Bangladesh offers opportunities for foreign investors in important sectors, including power, steel, fertilizer, hotel, tourism, and petrochemicals. These opportunities are reflected in the inflows of foreign direct investment (FDI), which increased from virtually zero in the early 1980s to $760 million. To meet the challenge, market-oriented liberalizing policy reforms were initiated in the mid-1980s and were pursued much more vigorously in the 1990s. These reforms were particularly aimed at moving towards an open economic regime and integrating with the global economy.
Bangladesh Business Opportunity and Challenges
Opportunities
- The present government has adopted an economic strategy to create a suitable environment to make Bangladesh a very attractive destination for foreign investors in the South Asian region.
- Bangladesh wants to be an active partner in the world economic community. It is one of the most open economies among the developing countries. The Bangladesh economy has already been liberalized extensively and it is vigorously pursuing a private sector-led, export oriented growth strategy.
- Private investment both local and foreign is welcome in areas with the exception of only rive sectors on strategic grounds There is no restriction on the amount of investment or in the share of equity. Full 100 percent foreign investment and joint venture with local private partners or with the public sector is freely allowed. Foreign investors now enjoy the same treatment as provided to the domestic investors.
Challenges
- Food security and inflation are pressing concerns
The unusual rise of food prices in the recent time, which has been a world phenomenon, has really hard hit the poorest and the marginalized groups. This price hike was caused by domestic production shortfall following successive natural disasters and also by international higher prices. The food price rise has severe human dimension and has seriously eroded the purchasing capacity of people living below the poverty line and government employees, industrial workers, and others with fixed incomes, for these reasons doing business in Bangladesh is challenging. Addressing the hardship of poor people affected by higher food prices remains a challenge.
- Environment and climate change pose a serious development challenge
The climate change also poses a major development challenge for Bangladesh. Bangladesh's vulnerability to natural disasters also poses a risk. The recent severe flooding and cyclone are premonitions of future possible catastrophe. According to the United Nations Human Development Report 2007/2008, one meter rise in sea level would inundate 18% of land area in Bangladesh, directly threatening 11% of the population. Rising sea levels and exposure to climate disasters could result over 70 million people being permanently or temporarily displaced.
- Foreign Investment
Private investment from overseas sources is welcome in all areas of the economy with the exception of only five industrial sectors (reserved for public sector) as mentioned earlier. 100% foreign direct investment as well as joint venture both with local private sponsor and with public sector is allowed.
Foreign investment, however, is specially desired in the following categories:
- Export-oriented industries;-industries in the Export Processing Zones;
- High technology products that will be either import-substitute or export-oriented;-undertaking in which more diversified use of indigenous natural resources is possible;
- Basic industries based mainly on local raw materials.
Company Registration
However, before the success can begin, everyone has to think about their company registration, so in this article we look to run you through an easy 5 step guide to help you with your company registration.
Company Name - First on your list of priorities is to discover what your new company name is going to be. This is a fairly simple step and also a great way for you to use your imagination and creativity. There is more to think about than just the company name, for instance, you might want to get an idea for a company logo or a company slogan to accompany it. Many believe the best company names are ones that relate to the product/service they are selling as it makes them easier to remember, so that is another point for consideration.
Company Directors - Your next task, if you have not already decided on it, is to distinguish who the company directors are going to be. Many small business start-ups will declare the owner as the director, or maybe a family member. However, this does not have to always be the case, as larger companies may wish to elect their board of directors who they think will carry out the best decisions in the interest of the company.
Assign Shares in Your Company - This is the process of identifying and appointing the companies shareholders, and assigning them a set amount of shares. The purpose of this exercise is to provide a means of capital investment into your company and to establish who has overall control of its operation. Whoever owns over 50% of the companies shares will have majority control of the company. Usual practice for new companies is to create 1000 shares with a nominal value of £1 each, and then assign these to the shareholders.
Address of Registered Office - The address you provide here will be the address that all companies' house letters and reminders will be sent to, and this address has to be registered in England, Wales or Scotland (depending on where the Company is legally registered). The registered office address does not always have to be the working office for the company, but it must always be an effective address so that any correspondence sent is dealt with in a prompt and professional manner.
Create a Bank account for your new company - This is the last piece which will finally get your business up and running. For this step you will need to supply information which will include the number of deposits you are likely to make in month, you will need to determine how much money is withdrawn each month, what you expect your average balance to be and decide if you want to do all of your transactions via ATM, the night depository or online.