Foreign-Exchange
FDI report must be submitted within 20 days after each quarter.
On 16 February 2023 Bangladesh Bank issued SD Circular No. 02/2023 informing all AD banks and their offshore unit about the change.
What has changed?
- The circular requires all FDI receiving companies to submit the FDI reporting form (Form Fl-1) along with supporting documents to their authorized dealer bank within 20 days instead of one month after each quarter. Similarly, outward FDI sending companies are required to submit the FDI reporting form (Form F1-2) with relevant documents within the same time frame.
- Additionally, all FDI receiving and outward FDI sending organizations are required to submit the FDI reporting forms (Form FI-1 and Form FI-2) through the Rationalized Input Template (RIT) on the Web Portal within one month instead of 15 days after the next quarter. Hard copies of the reporting forms should also be submitted to the FIED Management Cell of the Statistics Department of Bangladesh Bank.
Foreign Exchange Regulation Act amended
The much awaited amendment is here folks. Finally the Parliament has passed the Foreign Exchange Regulation (Amendment) Act, 2015 and on September 9, 2015, the gazette has been published.
Let’s take a look what has changed and how you might be affected.
New list of required documents for 18A and 18B approval from Bangladesh Bank
Update September 15, 2015: Recently Bangladesh Parliament has amended the Foreign Exchange Regulations Act 1947. The requirement of and 18A and 18B Approval from Bangladesh Bank has been removed.
You can read about the amendment here.
Foreign shareholders can now remit fair value of their sold shares
From now on Bangladesh Bank will allow foreign shareholders to repatriate fair value of shares in unlisted public companies and private limited companies as on the date of sale based on appropriate combination of three valuation approaches (net asset value approach, market value approach and discounted cash flow approach) depending on the nature of the company.
Foreign owned companies allowed to avail interest free loans from parent companies for one year
Bangladesh Bank on 12 March, 2014 through FE Circular No. 13 informed that foreign owned companies may from now on access interest free loans from parent companies/shareholders abroad for up to one year without any prior approval of Bangladesh Bank.
Service Sectors’ Companies allowed to remit cost of training and consultancy services
Bangladesh bank on 18 February, 2014, through FE Circular No. 08 notified that from now on companies engaged in service sector (within the purview of Industrial Policy) may remit through their nominated authorized dealers up to 1% of annual sales as declared in their previous years’ income tax return towards costs of training and consultancy services as per relevant contract with the foreign trainer/consultant.