Bangladesh Bank allows startup companies to invest abroad

Bangladesh Bank has allowed startup companies to invest abroad, according to a circular issued by the central bank on Thursday (March 27).

As a result, startup businesses will now be able to invest abroad.

According to the circular issued by the central bank, startup businesses in Bangladesh will be able to send $10,000 or equivalent foreign currency to form a single company abroad. This permission has been given under the Foreign Exchange Control Act, 1947. Resident companies will now be able to apply to the bank and send remittances to establish a company abroad.

Bangladesh Bank says that Bangladeshi citizens at the individual level have been allowed to establish companies abroad in the same manner. In this case, applicants must have innovative ideas, which will create opportunities for investment and income generation in Bangladesh in the future, including expanding business abroad.

According to the circular, in addition to small-scale investments, Bangladesh Bank has allowed resident companies to invest abroad by swapping their own shares/securities with shares of foreign companies. In this method, there will be no need for cash in investing abroad. In considering investment proposals abroad in this method, the swap ratio of shares/securities should be in line with global best practices.