Foreign Ownership Rules in Bangladesh: Can Foreigners Own 100% of a Company?
Yes. In most sectors, foreigners can own 100% of a company in Bangladesh. Bangladesh has one of the more open foreign ownership regimes in South Asia. A foreign company or individual can set up a wholly owned private limited company without a local partner. The exceptions are a short list of sectors reserved for the government, a longer list of regulated sectors that need special permission, and a few sectors with explicit foreign equity caps such as telecommunications, shipping and insurance.
This guide explains where full foreign ownership is allowed, where it is restricted, and how to structure your entry.
Key takeaways
- 100% foreign ownership is permitted in most sectors, including manufacturing, services, IT and, since 2020, e-commerce.
- Four sectors are reserved for the government: arms and defence equipment, reserved forest extraction, nuclear energy and security printing.
- Seventeen regulated sectors, including banking, telecoms, power, aviation and shipping, need approval from the relevant ministry or regulator.
- Telecoms are capped at 60% foreign ownership (70% for tower sharing). New shipping and insurance companies need local majority ownership.
- A private company needs at least two shareholders, but both can be foreign. A parent and its affiliate can hold all the shares.
The Legal Basis for Foreign Ownership
Foreign ownership in Bangladesh rests on a few key laws:
- Foreign Private Investment (Promotion and Protection) Act 1980. This protects foreign investment against expropriation without compensation, promises fair treatment and guarantees the right to repatriate capital and profits.
- Companies Act 1994. This allows any person, local or foreign, to hold shares in a private limited company. It does not require local shareholders or local directors.
- Invest Bangladesh Act 2026. In force since 20 August 2026, it created the Invest Bangladesh Authority by merging BIDA, BEZA and the PPP Authority. Invest Bangladesh now registers and supports foreign investment outside the export processing zones.
- Sector laws and policies. Banking, telecoms, insurance, power and other regulated sectors have their own licensing laws, which can limit or condition foreign ownership.
So the default is open. Restrictions only apply where a specific sector rule says so.
Sectors Open to 100% Foreign Ownership
Outside the reserved and regulated lists, foreign investors can own all the shares of a Bangladeshi company. Popular sectors for wholly foreign-owned companies include:
- Manufacturing: garments and textiles, leather and footwear, light engineering, pharmaceuticals, electronics, plastics and food processing
- IT and digital services: software development, IT-enabled services and outsourcing
- E-commerce: fully foreign-owned e-commerce companies have been allowed since 2020
- Trading and distribution: subject to the relevant trade licences and import registration
- Professional and business services: consulting, engineering, logistics and buying houses
- Infrastructure and construction services, unless a specific regulated activity applies
Full ownership does not mean no licences. Most businesses still need a trade license, tax and VAT registration, and sector permits. Read our guide to starting a business in Bangladesh as a foreigner for the full setup path.
Reserved Sectors and Ownership Caps
Sectors reserved for the government (closed to private and foreign investment):
- Arms, ammunition and other defence equipment and machinery
- Forest plantation and mechanised extraction within reserved forests
- Nuclear energy production
- Security printing (such as currency)
Sectors with foreign equity limits:
| Sector | Foreign ownership rule |
|---|---|
|
Telecommunications |
Up to 60% foreign ownership (70% for tower sharing)
|
|
Shipping (new companies)
|
Local majority ownership required (existing foreign-owned firms exempt)
|
|
Insurance (new companies)
|
Local majority ownership required (existing foreign-owned firms exempt)
|
|
Petroleum marketing and gas distribution
|
Full foreign ownership not permitted
|
These caps come from sector policies and can change. Always check the current licensing rules for your sector before you fix your shareholding.
Sectors That Need Special Permission
In these 17 regulated sectors, investors (local or foreign) need prior approval from the relevant ministry or regulator. Approval may come with ownership, capital or local participation conditions.
| Regulated sector | Typical approving body |
|---|---|
|
Arms, ammunition and defence equipment |
Ministry of Defence / Home Affairs
|
|
Forest plantation and extraction in reserved forests
|
Ministry of Environment, Forest and Climate Change
|
|
Nuclear energy production
|
Ministry of Science and Technology
|
|
Security printing
|
Ministry of Finance / Home Affairs
|
|
Deep-sea fishing
|
Ministry of Fisheries and Livestock
|
|
Banking, insurance and other financial institutions
|
Bangladesh Bank / Insurance Development and Regulatory Authority
|
|
Power generation, transmission and distribution
|
Power Division
|
|
Exploration, extraction and supply of natural resources
|
Energy and Mineral Resources Division
|
|
Crude oil refining
|
Energy and Mineral Resources Division
|
|
Medium and large industries using minerals as raw materials
|
Energy and Mineral Resources Division
|
|
Telecommunications services (mobile and fixed-line)
|
Bangladesh Telecommunication Regulatory Commission (BTRC)
|
|
Satellite broadcasting channels
|
Ministry of Information / BTRC
|
|
Passenger and cargo aviation services
|
Civil Aviation Authority
|
|
Seaborne shipping and maritime transport
|
Department of Shipping
|
|
Seaports and deep-water ports
|
Ministry of Shipping
|
|
VoIP and IP telephone services
|
BTRC
|
|
Industries in ecologically sensitive coastal and beach areas
|
Department of Environment
|
The first four overlap with the reserved list. In practice they remain closed to private investment unless the government decides otherwise.
