Capital & Profit Transfer - Repatriation for Foreign Investors

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Capital & Profit Repatriation for foreigners


Foreign capital invested in Bangladesh for industrial projects with the approval of the government is allowed to be repatriated from Bangladesh, along with capital appreciation, if any, provided approval is first obtained from Bangladesh Bank. Dividends and profits are now allowed to be remitted with much lesser controls. Prior approval of Bangladesh Bank is required before profits from the foreign subsidiaries can be remitted to the parent company. Taxes must be paid first. Applications for remittance of profits should be made to the Bangladesh Bank through the applicant’s bank.

Repatriation of investments made in Bangladesh with the approval of the government of Bangladesh / Bangladesh Bank is permissible (except where investment was permitted on a specific condition that it will not be eligible for repatriation), provided the disinvestment has also been made with the approval. Actual remittances will be permitted subject to fulfillment of such conditions as to quantum and installments of repatriation, etc., if any, as may be applicable from time to time.


Foreign nationals temporarily resident in Bangladesh are permitted to remit to their native countries, their current assets such as savings from salary, dividend etc. with prior permission from Bangladesh Bank. There are now no restrictions on the receipt in Bangladesh of remittance through proper banking channels, from any foreign country. There are also no restrictions on the import of foreign-currency cheques. All foreign currency drafts may be converted freely through authorized dealers. Traveler’s cheques and foreign currency notes / coins may be converted into taka through money-changers which are specially authorized by Bangladesh Bank to undertake such transactions.


No prior permission of the BIDA is required for entering into agreements for remitting fees for the purpose of royalty, technical know-how and technical assistance if the total fees and other expenses connected with technology transfer (service fee, marketing commission etc.) are within the following prescribed limits. For new projects, such fees and other expenses should not exceed an aggregate limit of 6 percent of the commercial value of imported machinery.

Recurrent annual fees for royalties and other expenses such as fees for technical know-how, technical assistance, operational services, marketing of products etc. should not exceed an aggregate limit of 6 percent of the previous year’s sales of the firms declared in the tax return.


Once the technical transfer agreements falling within the above limits are signed, these are required to be furnished to the BIDA for registration.

Proposals that are covered under the prescribed limits will require prior approval of the BIDA for which application must be submitted along with necessary documents and copy of the relevant draft agreement.

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Bangladesh Law Partners | BDLP

Law Firm in Dhaka, Bangladesh

2nd Floor, House 429, Road 7

Baridhara DOHS, Dhaka

+ 88 01714404050

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