This is the best time to invest in Bangladesh

Engr. Md. Mustak Ahmed

7 years ago

Bangladesh is an economical growing country and its increasing rapidly. Past few years Bangladesh plays a vital role to producing Ready Made Garments (RMG) industry and earn a lot of foreign currency. With huge number of population this industry can select their man power so easily with paying minimum wages. This is how Bangladesh is the popular global brand who can produce low cost garments in Asia.

Bangladesh Export Processing Zone Authority – BEPZA

BEPZA: Bangladesh Export Processing Zone Authority provide too many facilities to invest in Bangladesh. Those opportunity could easiest to accept by any investor across the globe. Here are few of those opportunity proposed by Bangladesh export processing zone authority.

Investment guarantee

Foreign Private Investment (Promotion and Protection) Act, 1980 secures all foreign investment in Bangladesh.
OPIC’s (Overseas Investment Corporation, USA) insurance and finance programmes operable.
Security and safeguards available under Multilateral Investment Guarantee Agency (MIGA) of which Bangladesh is a member.
Arbitration facility of the International Center for the Settlement of Investment Dispute (ICSID) available.

Fiscal Incentives

10 years tax holiday for the Industries to be established before 1^stJanuary, 2012 and Duration and rate of tax exemption for Mongla, Ishwardi & Uttara EPZ for the industries set up after January 01, 2012

Duration of Tax Exemption	Rate of Tax Exemption
First 03 years (1^st , 2^nd and 3^rd year)	100%
Next 03 years (4^th , 5^th and 6^th year)	50%
Next 01 year (7^th year)	25%

Duration and rate of tax exemption for Chittagong, Dhaka, Comilla, Adamjee,& Karnaphuli EPZ for the industries set up after January 01, 2012:

Duration of Tax Exemption	Rate of Tax Exemption
First 02 years (1^st and 2^nd year)	100%
Next 02 years (3^rd and 4^th year)	50%
Next 01 year (5^th year)	25%

Duty free import of construction materials
Duty free import of machineries, office equipment & spare parts etc.
Duty free import and export of raw materials and finished goods
Relief from double taxation
Exemption from dividend tax
GSP facility available
Accelerated depreciation on machinery or plant allowed
Remittance of royalty, technical and consultancy fees allowed
Duty & quota free access to EU, Canada, Norway, Australia, etc

Non – Fiscal Incentives

100% foreign ownership permissible
Enjoy MFN (most favored nation) status
No ceiling on foreign and local investment
Full repatriation of capital & dividend
Foreign Currency loan from abroad under direct automatic route
Non-resident Foreign Currency Deposit (NFCD) Account permitted
Operation of FC account by ‘B’ and ‘C’ type Industries allowed.

Facilities

No UD, IRC, ERC and renewal of Bond license
Work permits issued by BEPZA
Secured and protected bonded area
Off-Shore banking available
Import on Documentary Acceptance (DA) basic allowed
Back to Back L/C
Import and Export on CM basis allowed
Import from DTA (Domestic Tariff Area)
10% sale to DTA (Domestic Tariff Area)
Customs clearance at factory site
Simplified sanction procedure
Sub-contracting with export oriented Industries inside and outside EPZ allowed
Relocation of foreign industries allowed
Accords Resident-ship and Citizenship
One Window same day service and simplified procedure.

Minimum wage structure-2013 are as follows:

Apprentice-US$ 56.00
Helper-US$ 70.00
Jr. Operator-US$ 80.50
Operator-US$ 85.75
Sr. Operator-US$ 91.00
High Skilled-US$ 140.00

The gross wage has been calculated as Basic wage + House rent 40% on Basic + Medical allowance Tk. 560 (Fixed). In addition of the above gross wage, Food or Food allowance and Transport or Transport allowance shall be provided by the enterprises.

Source
http://www.bepza.gov.bd