Last update on: Thu Mar 27, 2025 01:47 PM
Startups in Bangladesh can now invest up to $10,000 abroad by establishing legal entities, as Bangladesh Bank (BB) has relaxed its rules and regulations for them.
The central bank issued a notice today, stating that general permission is granted to establish a legal entity abroad with an investment of up to $10,000 or its equivalent.
Earlier, the startups in Bangladesh were not allowed to invest abroad.
This initiative aims to support startup businesses in Bangladesh, the BB said.
The notice further mentioned that the permission has been granted under the Foreign Exchange Regulation Act, 1947.
Resident enterprises can now apply to banks to facilitate remittances for establishing companies abroad.
Additionally, the central bank has allowed individual Bangladeshi nationals to establish legal entities abroad within the $10,000 threshold.
However, applicants must have innovative business ideas that align with future investment and earnings being rerouted into Bangladesh.
The notice also stated that, apart from small-value investments, Bangladesh Bank will consider requests from resident companies to acquire shares abroad by exchanging their own shares or securities with those of overseas companies, without requiring cash transactions.
Proposals under this framework will be assessed if the share or securities swap ratio is determined in accordance with global best practices, the notice added.
A central bank official mentioned that this is the first step toward opening up capital account transactions in response to changing economic conditions.
Industry insiders believe that the new regulations will facilitate inward investment through companies established abroad.