Industrial Parks, Economic Zones and Manufacturing Facilities in Bangladesh

by Barrister Tahmidur Rahman | Sep 14, 2026

Projects & Real EstateFrom site selection to production8 min read

Industrial Parks, Economic Zones and Manufacturing Facilities in Bangladesh

Legal advice on economic zones, export processing zones, private industrial parks and stand-alone manufacturing facilities in Bangladesh, covering site selection, Invest Bangladesh and BEPZA approvals, zone leases, construction, utilities, operating licences, incentives, financing and eventual exit or relocation, for local and foreign manufacturers alike.

Overview

Choosing between economic zones, EPZs and other sites

Where a factory is built in Bangladesh shapes almost everything that follows: the approving authority, the land tenure, the tax and customs position, the labour regime, utility connections and how easily the business can later be sold. Economic zones, export processing zones (EPZs), hi-tech parks, private industrial parks and freehold land outside any zone each carry a different legal package. We help manufacturers, developers and investors compare those packages against their business plan before they commit to a site or sign heads of terms, as part of our real estate and projects practice in Bangladesh.

The institutional map changed in 2026. Under the Invest Bangladesh Act 2026, the former Bangladesh Economic Zones Authority (BEZA), the Bangladesh Investment Development Authority (BIDA) and the PPP Authority were merged into Invest Bangladesh, which has operated since 23 August 2026. Economic zones previously administered by BEZA now sit with Invest Bangladesh, while the Bangladesh Export Processing Zones Authority (BEPZA) and the Hi-Tech Park Authority remain separate. Existing zone leases, licences and incentive certificates were issued by the predecessor bodies, so we check how each document carries over and which office now handles renewals, amendments and consents.

Economic zones include public zones, private zones operated by licensed developers, and government-to-government zones developed with partner countries. The terms on offer in economic zones differ from zone to zone: lease length and rent, service charges, utility arrangements, permitted activities, customs procedures and the extent of one-stop service. EPZs under BEPZA follow their own framework, including a separate labour law regime for zone enterprises. We read the zone rules, allotment letters and standard leases together, identify the points that are negotiable, and explain where an investor's protection actually comes from, whether statute, a licence condition or a contract.

Many manufacturers still build outside designated economic zones, on purchased or leased land or in private industrial parks. That route can offer flexibility on location and cost, but it brings its own approvals chain: land title and use checks, building permission from the relevant development authority, environmental clearance from the Department of Environment, factory layout approval and licensing by DIFE, a fire licence, a trade licence and utility connections. We coordinate these steps legally, flag where one approval depends on another, and keep the record consistent so that lenders, buyers and auditors can follow it without difficulty.

Our work continues after production starts. We advise on expansions and second units, whether inside or outside economic zones, subleases and shared facilities, changes of shareholding, bank financing secured on zone leases, disputes with developers or contractors, and relocation from city sites into economic zones. Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise foreign investors on structuring and investment approvals, while our litigation team handles contentious matters. We also work with counsel in China, India, the UK, US, UAE and Singapore. For a confidential first discussion about a site or project, please contact our Dhaka office.

01 · What we handle

Core workstreams

  • Site and legal regime comparison
  • Investment approvals and registration
  • Zone leases and developer agreements
  • Construction and utilities
02 · How it runs

Four clear stages

  1. 01Define the project
  2. 02Compare and select
  3. 03Approve and build
  4. 04Operate and adapt
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

How we support manufacturing and zone projects

Workstream 01Projects & Real Estate

Site and legal regime comparison

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
Workstream 02Projects & Real Estate

Investment approvals and registration

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
Workstream 03Projects & Real Estate

Zone leases and developer agreements

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
Workstream 04Projects & Real Estate

Construction and utilities

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
Workstream 05Projects & Real Estate

Financing, sales and acquisitions

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
Workstream 06Projects & Real Estate

Operations, disputes and exit

  • Define the project
  • Compare and select
  • Approve and build
  • Operate and adapt
01

Site and legal regime comparison

We compare economic zones, EPZs, hi-tech parks, private industrial parks and freehold sites for a specific project, looking at approving authority, tenure, incentives, customs treatment, labour rules, utilities and exit. The result is a short decision paper that management and investment committees can use to shortlist sites, with the legal trade-offs set out clearly alongside the commercial and engineering factors raised by the client's own team.

02

Investment approvals and registration

We prepare and manage applications to Invest Bangladesh, BEPZA or the Hi-Tech Park Authority, whichever is relevant to the site, together with company formation, investment registration, work permits for foreign staff and foreign exchange filings with Bangladesh Bank. For sites outside economic zones, we coordinate building permission, environmental clearance, DIFE layout approval, fire licensing and trade licensing in a sensible sequence that avoids costly rework.

03

Zone leases and developer agreements

For plots in economic zones and EPZs, we review and negotiate land lease agreements, allotment letters, developer agreements and service contracts, focusing on term, rent review, permitted use, utility commitments, assignment and sublease rights, lender step-in, termination grounds and handback. For private zone developers, we advise on licence conditions, investor-facing documents and the allocation of infrastructure obligations between the developer and authorities.

