Licenses For Doing Business In Bangladesh

Licenses For Doing Business In Bangladesh

Bangladesh is one of the world’s fastest-growing developing economies, boasting a large domestic market, young workforce, and strategic location in South Asia. Whether you are a local entrepreneur or a foreign investor, obtaining the requisite licenses and approvals is mandatory before commencing any form of business activity. Licenses not only confer legal authority but also ensure compliance with sector-specific regulations, environmental standards, tax obligations, and public safety requirements.

At TRW Law Firm, we guide clients through every step of the licensing process— from choosing the optimal business structure to securing specialized permits. Leveraging our deep knowledge of Bangladeshi regulatory frameworks, we help you minimize delays, avoid pitfalls, and unlock your business’s full potential.

Table of Contents

1. Choosing Your Business Structure

2. Registration and Incorporation

3. General Operational Permits

4. Sector-Specific Licenses

5. Intellectual Property and Quality Marks

6. Taxation and Regulatory Registrations

7. Foreign Investment and Special Economic Zones

8. Our End-to-End Licensing Services

9. Conclusion

10. Summary Table of Licenses

11. Contact Information

Choosing Your Business Structure

Before applying for any license, you must decide how you wish to conduct business. In Bangladesh, the most common forms are:

■ Proprietorship
■ Partnership
■ Private Limited Company
■ Public Limited Company

Note: If you operate as a sole proprietorship, you may directly apply for trade licenses and other operational permits. However, for partnerships, private or public companies, you must first complete registration with the Registrar of Joint Stock Companies & Firms (RJSC).

Registration and Incorporation

1. Company Registration (RJSC)

Before any license application, partnerships and companies must register with the RJSC under the Companies Act, 1994. This process yields the Certificate of Incorporation, which is the foundational document for all subsequent approvals.

2. Trade License

Issued by the relevant City Corporation, Municipality, or Union Parishad, the trade license authorises you to carry on commercial activities in your jurisdiction.

■ Submit application to the local authority where your principal place of business is located.
■ Provide proof of identity, incorporation certificate, and premises occupancy documents.

General Operational Permits

These licenses are commonly required across industries:

3. Environmental Clearance Certificate

Agency: Department of Environment (DoE)
■ Mandatory for projects producing emissions, effluents, or solid waste.
■ Involves Environmental Impact Assessment (EIA) and public consultation.

4. Construction Certificate

Agency: RAJUK (for Dhaka), CDA/KDA (for Chittagong/Karachi)
■ Required before building any industrial facility, office complex, or commercial structure.
■ Includes zoning compliance and structural safety approvals.

5. Approval of Factory Plan & Registration of Factories

Agency: Department of Inspection for Factories & Establishments (DIFE)
■ Factories must submit detailed building plans and equipment layout.
■ Obtain both Approval of Factory Plan and Certificate of Registration prior to commencing operations.

6. Fire License

Agency: Fire Service & Civil Defence (FS&CD)
■ Ensures adherence to fire safety norms.
■ Entails inspection of firefighting equipment, exit routes, and emergency response plans.

7. Explosives License

Agency: Department of Explosives
■ For businesses handling fireworks, detonators, or industrial explosives.
■ Involves stringent security clearances and periodic renewals.

Sector-Specific Licenses

Depending on your industry, additional approvals may be required:

8. Import & Export Registration Certificates (IRC/ERC)

Agency: Chief Controller of Imports & Exports (CCI&E)
■ Import Registration Certificate (IRC): For importing goods into Bangladesh.
■ Export Registration Certificate (ERC): For exporting goods out of Bangladesh.
■ Indenting Registration Certificate: For agents procuring goods on behalf of foreign principals.

9. Bonded Warehouse License

Agency: Customs Bond Commissionerate (CBC)
■ Authorises storage of imported goods without immediate payment of duties.
■ Ideal for re-export, light processing, or consignment businesses.

10. Approval of Foreign Loan

Agency: Bangladesh Investment Development Authority (BIDA)
■ Required when financing a project via foreign debt.
■ Involves scrutiny of loan terms, repayment schedules, and currency risk mitigation.

11. Quality Certification Mark (BIS/BSTI)

Agency: Bangladesh Standards and Testing Institution (BSTI)
■ Mandatory for certain consumer goods (food, electrical appliances, textiles).
■ Ensures compliance with national standards and consumer safety.

12. Registration of Boilers

Agency: Office of the Chief Inspector of Boilers (CIOB)
■ Boilers used in manufacturing must be inspected and certified.
■ Includes annual safety audits and pressure testing.

Intellectual Property and Quality Marks

Protecting your intangible assets is critical:

13. Trademark Registration

Agency: Department of Patents, Designs & Trademarks (DPDT)
■ Grants exclusive rights to use your brand identifiers in Bangladesh.
■ Prevents unauthorized use by competitors.

14. Copyright Registration

Agency: Copyright Office
■ Protects literary, artistic, and musical works.
■ While copyright exists automatically, registration facilitates enforcement.

15. Patent & Design Registration

Agency: DPDT
■ Patents: For inventions with novelty and industrial applicability.
■ Designs: For aesthetic aspects of your products.

Taxation and Regulatory Registrations

Licenses and registrations under tax laws are equally vital:

16. Tax Identification Number (TIN)

Agency: National Board of Revenue (NBR)
■ Unique identifier for income tax purposes.
■ Required for all companies, partnerships, and high-income individuals.

17. VAT Registration

Agency: NBR
■ Businesses whose annual turnover exceeds BDT 3 million (approx.) must register.
■ Enables VAT collection, input tax credit, and filing of monthly returns.

Foreign Investment and Special Economic Zones

For foreign nationals and investors:

18. Project Registration with BIDA

Agency: BIDA
■ Entry point for foreign direct investment (FDI).
■ Offers incentives: tax holidays, repatriation of profits, and land lease facilities.

19. Ad-Hoc IRC / BIDA Recommendation

■ After BIDA registration, foreign investors obtain an Ad-Hoc IRC allowing import of capital goods duty-free.

20. Work Permit for Foreign Nationals

Agencies: BIDA & BEPZA (for special zones)
■ Permits expatriates to work legally in Bangladesh.
■ Requires sponsorship by a registered company.

Our End-to-End Licensing Services

At TRW Law Firm, we offer:

■ Strategic advice on optimal business structure
■ Handling of RJSC incorporation formalities
■ Preparation and submission of all license applications
■ Liaison with regulatory bodies (DoE, DIFE, BIDA, NBR, etc.)
■ Assistance with renewals, amendments, and compliances
■ Representation in administrative hearings and appeals

Whether you are setting up a small trading firm or a large manufacturing plant, our multidisciplinary team ensures a smooth, expedited licensing process, allowing you to focus on growing your business.

Conclusion

Navigating Bangladesh’s regulatory landscape may seem daunting—but with the right legal partner, it becomes a competitive advantage. Licenses are not mere formalities; they underpin your legal standing, protect your investments, and enhance stakeholder confidence. TRW Law Firm stands ready to shepherd you through every approval, clearance, and certificate you require—on time and in full compliance with Bangladeshi law.

Learn more about our licensing services at tahmidurrahman.com/licenses.

Summary Table of Licenses

Contact Information

TRW Law Firm
Contact Numbers:
+8801708000660
+8801847220062
+8801708080817

Emails:
info@trfirm.com
info@trwbd.com
info@tahmidur.com

Global Law Firm Locations:

• Dhaka: House 410, Road 29, Mohakhali DOHS

• Dubai: Rolex Building, L-12 Sheikh Zayed Road