Staff Correspondent:

Bangladesh Bank has allowed Bangladeshi startup businesses to invest up to US$ $10,000 or equivalent foreign currency to form a single company abroad.

According to a circular issued by the central bank on Thursday, startup businesses in Bangladesh can send $10,000 to form a single company abroad. This permission has been granted under the Foreign Exchange Control Act, 1947.

As a result, the resident companies can now send remittances to establish companies abroad by applying to the bank.

According to the circular, Bangladeshi citizens at the individual level have been allowed to establish companies abroad in the same manner. In this case, the applicants must have innovative ideas, which will create opportunities for investment and income in Bangladesh, including expanding their business abroad.

In addition to small-scale investments, Bangladesh Bank has allowed resident companies to invest abroad by swapping their own shares/securities with those of foreign companies.

In this method, there will be no need for cash to invest abroad. In this system, when considering investment proposals abroad, the swap ratio of shares/securities must be consistent with global best practices, said the central bank circular.