Foreign Direct Investment (FDI) (Report for Foreign Companies)

Foreign Direct Investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country. Foreign Direct Investment (FDI) has been an important part of Bangladesh's economic transition, business liberalization, and macro-economic growth story over the last few decades. Bangladesh Bank (central bank of Bangladesh) is responsible for monitoring FDI flows and the basic objective of this statistical survey is to identify the sources through which Foreign Direct Investment (FDI) enters Bangladesh and quantify the magnitude of such resource flows.

Filing of Quarterly Statements

A quarterly return of receipts and expenditures out of remittance receipts from abroad shall have to be submitted to Bangladesh Bank along with encashment certificates within 21 days after the end of every quarter.

?a)????????FDI enterprises can choose any bank to submit their FDI returns if they have transactions with more than one bank and must inform other banks in writing about their reporting bank.

?b)????????FDI enterprises have to submit the completed survey form (FORM I-1) within the deadline through their reporting bank along with necessary supporting papers on a quarterly basis.

Submission deadline????????????For three months period

? 21st April????????????????????????????????January, February, and March

? 21st July??????????????????????????????????April, May, and June

21st October???????????????????????????July, August, and September

? 21st January????????????????????????????October, November, and December

?c)?FDI enterprises should follow the instructions given below for filling up the Form:

?i.?All values are to be reported in unit Taka regardless of the currency of the transaction.

ii.?The outstanding amount denominated in a foreign currency should be converted to Bangladesh Taka at the mid-point of the buying and selling rate applicable at the related end period.

iii. Values (balances) in foreign currency on the opening date and the closing date should also be converted in the same way.

iv.?Every financial instrument should be reported according to country. If there is more than one country for any financial instrument, then insert additional rows for additional countries.

v.?If there is any change between the opening and closing position of a financial claim or financial liability that arises due to the transaction, then it should be reported in the “Increase” or “Decrease” column according to the nature of the change (positive change should be reported in “Increase” column and negative change should be reported in “Decrease” column).

vi.?If there is any change other than the transaction between the opening and closing position of financial claim or liability, it should be reported in the “Other Changes” column.

vii. If there is no amount to report in any particular item, then mention “Nil” in the corresponding row of that item.

viii.?Opening position of any financial instrument for any reporting period must be equal to the closing position of that financial instrument for the immediate previous reporting period.

ix. If necessary, then please use an additional sheet for any financial instrument.

x.??The completed survey Form must be signed by the authorized signatory of the enterprise.?

Reference

The Foreign Exchange Regulations Act, 1947 (amended up to 06 Sep 2015)