Regulatory Alerts2025-03-27
Added
FEID Circular No. 02: Establishment of legal entities abroad
Bangladesh Bank grants general permission to Authorized Dealers to effect remittances up to 10,000 US dollars or equivalent on behalf of resident enterprises and Bangladeshi nationals to establish legal entities abroad for supporting Start-up businesses. Resident enterprises must have been in operation for less than 10 years, funds must be remitted from internal sources rather than borrowings, and unutilized amounts must be repatriated if the entity is not established within a reasonable time. Authorized Dealers are required to report remittances to Bangladesh Bank within one month of registration or six months from the date of remittance, while investors must submit annual progress reports and audited financial statements of the overseas entity. Additionally, Bangladesh Bank will consider requests from resident companies to acquire shares abroad through share or securities swaps, provided the swap ratio aligns with global best practices.