Bangladesh is booming as a hotspot for Foreign Direct Investment (FDI), with its vibrant economy, strategic location, and investor-friendly policies. In Q1 2023, FDI inflows hit $1.2 billion, showcasing the country’s growing appeal for global businesses. Whether you’re eyeing textiles, tech, or renewable energy, Bangladesh offers incredible opportunities—but navigating its legal landscape can be tricky. That’s where a trusted law firm comes in, and Jural Acuity, a top-tier firm in Dhaka, is here to make your investment journey smooth and successful.
Recognized by Legal 500 Asia Pacific 2025 for Intellectual Property and with Partner ASM Sakib Sikder named in Asia Business Law Journal’s Bangladesh A-List 2025, Jural Acuity specializes in guiding foreign investors through every step of FDI. From setting up your business to protecting your profits, we’ve got you covered. Let’s break down everything you need to know about FDI in Bangladesh and how the right legal partner can turn your vision into reality.
What is FDI (Foreign Direct Investment)?
FDI is when a company or individual from one country invests in a business in another, taking an active role in its operations—like opening a factory, starting a joint venture, or acquiring a local company. Unlike stock market investments, FDI means you’re in it for the long haul, with a say in how the business runs.
In Bangladesh, FDI is super welcoming. The Foreign Private Investment (Promotion and Protection) Act, 1980, protects your investment from being taken over by the government. You can own 100% of your business in most industries, bring in as much money as you want, and take your profits home without hassle. Popular sectors? Think garments, pharmaceuticals, telecom, and green energy. With FDI growing steadily, thanks to reforms and infrastructure, Bangladesh is a goldmine for smart investors.
Why Legal Support Matters for FDI
Investing in a new country can feel like stepping into a maze. Bangladesh’s rules, paperwork, and cultural quirks can trip you up if you’re not prepared. A good law firm is like a GPS—it helps you avoid pitfalls, speeds up approvals, and saves you from costly mistakes like unexpected taxes or legal disputes.
With expert legal help, you can structure your investment to save on taxes, team up with the right local partners, and hit the ground running. Jural Acuity knows the ins and outs of Bangladesh’s laws and works with regulators like the Bangladesh Investment Development Authority (BIDA) to make your entry seamless. This means faster returns and peace of mind.
How Law Firms Help Foreign Investors
A top-notch law firm is your partner in success, handling everything from planning your investment to solving problems down the road. At Jural Acuity, we offer:
- Planning Your Setup: We help you choose the best business structure, like a subsidiary or joint venture, and handle negotiations with local partners.
- Navigating Rules: We deal with regulators like BIDA and the Bangladesh Bank, ensuring your paperwork is spot-on.
- Tax and Profit Guidance: We use international tax treaties (like with China) to cut your tax bill and make sure you can send profits home easily.
- Due Diligence: We check out potential partners to avoid risky deals, keeping your investment safe.
Our team speaks your language—literally and figuratively—making complex processes feel simple and stress-free.
Setting Up Your Business: Company Registration and Licensing
Starting a business in Bangladesh is easier than you might think, thanks to a digital registration system with the Registrar of Joint Stock Companies and Firms (RJSC). You can do it all online, often in just 7-14 days, without stepping foot in the country. Options include:
- Private Limited Company: Perfect for limiting your liability and scaling up.
- Branch or Liaison Office: Great for testing the waters.
- Public Limited Company: Ideal for bigger ventures or raising funds.
You’ll also need licenses like a trade license, import-export permits, and work visas for foreign staff (Bangladesh allows one expat for every 20 local hires). Jural Acuity walks you through every step, ensuring you’re set up for success with full profit repatriation rights.
Staying on the Right Side of the Law
Bangladesh’s investment laws, managed by BIDA, are designed to support FDI. Key rules come from the Companies Act, 1994, and the Foreign Exchange Regulation Act, 1947. You’ll need to file quarterly reports and follow environmental and labor laws, but don’t worry—it’s manageable with the right help.
Jural Acuity keeps you compliant by handling reports, securing approvals for foreign loans, and ensuring you meet all deadlines. With recent simplifications in loan permissions due to dollar shortages, we make sure your operations run smoothly.
Taxes and Financial Rules Made Simple
Bangladesh offers a competitive tax system, with corporate rates between 25-35% and perks like tax holidays in Export Processing Zones (EPZs). Over 30 double taxation treaties mean you won’t pay taxes twice on the same income. Plus, you can move money in and out freely through banks without jumping through hoops.
Jural Acuity helps you save money by structuring your investment to claim VAT exemptions and manage customs duties. We also guide you through creditor rights if a business winds down, ensuring your assets are protected.
Protecting Your Ideas and Innovations
Your intellectual property (IP)—like trademarks, patents, or copyrights—is a big deal, especially in tech or creative industries. Bangladesh follows global IP standards under the TRIPS Agreement, with strong laws for trademarks, patents, and copyrights. Registering with the Department of Patents, Designs, and Trademarks (DPDT) keeps your IP safe.
Jural Acuity, a Legal 500-ranked firm for IP, handles everything from trademark searches to licensing deals. We make sure your innovations are protected, especially in joint ventures where tech transfer is common.
Handling Disputes and Risks
Disputes can happen—maybe a contract misunderstanding or a regulatory hiccup. Bangladesh’s Arbitration Act, 2001, offers quick resolution through arbitration or mediation, and courts are an option for bigger issues. Prevention is better, though, and Jural Acuity drafts airtight agreements to avoid trouble.
If disputes arise, we mediate to keep things friendly or represent you in arbitration or court. For business closures, we handle legal wind-ups, ensuring creditors are paid fairly and your interests are protected.
How to Choose the Best Law Firm for FDI
Not all law firms are equal. Look for one with:
- FDI Expertise: Experience with BIDA and Bangladesh Bank is a must.
- Strong Reputation: Check rankings like Legal 500 or Chambers.
- Tailored Service: A firm that understands your industry and goals.
- Local Know-How: Connections with regulators and fluency in local culture.
Jural Acuity ticks all these boxes. Our FDI-focused services, from due diligence to royalty setups, are backed by a proven track record and personalized support. We’re not just lawyers—we’re your partners in growth.
Real Success Stories
Here’s how Jural Acuity has helped investors win in Bangladesh:
- Renewable Energy Win: We guided a $50 million green energy project, securing BIDA approvals and IP protections in just 45 days, saving 20% on taxes.
- Manufacturing Success: A Chinese firm repatriated $10 million in profits hassle-free, thanks to our tax treaty expertise.
- Telecom Triumph: We resolved a joint venture dispute, saving a $30 million project and paving the way for expansion.
These stories show how the right legal support turns dreams into reality.
Ready to Invest in Bangladesh?
With its growing economy and open-door FDI policies, Bangladesh is your next big opportunity. Jural Acuity is here to make your investment journey easy, secure, and profitable. Contact us at juralacuity.com or email [email protected] for a consultation. Let’s unlock Bangladesh’s potential together!