ABOUT BANGLADESH 

Amongst all the countries in Asia, Bangladesh, officially the People’s Republic of Bangladesh, is a country located in South Asia. It is situated on the fertile Bengal Delta, bordering the Bay of Bengal, and is strategically positioned at the crossroads of South and Southeast Asia. Bangladesh is renowned for its rich cultural heritage, the world’s largest river delta, and its significant contributions to the global economy through its ready-made garment industry. The capital of Bangladesh is Dhaka, which is its largest and most populated city, serving as the country’s primary economic, cultural, and political hub. According to the report of the World Bank, Bangladesh is classified as a Lower-Middle Income Economy and is on track for graduation to Middle-Income status. The currency of Bangladesh is the Bangladeshi Taka (BDT). As of today’s exchange rates (June 2025), 1 BDT is approximately 0.72 Indian Rupees. The population of Bangladesh is approximately 175 million in 2024. Its neighbouring countries are India to the west, north, and east, and Myanmar to the southeast. It also shares maritime borders with India and Myanmar in the Bay of Bengal. The official language of the country is Bengali (Bangla). English is widely understood and spoken, especially in business, education sectors, and among the urban population. The vast majority of the population adheres to Islam, with a significant Hindu minority and smaller communities of other faiths. Currently, Bangladesh has numerous international airports, with Hazrat Shahjalal International Airport (DAC) in Dhaka being the primary international gateway. Other significant international airports include Shah Amanat International Airport (CGP) in Chittagong and Osmani International Airport (ZYL) in Sylhet, reflecting its growing connectivity. As a country with extensive coastlines and numerous inland waterways, Bangladesh boasts crucial commercial seaports, with Chittagong Port (the primary seaport handling most of the country’s seaborne trade) and Mongla Port being vital for international trade and maritime transport.

The standard corporate income tax rate in Bangladesh generally ranges from 20% for publicly traded companies to 27.5% for non-publicly traded companies, with specific rates for certain sectors like banks and financial institutions. Bangladesh has implemented various tax incentives and reforms to attract foreign direct investment and stimulate economic growth, particularly through its Export Processing Zones (EPZs), Special Economic Zones (SEZs), and Hi-Tech Parks. These include tax holidays, reduced tax rates for certain industries, and duty-free import of capital machinery for approved projects. The “One Stop Service” initiative aims to fast-track licensing and investment approvals for large-scale projects. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Bangladesh has become more streamlined in recent years due to ongoing government reforms aimed at improving the business environment and digitalizing administrative processes. The Bangladesh Investment Development Authority (BIDA) is the primary government body promoting and assisting foreign direct investment. A foreign investor who is planning to start a business in Bangladesh can form various company types, with the most common and flexible structures being a Private Limited Company, a Branch Office, or a Liaison Office. The Private Limited Company is particularly popular, allowing 100% foreign ownership in most sectors with flexible capital requirements. Bangladesh’s legal framework is aligned with international best practices in many areas, providing an increasingly predictable environment for businesses.

In case an investor is planning to establish a corporate business setup in Bangladesh, Opesh Group will be helping you in taking the right decision for setting up your business and we will also guide you about how to follow the procedure while formulating your company in Bangladesh.

Types of Business which can be started in Bangladesh:

• Ready-Made Garments (RMG) & Textiles: As the world’s second-largest apparel exporter, Bangladesh offers immense opportunities in manufacturing, backward linkages (e.g., fabrics, accessories), and design.
• Pharmaceuticals: Bangladesh has a strong and growing pharmaceutical sector meeting most of its domestic demand and exporting to over 100 countries. Opportunities exist in manufacturing, R&D, and specialized drug production.
• Leather & Leather Goods: With abundant raw materials, opportunities are significant in tanning, manufacturing footwear, bags, and other leather products for domestic and export markets.
• Information & Communication Technologies (ICT): Bangladesh’s tech sector is rapidly expanding, driven by a young, skilled workforce and digital transformation initiatives. Opportunities are in software development, ITES (IT Enabled Services), FinTech, and BPO (Business Process Outsourcing).
• Agri-food & Food Processing: With a large agricultural base, opportunities exist in modernizing farming, processing agricultural products (e.g., fruits, vegetables, fish), and developing value-added food items.
• Light Engineering & Electronics: Growing domestic demand and export potential exist in manufacturing light engineering products, consumer electronics, and assembly plants.
• Infrastructure & Energy: Significant opportunities in developing power plants (especially renewable energy), ports, roads, and other essential infrastructure projects to support economic growth.

