State Institutions of Bangladesh and Foreign Investment

The state institutions of Bangladesh shape the pace and direction of foreign investment into the country. A number of bodies are involved in regulating and facilitating foreign investment; the most important of these are described below.

Registrar of Joint Stock Companies and Firms (RJSC)

The RJSC is the authority responsible for the registration and formation of companies, trade organisations, societies and partnership firms. It also preserves ownership and other necessary documents in its records. The Registrar sits at the top of the organisation. Its business is split into the following processes applicable to a business entity:

• Name clearance
• Registration
• Returns filing
• Issuance of certified copies
• Winding up
• Struck off

Board of Investment (BOI)

The BOI is the principal private investment promotion and facilitation agency of Bangladesh. It was established under the Investment Board Act 1989 to encourage private-sector investment. It operates as part of the Prime Minister’s Office, with the Prime Minister as its head. Among other things, the BOI offers:

• Counselling on investment
• A welcome service for investors
• Registration and approval of foreign, joint-venture and local projects
• Registration of branch, liaison and representative offices
• Approval of remittances for royalties, technical know-how and technical assistance fees
• Assistance in obtaining industrial plots
• Support in establishing businesses
• Approval of work permits for foreign nationals
• Facilitation of utility connections
• An Online Registration System (ORS) and BOI Online Service Tracking (BOST)

Bangladesh Bank (BB)

Bangladesh Bank is the central bank and the regulator of the country’s monetary and financial system. It was established on 16 December 1971 through the Bangladesh Bank Order 1972 (President’s Order No. 127 of 1972, amended in 2003). Its chief executive is the Governor.

Its main functions are:

1. Formulation and implementation of monetary policy
2. Formulation and implementation of foreign exchange policy
3. Holding and managing the official foreign reserves of Bangladesh
4. Acting as the issuing authority for the Taka
5. Supervising banks and other financial institutions

Bangladesh Bank operates under a number of laws, including the Bangladesh Bank Order 1972, the Bank Company Act 1991 and its 2013 amendment, the Negotiable Instruments Act 1881, the Bankers’ Books Evidence Act 1891, the Foreign Exchange Regulation Act 1947 and its 2015 amendment, the Financial Institutions Act 1993, the Financial Reporting Act 2015, the Money Loan Court Act 2003, the Money Laundering Prevention Act 2012 and its 2015 amendment, and the Anti-Terrorism Act 2009 and its 2013 amendment. It regularly issues guidelines on foreign exchange, the governance of banks and financial institutions, and money laundering.

Securities and Exchange Commission, Bangladesh (BSEC)

The BSEC is the prime regulator of Bangladesh’s capital market. It is governed by the Securities and Exchange Commission Act 1993 and was established on 8 June 1993. It comprises a Chairman and four Commissioners, appointed by the government for a four-year term, renewable once. The Chairman acts as the Chief Executive Officer. It is a statutory body attached to the Ministry of Finance. Its functions include:

• Regulating the securities market
• Supervising all entities registered in the stock market
• Ensuring a competitive business environment and fair trade practices
• Conducting research and publishing information

National Board of Revenue (NBR)

The NBR is the central authority for administering tax in Bangladesh, operating under the Internal Resources Division of the Ministry of Finance. It collects Value Added Tax, customs duty, excise duty and income tax. It has five wings: the Customs Wing, the VAT Wing, the Income Tax Wing, the IT Wing and the Research and Statistics Wing. The NBR formulates tax policies and laws, negotiates tax treaties and participates in inter-ministerial meetings on fiscal and tax matters. The laws an investor most often encounters include:

1. Income Tax Ordinance (ITO) 1984, as amended up to July 2015
2. Income Tax Rules 1984
3. Customs Act 1969
4. Value Added Tax (VAT) Act 1991
5. VAT Rules 1991
6. Finance Act 2016

Office of the Chief Controller of Imports & Exports (CCI&E)

The CCI&E plays a significant role in trade policy formulation. Its main objectives are to promote national trade and generate revenue for the government. By monitoring and supervising trade policy rules, it helps improve the country’s import and export activities. Its services include:

1. Issuance of Industrial and Commercial Import Registration Certificates (IRC)
2. Issuance of Export Registration Certificates (ERC)
3. Issuance of Indenting Registration Certificates
4. Issuance of import-cum-export permits
5. Issuance of export-cum-import permits
6. Explanation of import policy

Bangladesh Standards and Testing Institution (BSTI)

The BSTI sets benchmarks for quality and dimensions and promotes the adoption of standards — on both a national and international basis — relating to materials, commodities, structures, practices and operations, and may withdraw, revise or amend them. It provides facilities for the examination, testing and inspection of commodities, processes and practices, issues test reports, and certifies the quality of products and other goods, including food, whether for local consumption, import or export.

Department of Inspection for Factories and Establishment (DIFE)

The DIFE’s primary function is to approve factory plans and provide the associated permits, registrations and licences for factories. It is led by the Chief Inspector of Factories and Establishments and operates under the Ministry of Labour and Employment, with responsibility for ensuring the occupational safety of workers in factories.