Bangladesh is facing a slowdown in foreign direct investment (FDI) due to delays in approving One Person Companies (OPCs). A recent article in The Financial Express highlights that the government’s slow rollout of the OPC model is discouraging global investors. OPCs make it simple for one person to establish and manage a business. They are designed to simplify business setup, especially for startups and foreigners. But until the law is fully enacted and rules concretely implemented, investors find themselves waiting—in limbo. Currently, foreign investors face red tape. They cannot register OPCs, so they must form full-fledged companies with multiple partners. This adds layers of paperwork and cost. As one investor told The Daily Star, policy uncertainty, bureaucratic delays, and an unstable system are driving away new investments. FDI fell to just 0.5% of Bangladesh’s GDP, while neighboring countries like Vietnam and India are attracting much more. Experts from ADB and the World Bank point to policy uncertainty, complex regulations, and corruption as key deterrents. Without smooth rules, investors hesitate to commit. The OPC model could help in several ways: Lower setup costs: A single founder can form a company without bringing in others. Faster launch: Less paperwork makes incorporation quicker. Innovation boost: Attracting solopreneurs can bring fresh ideas in tech, fintech, and services. OPCs are already popular in countries like Singapore and India. They enabled solo founders to test ideas, pivot fast, and scale later. For Bangladesh, clear OPC rules could open doors for startups, foreign professionals, and diaspora investors. The government has started reforms: authorities are working to unify investment approvals, streamline licensing, and launch ‘relationship managers’ in BIDA to guide investors. But until OPCs are fully functional, this tool remains unusable. Bringing the OPC model to life touches both Trade and Policy. It signals that Bangladesh is serious about improving its investment climate—making it easier to start a business, reducing complexity, and welcoming global talent. These are important steps toward graduation from LDC status and a future of stronger exports and tech growth. In summary, implementing the OPC model without delay is a smart win-win. It empowers lone innovators and foreign investors, boosting start-ups, and supporting economic diversification. By finalizing the model and cutting red tape, Bangladesh can send a clear message: this is a place open for business.
