“You can plan a business from abroad. But you can’t start one here without BIDA’s nod.”
Where BIDA Comes In And Why It Matters
If you’ve made it this far—looking up how to get the BIDA approval—you’re likely not browsing out of curiosity. You are serious about investing in Bangladesh.
But here’s the catch: Incorporating a company isn’t the endgame. Without a registration from the Bangladesh Investment Development Authority (BIDA), your entity may not legally access the very benefits that drew you to Bangladesh in the first place—like tax incentives, import privileges, or remittance rights.
BIDA is the national investment facilitation agency, operating under the Prime Minister’s Office. If you’re a foreign investor looking to start something real in Bangladesh, BIDA approval is your green light.
Who Needs BIDA Approval?
Now, let’s talk about the persons or entities who actually need the approval of BIDA:
- Foreigners setting up industrial enterprises
- Foreign investors starting a Joint Venture
- 100% foreign-owned companies
- Foreign companies setting up a Branch, Liaison, or Representative Office
If your business doesn’t fall within BEZA, BEPZA, or Hi-Tech Parks jurisdiction, you’ll be under BIDA. That’s your default investment gateway.
Before You Apply: What to Sort First
Open a Temporary (Blocked) Bank Account
- Opened in the name of your proposed company
- Used to bring in initial capital
- Not mandatory for Branch/Liaison offices
BIDA now supports online application for this via its One Stop Service (OSS) portal.
Get Name Clearance from RJSC
Even before you register the company, get name approval from the Registrar of Joint Stock Companies and Firms (RJSC). You’ll need this to proceed.
Decide Your Company Type
Here, let me stop you a bit, and provide you some quick context—if you haven’t yet, go through:
- How to Start a Business in Bangladesh
- Company Types & Restrictions for Foreigners in Bangladesh
- Top Legal Requirements for Starting a Company
These will help you decide between:
- Private Limited Company
- Branch Office
- Joint Venture
- Liaison Office
Step-by-Step Guide: BIDA Approval for Foreign Investors
- Create OSS Account on BIDA Portal
Visit www.bida.gov.bd, create your account, and fill in the Basic Information Form.
Once approved (usually within an hour), you’ll gain access to the application sections.
- Submit Investment Project Proposal
Upload:
- MoA & AoA (if incorporated)
- Project Summary
- Business Plan
- Capital structure
- Details of directors and shareholders
- List of machinery (if any)
- Intended project location
This is a mandatory step whether you are opening a local company or a foreign office.
- Wait for Scrutiny
An inter-ministerial committee reviews the application. This process may take 15 working days or more, depending on the setup (new investment vs. commercial office setup).
- Collect the BIDA Registration Certificate
If approved, BIDA will issue an Investment Registration Certificate. This is your gateway document for:
- Import Registration Certificate (IRC)
- VAT registration
- Utility connections
- Expatriate work permits
- Profit repatriation
- Foreign borrowing
What Happens After BIDA Approval?
Your registration lets you tap into Bangladesh’s regulatory framework. Here’s what you can now legally do:
- Apply for Work Permits (E2, E3, PI categories)
- Import machinery tax-free (in eligible cases)
- Repatriate post-tax profits
- Seek VAT, fire license, and environment clearance
- Access industrial tax holidays in certain sectors
This also clears the way for your next steps:
Where BIDA Applications Go Wrong and How to Avoid That
If your BIDA application gets delayed, it’s rarely because you picked the wrong business idea. It’s usually because of something small—avoidable, overlooked, and fixable.
Here’s what slows things down most:
- Unclear or Generic Project Descriptions
Don’t just paste a mission statement. BIDA wants to know: What are you building? Where? With how much money? Be specific, not fluffy.
- Mismatched Director or Shareholder Details
Names, passport numbers, share percentages—everything must match across documents (RJSC, OSS, passport copies). One typo? Back to the queue.
- Missing Signatures or Improper Scans
You might’ve uploaded everything, but was it signed? Is it legible? BIDA doesn’t guess.
- Vague Capital Structure
If you’re not clear about who’s bringing in how much, from where, and when—it raises red flags. Show the money trail clearly.
- Skipping the Local Office Address
Even if you’re not fully operational yet, you’ll need a registered office in Bangladesh. No placeholder, no progress.
- Ignoring Sector-Specific Requirements
If you’re in a regulated sector (IT, energy, garments, etc.), you may need extra approvals. Not researching that in advance = delay.
Quick Tips That Save Time and Headaches
- Your documents must match across all authorities: BIDA, RJSC, and NBR.
- Appoint a local consultant who knows the BIDA process.
- Avoid vague project plans—specificity builds credibility.
- Don’t skip the OSS portal. That’s BIDA’s front desk now.
- Before hitting submit, read your application like you’re BIDA. Ask yourself, would you approve this based on what you’ve written and uploaded? If not, tighten it up.
Final Thought: Approval Is Just the Start
So, that’s it. But remember, getting your BIDA certificate isn’t a ribbon-cutting moment.
It’s the gate opening.
What comes next—setting up accounts, hiring, exporting, and filing tax returns—is what makes your investment real.
But none of that even begins without this step. So, get it right. And build something that lasts.
FAQ
Do all foreign investors need BIDA approval?
Not all. But if you’re setting up a manufacturing unit, a 100% foreign-owned company, or a branch or liaison office, then yes—BIDA approval is non-negotiable. Think of it as your legal entry ticket for long-term operations in Bangladesh.
Can I apply for BIDA approval before company registration?
Yes, especially if you’re bringing in foreign capital before incorporation. You’ll typically open a temporary bank account, apply through BIDA’s OSS portal, and once the investment gets the green light, proceed with full registration.
What documents do I need for the BIDA application?
You’ll need the basics: project summary, shareholder details, MoA/AoA (if available), office lease, list of directors, and sometimes machinery import plans. No fluff, but no missing pieces either; BIDA expects clean, complete submissions.
What’s the OSS portal and do I have to use it?
Yes, you do. OSS (One Stop Service) is now the official gateway. No walking into BIDA with a folder—everything starts online. Set up your account, upload docs, and wait for internal verification.
How long does the approval take?
If your files are in order, 15 working days is standard. If your project touches sensitive sectors or has document mismatches, expect longer—or requests for clarification.
What happens after I get BIDA approval?
You move. Fast. That approval allows you to:
- Finalize your incorporation
- Bring in capital legally
- Apply for import licenses, work permits, trade licenses, VAT, and so on
- It’s the key that unlocks everything else.
Can I repatriate profits after BIDA approval?
Yes, but only after tax filings and audit clearance. BIDA’s certificate makes it legal to remit profits or dividends, but the actual transfer goes through the Bangladesh Bank. Your tax papers must be clean.
Do I need a local partner for BIDA approval?
No. Bangladesh allows 100% foreign ownership in most sectors. But if you’re entering regulated industries or forming a joint venture, your local partner’s information will need to be part of the filing.
What mistakes delay approval the most?
- Submitting a project summary that’s vague or copy-pasted
- Mismatching your shareholder or director names
- Failing to justify your business location or plan
- Uploading blurry scans or unsigned documents
These aren’t dealbreakers, but they do drag things out.
Is BIDA approval a one-time thing?
Yes—for the company itself. But certain related approvals (like for expat hiring, expansion, or asset import) will go through BIDA again. So think of them not as one-time gatekeepers, but long-term regulators.
