Problem of opening Bank account by Foreign Investors in Bangladesh
Foreign Investment is a top priority in Bangladesh. The Hon’ble Prime Minister and Finance Minister have emphasized on it’s importance on repeated occasion. The foreign investors in Bangladesh before registering a private limited company requires to open a blocked bank account in the name of the proposed company with any scheduled bank in Bangladesh. The foreigners face considerable challenges and problem to open such bank account. Many bankers have little knowledge of such proposed bank account and ask for the incorporation certificate, trade license, Memorandum and article of association of the proposed company whereas the company has not yet been registered. Such blocked account of the proposed company is required as the foreign investor needs to remit his paid up capital before registering company with RJSC. There are unwanted delay in opening such bank account which creates a very negative impression at the outset of investment in Bangladesh. Again RJSC requires a verification of encasement certificate which is done through exchange of letter via regular post which also takes up a lot of time. Attention of Central bank and RJSC is urgently required to address the issue and to make foreign investment in Bangladesh even smoother.
Barrister at law Advocate ,
Supreme Court of Bangladesh
S Hossain & Associates,
Law firm in Bangladesh