04

Construction and utilities

We draft and negotiate EPC, design-build and fit-out contracts for factory buildings, warehouses and effluent treatment plants, with appropriate security, delay and defects provisions. We also review gas, power and water connection arrangements and captive generation, so that the legal documents reflect realistic utility timelines and allocate the risk of late connections or supply interruptions fairly between the parties over the whole life of the project.

05

Financing, sales and acquisitions

Banks and development finance institutions often lend against leases in economic zones and EPZs, and against factory assets. We advise borrowers and lenders on security over leasehold interests, plant and machinery, consents needed from the zone authority, and intercreditor issues. We also handle share and asset sales of zone enterprises, including diligence on lease terms, licences, labour matters and incentive conditions that a buyer may inherit.

06

Operations, disputes and exit

Once a factory is running, we advise on licence renewals, compliance inspections, labour relations, expansions, relocation and closure. Where disputes arise with a developer, contractor, utility provider or authority, our dispute resolution team handles negotiation, arbitration and court proceedings. On exit, we plan the sale, transfer or surrender of zone rights so that value is preserved and obligations are properly closed out with the authority.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Projects & Real Estate matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

What is the practical difference between economic zones and EPZs in Bangladesh for a new manufacturer?

Both offer serviced land and a package of approvals and incentives, but they sit under different authorities and frameworks. Economic zones, formerly administered by BEZA, now fall under Invest Bangladesh following the 2026 merger, and include public, private and government-to-government zones. EPZs are administered by BEPZA, which remains a separate authority with its own rules, including a distinct labour regime for zone enterprises. Lease terms, permitted activities, customs procedures and the services available differ between them. The better choice depends on the product, the export and domestic sales mix, the workforce plan and the investor's timetable for starting production.

02

Who approves investment in economic zones now that BEZA has been merged into Invest Bangladesh?

Since 23 August 2026, Invest Bangladesh has carried the functions previously performed by BEZA, BIDA and the PPP Authority, so it is the main point of contact for investors in economic zones. BEPZA continues to handle EPZs and the Hi-Tech Park Authority continues to handle hi-tech parks. Transitional arrangements matter for existing investors whose leases, licences and incentive certificates were issued by BEZA. We check how those documents are treated under the new structure, which office handles amendments and renewals, and whether any new filings, notifications or board approvals are needed to keep the investment fully documented.

03

Are the tax and duty incentives in economic zones guaranteed for the full lease term?

Not automatically. Fiscal incentives such as tax holidays and duty concessions generally come from tax and customs law and related government orders, which can change through the annual budget or new legislation. Some benefits also depend on conditions, such as export ratios, investment amounts or start-up deadlines. Before relying on incentives in a financial model, we identify the legal source of each one, its conditions and duration, and how the law treats existing investors if it changes. Where possible, we document the agreed position with the authority so that any later disagreements are easier to resolve.

04

Can we sublease part of our plot or share facilities with a group company in the same zone?

It depends on the zone rules and the lease. Many zone leases restrict subletting, assignment and changes in use without prior consent, and some authorities require each operating enterprise to hold its own registration. Sharing warehouses, effluent treatment plants or utilities between group companies can be workable if structured properly. We review the lease and applicable rules, prepare a consent application with a clear explanation of the proposed arrangement, and draft intra-group agreements that allocate costs, liabilities and access rights, so that the arrangement does not put the main lease, incentives or bank security at risk.

05

What approvals does a new factory built outside economic zones usually need?

Outside zones, a manufacturer typically assembles approvals from several bodies. These usually include confirmation of land title and permitted use, building permission from the relevant development authority or local body, environmental clearance from the Department of Environment, factory layout approval and a factory licence from DIFE, a fire licence, a trade licence, VAT and tax registrations, and utility connections. Some sectors need further product or industry licences. The order matters, because some approvals assume others are already in place. We map the sequence for the specific site and product before design or construction work begins on site.

06

Can a bank take security over our lease in economic zones when financing the factory?

Usually, yes, but consent from the zone authority or developer is commonly required, and the lease terms decide how effective that security will be. Lenders want to know whether they can step in, transfer the lease to a new operator on enforcement and continue receiving utilities. We review the lease and zone rules, advise on the mortgage or other security documents, and negotiate direct agreements or consents where needed. For borrowers, we aim to keep the lender's requirements manageable so that later expansion, refinancing or a sale of the business remains possible without having to renegotiate every security document.

07

How should we approach relocating an existing factory from Dhaka into one of the economic zones?

Relocation is part property transaction, part regulatory exercise and part workforce project, and it needs one coordinated plan. The new site needs its approvals and construction in place, while the existing site has leases, licences, environmental and labour obligations that must be closed out properly. Machinery moved between sites may raise customs and bonded warehouse issues, and workers' rights on transfer or retrenchment need careful handling. We prepare a legal workplan that links the closing steps at the old site with the opening steps at the new one, so that production gaps and avoidable liabilities are kept to a minimum.

