If you’re planning to start a business in Bangladesh, navigating the myriad of government regulations is crucial. This guide will provide you with all the necessary details about the permits, licenses, and approvals required to legally operate a business in Bangladesh.
Introduction to Business Setup in Bangladesh
Bangladesh offers a growing market with strategic access to key global regions. However, establishing a business here involves understanding a complex array of regulatory requirements.
Initial Registration and National Permits
All businesses in Bangladesh must go through a series of initial registration steps and obtain national permits:
- Business Registration: Register your business with the Registrar of Joint Stock Companies and Firms (RJSC).
- Tax Identification Number (TIN): Obtain a TIN from the National Board of Revenue (NBR).
- Trade License: Secure a trade license from the local city corporation or municipal authority.
Industry-Specific Licenses
Certain industries in Bangladesh are highly regulated and require specific licenses:
- Manufacturing: Factories must obtain a Factory License from the Department of Inspection for Factories and Establishments.
- Import/Export: Engaging in import/export activities requires obtaining an Import Registration Certificate (IRC) and Export Registration Certificate (ERC) from the Office of the Chief Controller of Imports and Exports.
- Pharmaceuticals: A license from the Directorate General of Drug Administration is mandatory for manufacturing or selling pharmaceutical products.
Environmental and Other Special Permits
Depending on the nature of the business, you might need to comply with environmental regulations and obtain special permits:
- Environmental Clearance Certificate: Required from the Department of Environment for industries that have significant environmental impacts.
- Fire Safety Certificate: Necessary from the Fire Service and Civil Defence Department for businesses operating in industries prone to fire hazards.
Regional and Local Licensing
In addition to national licenses, local or regional specific licenses might be required, depending on your business location:
- Dhaka: Businesses in Dhaka may need additional permits from the Dhaka City Corporation, such as signage permits and parking space clearances.
- Chittagong: Special economic zones in Chittagong offer streamlined procedures but require specific approvals related to customs and tax exemptions.
Navigating the Licensing Process
The process to obtain all necessary permits and licenses can be daunting. Here are steps to guide you:
- Identify Necessary Licenses: Determine which licenses and permits are essential based on your industry and business activities.
- Gather Documentation: Collect all necessary documents, including business plans, partnership agreements, and financial proofs.
- Apply for Licenses: Submit applications to the respective authorities, ideally starting with the RJSC and local city corporation.
- Follow Up: Regularly follow up with each authority to track the progress of your applications and prepare for any required inspections.
Conclusion
While the process of starting a business in Bangladesh can appear complex due to various bureaucratic requirements, a clear understanding and systematic approach to obtaining the necessary permits and licenses can significantly ease the process. This guide aims to provide you with the knowledge to navigate these steps effectively.