Ownership Options: Wholly Owned vs Joint Venture
Wholly owned subsidiary. You hold 100% of the shares, usually through the parent company and one affiliate or nominee, since a private company needs at least two shareholders. This gives you full control over management, profits and exit.
Joint venture with a local partner. You share ownership with a Bangladeshi company or individual. A joint venture makes sense when:
- A sector cap requires local participation (for example, telecoms, shipping or insurance)
- A local partner brings licences, land, distribution networks or government relationships
- You want to share risk on a large project
Even where it is not legally required, many foreign investors find a local partner helpful for navigating regulators and the market. If you take this route, protect your position with a well-drafted shareholders agreement covering board seats, reserved matters, deadlock and exit.
Branch or liaison office. These are not separate companies. They are fully owned by the foreign parent but limited in what they can do. See branch vs subsidiary in Bangladesh for a comparison.
Ownership in EPZs and Economic Zones
Special zones are another route to full foreign ownership, with added incentives:
- Export Processing Zones (EPZs) are run by the Bangladesh Export Processing Zones Authority (BEPZA). Wholly foreign-owned, joint venture and local enterprises can all set up there. EPZ companies typically lease plots or factory buildings, follow BEPZA’s own rules on work permits and labour, and focus on export-oriented production.
- Economic Zones were formerly managed by BEZA and now come under the Invest Bangladesh Authority following the 2026 merger. They offer serviced industrial land, fiscal incentives and one-stop services for both export and domestic-market investors.
Zones can simplify land access, which is a key advantage, because foreigners generally cannot buy land in their own name outside them.
Practical Points for Foreign Owners
Shareholders. A private limited company needs at least 2 and at most 50 shareholders. Both can be foreign, and both can be companies.
Directors. At least 2 directors are required. Bangladesh law does not require a local or resident director, so foreign nationals can serve. A local representative is still useful for banking, filings and day-to-day signing. Foreign directors who work and draw a salary in Bangladesh need a work permit.
Land. Foreigners cannot generally buy land in their own name. A Bangladeshi company, even if 100% foreign-owned, is a local entity and can buy or lease land. Leasing within EPZs and economic zones is the other common route.
Bringing in capital. Share capital must come in through banking channels, backed by encashment certificates. This proves foreign ownership, supports work permits and protects your right to repatriate profits and capital later.
Registration. After incorporation with RJSC, foreign-owned companies typically register with Invest Bangladesh (formerly BIDA) to access investor services, visas and work permits.
How IncorpLegal Helps
IncorpLegal helps foreign investors confirm what they can own and set up the right structure:
- Sector check: confirming whether your activity is open, capped or regulated, and which approvals apply.
- Structuring: wholly owned subsidiary, joint venture, branch or zone-based company.
- Incorporation and registration: RJSC, Invest Bangladesh, bank account, capital remittance, tax and VAT.
- Joint venture documents: shareholders agreements that protect the foreign partner.
- Sector licensing: applications to the relevant ministry or regulator.
Learn more about our foreign investment and market entry services.
Want to know if your sector allows full foreign ownership? Ask our team.
Frequently Asked Questions
Can a foreigner own 100% of a company in Bangladesh?
Yes, in most sectors. A foreign individual or company can own all the shares of a private limited company in Bangladesh. The exceptions are four sectors reserved for the government, a handful with equity caps such as telecoms, shipping and insurance, and regulated sectors that need special approval.
Which sectors restrict foreign ownership in Bangladesh?
Arms and defence equipment, reserved forest extraction, nuclear energy and security printing are reserved for the government. Telecoms are capped at 60% foreign ownership (70% for tower sharing). New shipping and insurance companies need local majority ownership, and petroleum marketing and gas distribution cannot be fully foreign-owned.
Do I need a local partner to start a business in Bangladesh?
No, not by law in most sectors. A company needs at least two shareholders, but both can be foreign, such as a parent company and its affiliate. A local partner is only required where a sector cap applies, though some investors choose one for market access.
Can a foreign company own land in Bangladesh?
Not directly. Foreigners generally cannot buy land in their own name. A Bangladeshi company, even if 100% foreign-owned, is treated as a local entity and can buy or lease land. Plots in EPZs and economic zones are usually leased.
Does a foreign-owned company need a Bangladeshi director?
No. Bangladesh law does not require a local or resident director. A private company needs at least two directors, who can be foreign nationals. Directors working in Bangladesh need a work permit.
Md. Akber Hossain Khan, FCA
A Fellow Chartered Accountant (Bangladesh) and alumnus of the National University of Singapore (NUS), Khan's practice focuses on inbound foreign investment and supporting businesses in global expansion. He is deeply experienced in FDI, cross-border accounting BPO, audit, taxation, and corporate financial advisory.
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