INVESTOR ADVISORY & MANAGEMENT SERVICES

Employable Skills for Life

BANGLADESH: THE NEXT GREAT
JAPANESE INVESTOR DESTINATION
160 million population – 7th largest country•Ethnically & Religiously Homogenous•Highest Population density = 144,000 sq km

Recently Lower Middle Income Country (MIC)•Per capita income - US$ 1314
•6+% GDP last 5 years•MIC = 20121

High-growth Middle-class Consumer Market

Large, High-quality, young, cost-competitive Workforce•75million - 8th largest workforce•2m youth enter yearly© copyright 2015

JAPANESE INVESTMENT INBANGLADESH: PRESENT & FUTURE

BANGLADESH: A SUNRISE INVESTMENT MARKETLand & Sea Economic Corridor / Gateway toSouth Asia and ASEAN Markets•South Asia – 1.6 billion•China – 1.2 billion•ASEAN – 608 million

US$ 9 Billion Japanese Investment
Goldman Sachs– ‘Next 11’ after BRICS
JP MORGAN – ‘Frontier 5’ Market
Apparel Industry growth -- McKinsey report2015: US$ 30 billion
2021: US$ 50 billion

South Asian Regional Connectivity / Transit© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESINVESTMENT GROWTH SECTORSAPPARELFOOTWEAR
AGRO-FOODS / AGRO-PROCESSING
FMCG
ENERGY
ROADS & HIGHWAYS
PORTS & LOGISTICS
 STEEL© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICES

KEY CHANGES TO BANGLADESH’S
PRO-INVESTOR POLICYCorporate Tax lowered to 35% (from 37.5%)
Tax on listed Companies lowered to 35% (from 37.5%)
Special Economic Zones (SEZ) Policy•Earmarked 19 SEZ across country•2 Japanese SEZs
•1private SEZ for Apparel industry

Both Governments favor Japanese ‘China +1’
Investment Policy in Bangladesh
BOI - online Investor services
Investor Service procedure simplification© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESSTARTING-UP YOUR BUSINESSIN BANGLADESH
DIFFERENT MODES OF DOING BUSINESS•Incorporate new /subsidiary•Branch/Liaison/Representative officeCOMPARISON OF DIFFERENT MODES OF
BUSINESSCOMPANY INCORPORATION (Registration w/ RJSC)POST INCORPORATION COMPLIANCES•Trade License•TIN Certificate

BOARD OF INVESTMENT(BOI) REGISTRATIONPOST OPERATIONAL FORMALITIES•VAT Registration Certificate•Membership of Trade Association•Gas/Electricity/Telephone/Water & Sewerage Connection•Obtain IRC,ERC and IP•Export Requirement•Bonded Ware House License•Environment Clearance Certificate•Fire License© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESSTARTING-UP YOUR BUSINESSIN BANGLADESH
BRANCH/LIAISON/REPRESENTATIVE OFFICEPERMISSION•Work Permit for Expatriate Staff
Work Permit for Industrial ProjectWork Permit for Commercial enterpriseVISA FOR THE EXPATRIATE STAFF
Types of visa related to business.
•PI visa•E visa•EI visa•B visa

Visa Recommendation
Visa on ArrivalImportant Issues Related to Visa© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESBANKING & CAPITAL TRANSFER•Opening of Bank Account by a Foreign Investor•Bringing Cash by a Foreign Investor•Transfer of Capital and Capital Gain
•Remittance of Royalty, Technical Know-how and otherTechnical Assistance Fee•Transferring Profit & Dividend Accruing to Foreign Investor•Repatriation of Savings, Retirement Benefits and Salary ofForeigners Employed in Bangladesh•Remittance of Proceeds from Liquidation of Industrial
Undertaking

BORROWING FROM BANKS/FINANCIAL INSTITUTIONS•Borrowing from Local Source•Borrowing from Abroad© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESPRO-INVESTORTAX INCENTIVESINVESTOR TAX FACILITIES•Eligible Sectors for Tax Holiday•Tax Exemption on newly established industrialundertakings•Tax Exemption for newly established physicalinfrastructure Facilities•Tax Exemption for Investment in Power Sector•Eligible Infrastructure Sectors for Tax Holiday•Double Taxation Agreement with Japan© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESLABOR LAWS
 47 LABOR LAWS IN FORCEMAJOR LABOR LAWS:•Worker’s Compensation Act•Payment of Wage Act.
•Maternity Benefit Acts.
•Employment of Labor•Shops and Establishment Act•Factories Act.
•Industrial Relations OrdinanceEMPLOYMENT CONDITIONSSETTLEMENT OF LABOR DISPUTESLABOR UNIONSINVESTMENT IN EPZJAPAN INVESTMENT ADVISORY CONSORTIUM•JETRO + Embassy of Japan, Bangladesh
Assistance & guidance to existing & prospective Japanese Investors
Includes senior investment specialists, legal experts, tax consultant
and accountant.
© copyright 2015

INVESTOR ADVISORY & M ANAGEMENT SERVICESThankYou

INVESTOR ADVISORY & MANAGEMENT SERVICESINVESTOR ADVISORY & M ANAGEMENT SERVICES