LICENSE AND REGISTARTION PROCESS of Cosmetics & Toiletries Business Registration in Bangladesh


Who is accountable for the quality of all products, including cosmetics and toiletries, 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 all elements, including the product’s production method, measurements, and system. BSTI evaluates the product’s quality and ensures that it complies with all regulatory restrictions on ingredients used, production technique, and exportability, among other things. Most notably, it gives a standard mark that validates a product’s BSTI accreditation.

Cosmetics and Toiletries Business Registration in Bangladesh and List of Products for evaluation by BSTI

There is a list of 181 products, which includes the applicability of Cosmetics and Toiletries Business Registration in Bangladesh, that must be validated and evaluated by BSTI before being offered on the market. This list includes a variety of cosmetics and toiletries marketed on the Bangladeshi market, such as tissues, lipstick, shampoo, soap, etc. In a similar fashion, there is a list of fifty-four imported products that require BSTI certification prior to customs clearance. Therefore, cosmetics and toiletry producers must seek a license from BSTI before to marketing their products.

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Cosmetics & Toiletries Business Registration in Bangladesh and RJSC

Generally speaking, establishing a cosmetics or toiletry factory in Bangladesh begins with registering the firm with the Registrar of Joint Stock Companies, often known as RJSC. A Public Limited Company has the option of selling shares to the general public to raise capital, while a Private Limited Company has a predetermined list of shareholders. These companies may also have foreign shareholders. Bangladesh allows 100% ownership in most circumstances, with the exception of a few regulated businesses. For incorporation of any sort of company, the first step is to select a name, which must then be certified by the RJSC to ensure that it does not clash with other company names, which might lead to Trade Mark issues; this is accomplished with the Name Clearance Certificate. Following the issuance of the Name Clearance Certificate, local shareholders need only submit the draft of their Articles and Memorandum of Association along with the other required identity documents to RJSC for business registration. The Name Clearance Certificate is valid for one month, during which time this registration process must be completed; otherwise, a replacement certificate may be necessary. If there are foreign shareholders in the company, they will need a bank account in a certified Bangladeshi bank where their portion of the investment capital will be paid, received, and documented by an encashment certificate that must be submitted together with the other required documentation.

If foreign corporations wish to conduct business in Bangladesh, they may do so through a Branch Office or a Liaison Office. A Branch Office will be regarded as a branch of the parent company in Bangladesh, which must have the same name as the parent firm. With previous authorization from the Bangladesh Investment Development Authority, also known as BIDA, branch offices may engage in commercial activities and produce income locally. Whereas a Liaison Office can only be established for liaison purposes and cannot produce local revenue. Even the staff and employees of the Liaison Office must be paid via international remittances from the parent firm to a designated bank account. Additionally, a Branch or Liaison Office must maintain a ratio of 1 foreign employee for every 5 local employees. Numerous multinational brands that wish to establish a cosmetics or toiletry business in Bangladesh utilize these two avenues.

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Following Company Formation:

Once a company has been established i.e Cosmetics & Toiletries Business Registration with RJSC is done, if there is a need for production, the next procedures involve factory permits. The following is a list of licenses that may be required for a cosmetics and toiletry factory to operate, depending on the type of operations. This list is not inclusive, as there may be extra needs for other product types:

  1. Registration Certificate for Export (E.R.C)
  2. Import Registration Certificate (I.R.C)
  3. Approval of Factory Layout Plan.
  4. Fire License.
  5. Factory Permit
  6. Environment Certificate.
  7. Chamber of Commerce membership (if applicable)
  8. Certificate of Value-Added Tax Registration.
  9. Trade License.
  10. Identification number for taxes (TIN)

For Cosmetics & Toiletries Business Registration in Bangladesh, the I.R.C. is required by the majority of cosmetics and toiletry enterprises because they import a substantial amount of their raw ingredients (chemicals, essences, etc.). And for Cosmetics & Toiletries Business Registration in Bangladesh, the E.R.C. is often required only for those entities who intend to export their goods. The Factory License, the Fire License, and the Environment Certificate are required for the factory to operate. A business in Bangladesh is required to have a Trade License as a key prerequisite. In metropolitan cities, a Trade License can be obtained from the appropriate City Corporation or, outside of metropolitan areas, from the corresponding Municipal Corporation or Union Parishad. All businesses are needed to register for VAT and TIN, which can be done with the National Board of Revenue.