08

What happens if a zone developer or authority fails to deliver promised infrastructure on time?

Delays to roads, gas, power, water or effluent treatment are a common and costly source of disputes in industrial projects. The first question is what the documents actually promise: many allotment letters and leases describe intended services without firm commitments or remedies. We review the lease, developer agreement and any correspondence, then advise on negotiation, rent or service charge adjustments, claims for losses and termination rights. If needed, our dispute resolution team pursues arbitration or court proceedings. For new projects, we push for clearer delivery obligations, dated milestones, service levels and practical remedies before the investor signs.

How a matter runs

From first call to resolution.

  1. 01

    Define the project

    First, we confirm the product, capacity, export and domestic sales mix, workforce plan, utility needs and investment structure, because these facts decide which zones and sites are realistic and which legal regime fits the business best over the long term.

  2. 02

    Compare and select

    We compare shortlisted economic zones, EPZs, parks and freehold sites on tenure, approvals, incentives, labour rules and exit, then negotiate the lease, allotment or purchase terms for the preferred site with the authority, developer or landowner concerned.

  3. 03

    Approve and build

    We manage company registrations, investment approvals and operating permits in the right sequence, negotiate construction and utility contracts, and keep a single approvals record that lenders, auditors, buyers and the authority can follow at any later stage.

  4. 04

    Operate and adapt

    After start-up, we handle renewals, expansions, financing, disputes and changes of ownership, and plan any later relocation, restructuring or exit, so that rights in economic zones, incentives and obligations are dealt with properly and the value built up is preserved.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Is BEZA still the authority for economic zones?
No. Under the Invest Bangladesh Act 2026, BEZA was merged with BIDA and the PPP Authority into Invest Bangladesh, which has operated since 23 August 2026. References to BEZA now matter mainly for history and for documents issued before the merger. BEPZA, which runs the export processing zones, and the Hi-Tech Park Authority remain separate statutory bodies with their own rules, so investors should confirm which authority governs their particular site before filing anything or signing new documents.
Can foreign companies invest in economic zones in Bangladesh?
Yes. Economic zones are designed to attract both foreign and local investment, and foreign-owned companies commonly operate in them, subject to sector rules and registration requirements. Investors usually incorporate a Bangladesh company, register the investment, bring in capital through banking channels and obtain the zone lease, work permits and operating permits. We advise on structure, foreign exchange documentation and repatriation planning from the outset so that later dividends, loan repayments and exits are not complicated by missing records.
What is a private industrial park, and how does it differ from economic zones?
A private industrial park is land developed by a private owner or developer for industrial occupiers, often with shared roads, utilities and services, but not necessarily designated as an economic zone or EPZ. Occupiers usually buy or lease plots or buildings under a sale contract, lease or licence. The legal protections come mainly from the title, the contract and the general approvals regime, so diligence on land title, approvals and service commitments is particularly important before an occupier commits capital.
Do labour laws differ inside economic zones and EPZs?
Enterprises in EPZs are governed by a separate labour law regime for those zones, administered with BEPZA involvement, while factories outside EPZs fall under the general labour law and DIFE oversight. The position for other zones should be checked for the specific site and current rules. Differences can affect unions, worker welfare bodies, dispute processes, wage rules and inspections, so employers should plan their HR policies around the regime that actually applies to their site and workforce.
How long is a typical lease in economic zones?
Lease terms vary between zones and between public, private and government-to-government zones, and they are set by the authority or developer rather than by a single statutory figure. Long terms are common for industrial plots, often with renewal options that carry their own conditions and fees. We check the stated term, renewal conditions, rent reviews and handback obligations, because these points affect financing, depreciation and resale value more than many investors expect at the outset.
Can an economic zone lease be transferred on a sale of the business?
A sale of shares in the enterprise usually leaves the lease in place, though many leases and zone rules require notice or consent for changes of control. A direct transfer of the lease to a new company normally requires consent from the authority or developer. We review the documents early in the deal, plan the consent process and make it a condition of completion where necessary, so buyers are not left with uncertain tenure after paying the price.
What environmental approvals do manufacturing facilities need?
Most manufacturing facilities need environmental clearance from the Department of Environment, with the level of assessment depending on the industry category and scale. Effluent treatment and emissions controls are often central conditions, especially for textiles, dyeing, leather and chemicals. Some zones provide central effluent treatment or other shared facilities, but each enterprise usually remains responsible for its own compliance and records, renewals, monitoring reports and inspection responses, so these duties should be built into budgets.
Can TRW help existing BEZA-era investors after the merger?
Yes. We review the leases, licences, incentive certificates, work permit approvals and correspondence issued by BEZA and BIDA before the merger, identify how they are treated under the Invest Bangladesh framework, and handle any updates, renewals or consent requests. We also advise on whether board resolutions, bank documents or investor reports need updating to reflect the new authority, so that the company's corporate and regulatory records stay accurate and consistent for auditors, lenders and future buyers.

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