Bangladesh IT Industry
:: IT Scenario of Bangladesh
:: IT Enabled Services
:: IT Policies
:: Software Industry
:: Opportunities
:: Cyber Law
:: Investment/Bank Support
:: Revenue

BANGLADESH
A country of 120 million population. Among them 50 million are civilian labor force along with trained and educated workforce at low wage rate. Steady growth of GDP, stable rate of exchange, low interest rate, low rate of inflation and comfortable foreign exchange reserve are the major attractive options for the investor.

INDUSTRIAL POLICY REFORMS

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Liberalized Industrial Policy

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Export-oriented, private sector-led growth strategy

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No limitation pertaining to equity participation i.e. up to 100 per cent foreign private investment allowed

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Except five reserve sectors, all industries are open for private investment Industries earmarked for public sector investment are included in the reserve sector namely:

arms, ammunition and other defense equipment and machinery

production of nuclear energy

forest plantation and mechanized extraction within the bounds of reserved forests

security printing (currency notes) and minting, and

railways and air transportation (except certain domestic routes and air cargo)

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No permission of the Government required to set up new industries

For obtaining institutional facilities like procurement of land, electricity, gas and sewerage connection, importation of capital machinery and raw materials, tax rebate, duty drawback facilities etc., industries need only to be registered with the Board of Investment (BOI) in a simple prescribed from.

REFORM and LIBERALIZATION OF POLICIES

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Creation of Law Reform Commission to update existing Laws

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Setting up Administrative Reform Commission to modernize the administrative system and to remove bureaucratic roadblocks

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Enactment of law allowing private sector to establish export processing zones

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Approval of policy parameters and incentives for private power generation

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Identification of roadblocks on the way of implementation of projects and measures to remove them

INVESTMENT GUARANTEE
Foreign Private Investment (Promotion and Protection) Act, 1980 ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation. It also guarantees repatriation of capital and dividend and equitable treatment with local investors. Adequate protection is available for intellectual property rights, such as patents, designs and trademarks and copyrights. Bilateral Investment Guarantee Agreements have been signed with a number of countries. Bangladesh is signatory to MIGA, OPIC of USA, ICSID and member of WIPO

- tax holiday from 5-10 years depending on location of industries
- 15 year's tax holiday for private power generation companies
- facilities for repatriation of invested capital, profit and dividend
- exemption of tax on interest on foreign loan
- tax exemption on royalties, technical know-how and technical assistance fees
- avoidance of double taxation on the basis of bilateral agreement
- six months multiple entry visa for the investors
- TAKA, the nation's currency, is convertible for international payments in the current account
- Re-investment of repatriable dividend treated as new investment
- Working capital loan, as well as term loan, from local commercial banks 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 recognized financial institution (non repatriable)

INCORPORATION OF A COMPANY IN BANGLADESH
In Bangladesh, a locally incorporated company may carry on business and a foreign company incorporated outside but registered in Bangladesh.

POTENTIAL AREAS FOR INVESTMENT
Investments in areas of manufacturing and services are welcome. Investors are free to choose fields of investment. However, from the point of view of comparative advantage, the following are potential areas for investment.

Textile: export market of US$ 2 billion from the garments sector and a large domestic market.

Infrastructure: energy, telecommunication, oil and gas, ports, highways and bridges.

Agro based Industry: dairy of poultry, processing of fruits and vegetables, shrimp, fish culture and processing, shrimp feed plants etc.

Labor-intensive Industries: electronics, data processing and software development, electrical goods and accessories, light engineering goods, toys, jeweler and others.

COMMUNICATION FACILITIES
Adequate sea, rail, road and air services to facilitate both domestic and international transportation.

TELECOMMUNICATIONS
Internet, telex, fax, international direct dialing services and e-mail facilities

MAJOR EXPORTABLE ITEMS
Readymade garments, leather and leather products, frozen shrimp/prawn and fish, raw jute and jute goods, tea, newsprint, urea fertilizer, furnace oil, naphtha etc.

TOURISM
Bangladesh has a rich tradition, history and architecture. Incredible greenery, mighty rivers and attractive river cruises, sunny beaches, colorful tribal life and attractive cultural functions offer great tourist attractions.

FACILITIES TO NON-RESIDENT BANGLADESHI

- Non-resident Bangladeshi investors enjoy facilities similar to foreign investors

- Allowed to buy newly issued shares/debentures of Bangladeshi companies

- Quota of 10% reserved for non-resident Bangladeshis in primary shares (IPO)

- Foreign currency deposits in the Non-resident Foreign Currency Deposit (NFCD) account

BANKING AND FINANCING
Bangladesh offers adequate banking facilities to the investors for establishment of industries and to facilitate their business transactions. 14 private and 13 foreign commercial banks, 10 financing institutions and 3 nationalized commercial banks having network of correspondents and branches operating all over the country and abroad.

EXPORT PROCESSING ZONES
Export Processing Zones in the port city Chittagong and capital city Dhaka with necessary fiscal and infrastructure facilities for export oriented enterprise. Another Export Processing Zone, near the capital city (at Gazipur) is under implementation.

COURTESY SERVICE
Board of Investment extends courtesy service such as airport reception, hotel and transport booking and fixing appointment with the Government and Chamber official is accordance with the needs of foreign entrepreneurs visiting Bangladesh. For availing courtesy service, entrepreneurs need to contract BOI in advance.

Source: http://www.bangladesh.gov.bd