BIDA Permission Procedure in Bangladesh:

The Bangladesh Investment Development Authority (BIDA) is a central agency established to promote and facilitate investment in Bangladesh. It plays a critical role in attracting both domestic and foreign investments by providing comprehensive support and services to investors. BIDA is instrumental in shaping the investment landscape of Bangladesh through its strategic functions and initiatives.

Importance of BIDA in Bangladesh

Investment Promotion:
  • BIDA actively promotes Bangladesh as a prime investment destination through marketing campaigns, international roadshows, and investment seminars. It highlights the country’s economic potential, investment opportunities, and favorable business environment to attract foreign investors.
One-Stop Service:
  • BIDA offers a One-Stop Service (OSS) to simplify the investment process for both local and foreign investors. This service streamlines administrative procedures by providing a single point of contact for obtaining all necessary approvals, permits, and licenses. It reduces bureaucratic delays and enhances ease of doing business.
Policy Advocacy and Reform:
  • BIDA advises the government on policy reforms to create a more investor-friendly environment. It identifies regulatory bottlenecks, suggests improvements, and advocates for changes that enhance the overall investment climate. This includes recommending incentives, regulatory simplifications, and infrastructure development.
Facilitating FDI:
  • BIDA plays a crucial role in facilitating Foreign Direct Investment (FDI) by assisting foreign investors in navigating the regulatory framework. It provides guidance on legal and procedural requirements, helps in company registration, and ensures compliance with investment regulations.
Sector-Specific Support:
  • BIDA provides tailored support for various sectors, including manufacturing, infrastructure, services, and technology. It helps investors understand sector-specific opportunities, regulatory requirements, and incentives available for different industries.
Investment Protection and Aftercare:
  • BIDA ensures that investors’ rights are protected by enforcing investment-related laws and regulations. It offers aftercare services to existing investors, helping them resolve operational issues, expand their businesses, and reinvest profits in Bangladesh.
Economic Development:
  • By attracting and facilitating investments, BIDA contributes significantly to the economic development of Bangladesh. Investments lead to job creation, technology transfer, infrastructure development, and overall economic growth.
International Collaboration:
  • BIDA collaborates with international organizations, investment promotion agencies, and foreign governments to foster bilateral and multilateral investment relationships. It works to enhance Bangladesh’s global investment footprint and integrate the country into the global economy.

Process for obtaining BIDA Permission in Bangladesh for both domestic and foreign businesses:

The Bangladesh Investment Development Authority (BIDA) makes investments easier by giving both domestic and foreign businesses the required licenses and services. An outline of the BIDA approval process for starting a business in Bangladesh is provided below:

For Local Companies:

Business Name Clearance:
  • Obtain a Name Clearance Certificate from the Registrar of Joint Stock Companies and Firms (RJSC).
Company Registration:
  • Register the company with RJSC, providing necessary documents such as the Memorandum of Association, Articles of Association, and particulars of directors.
Obtain Trade License:
  • Apply for a trade license from the local City Corporation or Municipal Corporation where the business will operate.
Tax Registration:
  • Obtain a Tax Identification Number (TIN) from the National Board of Revenue (NBR).
  • Register for VAT with the Customs, Excise, and VAT Commissioner ate if applicable.
Environmental Clearance (if applicable):
  • Obtain necessary environmental clearances from the Department of Environment for businesses that may impact the environment.
BIDA Registration (if incentives are sought):
  • Submit an application to BIDA along with a detailed project proposal, including investment plans, financial statements, and other relevant documents.
  • Obtain approval and any applicable investment incentives or benefits.
Bank Account Opening:
  • Open a bank account in the name of the company for financial transactions.

For Foreign Companies:

Business Name Clearance:
  • Obtain a Name Clearance Certificate from the Registrar of Joint Stock Companies and Firms (RJSC).
Company Incorporation:
  • Register the company with RJSC, providing necessary documents including the Memorandum of Association, Articles of Association, and particulars of directors.
Obtain Trade License:
  • Apply for a trade license from the respective City Corporation or Municipal Corporation where the business will operate.
Tax Registration:
  • Obtain a Tax Identification Number (TIN) from the National Board of Revenue (NBR).
  • Register for VAT with the Customs, Excise, and VAT Commissionerate if applicable.
BIDA Registration:
  • Submit an application to BIDA with a detailed project proposal, including investment plans, financial statements, and relevant documents.
  • Obtain an Investor Certificate from BIDA, which may include various investment incentives.
Work Permits and Visas:
  • Obtain work permits and necessary visas for foreign employees through BIDA’s One-Stop Service.
Environmental Clearance (if applicable):
  • Obtain necessary environmental clearances from the Department of Environment for businesses that may impact the environment.
Bank Account Opening:
  • Open a bank account in the name of the company for financial transactions.

Summary of Key Documents Required:

  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Name Clearance Certificate
  • Trade License
  • Tax Identification Number (TIN)
  • VAT Registration Certificate (if applicable)
  • Detailed project proposal for BIDA
  • Financial statements and investment plans
  • Environmental clearance (if applicable)

Right Solution | BIDA Permission

A consultancy firm like Right Solution can help obtain BIDA permission efficiently through the following ways:

  • Expert Guidance: Provide detailed advice on the BIDA application process and required documentation.
  • Document Preparation: Assist in preparing and compiling necessary documents, such as business proposals, financial statements, and legal papers.
  • Name Clearance: Help secure the Name Clearance Certificate from the RJSC.
  • Application Submission: Facilitate the submission of applications to BIDA and ensure compliance with all procedural requirements.
  • Follow-up: Regularly follow up with BIDA to expedite the approval process and address any queries or issues.
  • Liaison Services: Act as a liaison between the company and BIDA, ensuring smooth communication and process flow.
  • Regulatory Compliance: Ensure that all regulatory requirements are met, including tax registration, trade licenses, and environmental clearances if necessary.
  • Work Permits and Visas: Assist in obtaining work permits and visas for foreign employees.

These services streamline the process, reduce bureaucratic delays, and enhance the chances of timely and successful BIDA approval.