Dhaka, Bangladesh (BBN)- The central bank has relaxed its regulations allowing startups business of Bangladesh to invest up to US$10,000 abroad by establishing legal entities, officials said.
General permission is granted to establish a legal entity abroad with an amount up to $10,000 or equivalent by way of investment for supporting a start-up business in Bangladesh, according to a notification, issued by the Bangladesh Bank (BB), on Thursday.
“We’ve relaxed our regulations to facilitate startup businesses in Bangladesh,” a BB senior official said while explaining the main objective of the notification.
He also said it is the first step toward opening up capital account transactions in response to changing economic conditions.
The notification also allowed individual Bangladeshi nationals to establish legal entities abroad within the threshold of $10,000. In this case, applicants would have innovative ideas to explore business abroad with linkage to reroute investment and earnings into Bangladesh in near future.
In addition to small value investment, the central bank will accommodate consider requests from resident companies to acquire shares abroad by exchanging their own shares/securities with the shares of overseas companies without consideration in cash.
Proposals under this framework will be considered if shares/securities swap ratio is determined in accordance with global best practices, according to the notification.
BBN/SSR/SI