Advantages of Starting Business in Bangladesh:

• Strategic Geopolitical Location: Gateway to South Asia, Southeast Asia, and connecting to China.
• Competitive Labor Costs: One of the lowest labor costs globally, particularly attractive for manufacturing.
• Large Domestic Market: A rapidly growing population with increasing disposable income.
• Favorable Trade Agreements: GSP+ (Generalized Scheme of Preferences) benefits to the EU and other countries.
• Significant Economic Growth: Sustained high GDP growth rates over the past decade.
• Young and Dynamic Workforce: A large pool of young, adaptable, and trainable labor.
• Improving Business Environment: Continuous government efforts to simplify procedures and attract investment through dedicated zones.

Business Opportunities for Indians in Bangladesh: There are excellent business opportunities in Bangladesh for new investors planning to start their business abroad. Bangladesh’s robust economic growth, strategic location, and large consumer base make it an attractive market. Indian investors with strengths in textiles (fabric, yarn production), pharmaceuticals (generic drugs, R&D), automotive components (assembly, manufacturing), renewable energy projects (solar, wind), IT services (software development, digital solutions), and infrastructure development can find significant avenues for investment, partnerships, and market entry into the burgeoning Bangladeshi market.

Imports & Exports: Many goods are imported and exported from Bangladesh. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Bangladesh:

• Ready-made garments (knitwear, woven garments)
• Pharmaceutical products
• Leather and leather products
• Jute and jute goods
• Frozen fish and seafood
• Footwear
• Ceramics

Major items which are imported in Bangladesh:

• Petroleum products
• Machinery and transport equipment
• Textile fabrics and raw materials (cotton)
• Foodstuffs (e.g., wheat, edible oils)
• Chemicals
• Iron and steel

Major items traded between Bangladesh and India (as of 2023-2025 data):

• Exports from Bangladesh to India: Jute and jute products, fish, apparel, plastic products, processed food items.
• Imports in Bangladesh from India: Cotton, vehicles, machinery, iron and steel products, cereals, chemicals, electrical machinery.

Manufacturing: Manufacturing in Bangladesh is a dominant sector, primarily driven by the Ready-Made Garment (RMG) industry. Strengths also exist in pharmaceuticals (meeting 98% of domestic demand), leather and leather goods, jute products, ceramics, and light engineering. The sector is increasingly focusing on diversification and higher value-added production.

Mining: The mining business in Bangladesh is limited compared to other countries, primarily involving the extraction of natural gas (a major domestic energy source) and some coal. There are ongoing efforts to explore and develop other mineral resources, but the sector is not a primary driver of foreign investment compared to manufacturing or services.

Major Indian companies which are currently working in Bangladesh: India is a significant trading and investment partner for Bangladesh, with a growing presence of Indian companies across various sectors.

• Telecommunications: Robi Axiata (a joint venture where Axiata holds majority shares, but significant Indian involvement through Bharti Airtel).

• Automobile Manufacturing: Hero MotoCorp (through a joint venture for motorcycle manufacturing and assembly), Bajaj Auto (significant presence through assemblies and sales).

• Energy & Power: Reliance Industries (exploring energy projects), Adani Power (power supply agreements).

• FMCG: Marico Bangladesh (a major player in consumer goods).

• Banking: State Bank of India, ICICI Bank (representative offices or branches).

• Construction & Engineering: Larsen & Toubro (L&T) has undertaken various infrastructure projects.

• Paint Industry: Asian Paints (significant market share).

• GDP = $460 billion (nominal, 2024 est.)

• GDP Growth = 6.5% (2024 est.), 6.7% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, Bangladesh has consistently worked to improve its ranking in global competitiveness and business environment indices due to ongoing reforms, though challenges remain.

• GDP per Capita = $2,700 (nominal, 2024 est.)

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