Exit Strategy

Exiting or closing a business in Bangladesh involves specific legal procedures depending on the type of business entity and the circumstances of the exit. Whether it’s a planned cessation of operations, a transfer of ownership, or insolvency, understanding the correct pathway is crucial for compliance and minimising liabilities.

A brief guide to the main exit strategies available to foreign investors in Bangladesh, covering the dissolution of companies, the sale of shares, and the closure procedures for Liaison, Branch, and Project Offices.

Foreign entities operating in Bangladesh through Liaison Offices (LO), Branch Offices (BO), or Project Offices (PO) must navigate a specific regulatory pathway when ceasing operations. Unlike locally incorporated companies which undergo liquidation under the Companies Act 1994, these offices follow a distinct closure process primarily overseen by the Bangladesh Investment Development Authority (BIDA), alongside the National Board of Revenue (NBR) and Bangladesh Bank (the central bank).