Bangladesh Bank (BB) has permitted startup businesses to invest overseas to help them explore international markets, according to a circular issued on Thursday.
Under the new rules, local startups can remit up to $10,000 (or equivalent foreign currency) to set up a company abroad. The approval falls under the Foreign Exchange Regulation Act, 1947, and resident firms can now apply through banks to send funds for overseas ventures.
Individual Bangladeshi citizens also get the same opportunity, provided they have an innovative business idea that can expand operations abroad and eventually bring investment and earnings back to Bangladesh.
In addition to small-scale investments, the central bank has allowed resident companies to invest abroad through share/security swaps with foreign firms-eliminating the need for cash transactions. Such swap agreements must follow global best practices in valuation and exchange ratios.
The move aims to encourage startups to explore international markets while maintaining regulatory oversight. Analysts say it could boost foreign currency inflows in the long run if successful ventures repatriate profits.
