The money should come from the investor's own account abroad through normal banking channels to an account of the Bangladeshi company, or of the company in formation where the bank allows this, with the purpose stated as equity investment. The bank will issue an encashment certificate. Shares should then be allotted and the return of allotment filed with the RJSC. Sending capital informally, through a third party or in cash makes later repatriation very difficult. We set out the sequence and documents in advance so that the inflow meets foreign exchange regulation and the bank's requirements first time.

The encashment certificate, or equivalent bank record, is the evidence that foreign currency actually entered Bangladesh through an authorised channel and was converted or credited for a stated purpose. Banks rely on it when remitting dividends, sale proceeds or loan repayments abroad, and auditors and tax authorities rely on it when reviewing share capital and loans. If the certificate is missing or records the wrong purpose, correcting it later can take months. We check these records at the outset and, where something is wrong, work with the bank to correct it while the transaction is still recent.

Yes, but foreign borrowing by private sector companies is regulated. Depending on the type, tenor and cost of the loan, it may need approval through the government's scrutiny process involving Invest Bangladesh and Bangladesh Bank, or it may fall within general permissions with reporting through the authorised dealer bank. Interest and repayment terms, withholding tax on interest paid to non-residents and registration of the loan all need attention. Under the Finance Act 2026 the withholding rate on interest paid to non-residents is 10%. We structure the loan to meet foreign exchange regulation and tax rules together.

Software and IT-enabled service exports can be paid through banking channels and, within limits set by Bangladesh Bank, through recognised international payment platforms. The service contract, invoices and payment references should match the receipts, and proceeds must be brought in within the permitted period. Exporters may retain part of their receipts in a foreign currency account. Tax treatment depends on the business and current incentives, which change from year to year. We review the client's contracts and payment flows and advise on a compliant structure under foreign exchange regulation and tax law, including how to document each receipt.

Current account transactions are payments for goods, services, income and transfers, such as export proceeds, consultancy fees, royalties within permitted limits and dividends. They are generally allowed through authorised dealers on proof of the underlying transaction. Capital account transactions move investment or debt, such as equity, foreign loans and outward investment, and are more closely controlled. Some are allowed under general permissions; others need prior approval. Under Bangladesh's foreign exchange regulation, correctly classifying a payment is the first step in any analysis, because the classification decides which rules, permissions and supporting documents apply.

Yes, generally, in sectors open to foreign investment, but the transaction must comply with Bangladesh Bank's rules on transfers of shares between residents and non-residents. The price is usually expected to be supported by a fair valuation, the purchase price must come into Bangladesh from abroad through banking channels, and the transfer must be reflected in the company's records and RJSC filings. Where a non-resident sells to a resident, repatriation of sale proceeds is subject to further conditions. We advise buyers and sellers on the approvals, valuation and documents needed for the transfer to work.

Consequences range from a bank refusing to process a payment to formal action by Bangladesh Bank and, in serious cases, criminal investigation. Common problems include capital received without proper records, export proceeds not repatriated in time, payments made to foreign suppliers without supporting documents, and use of informal channels. The right response always depends on the facts and the amounts involved. We review the history confidentially, assess exposure, and advise whether and how to approach the bank or Bangladesh Bank to regularise the position before it escalates into a formal foreign exchange regulation inquiry.

Non-resident Bangladeshis living abroad can send remittances through banks and authorised remittance services, open certain foreign currency and taka accounts, and invest in specified instruments and in companies. Wage earners' remittances through formal channels have historically attracted government incentives, the terms of which change from time to time. Larger transfers for property purchases or business investment raise questions of source of funds, tax and later repatriation. We advise non-resident clients on the appropriate channels and documents and, where they hold power of attorney arrangements, on the transactions their representatives may lawfully carry out.