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LEGAL considerations for Cosmetics & Toiletries Business Registration in Bangladesh

Legal concerns in this situation emerge mostly from the products’ inspection. BSTI grants licenses for excellent items, although it is not uncommon for many of these products to reach the market with degraded quality after receiving a license. The BSTI employs inspectors to verify that the correct items reach the market. In addition, BSTI maintains the right to test any product to guarantee that the appropriate standard is maintained. Under the BSTI Act of 2018, BSTI also assures that no other products of the same category are marketed on the market without its standard mark or with counterfeit standard marks. Under the 2018 BSTI Act, BSTI has the ability to withdraw and confiscate such products. In addition, courts assembled pursuant to the Mobile Court Act (2009) may adopt the BSTI regulations, oversee inspections, and impose sanctions if the criteria are not satisfied.

Periodically, a Trademark is adopted for different products. It is issued by the Department of Patent, Design, and Trademark in Bangladesh. Under the Trademarks Act 2009, a Trade Mark grants an entity exclusive use of its name across the country, and no other party should be able to legally copy it. This is enforced by law by the Trade Mark registering party. Trademark is a relatively prevalent legal issue that primarily occurs in relation to cosmetics and toiletries. Trade Marks are not always present on every product, but in the majority of instances, the copying of Trade Marks occurs with well-known companies since they are more easily sold.

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The Consumers Rights Protection Act (2009) addresses the aforementioned issues from the perspective of consumers. It ensures that consumers are not sold counterfeit products that do not meet the required standards and lack the required BSTI standard mark. In addition, there are no misrepresentations or deceptive advertisements on the quality or capabilities of a certain product. The Director General or any officer of the Directorate of National Consumers’ Right Protections authorized by him should be allowed to enforce the necessary penalties as necessary.

After completing the Cosmetics & Toiletries Business Registration in Bangladesh, you should also keep in mind that, This industry employs a large number of workers, and legal difficulties related termination, unjust dismissal, leaves, payment, etc. arise frequently under Bangladesh Labour Act 2006. In recent years, the working environment has become increasingly crucial for employees, as chemicals and other hazardous compounds are frequently utilized in the production of cosmetics and toiletries. The Bangladesh Labour laws require compliance with working hours, number of leaves, all employment perks, termination benefits, trade union issues, workers’ welfare issues, etc. The Department of Inspection for Factories and Establishments (DIFE) is the government agency charged with overseeing all labor-related matters.

Other legal issues that may arise in the cosmetics and toiletries industry include contract issues between industry parties, banking issues such as foreign exchange policies due to the import and export of raw materials and finished products, transportation of products and their safety, obtaining work permits and immigration of foreign employees working in this industry in Bangladesh, etc.

Description of the Tahmidur Rahman Remura TLS and its services for Cosmetics & Toiletries Business Registration in Bangladesh

Tahmidur Rahman Remura TLS is one of the most prestigious law firms in Bangladesh and can provide any legal support necessary by the cosmetics and toiletry business. Tahmidur Rahman Remura TLS is a full-service law office with a highly committed team prepared to serve you with all legal services. Tahmidur Rahman Remura TLS specializes in company formation, business licenses, and the acquisition of all types of legal registrations, including Name Clearance Certificate, VAT, IRC, ERC, TIN, etc. Tahmidur Rahman Remura TLS offers the essential drafting services for these services, including Articles of Association and Memorandum of Association, etc. Tahmidur Rahman Remura TLS may also aid with BSTI and the licensing of trademarks, standard marks, etc. Tahmidur Rahman Remura TLS can also aid with licenses pertaining to Trademarks, Standard Marks, etc. with the BSTI and Department of Patent, Design, and Trademark.

Labor difficulties are a typical occurrence in this business. Labour concerns include workers’ earnings and leaves, wrongful dismissal, severance pay, Trade Unions and their activities, workers’ health and safety, etc. Tahmidur Rahman Remura TLS’s legal team is comprised of exceptional attorneys who can effectively represent any party in Bangladesh’s court system about any labor, contract, or pertinent problem pertaining to the cosmetics and toiletry business.

Tahmidur Rahman Remura TLS has a team dedicated to assisting with all immigration issues in regards to Cosmetics & Toiletries Business Registration in Bangladesh. Tahmidur Rahman Remura TLS can assist with obtaining 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 dedicated to taxation concerns that can quickly handle all tax matters, payrolls, and banking issues. In addition, Tahmidur Rahman Remura TLS can provide complete support in the event of any breach of contract or agreement.

