Not all sectors are open to 100% foreign investment. In those sectors foreign investors can’t operate like they usually do in the form of opening Branch Office. One hundred percent (100%) Foreign investment is not permitted in the sectors of Arms and ammunition, Production of nuclear energy, Security planning and Forest plantation. That doesn’t mean they can’t do business another way. The government of Bangladesh gives foreign investors the opportunities to do business in this country by allowing them to invest in the Joint Venture Company.
In Joint Venture company both local and foreign investors come together to establish a Joint Venture Company and follow the rules and regulation that are required by the law. One important point is to be noted that when it comes to foreign investment, if the Joint Venture Company wishes to offer freight forwarding services then foreign shareholders cannot own more than 40% shares. Only 60% local shareholding and a highest 40% foreign shareholding allowed the Joint Venture Company to incorporate a JV Logistics Company which is a pre-requirement for obtaining Freight forwarding license. Single or multiple foreign investors are allowed to invest in a single project as long as there are one or more local investors.