Bangladesh Investment Development Authority (BIDA): A Comprehensive Overview
1. Introduction
The Bangladesh Investment Development Authority (BIDA) is the principal government agency responsible for promoting, facilitating, and regulating private investment in Bangladesh. It was established in 2016 under the Bangladesh Investment Development Authority Act, 2016, through the merger of:
Board of Investment (BOI)
Privatization Commission
BIDA operates under the Prime Minister’s Office (PMO) and plays a central role in creating a conducive business environment, encouraging both domestic and foreign investment, and promoting Bangladesh as an attractive investment destination.
2. Objectives of BIDA
BIDA’s primary goals are:
Attract and facilitate Foreign Direct Investment (FDI).
Encourage domestic investment in key sectors.
Simplify business processes through policy reforms and one-stop services.
Promote public-private partnerships (PPPs).
Enhance Bangladesh’s position in global ease of doing business rankings.
Support the government’s vision of transforming Bangladesh into a middle-income country and later a developed economy.
3. Key Functions of BIDA
BIDA carries out a wide range of responsibilities, including:
Investment Promotion
Showcasing Bangladesh’s opportunities to global investors.
Organizing trade fairs, roadshows, and investment summits.
Investment Facilitation
Providing guidance and advisory services to investors.
Assisting in obtaining approvals, permits, and clearances.
Policy Advocacy & Reform
Advising the government on policy changes.
Coordinating with ministries to ensure an investment-friendly environment.
One Stop Service (OSS)
Offering 100+ business services online, such as company registration support, TIN, VAT, and work permits for foreign employees.
Aftercare Services
Supporting existing investors in resolving operational challenges.
Capacity Development
Conducting research, training, and investment-related studies.
4. One Stop Service (OSS) by BIDA
To reduce bureaucratic barriers, BIDA has launched a digital One Stop Service (OSS) Portal, which integrates services from multiple government agencies.
Through OSS, investors can access:
Company incorporation support.
Trade license and VAT registration.
TIN and Tax registration.
Work permits for expatriates.
Utility connections (electricity, gas, water).
Environmental clearance.
Factory and fire licenses.
This digital platform simplifies processes, reduces time and costs, and increases transparency.
5. Investment Opportunities Promoted by BIDA
BIDA identifies and promotes priority sectors for investment:
Textiles and Ready-Made Garments (RMG)
Agro-processing and Food Industry
Leather and Footwear
Pharmaceuticals and Healthcare
Information Technology (IT) and Software
Energy and Power (renewables, LNG, power plants)
Infrastructure Development (roads, ports, housing)
Tourism and Hospitality
Automobiles and Light Engineering
6. Incentives for Investors through BIDA
To attract investors, BIDA facilitates various incentives:
Tax holidays (up to 10 years for certain industries and regions).
Accelerated depreciation allowances.
Duty-free import of capital machinery and raw materials.
Full repatriation of capital and profits for foreign investors.
Exemptions from double taxation (under DTAs with over 30 countries).
Special Economic Zones (SEZs) and Hi-Tech Parks with additional benefits.
7. Foreign Investment Services
BIDA provides special support for foreign investors, including:
Approval of foreign direct investment (FDI).
Issuance of work permits for expatriates.
Assistance in visa recommendations (E, PI, FE categories).
Support with land acquisition in industrial zones.
Facilitation of joint ventures between foreign and local companies.
8. BIDA Governance Structure
Executive Chairman: Appointed by the Government, usually at the rank of Senior Secretary.
Board of Directors: Composed of government officials and experts to guide policy and strategy.
Divisions/Departments: Investment promotion, policy advocacy, OSS, legal affairs, research & training, etc.
9. Role in National Economy
BIDA plays a central role in achieving:
Higher FDI inflows.
Job creation through industrial growth.
Technology transfer and skill development.
Industrial diversification beyond RMG.
Contribution to achieving Vision 2041 and Smart Bangladesh goals.
10. Recent Initiatives
Launch of digital OSS portal offering integrated services.
Active participation in international investment forums.
Reform proposals to improve Bangladesh’s Ease of Doing Business ranking.
Partnerships with global organizations like World Bank, IFC, UNCTAD.
Introduction of investment aftercare services to assist existing businesses.
✅ Summary
The Bangladesh Investment Development Authority (BIDA) is the central government agency responsible for promoting and facilitating both domestic and foreign investments. With its One Stop Service (OSS) platform, policy advocacy, and investor-friendly incentives, BIDA has become a key driver of Bangladesh’s economic growth. By supporting priority sectors, simplifying regulations, and ensuring investor confidence, BIDA is helping position Bangladesh as one of the fastest-growing investment destinations in Asia.