Overall, Tahmidur Rahman Remura TLS has a very distinctive staff that can fulfill any cosmetics and toiletry business legal demands. Tahmidur Rahman Remura TLS offers an exceptional team of attorneys who are adept at handling alternative dispute settlements, such as arbitration, mediation, and negotiation, and can meet any demand in court.

Taxation for Cosmetics & Toiletries Business Registration in Bangladesh

The current general tax rate in Bangladesh is 32.5 percent, as stipulated by its legislation. Locally created limited liability companies are required to submit a variety of reports to the National Board of Revenue (NBR), including: opening a Tax Identification Number (TIN), submitting an annual return, and submitting an annual return for the previous year. Monthly Tax Deduction Statement, Semi-Annual Withholding Tax Statement, Annual Statement Relating to Employee Tax Return Filing, Annual Statement Relating to Salary Paid by the Company to Employees. Quarterly Advance tax deposit, Annual tax return submission, representing the company at appeal/hearing sessions, Monthly VAT return, etc. Tahmidur Rahman Remura TLS may provide guidance and assistance to ensure that all regulatory compliances are met, allowing the business to operate without difficulty.

The significance of the cosmetics and toiletry industry has undergone a dramatic shift. It is a significant industry with strong growth potential in the Bangladeshi market. The government of Bangladesh has been working assiduously to improve the nation’s economic infrastructure and has been welcome foreign direct investment with open arms. With 17 billion potential clients in Bangladesh alone, this industry has the potential to become one of the dominant industries of the future, with the correct push. Hence the Cosmetics & Toiletries Business Registration in Bangladesh is getting more traction day by day.

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Expansion of The cosmetics and toiletry sector in Bangladesh

The cosmetics and toiletry sector in Bangladesh is seeing significant expansion. It is one of the industries with consistent growth and a big number of employees. There are two distinct areas within the cosmetics and toiletry market. The cosmetics industry is fairly young and in its developmental stages. The toiletry industry has a strong presence on the market because it produces items of daily use.

To enter this industry, certain qualifications must be met. Numerous other businesses have a direct impact on the cosmetics and toiletry industry, including import/export, trademark, labor, and finance, among others. From incorporation of the company to setting up the factories, there are some minimum licenses and registrations required to enter this sector; consequently, there are a great deal of legal services to be provided, particularly with regard to the licenses, such as the trade license, TIN, VAT, I.R.C, and E.R.C. Before selling certain of their products on the market, cosmetics and toiletry enterprises are required to obtain a license from BSTI.

Foreign corporations may also choose to incorporate a Branch office or Liaison Office rather than a full company. These entities will bear the original company’s name, and because these products are so brand-focused, this becomes incredibly significant. Depending on the type of business, additional licenses, such as the Factory License, Environmental Clearance Certificates, and Fire License, may be required for the establishment of factories. The presence of expatriates, who require a work permit to work in the country, is also a result of the large number of foreign investors investing in this particular sector.

Regarding labor is one of the industry’s most pressing concerns. Labor difficulties are a typical occurrence in this business. Labour concerns include workers’ earnings and leaves, wrongful dismissal, severance pay, Trade Unions and their activities, workers’ health and safety, etc. Tahmidur Rahman Remura TLS’s legal team is comprised of exceptional attorneys who can effectively represent any party in Bangladesh’s court system about any labor, contract, or pertinent problem pertaining to the cosmetics and toiletry business.

In conclusion, Tahmidur Rahman Remura TLS is the full-service firm that can provide comprehensive solutions for any cosmetics and toiletry business legal challenge. Tahmidur Rahman Remura TLS offers unmatched expertise in the areas of company law, trademark law, labor law, and commercial law, and can provide counsel on any legal situation. Additionally, Tahmidur Rahman Remura TLS includes specialized divisions for financial and immigration concerns.

Are you planning to incorporate a Cosmetics & Toiletries Business Registration in Bangladesh?

Company formation and registration at Tahmidur Rahman Remura: TLS: The Law Firm 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 Cosmetics & Toiletries Business incorporation 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

Full Service Law Firm

Other Registration

 The lawyers and barristers at Tahmidur Rahman Remura TLS have substantial expertise representing foreign companies and individuals seeking to acquire registration in Bangladesh.

Join 170+ World Class Clients

 Tahmidur Remura is a full-service international law firm in Bangladesh providing counsel throughout the Americas, Europe, Russia/CIS, the Middle East, Asia and Africa.

Tahmidur Rahman Remura

Barrister Tahmidur Rahman

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Cosmetics and Toiletries Business Registration in Bangladesh

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