or nationalized immediately before the expropriated or nationalization.

6. Repatriation of Investment:

(1) In respect of foreign private investment, the transfer of capital and the returns from it and in the event liquidation of industrial undertaking having such investment, the proceeds from such liquidation is guaranteed.
(2) The guarantee under sub-section (1) shall be subject to the right which, in circumstances of exceptional financial and economic difficulties, the Government may exercise in Accordance with the applicable laws and regulations in such circumstances.

7. Removal of Difficulty:

If any difficulty arises in giving effect to any provision of this Act, the Government may make such order, not inconsistent with the provisions of this Act, as may appear to it be necessary for the purpose of removing the difficult.