Bangladesh Bank (BB) has permitted startups to establish legal entities abroad with an investment of up to $10,000 or its equivalent.
According to a BB circular issued on Thursday, applicants must submit their requests to Authorized Dealers (ADs) after making the remittance, reports BSS.
Moreover, the transaction must be reported to Bangladesh Bank within one month of the foreign entity’s registration or incorporation, but no later than six months from the remittance date.
The circular also states that BB will consider proposals from resident companies to acquire shares in foreign companies through share or securities exchange, rather than direct cash payments.
This investment approach—allowing share or securities swaps instead of cash transactions—is expected to provide strategic financial benefits to resident companies. BB will evaluate such proposals based on globally recognized best practices to ensure fair valuation and compliance.
Bd-pratidin English/FNC
