Bangladesh Bank Approves Limited Foreign Investment for Startups
The Foreign Exchange Investment Department (FEID) of Bangladesh Bank has issued a circular announcing a general approval for startups to legally establish business entities abroad. Under this directive, entrepreneurs can invest up to USD 10,000 or its equivalent in foreign ventures.
Eligible entrepreneurs can apply through an Authorized Dealer (AD) Bank by submitting the prescribed application form (Annexure-A). The AD banks will be responsible for reporting investment activities to Bangladesh Bank.
Additionally, the central bank stated that Bangladeshi companies may apply to acquire shares of foreign companies through a share or security exchange mechanism. However, such transactions must comply with international valuation standards and will be subject to approval based on exchange ratio assessments.
Furthermore, foreign-established entities must submit an annual business progress report (Annexure-D). Authorized Dealers are required to conduct thorough Know Your Customer (KYC) checks, verify the legitimacy of fund sources, and ensure compliance with anti-money laundering regulations.
Bangladesh Bank has urged all Authorized Dealers and investors to adhere strictly to the circular’s guidelines.
