Bangladesh: Guidance simplifying procedures for paying royalties and technical fees

Guidance that is intended to simplify the administrative process for businesses

Guidance that is intended to simplify the administrative process for businesses

Guidance that is intended to simplify the administrative process for businesses seeking approval for paying royalty and technical fee remittances has been issued.

Outward remittances from Bangladesh are regulated by the Foreign Exchange Regulations Act 1947 and circulars issued by Bangladesh Bank (the central bank of Bangladesh).

A common remittance for many businesses in Bangladesh is the payment of royalties and technical fees. Bangladesh Bank requires such remittances to be approved by Bangladesh Investment Development Authority (BIDA)—the primary regulator for industrial enterprises operating in Bangladesh.

Until recently, there was a lack of guidance for businesses seeking approval for royalty and technical fee remittances. This has been addressed by a March 2021 circular issued by BIDA. The circular details and simplifies the scope of royalties and technical fees and the conditions for remittance approvals.

Private industrial enterprises registered with BIDA generally can obtain permission for outward remittances or payments of royalties or fees for technical knowledge, technical know-how or technical assistance and franchise fees if certain conditions are satisfied.

Read an April 2021 report [PDF 77 KB] prepared by the KPMG member firm in Bangladesh 

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