Bangladesh permits 100% foreign ownership across most of its economy. The exceptions fall into 3 groups, and which group your business sits in decides whether you can proceed alone, need a ministry clearance first, or cannot invest at all.
- Reserved sectors are closed to private investment entirely, foreign or local
- Controlled sectors are open, but only after a No Objection Certificate from the relevant ministry
- Local shareholding sectors are open to foreign investors, but not at 100%
The framework sits in the National Industry Policy. Check your sector against all 3 lists before you apply for name clearance, because discovering the problem after incorporation is considerably more expensive than discovering it before.
Sectors reserved for the state
These are closed to private investment. No approval route exists, and no structure works around them.
- Production of nuclear energy
- Arms, ammunition and other defence equipment and machinery
- Forest plantation and mechanised extraction within reserved forests
- Security printing, and minting
The list is short by design. If your activity isn’t on it, the question becomes which of the next 2 categories applies.
Controlled sectors: open, after clearance
Foreign investment is permitted here, but you need a No Objection Certificate from the ministry or division that governs the sector before you register with BIDA, BEZA, BEPZA or the Hi-Tech Park Authority. RJSC will not process an incorporation application in these sectors without the approval in place.
Sectors that require prior clearance include:
- Banking, insurance and other financial institutions
- Satellite channels and broadcasting
- Cargo and passenger aviation
- Sea-bound ship transport
- Deep sea fishing
- Generation, supply and distribution of power
- Exploration, extraction and supply of natural resources
- Large-scale infrastructure projects
- Crude oil refining, including recycling and refining of used lube oil as fuel
- Medium and large industry using natural minerals as raw materials
- Sea ports and deep sea ports
- VOIP and IP telephony
- Industries using heavy minerals from sea beaches
- Ready-made garments
Ready-made garments surprises people. The sector that draws the most foreign interest also carries a clearance requirement, which is worth building into your timeline rather than treating as a formality.
Budget for the NOC as a distinct stage. It sits ahead of everything in how to register a company in Bangladesh, so a 30-day name clearance window started before the NOC arrives can expire while you wait.
Sectors where 100% foreign ownership is not permitted
These are open to foreign investors, but require local shareholding. A joint venture is the working structure.
- Courier service agent
- Buying house and indenting agent
- Advertising agency
- Shipping agent
- Freight forwarding agent
- Airline or railway GSA, PSA or cargo agent
- For-profit or commercial education institution
A pattern runs through most of that list. They are agency and representation businesses, where the policy intent is to keep the intermediary layer in local hands rather than to limit foreign capital.
That matters for how you plan. A foreign logistics company cannot own its Bangladeshi freight forwarding arm outright, but nothing prevents it from owning a manufacturing or trading entity that uses a local forwarder. The restriction attaches to the activity, not to you.
What to do if your sector appears on a list
- Confirm the classification before anything else. Sector definitions turn on the exact activity described in your Memorandum of Association objects clause, not on how you describe your business informally.
- Draft the objects clause deliberately. A clause drawn too widely can pull you into a controlled sector you never intended to enter, and RJSC reads it literally.
- Start the NOC early if you need one. Ministry clearance runs on its own timetable, and it’s the step least responsive to being chased.
- Structure around the activity where the rules allow. Where only one part of your operation is restricted, separating it from the rest is often cleaner than forcing a joint venture across the whole business.
Where these rules do not apply
2 common assumptions are wrong.
Branch and liaison offices don’t escape the restrictions. They need BIDA permission in every case, and the permitted activity scope is set by BIDA rather than by you. A restricted activity stays restricted regardless of the entity type you choose.
Acquiring an existing company doesn’t reset the position either. Buying into a Bangladeshi company operating in a local-shareholding sector leaves the shareholding requirement intact.
What is genuinely unrestricted is broad. No regional or zonal restrictions apply, there’s no cap on investment size, and there are no general local-content requirements, though incentives exist for using local raw materials in some sectors.
Checking your position before you commit
Sector classification is the cheapest piece of due diligence available and the one most often skipped. It costs a conversation. Getting it wrong costs an incorporation.
We check sector eligibility as the first step of every foreign entry we handle, before name clearance and before any document is drafted. Where a clearance is needed, we prepare and file the application alongside the incorporation work.
The wider case for the market, including what the law guarantees once you’re in, sits in why foreign investors are choosing Bangladesh. The structures available to you are compared in types of company registration.
For a check on your specific activity talk to our team.
Sector classifications follow the National Industry Policy and are revised periodically. Confirm your position with a qualified adviser before committing capital.
Frequently asked questions
Which sectors are closed to foreign investment in Bangladesh?
Nuclear energy production, arms and defence equipment, forest plantation and mechanised extraction in reserved forests, and security printing and minting are reserved for the state. These are closed to all private investment, whether foreign or local, with no approval route available.
What is a No Objection Certificate and when do I need one?
It’s clearance from the ministry governing your sector, required before registering with BIDA, BEZA, BEPZA or the Hi-Tech Park Authority. Controlled sectors including banking, insurance, power, aviation, telecoms and ready-made garments need one. RJSC won’t process incorporation without it.
Which businesses cannot be 100% foreign owned in Bangladesh?
Courier service agents, buying houses and indenting agents, advertising agencies, shipping agents, freight forwarding agents, airline or railway GSA, PSA and cargo agents, and for-profit education institutions. These require local shareholding, so a joint venture is the working structure.
Can a branch office avoid the sector restrictions?
No. Branch and liaison offices require BIDA permission in every case, and BIDA sets the permitted activity scope. A restricted activity remains restricted regardless of entity type. Acquiring an existing company in a restricted sector doesn’t remove the requirement either.
How do I confirm which category my business falls into?
Classification turns on the exact activity in your Memorandum of Association objects clause rather than your informal description. Check before applying for name clearance, since a clause drafted too widely can place you in a controlled sector unintentionally, and RJSC reads it literally.
