Understanding the Basics
Content Overview
Foreign investors interested in establishing a business in Bangladesh need a local bank account to transfer and utilize their investment capital. The government of Bangladesh has made this process more accessible by allowing the opening of a temporary bank account known as the Non-Resident Taka Account (NRTA).
Step 1: Opening a Temporary Bank Account (NRTA)
The Non-Resident Taka Account allows investors to receive foreign capital remittances for the purpose of obtaining an encashment certificate.
This certificate is a vital document required during company registration and investment procedures.
As per the Circular No. 11 issued by the Foreign Exchange Policy Department of Bangladesh Bank on May 17, 2021, investors can now open these accounts digitally through designated online portals of Bangladeshi banks.
Documents Typically Required for NRTA
- Valid passport copies of the investor(s)
- Board resolution (if investing through a foreign company)
- Proof of remittance (once available)
- Application form from the bank
Step 2: Remitting Investment Capital
Once the NRTA is opened, the foreign investor can remit capital into the account. It is essential that this remittance be made through a formal banking channel and be traceable for documentation purposes. After remittance, the bank will issue the encashment certificate, which is required by regulatory authorities like BIDA (Bangladesh Investment Development Authority) and RJSC&F (Registrar of Joint Stock Companies and Firms).
Step 3: Company Registration with RJSC&F
Before transitioning the temporary account into a permanent business bank account, the foreign investor must complete the incorporation of their business in Bangladesh. This process involves registering with the RJSC&F. After successful registration, the NRTA can be converted into a standard business current account.
Required Documents for Company Incorporation
- Encashment certificate
- Memorandum and Articles of Association
- Board resolution approving business setup
- Director and shareholder details
Step 4: Opening a Permanent Business Bank Account
After incorporation, the investor can now open a regular business bank account in Bangladesh.
This account will be used for day-to-day business operations, including payroll, vendor payments, and receiving revenues. The initial capital deposited in the NRTA is transferred into this account.
Popular Banks for Foreign Investors in Bangladesh
- Standard Chartered Bank
- HSBC Bangladesh
- City Bank
- Eastern Bank Limited
- BRAC Bank
Things to Keep in Mind
- All accounts must comply with Know Your Customer (KYC) regulations
- All remittances must be declared and documented properly
- Always consult the bank or a legal advisor before initiating the process
Conclusion
Opening a bank account in Bangladesh as a foreign investor is now a streamlined process thanks to digital banking and clear regulatory guidelines.
By starting with a temporary NRTA and transitioning to a full business account post-registration, investors can ensure smooth capital inflow and legal compliance.
For the best results, always work with a reputable bank and seek local professional assistance if needed.
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