Startups allowed to invest up to $10,000 abroad
They must also report the transaction to the central bank within a month of registration of such legal entities abroad
Bangladeshi startups can now establish legal entities abroad with an amount of up to $10,000 or its equivalent.
According to a circular issued today (27 March) by the Foreign Exchange Investment Department of the Bangladesh Bank, applicants must submit their applications to authorised dealers after effecting remittances of up to $10,000 or its equivalent on behalf of a resident enterprise.
They must also report the transaction to the central bank within a month of registration or incorporation of such legal entities abroad, but no later than six months from the date of remittance.
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The circular also states that the Bangladesh Bank will consider requests from resident companies to acquire shares abroad by exchanging their own shares or securities with those of foreign companies, rather than using cash consideration.
Investment in companies abroad through the exchange of resident companies' shares or securities is expected to be a strategic move that brings financial benefits to resident companies.
The Bangladesh Bank will evaluate proposals in which the share or securities swap ratio is determined in accordance with global best practices, the circular adds.
