Direct land ownership by foreigners and foreign corporations is in principle prohibited in Bangladesh. Acquiring land through a locally registered Bangladeshi entity, or leasing government land on a long-term basis inside BEZA or BEPZA special economic zones, are the standard approaches for Korean companies. In Bangladesh, where ownership disputes are common, thorough due diligence before acquisition is the cornerstone of investment risk management.
Land Acquisition Method Comparison
Korean companies in Bangladesh have four main routes to secure land and office space. Economic zone leasing is the safest option backed by government guarantees, while general-area purchases provide ownership security but carry dispute risk. Selecting the optimal method according to business scale and investment character is essential.
| Method | Applicable Area | Term | Advantages | Cautions |
|---|---|---|---|---|
| Local entity purchase | General areas | Permanent | Ownership security, collateral use | Registration cost 10–15%, dispute risk |
| BEZA long-term lease | Special Economic Zones (SEZ) | 30–50 years | Government-backed, infrastructure included | Limited to zone business activities |
| BEPZA site allocation | EPZ (8 locations) | Operation period | Full infrastructure, low rent | Export obligation, complex exit process |
| Private land lease | General/commercial areas | Contract period | Flexibility, fast occupancy | Landlord risk, renewal uncertainty |
| PPP scheme | Government-approved projects | Project period | Large-scale site access | Government approval, long negotiation |
Registration Procedures and Key Risks
Bangladesh land registration is handled at regional Sub-Registry Offices. Registration costs totaling 10–15% of acquisition value — including stamp duty, registration tax, and VAT — are a significant burden. Duplicate registrations and forged documents make ownership disputes account for approximately 60% of all civil litigation. Acquiring land without prior due diligence through a professional local law firm is extremely risky.
4 Key Land Acquisition Strategies for Korean Companies
Land Acquisition Process
Bangladesh's land issues are among the most challenging obstacles Korean companies face locally. By prioritizing economic zone leasing and ensuring specialist law firm due diligence for general-area purchases, the primary risk of ownership disputes can be effectively prevented.
The Bangladesh government is advancing digitalization of land registration procedures and reduction of registration costs to attract foreign investment, meaning the land acquisition environment is expected to improve incrementally from the mid-2020s onward. The framework for processing land-related permits through BIDA's One-Stop Service (OSS) is also being strengthened. Bangladesh's consistently improving ranking on the World Bank Doing Business land registration index reflects the government's commitment to institutional reform.
Industrial areas on Dhaka's outskirts — including Narayanganj, Gazipur, and Narsingdi — offer lower land prices with good logistics access, making them notable factory site candidates for Korean manufacturers. Korea SEZ (Araihazar) is located 30 km from Dhaka and provides one-stop infrastructure, administrative, and customs support for Korean tenant companies. Available plot status can be checked in real time on the BEZA website, making it a useful starting point for initial site screening.
After land acquisition, the factory construction phase also requires a building permit (from RAJUK or the relevant local development authority) and an environmental clearance (from DoE). Processing both permits in parallel can shorten the overall completion schedule, and handling key permits through BIDA OSS at a single point has recently become standard practice. Realistically, planning for 18–24 months from land acquisition to factory completion is advisable.
Bangladesh's land legal environment is complex, but there is a clear alternative in economic zone utilization. Actively leveraging the support infrastructure of BEZA, KOTRA, and BIDA from the outset, and establishing a long-term advisory relationship with a law firm experienced in the local market, forms the foundation for stable business operations. Bangladesh's real estate market has long-term investment potential as urbanization and industrialization continue to drive growth.