Starting an offshore company from Bangladesh is a powerful way for entrepreneurs to expand internationally, protect assets, and operate across borders. Whether your goal is global trade, fintech, or remote business operations, understanding how offshore structures work will help you stay compliant while maximizing global opportunities.
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This guide explains the full process, benefits, legal aspects, and step-by-step instructions on offshore company formation from Bangladesh legally and effectively.
What Is an Offshore Company
An offshore company is a legal entity incorporated in a foreign country other than where its owners or main business activities are located. These companies are commonly formed in jurisdictions with favorable tax laws, privacy regulations, and simplified corporate governance requirements.
Examples of popular offshore jurisdictions include Singapore, the British Virgin Islands (BVI), Dubai (UAE), Cayman Islands, Seychelles, and Mauritius.
For Bangladeshi entrepreneurs, an offshore company can serve as an international trading hub, a holding company for global assets, or a vehicle for cross-border investments.
Why Offshore Company Formation from Bangladesh
Here are the main reasons Bangladeshi founders choose to form offshore companies:
- Global Business Access: Easily conduct international trade, receive foreign payments, and hold multi-currency accounts.
- Tax Efficiency: Many offshore jurisdictions offer low or zero corporate tax for foreign-sourced income.
- Asset Protection: Offshore companies can safeguard property, investments, or intellectual property from local political or economic risks.
- Ease of Banking: Access to global banks and fintech platforms that support international transactions.
- Credibility and Expansion: Having a company registered in a reputed jurisdiction builds global trust and opens doors to foreign partnerships.
Legal Considerations for Bangladeshi Entrepreneurs
While forming an offshore company is legal for Bangladeshi citizens, it must comply with Bangladesh Bank’s foreign exchange regulations. You should not transfer funds abroad for company formation without approval under the Foreign Exchange Regulation Act (FERA).
However, you can legally own shares in a foreign company and manage business operations as long as all reporting and compliance requirements are met. Consulting a professional firm is recommended before any fund transfer or investment abroad.
Choosing the Right Offshore Jurisdiction
Your jurisdiction determines how easy it will be to operate, bank, and comply. Here are some of the best choices for Bangladeshi founders:
1. Singapore
A strong reputation, transparent governance, and simple online registration make Singapore ideal for startups and tech companies. It allows 100% foreign ownership and offers corporate banking with global access.
2. Dubai (UAE)
Dubai’s free zones such as IFZA, RAKEZ, and DMCC allow complete foreign ownership, zero income tax, and fast incorporation. Many Bangladeshi entrepreneurs choose Dubai for its proximity, banking access, and business-friendly policies.
3. British Virgin Islands (BVI)
The BVI is a popular choice for international trading, asset holding, and investment companies. It offers tax neutrality and strong confidentiality.
4. Seychelles
Seychelles is known for low-cost offshore setups with minimal annual maintenance, ideal for small trading or consulting firms.
5. Mauritius
Mauritius is ideal for holding companies or investment structures targeting Africa or Asia. It has strong tax treaty networks and political stability.
Documents Required to Form an Offshore Company
While requirements vary by jurisdiction, most offshore setups require:
- Passport and proof of address for all directors and shareholders.
- Proposed company name and business activities.
- Details of shareholding and ownership structure.
- Professional or bank reference letter (some jurisdictions require it).
- Notarized and apostilled copies of personal documents.
- KYC forms as per the registered agent’s compliance policy.
Step-by-Step: How to Set Up an Offshore Company from Bangladesh
1. Choose the Right Jurisdiction
Select a country that suits your purpose — for example, Singapore for startups, Dubai for trade, or BVI for holding assets.
2. Hire a Licensed Offshore Service Provider
You cannot usually register offshore companies directly. A licensed agent or law firm in the chosen jurisdiction will handle the entire process on your behalf.
3. Submit KYC and Documents
Provide your notarized documents, identification, proof of address, and details of company ownership. Some jurisdictions require these documents to be apostilled.
4. Draft the Memorandum and Articles of Association
Your service provider will prepare the legal formation documents that define your company’s structure and operations.
5. Register the Company
Once submitted to the respective registrar, incorporation is usually completed within 3–7 business days, depending on the jurisdiction.
6. Open an Offshore Bank Account
After incorporation, open a corporate bank account to receive and send international payments. Many banks require a video KYC or in-person meeting.
7. Maintain Annual Compliance
Even offshore companies must maintain proper records and pay annual fees. Ensure that you file renewal and compliance reports on time to keep your company in good standing.
Costs and Timelines
While costs vary by jurisdiction and service provider, the following are average estimates:
- BVI / Seychelles: USD 1,000 – 2,500
- Dubai (Free Zone): USD 3,000 – 5,000
- Singapore: USD 1,500 – 3,000
- Mauritius: USD 2,000 – 3,500
The entire process usually takes 5 to 10 working days once all documents are ready.
Taxation and Reporting
Most offshore jurisdictions offer zero or low corporate tax on foreign income. However, you must still follow Bangladesh’s tax disclosure rules and report any foreign income to local authorities if applicable.
Always maintain transparency in accounting to avoid double taxation or non-compliance issues.
Practical Tips for Offshore Setup Success
- Select a stable and recognized offshore jurisdiction instead of the cheapest one.
- Keep all incorporation documents and agreements secure for future verification.
- Use international accounting tools and multi-currency bank accounts for easier operations.
- Renew licenses and pay annual government fees on time.
- Consult a legal expert in Bangladesh before transferring funds abroad.
Common Mistakes to Avoid
- Choosing unlicensed or unreliable offshore agents.
- Sending funds abroad without Bangladesh Bank clearance.
- Ignoring compliance or tax filing in the host jurisdiction.
- Using offshore structures for illegal or opaque transactions.
Frequently Asked Questions
Is it legal to form an offshore company from Bangladesh?
Yes. It is legal if done under foreign exchange regulations and reported properly.
Do I need to visit the offshore country?
Most jurisdictions allow remote incorporation, though some banks may require in-person verification.
Can I open an offshore bank account without visiting?
Yes, many offshore banks and fintech providers allow remote KYC and account opening for verified entities.
Do offshore companies pay tax?
In many jurisdictions, offshore companies are exempt from local corporate taxes on foreign income. However, local compliance and renewal fees still apply.
Why Choose Dewey & LeBoeuf
Dewey & LeBoeuf, a global law firm, specializes in international and offshore company formation for Bangladeshi entrepreneurs. We guide you through jurisdiction selection, legal documentation, banking, and compliance — ensuring every step is lawful, secure, and efficient.
Contact us today for professional assistance and a consultation to choose the best offshore structure for your business goals.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE