In this post we talk about Food Processing Business Registration in Bangladesh in 2023 and the Fail-proof way of opening food business in Bangladesh with infographics and videos.
PROCESS OF LICENSING AND REGISTRATION:
Who is responsible for food quality in Bangladesh? In general, the Bangladesh Standard and Testing Institution, often known as BSTI, tests and determines the quality of a product before it is shipped. BSTI takes into account a variety of aspects, such as the product’s creation process and system, its quality, and its suitability for import or export, among others. Most notably, it gives a standard mark that indicates a product’s BSTI accreditation. Before venturing into Food Processing Business Registration in Bangladesh, one should have a clear idea of the regulations of BSTI.
As a sub-department of the Ministry of Food, the Food Directorate is well on its way to replacing its manual work processes with a digital system. Under the title ‘Food Stock and Market Monitoring System’, a component of the Modern Food Storage Facilities Project funded by the World Bank, an international consultant PWC is analyzing for IT intervention the existing processes involved in procurement of food grains from growers, movement of the stock from one place to another, and delivery to different channels through the Public Food Distribution System (PFDS).
The Control of Essential Commodities Act of 1956 and the SROs made under this act permit the Directorate of Food to issue licenses to traders involved in the food grain business for the purpose of regulating the storage, movement, transport, supply, distribution, and disposal of essential commodities. All food grain traders, including importers, wholesalers, and retailers, are obliged by law to get a license from the department and to submit a regular report detailing their transactions and stocks every two weeks.
To provide a straightforward registration period Directorate General of Food desires to move the license issuance and renewal mechanism online in order to entice investors, and is also considering converting the licensee’s manual stock reporting system to e-reporting and subsequent nationwide auto compilation of stocks. Once the system is in place, all traders will voluntarily register with the license network, thereby increasing the government’s annual revenue and providing a true picture of food grain transactions in the private sector, which would be a significant step forward in the direction of improved food management decisions.
The government created the Food Friendly Program (FFP) in 2016 to provide food grain at a very low price to 50 lac rural disadvantaged families. After enrolling in the scheme, recipients receive 30 kg of rice each month (five months per year) at a cost of TK 0.10 per kg from dealers dispersed throughout nearly all Unions. Directorate of Food wishes to compile a database of recipients and retailers. It also desires the development of programs to track the lifting of food grain by dealers and distributions to consumers.
List of goods that require BSTI certification
There is a list of 181 goods that must be certified and evaluated by the BSTI before they may be offered on the market. In a similar fashion, there is a list of fifty-four imported products that require BSTI certification prior to customs clearance. Twenty-three of these items are food-related. Before their products may be marketed on the market, a great number of food processing enterprises must get a license from BSTI.
Among all types of Food Processing Business Registration in Bangladesh, meats are the most delicate since they are very perishable and can carry a variety of diseases and bacteria. Meat has been at the center of epidemics such as bird flu and swine flu during the past two decades; consequently, adequate testing of meat is essential. In a country such as Bangladesh, where non-professionals sell and purchase a large number of animals annually during religious holidays, this becomes even more crucial.
Therefore, the Department of Livestock must use extreme caution to ensure that no dangerous substances are administered to animals or injected into animals, as this could be detrimental to human health if these animals’ flesh is ingested. Regarding meat processing, the Department of Livestock requires a license for slaughtering, meat processing, and meat selling establishments.
In the same manner as meat, fishes and crustaceans such as shrimp and lobsters are extremely perishable and must be handled and inspected correctly, especially since poisoning can be lethal. In recent years, numerous fish farms and shrimp hatcheries have emerged. Registration with the Department of Fisheries is required for the establishment of a fishery or hatchery. In addition, a Department of Fisheries license would be necessary for the processing and packaging of fish and shrimp.
In Bangladesh, registering a corporation with the Registrar of the Joint Stock Companies, also known as RJSC, is typically the first step in establishing a food manufacturing company.
In Bangladesh, an Import Registration Certificate is required for all imports, and an Export Registration Certificate is required for all exports. If a factory is established to process meat, fish, shrimp, or other food products, a Factory License from the Department of Inspection for Factories and Establishments is necessary (DIFE). Aside from that, the food processing firm requires a Fire License, Environmental Clearance Certificate, Trade License, VAT registration certificate, and Tax Identification Number (TIN).
Legal Difficulties in Food Processing Business Registration in Bangladesh:
Due to the enormous size of the food processing business, there are sure to be several legal difficulties. As new types of food items are developed on a daily basis, the legal ramifications pertaining specifically to this business also undergo substantial change.
The government must supervise food processing and products on a regular basis. Under the Food Safety Act 2013, the Bangladesh Food Safety Authority or BFSA has the authority to supervise any establishment that processes food and can penalize an establishment if necessary. Inspectors have the authority to enter any food establishment, collect samples as needed, and send them to their food analysts for analysis. If something illegal or harmful in excess of the law is detected in the food, they can impose the necessary planned punishments according to applicable statutes and laws. In recent years, the use of the chemical formalin to make fish and vegetables appear fresher for extended periods of time has been a serious concern. Nonetheless, this substance was hazardous to human health. As a result of this substance’s prohibition, the mobile courts and BFSA inspectors adopted a firm position against its usage in food.
Similarly, the BSTI can penalize any entity associated with listed food goods if they have not followed the correct procedure and obtained the required license in accordance with BSTI Act 2018. In regards to Food Processing Business Registration in Bangladesh, BSTI has its own squad of inspectors to determine if the standard mark issued by BSTI is being abused in terms of product quality. Additionally, the BSTI monitors any trademarks that are being utilized illegally. In addition, the mobile courts will have the authority to punish with a fine, imprisonment, seizure of property, or closure of the business in the event of any BSTI-prohibited illegal behavior.
As the meat industry is extremely volatile in terms of health and hygiene concerns, the Director General of the Department of Livestock has the authority to appoint Veterinary Officers to inspect and collect samples as needed to ensure that the proper quality, hygiene, and standard of the meat are maintained throughout the market’s production process and that any leftover wastes are disposed of properly. Under the Animal Slaughter and Quality of Meat Control Act of 2011, the Director General or any Veterinary Officer with authority delegated by him would be entitled to take legal action if the legislation is not obeyed.
Similarly to the meat business , the fisheries and hatcheries industries create highly sensitive payloads that must be carefully evaluated and handled. Fish and fish products are governed by a number of laws, including the Fish and Fish Goods (Inspection and Quality Control) Ordinance of 1983, which regulates the processing, packing, and disposal of the products and their byproducts. As required by the Fish Quarantine Act of 2018 for Food Processing Business Registration in Bangladesh, there is also a law governing the quarantine of fish and crustaceans that focuses on ensuring that any fish that can transmit a pathogen that is hazardous to other species or the human body is confined. During import and export, certain fishes and crustaceans require special arrangements and processes to ensure they are safe for human consumption. There are inspectors employed mostly by the Department of Fisheries who search for inconsistencies and, upon discovering one, administer punishments in accordance with the applicable statutes or regulations.
In Food Processing Business Registration in Bangladesh, the labor legislation is also highly relevant in the primary, secondary, and tertiary sectors of the food processing business. From those who are fishing the fish, cultivating the rice, or feeding the cow to those who are processing, selling, and serving these foods in food shops and restaurants. Under the Bangladesh Labour Act 2006, the food industry will likewise face similar labor legal difficulties, such as wages, unlawful termination or dismissal, working hours & leaves, health & safety, etc. Due of the abundance of seasonal foods for which year-round permanent workers are not required, the employment of casual/seasonal labor is a major issue in the food business. HJEmployers must abide by the laws and regulations governing the employment of seasonal/occasional labor.
Description of Tahmidur Rahman Remura TLS and its services:
As one of the preeminent law companies in Bangladesh, Tahmidur Rahman Remura TLS can give any legal support required for Food Processing Business Registration in Bangladesh. Tahmidur Rahman Remura TLS is a full-service law practice with a highly devoted team prepared to serve you with all legal services. Tahmidur Rahman Remura TLS specializes in business incorporations, business licenses, and the acquisition of various types of legal registrations, including Name Clearance Certificate, VAT, IRC, ERC, etc. Tahmidur Rahman Remura TLS is able to provide any and all essential drafting services for these services, including Articles and Memorandum of Association, etc. Tahmidur Rahman Remura TLS can also assist with BSTI licensing pertaining to Trademarks, Standard Marks, etc. Tahmidur Rahman Remura TLS can also assist with BSTI licensing pertaining to Trademarks, Standard Marks, etc. Tahmidur Rahman Remura TLS can provide legal assistance to get Department of Livestock and Department of Fisheries licenses.
The Tahmidur Rahman Remura TLS team is also adept in providing any type of assistance regarding the lease or purchase of land. Tahmidur Rahman Remura TLS can review the required documents and create any legal agreements, including Powers of Attorney, for the acquisition or leasing of real estate or land. Tahmidur Rahman Remura TLS can also provide legal counsel regarding labor requirements or issues at any establishment that processes or packages food, regardless of its form or type.
Tahmidur Rahman Remura TLS has a team dedicated to assisting with all immigration requirements. Tahmidur Rahman Remura TLS can assist with acquiring the E-visa recommendation, Work Permit, Security Clearance, and any additional visas or extensions that may be required. Tahmidur Rahman Remura TLS has an entire division devoted to taxation concerns that can quickly handle all tax matters, payrolls, and banking issues.
Overall, Tahmidur Rahman Remura TLS has a highly specialized team capable of meeting all legal needs in the food processing industry. Tahmidur Rahman Remura TLS has an exceptional team of attorneys that are professionals in conducting alternative conflict settlements, such as arbitration, mediation, and negotiation, and can meet any demand in court.
Taxation in Bangladesh:
The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. The government of Bangladesh offers numerous exemptions and other benefits to entities who export goods outside of Bangladesh. Locally formed limited liability companies are required to submit a number of reports to the National Board of Revenue (NBR), such as a Tax Identification Number (TIN) application, a monthly tax deduction statement, a half-yearly withholding tax statement, a yearly statement related to the tax return submission of its employees, and a yearly statement related to the salary paid by the company to its employees. Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc. Tahmidur Rahman Remura TLS is able to provide guidance and assistance to ensure that all regulatory compliances are met, so allowing the business to operate without difficulty.
In Bangladesh, the food processing business is expanding successfully and in tandem. The government has been active in establishing additional regulatory organizations and introducing additional rules and regulations to guarantee that the food processing industry is well maintained. With seventeen billion mouths to feed, premium food producers should have no trouble finding customers.
The food sector has only thrived since the turn of the 20th century. In the age of globalization, meals from various cultures have blended, and scientific advancements have led to the rediscovery of numerous dishes. Bangladesh’s food industry is no different. As an agriculture-based nation with a large population, Bangladesh gives its food processing industry hence Food Processing Business Registration in Bangladesh a very significant importance.
Bangladesh Standard and Testing Institution (BSTI) and Bangladesh Food Safety Authority (BFSA) are the primary institutions responsible for ensuring the quality of food in Bangladesh. BSTI conducts all types of tests required to guarantee the quality of various goods in Bangladesh. Similarly, BFSA ensures the safety of food by ensuring that it is cultivated and sold in a suitable environment and that it meets the requirements for human consumption. Depending on the nature of the food processing organization’s operations, a variety of permits are necessary from several ministries and departments. Some essentials are a Business License, a VAT Registration Certificate, an IRC, and an ERC. Under the Animal Slaughter and Quality of Meat Control Act of 2011, the meat processing industry is required to get permits from the Department of Livestock. Similarly, the Fish and Fish Products (Inspection and Quality Control) Ordinance, 1983 requires licenses from the Department of Fisheries for the fish processing industry to operate.
Numerous enterprises within this industry are in jeopardy of extinction as a result of the Covid -19 crisis, which is causing this industry to face some major problems. The global economy has collapsed, and the food business has suffered the most. Restaurants have closed and farmers are unable to save their crops, either due to a shortage of labor or because the food they produce is not reaching the right market, and so they are no longer receiving the proper price.
Also, in regards to Food Processing Business Registration in Bangladesh, with times new laws are being enacted, and as a result, every participant in the food processing sector must be vigilant to ensure compliance. The functioning of Bangladesh’s Mobile Court, which guarantees that quality is maintained and overpricing is avoided, has resulted in a recent increase in Bangladesh’s adherence to food industry regulations.
As a full-service business with an exceptional team, Tahmidur Rahman Remura TLS can meet the legal needs of any entity in the food processing industry. Tahmidur Rahman Remura TLS has the expertise and the right attitude to be the one-stop solution center for all food processing industry legal dilemmas.
Are you planning to register a Food Processing Business Registration in Bangladesh?
The legal team of Tahmidur Rahman, The Law Firm in BangladeshRemura: TLS, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Food Processing Business Registration in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: [email protected]
Phone: +8801847220062 or +8801779127165
Address: House 410, Road 29, Mohakhali DOHS