South Asia · updated 24 September 2026
🇧🇩 Doing business in Bangladesh
Rising garment powerhouse with growing middle class.
Conditions are changing fast — check current government travel and trade advisories before acting.
Structural scores
Highlights: RMG export leader · Strong remittance inflows · Political transition risk
Key industries
Garments & RMG → Stable
Bangladesh is worlds 2nd largest garment exporter after China with $47B in annual exports to EU and US.
Main investors: EU, US, UK, Canada
Pharmaceuticals ↑ Growing
Bangladesh pharma sector meets 98% of domestic demand and exports to 150+ countries. LDC status provides IP flexibility.
Main investors: India, China, EU, US
Technology & IT ↑ Strong growth
Bangladesh exports $1B+ in IT services. Government Digital Bangladesh initiative driving tech sector development.
Main investors: US, UK, Japan, South Korea
Agriculture & Agritech → Stable
Agriculture employs 40% of workforce. Rice, jute and fish are top commodities with growing agritech investment.
Main investors: Netherlands, Japan, China, India
Sector priorities
- Garment & Textile Diversification — Bangladesh RMG sector upgrading to higher value technical textiles and knitwear creating investment opportunity in manufacturing technology.
- Technology & BPO — Government Hi-Tech Parks and competitive English speaking talent creating growing IT services and BPO investment opportunity.
- Pharmaceutical Manufacturing — LDC IP flexibilities until 2033 and low cost manufacturing creating opportunity for generic pharmaceutical production investment.
Talent & work permits
Bangladesh has a young workforce of 70M with improving education levels. Competitive labour costs. English used in business and export sectors.
- Foreign workers: Work permit from BIDA required. Linked to specific employer. Process takes 6 to 10 weeks.
- Localisation: Foreign nationals cannot exceed 5% of total workforce in most sectors. BIDA approval required for expatriate hiring above threshold.
- Key consideration: Bangladesh offers Asias most competitive garment manufacturing labour costs alongside a growing pool of technology talent.
How to enter: first four steps
Bangladesh market entry is managed through BIDA. Special Economic Zones offer streamlined entry for export oriented manufacturing.
- Register with BIDA — Bangladesh Investment Development Authority is the one stop service for foreign investors
- Consider SEZ location — BEZA economic zones offer duty benefits and streamlined licencing for manufacturing investment
- Register with NBR — National Board of Revenue for tax identification and VAT registration
- Open bank account with authorised dealer — required for foreign exchange management and remittance approvals
Indicative cost: 10-person team
Professional-services mix (1 senior, 5 professional, 2 admin, 2 support), Grade-A office, registration, legal, audit and tax compliance. Model estimate, not a quote. Model your own team size and industry →
Regulatory watch
- Jan 2026 · Investment Board Restructured — Bangladesh Investment Development Authority restructured to streamline foreign investment approvals.
- Mar 2026 · New Investment Authority — Bangladesh Investment Development Authority restructured as Bangladesh Investment Authority with enhanced powers to approve and facilitate foreign investments.
Compare with South Asia peers
Common questions
Is Bangladesh a good market to enter in 2026?
Bangladesh scores 4.9/10 on EmergingMarketIQ’s structural index (risk: High). Rising garment powerhouse with growing middle class. Current-conditions score: 4.9/10 (Bangladesh depends on imported LNG and fuel from the Gulf; the Hormuz closure has disrupted power supply and industrial output.) — updated 24 September 2026.
How much does it cost to set up a 10-person office in Bangladesh?
Our cost model estimates about US$196k for the first year (≈US$15k per month run-rate plus ≈US$8k one-off setup) for a 10-person professional-services team. Indicative only.
What are the first steps to set up a company in Bangladesh?
Register with BIDA — Bangladesh Investment Development Authority is the one stop service for foreign investors Then: Consider SEZ location — BEZA economic zones offer duty benefits and streamlined licencing for manufacturing investment Then: Register with NBR — National Board of Revenue for tax identification and VAT registration Then: Open bank account with authorised dealer — required for foreign exchange management and remittance approvals
Source: EmergingMarketIQ country dataset — current conditions, alerts, GDP (World Bank 2025) and FX updated 24 September 2026; structural scores reviewed 24 September 2026. Rules, rates and conditions change — verify with local counsel before acting. Not legal, tax or investment advice.