Bangladesh expects to turn into a center pay nation by 2021. The public authority’s vital vision for 2021 is an arrangement for development through monstrous interest in framework, aptitudes improvement and exchange. Co-activity with the private area and global giver organizations is normal.
Right around 100 UK organizations work in Bangladesh, including notable organizations like HSBC, Unilever and GSK.
Advantages for UK Organizations Sending out to Bangladesh Include:
- English generally spoken in business
- English made merchandise viewed as dependable among end clients
- Solid buyer interest for items, gear and administrations
- Concessionary obligation on imported capital apparatus
Qualities of the Bangladesh Market Include:
- Yearly development pace of at any rate 5.3% in the course of the most recent 16 years
- Stable FICO score
- Near giving first Sovereign Bond
- Destitution levels cut considerably in the most recent decade
- Serious workforce
- Instant Garment (RMG) send out levels quadrupled in 5 years
Challenges Doing Business in Bangladesh
Bangladesh is 173rd in the World Bank‘s simplicity of working together positioning.
Acquisition rehearses in Bangladesh:
- Regularly need straightforwardness
- Have critical administrative weight
Bangladesh is positioned 145th in Transparency International’s Corruption Perceptions Index.
The Bangladesh market is incredibly value touchy with low value products from India and China overwhelming numerous areas. UK organizations should sell into the market based on:
- Quality
- Life cycle cost
- Preparing
- After deals administration
Corruption
Debasement influences numerous parts of everyday life in Bangladesh and is frequently refered to as an obstruction to private area improvement.
Probably the greatest test confronting UK organizations in Bangladesh is the way to abstain from paying ‘speed cash’. ‘Speed cash’ is informal, under the counter installments to minor authorities to assist business. Legislators, administrators and law authorization authorities frequently employ huge optional force and there have been a few maltreatments.
You ought to have set up ordinary due perseverance methods and cutting-edge hazard methodologies while working together in Bangladesh.
Growth potential
Total national output (GDP) became 6% in the monetary year (FY) 2013 (financial year closes in June). Industry developed further extension in development and little scope producing. 6.7% of development is conjecture for 2016.
Swelling eased back to 6.41% in 2015 from 7.35% in 2014 FY.
The equilibrium of installments was USD 5.4 billion in surplus in FY2014 after 10.7% development in trades and just 0.8% development in imports.
Bangladesh’s RMG area is presently worth nearly USD 25 billion. It is the third biggest clothing exporter to the European Union (EU) and fourth biggest to the US.
Bangladesh, with a populace of 158 million, has the most noteworthy thickness populace on the planet. Per capita pay is USD 1,190, so over 25.6% of individuals live underneath the destitution line.
UK and Bangladesh Trade
There has been over 119% development in two-sided exchange merchandise and ventures somewhere in the range of 2007 and 2012.
The UK sent out £450 million of merchandise and ventures to Bangladesh in 2013. 71% of this was administrations.
Fares of products were £131 million out of 2014.
The UK’s principle fares to Bangladesh in 2013 were:
- Atomic reactors, boilers, apparatus and mechanical machines/parts
- Electrical apparatus and gear/parts; sound recorders and reproducers, TV picture and sound recorders and reproducers, and parts/frill
- Iiron and steel
- Deposits and waste from the food ventures; arranged creature grub
Opportunities for UK Businesses in Bangladesh
Access tenders for all significant public undertakings in Bangladesh through the Central Procurement Technical Unit.
The worldwide guide organizations store activities to improve flourishing in agricultural nations.
Education and Training
Bangladesh depends more than most agricultural nations on its HR. About 20% of the absolute populace (around 29 million individuals) are understudies.
The global guide offices emphatically bolsters the schooling area in Bangladesh. Instruction area programs have been characterized and supported by organizations, for example,
- EU
- Asian Development Bank (ADB)
- World Bank
- UNICEF
A Cross Border Higher Education (CBHE) guideline has been presented making it part of Bangladesh public instruction strategy. This guideline perceives unfamiliar capabilities. Unfamiliar Universities/training suppliers would now be able to offer their projects and open grounds or study focuses in Bangladesh.
The new CBHE strategy opens up open doors for UK educaiton associations in higher and professional instruction:
- English Language and IT preparing focuses
- Substance and educational program improvement as per industry need
- E-learning programs
- Capability appraisal and quality confirmation programs
- Educating and administration preparing programs
- Schooling office the executives and consultancy
- Limit working of the Technical Training Institute
- Presentation of Level 3 or more for professional educational plan with the goal that professional understudies can go for advanced education.
- Worldwide standard research facility
- Distribution house
Energy
Petroleum gas is presently the main neighborhood non-sustainable power asset being created and burned-through in huge amounts. Around 85% of the force created is gas based.
The Bangladesh Power Development Board conjectures that absolute power requests will be in excess of 12,000 Megawatts (MW) by 2016. The current age limit is around 10,000 MW.
Compost creation is additionally fuelling interest for gas creation.
