FPI Act 1980

472 Foreign Private Investment (Promotion
and Protection) Act, 1980
THE FOREIGN PRIVATE INVESTMENT (PROMOTION

AND PROTECTION) ACT, 1980
ACT NO. XI OF 1980

[1st April, 1980]
An Act to provide for the promotion and protection of
foreign private investment in Bangladesh.
WHEREAS it is expedient to provide for the promotion and
protection of foreign private investment in Bangladesh;
It is hereby enacted as follows:-
Short title 1. This Act may be called the Foreign Private Investment
(Promotion and Protection) Act, 1980.
Definitions 2. (1) In this Act, unless there is anything repugnant in the
subject or context,-
(a) “foreign capital” means capital invested in Bangladesh
in any industrial undertaking by a citizen of any foreign
country or by a company incorporated outside
Bangladesh, in the form of foreign exchange, imported
machinery and equipment, or in such other form as the
Government may approve for the purpose of such
investment;
(b) “foreign private investment” means investment of
foreign capital by a person who is not a citizen of
Bangladesh or by a company incorporated outside
Bangladesh, but does not include investment by a foreign
Government or an agency of foreign Government;
(c) “industrial undertaking” means an industry,
establishment or other undertaking engaged in the
production or processing of any goods, or in the
development and extraction of such mineral resources or
products, or in the providing of such services, as may be
specified in this behalf by the Government.
(2) Words and expressions used but not defined in this Act
shall have the same meaning as in the Companies Act, 1913
(VII of 1913).
Foreign private 3. (1) The Government may, for the promotion of foreign
investment private investment, sanction establishment with foreign capital
of any industrial undertaking-
(a) which does not exist in Bangladesh and the
establishment whereof, in the opinion of the
Government, is desirable; or
Foreign Private Investment (Promotion 473
(b) which is not being carried on in Bangladesh on a scale

adequate to the economic and social needs of the
country; or
(c) which is likely to contribute to-
(i) the development of capital, technical and managerial
resources of Bangladesh; or
(ii) the discovery, mobilisation or better utilisation of
the natural resources; or
(iii) the strengthening of the balance of payment of
Bangladesh; or
(iv) increasing employment opportunities in
Bangladesh; or
(v) the economic development of the country in any

other manner.
(2) Sanction of the establishment with foreign capital of an

industrial undertaking under sub-section (1) may be subject to
such conditions as the Government may deem fit to impose.
4. The Government shall accord fair and equitable Protection and
treatment to foreign private investment which shall enjoy full equitable
treatment
protection and security in Bangladesh.
5. The terms of sanction, permission or licence granted by Terms of
Government to an industrial undertaking having foreign private sanction, etc.
investment shall not be unilaterally changed so as to adversely
alter the conditions under which the establishment of such
undertaking was sanctioned; nor shall foreign private
investment be accorded a less favourable treatment than what is
accorded to similar private investment by the citizens of
Bangladesh in the application of relevant rules and regulations.
6. In the event of losses of foreign investment owing to Indemnification,
civil commotion, insurrection, or riot, foreign private etc.
investment shall be accorded the same treatment with regard to
indemnification, compensation, restitution, or other settlement
as is accorded to investments by the citizens of Bangladesh.
7. (1) Foreign private investment shall not be expropriated Expropriation

or nationalised or be subject to any measures having effect of and
nationalisation
expropriation or nationalisation except for a public purpose
against adequate compensation which shall be paid
expeditiously and be freely transferable.
474 Foreign Private Investment (Promotion
(2) Adequate compensation for the purpose of sub-section

(1) shall be an amount equivalent to the market value of
investment expropriated or nationalised immediately before the
expropriation or nationalisation.
Repatriation of 8. (1) In respect of foreign private investment, the transfer

investment of capital and the returns from it and, in the event of liquidation
of industrial undertaking having such investment, of the
proceeds from such liquidation is guaranteed.
(2) The guarantee under sub-section (1) shall be subject to

the right which, in circumstances of exceptional financial and
economic difficulties, the Government may exercise in
accordance with the applicable laws and regulations in such
circumstances.
Removal of 9. If any difficulty arises in giving effect to any provision of

difficulty this Act, the Government may make such order, not
inconsistent with the provisions of this Act, as may appear to it
to be necessary for the purpose of removing the difficulty.
_______

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472 Foreign Private Investment (Promotion

and Protection) Act, 1980

THE FOREIGN PRIVATE INVESTMENT (PROMOTION

ACT NO. XI OF 1980

(b) which is not being carried on in Bangladesh on a scale

(v) the economic development of the country in any

(2) Sanction of the establishment with foreign capital of an

7. (1) Foreign private investment shall not be expropriated Expropriation

(2) Adequate compensation for the purpose of sub-section

Repatriation of 8. (1) In respect of foreign private investment, the transfer

(2) The guarantee under sub-section (1) shall be subject to

Removal of 9. If any difficulty arises in giving effect to any provision of

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