Comprehensive Guide to Setting Up a Factory in Bangladesh
Setting up a factory in Bangladesh requires compliance with several legal and administrative procedures. This guide provides a step-by-step process, timeline, and required documentation for factory registration and operation.
Step 1: Company Incorporation in Bangladesh
Establishing a legal entity is the first step toward setting up a factory. The incorporation process includes registering the company with the Registrar of Joint Stock Companies and Firms (RJSC). This process typically takes 39-40 days and requires submission of key documents such as Form VI, Form IX, shareholders’ identification, and a bank encashment certificate for paid-up capital.
Required Documents:
- Filled-in Form VI (Registered Office Notice)
- Filled-in Form IX (Director’s Consent)
- Shareholders’ passport-size photographs
- Photo ID and passport info pages of shareholders and directors
- Foreign Currency Encashment Certificate
- Treasury Challan
- Permission from BIDA (for foreign investments)
Step 2: Trade License in Bangladesh
A Trade License is mandatory to operate legally in Bangladesh. This document is obtained from the local municipal authority, and the timeline for processing is 2-5 working days.
Required Documents:
- Certificate of Incorporation
- Memorandum of Association
- Business Address Proof
- Applicant’s photo (3 copies, attested)
- National ID card or passport copy
- Additional documents for factory trade licenses such as a NOC, tax receipts, factory layout, and fire clearance.
Step 3: Company TIN (Taxpayer Identification Number)
A TIN certificate is required for tax compliance. The process takes only one working day and is free of cost.
Required Documents:
- Contact number & email
- Incorporation number & date
- Name of the authorized person
- Company address
Step 4: Chamber of Commerce License in Bangladesh
Registration with the Chamber of Commerce provides credibility and facilitates import/export activities. The process takes 2-5 working days.
Required Documents:
- Trade License
- TIN Certificate
- Bank Certificate
- Memorandum & Articles of Association
- Certificate of Incorporation
- Passport or National ID
- Visiting Card
- IRC, VAT, BIDA Certificate, Work Permit
- Bank Pay Order
Step 5: Import License in Bangladesh
An Import License is necessary to bring in raw materials and machinery. The timeline for processing is 2-3 weeks.
Required Documents:
- Valid Trade License
- Membership Certificate from a local Chamber of Commerce
- Financial solvency certificate from a bank
- Citizenship Certificate
- Treasury Challan
- TIN Certificate
- Joint Venture Agreement (if applicable)
- Certificate of Incorporation
Step 6: VAT Registration in Bangladesh
A VAT Registration Certificate is required for tax compliance and is processed within 2-3 weeks.
Required Documents:
- Trade License
- Import License
- Bank solvency certificate
- Citizenship Certificate
- Treasury Challan
- TIN Certificate
- Joint Venture Agreement
- Memorandum & Articles of Association
Step 7: BIDA Factory Investment Membership in Bangladesh
To operate a factory, registration with BIDA is necessary, taking 2-3 weeks or longer.
Required Documents:
- Forwarding letter from the company
- BIDA application form
- Certificate of Incorporation & Memorandum of Association
- Joint Venture Agreement (if applicable)
- Shareholders’ list & directors’ details
- Trade License, TIN, and bank documents
- List of machinery (local & imported)
- Project profile and NOCs
Step 8: Potential Investor Visa (PI Visa) in Bangladesh
Foreign investors require a PI Visa to work and invest in Bangladesh. The process takes around 2-3 months, depending on security clearance.
Required Documents:
- Memorandum & Articles of Association of the parent company
- Board resolution approving the investment
- Investor’s passport, photograph, and contract
- Investment proof of USD 40,000 or more
- Encashment Certificate
- Income Tax Certificate
Step 9: Environmental License in Bangladesh
Factories must obtain an environmental clearance certificate from the Department of Environment. The process takes 1-2 months.
Required Documents:
- Environmental Impact Assessment (EIA)
- Site layout and factory blueprints
- No Objection Certificate (NOC) from the local authority
- Emergency mitigation plan
Step 10: Fire License in Bangladesh
A Fire License ensures compliance with fire safety regulations. The process takes 2-4 weeks.
Required Documents:
- Trade License
- Fire safety layout plan
- Factory product description
- Certificate of Incorporation & Memorandum
- NOC from the local representative
Step 11: Department of Inspection for Factories and Establishments Approval in Bangladesh
Factory layout approval and operational clearance are required for worker safety and regulatory compliance. The process takes 3-4 weeks.
Required Documents:
- Trade License, rental agreement, land ownership proof
- Soil test report, structural design, building permit
- Employee list and factory layout
- Machinery description and process flow chart
- Company Incorporation Documents
Estimated Costs and Timeline
Professional Service Fees:
- Steps 1-8: USD 7,000 + Govt Fees (2-3 Months)
- Steps 9-11: USD 4,000 + Govt Fees (2-4 Months)
Additional Costs (If Required):
- Soil Test Report
- Structural Design Approval
- Load Bearing Certificate
- Building Construction Certificate
- Approved Building Plan
Setting up a factory in Bangladesh requires strategic planning and compliance with various regulatory requirements. LegalSeba.com provides expert assistance to streamline the process, ensuring a smooth and legally sound establishment of your factory.
Professional Assistance by LegalSeba for Factory Establishment in Bangladesh
At LegalSeba, we provide end-to-end support for setting up a factory in Bangladesh, ensuring a smooth and compliant process. Our services include:
✅ Expert Consultation – Understanding your business needs and guiding you through the legal framework.
✅ Business Registration & Licensing – Assisting with company incorporation, trade licenses, and necessary permits.
✅ Regulatory Compliance – Ensuring compliance with BIDA, environmental, fire safety, and factory regulations.
✅ Document Preparation & Verification – Gathering and verifying all required documents for seamless approvals.
✅ Application Processing & Follow-up – Managing submissions and tracking progress with relevant authorities.
✅ Additional Administrative Support – Assisting with location selection, legal agreements, and tax registration.
✅ Post-Establishment Services – Providing ongoing support for operational compliance, labor laws, and expansion needs.
Contact US
Choose LegalSeba LLP for a hassle-free factory setup experience. Contact us today to start your journey toward establishing a successful business in Bangladesh.
📞 Phone/WhatsApp: +8801753718223
📧 Email: [email protected]
🌐 Book a Meeting: LegalSeba.com/book-now
For more details on how LegalSeba LLP can assist with factory establishment in Bangladesh, visit our website or reach out to our expert team. Our comprehensive services will ensure your factory is set up efficiently and in full compliance with all regulatory requirements.
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