Repatriation of profit & dividend



Key Function

To facilitate the process of remittance of profit and dividend of branches of foreign firms and companies operating in Bangladesh on investment purpose. This includes banks, financial institutions, insurance companies and foreign-local joint venture enterprises along with foreign shareholders of Bangladeshi companies.

Relevant Regulations

  • Foreign Exchange Regulation Act (FERA), 1947 (amended up to 09 September 2015)
  • Guidelines for Foreign Exchange Transactions (GFET), 2018 of Bangladesh Bank
  • FE & FEID Circular/ Circular Letter issued by Bangladesh Bank
  • Income Tax Act, 2023
  • Double Taxation Agreement (Convention between People’s Republic of Bangladesh and beneficiary country with respect to Taxes on Income)
  • Bangladesh Labor Act, 2006 (Amended up to 2013)
  • Insurance Act, 2010

Permission from/Reporting to Bangladesh Bank

  • No prior permission from Bangladesh Bank is required for branches of foreign banks for remittance of profit and head office expenses through their nominated ADs. Documents related to the remittances is to be forwarded to FEID for post facto checking.
  • No prior permission from Bangladesh Bank is required for branches of foreign financial institutions, insurance companies and foreign firms (other than financial institutions) for remittance of profit through their nominated ADs. Documents related to the remittances is to be forwarded to FEID for post facto checking.
  • Bangladesh Bank shall allow remittance of Joint venture enterprises of the foreign partner's/ collaborator's share of profits on submission of application.
  • No permission (prior or post facto approval) from Bangladesh Bank is required to remit dividends (both final and interim) to the non-resident shareholders. Dividend may also be credited to Foreign Currency (FC) account of non-resident investors in Bangladesh.

References
  • Guidelines for Foreign Exchange Transactions (GFET), 2018, Vol.-I, Chapter-10, Para 28-31
  • FE Circular no. 15, Dated 10 June 2018
  • FE Circular no 26, Dated 07 July 2020
  • FE Circular no 29, Dated 21 July 2020
  • FEID Circular no. 02, Dated 20 November 2024