Open doors for UK organizations include:
- Gracefully of apparatus and gear
- Consultancy administrations
- Development of intensity ventures
Environment and Water
The public authority distributed the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) in 2009. BCCSAP has distinguished 44 unique projects inside 5 territories including:
- Food security
- Social assurance
- Wellbeing
- Complete fiasco the executives
- Foundation
There are open doors for UK organizations in:
- Flexibly of apparatus and hardware
- Consultancy administrations
Information and Communication Technology (ICT)
Development in Bangladesh’s product and ICT industry has come about because of:
- Trade interest
- Expanding ICT robotization in homegrown market
Neighborhood request has come from enormous mechanization ventures by the:
- Telecom industry
- Banking area
- Articles of clothing/material industry
There are open doors for UK organizations in:
- Overhauling the media transmission foundation
- Joint endeavor ventures with neighborhood organizations for Business Process Outsourcing (BPO)
- Consultancy administrations
Pharmaceuticals and Biotechnology
Life sciences is one of the quickest developing areas in Bangladesh. In 2013 the homegrown market developed by 24.3% to USD 1.136 billion.
Numerous organizations are hoping to accomplice unfamiliar financial specialists.
There are 260 enrolled drug organizations with 191 in activity. These organizations fulfill 97% of homegrown needs.
Items actually being imported include:
- Immunizations
- Anticancer items
- Hematological items
- Biotech items
Start-up Considerations
English organizations can move toward the Bangladesh market in a few different ways including:
- Send out direct
- Set up an office
- Select a merchant
You can set up a business in Bangladesh inside 11 days. After taking the decision to set up a business, you have to focus on a registration company in Bangladesh as a foreigner.
Agents
You ought to have a neighborhood delegate either on a commission premise or as a specialist on the off chance that you mean to send out straightforwardly. A nearby accomplice can manage Bangladeshi administration and instruct on the best sort with respect to publicizing. A specialist is permitted to partake in global tenders in the interest of their unfamiliar rule. Dhaka based specialists ought to have the option to cover the entirety of Bangladesh.
The 1972 Contract Act subtleties the rights and liabilities of a specialist and furthermore of the head.
Most organization arrangements host a proviso allowing either get-together to give due notification of end. It is judicious to incorporate an agreement provision which consents to permit an autonomous referee outside of Bangladesh to settle any debates between parties.
The Bangladesh International Arbitration Center (BIAC) was dispatched in 2011. This is Bangladesh’s first discretionary place for the settlement of business questions.
Setting up an office
You can set up an office to sell items and gear directly to the end client or purchaser. Workplaces can likewise be set up on an enlisted joint endeavor premise with a Bangladeshi exchanging organization.
You should enroll with the Bangladesh Investment Development Authority and the Registrar of Joint Stock Companies prior to setting up an office.
Appointing a distributor
You ought to know about the dangers of showcasing your products through wholesalers in Bangladesh. In the event that you pick this course into the market be cautious about giving restrictive dissemination rights.
Legal Considerations
Neighborhood law depends on English Common Law framework.
You should look for proficient lawful/tax collection guidance prior to going into a joint endeavor or comparable sort of arrangement.
Standards and technical regulations
The Bangladesh Standards and Testing Institution have an administrative expert for guidelines. Worldwide norms are followed.
Imported products and their holders must not join any words, pictures or engravings with any strict or profane undertones.
Milk food holders must demonstrate the fixings in Bangla. They ought to likewise show the date of creation and expiry in Bangla or English.
Intellectual property (IP)
Bangladesh consented to the arrangement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 1 January 1995. Outings set the least norms for IP guidelines as applied to nationals of other WTO individuals.
The Department of Patents, Design and TradeMarks is liable for IP in Bangladesh.
Tax and Customs Considerations
Bangladesh has a Double Taxation Convention with UK.
Value Added Tax (VAT)
The National Board of Revenue gives data on VAT.
Corporate tax
The corporate assessment rates are:
- 37% for organizations whose offers are traded on an open market
- 40% for those whose offers are not traded on an open market
- 40% least for unfamiliar organizations
- 45% for unfamiliar banks
Income tax
The National Board of Revenue gives data on Income tax.
Customs
No import obligation is pertinent for a fare arranged industry. For different businesses it is 5% promotion valorem. The National Board of Revenue gives a posting of customs obligation exclusions.
Documentation
UK exporters to Bangladesh should be exact when getting ready fare documentation. Solicitations ought to obviously express the merchandise being provided including particular, pressing and nation of starting point. The receipt should coordinate the Letter of Credit.
Pre-shipment investigation is the standard for Bangladesh.
Business Behavior
Bangla is the primary language. Composed business correspondence and exchange writing ought to be in English.
Ladies guests should cover their arms and legs including lower legs to try not to give offense. Ladies ought not wear tight attire.
Gatherings can be dependent upon interferences, for example, calls or staff individuals strolling in to have reports marked. This is an acknowledged practice as it’s viewed as inconsiderate not to promptly react to calls.
Bangladeshi organizations are commonly progressively organized. Choices won’t be made except if the proprietor, organization chief, or ranking director are available at a gathering.
Entry Requirements
English nationals need a visa to visit Bangladesh.
You ought to get a visa from the Bangladesh High Commission in the UK preceding voyaging.
You should have a work grant to work in Bangladesh. The business must apply ahead of time to the Bangladesh Investment Development Authority.