How to Open a Buying House in Bangladesh: Registration, Fees and Compliance in 2026

Buying house registration Bangladesh: what the law requires in 2026

Buying house registration Bangladesh rules decide whether a sourcing office can lawfully take orders from foreign brands, place them with garment factories and bring its commission home through the banking system. A buying house that skips a step rarely notices at the start. It notices when a bank refuses to credit a commission, when a brand's compliance team asks for its registration certificate, or when a tax officer reclassifies its income. In 2026 the framework is spread across the Textile Act 2018, the import and export registration regime, Bangladesh Bank's export circulars, the Income Tax Act 2023 and the VAT Act 2012, with Invest Bangladesh now handling permissions for foreign-owned offices.

This guide explains how to open a buying house in Bangladesh from first principles: choosing between a local company and a foreign liaison or branch office, the trade licence, TIN and BIN, Department of Textiles registration, trade association membership, export and indenting registration, the government and association fees you should budget for, how commission is received and taxed, the contracts you need with brands and factories, and the forced labour import controls that now shape every serious sourcing relationship.

Summary: Under buying house registration Bangladesh rules, a garment buying house is normally a locally owned company or firm that holds a trade licence, TIN and BIN, registers with the Department of Textiles under the Textile Act 2018, joins the relevant trade association and, where it exports or acts as an indenting agent, registers with the Office of the Chief Controller of Imports and Exports. Foreign brands usually operate through a liaison office approved by the investment authority instead. Commission must come in through an authorised dealer bank, and the bank withholds tax as it does.

Key point: The investment authority's own guidance lists buying houses and indenting agents among the limited cases where local ownership is required. A foreign brand that wants a commission-earning buying house in Bangladesh therefore needs a local structure; a liaison office can coordinate sourcing but cannot earn local income.

At a glance

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Table of Contents

What a buying house does and why structure comes first

A buying house is the sourcing intermediary between an overseas buyer and Bangladeshi factories. It finds suppliers, negotiates prices, places orders, follows production, inspects quality, manages samples and approvals, and often coordinates audits and shipment. It is usually paid a commission, either by the buyer, by the factory out of export proceeds, or under a service fee agreement. Some buying houses also act as indenting agents, taking orders for imported fabric, trims or machinery on behalf of a foreign supplier.

The legal analysis follows from those facts. A business that earns commission in Bangladesh is carrying on business there, so it needs a recognised vehicle, a trade licence and tax registrations. Because it sits in the garment supply chain, the Textile Act 2018 applies; because its income is export-linked foreign currency, Bangladesh Bank's rules govern how money moves; and because its clients import into markets with forced labour controls, its records form part of its buyers' legal defence.

Buying house, liaison office or indenting agent

These labels are often used loosely, but the legal consequences differ. A buying house in the full sense earns income in Bangladesh. A liaison office of a foreign brand coordinates sourcing for its parent but has no local source of income and is funded entirely from abroad.[2] An indenting agent takes orders for imports on behalf of a foreign supplier and earns indenting commission, which carries its own withholding tax treatment.[11] Each role must be registered for what it actually does.

Choosing the vehicle for buying house registration Bangladesh

The first decision is who will own the business. Bangladesh is generally open to foreign investment and permits 100 per cent foreign ownership in most sectors. The investment authority's guidance, however, states that local ownership is required in a limited number of cases, expressly including "buying house and indenting agent", alongside freight forwarding, shipping and courier agents, advertising agents and commercial education institutions.[1] That single line shapes every buying house structure.

Locally owned private limited company

For a commission-earning buying house, the standard vehicle is a private limited company incorporated with the Registrar of Joint Stock Companies and Firms and owned by Bangladeshi shareholders. A company gives limited liability, a separate legal personality for contracts with brands and factories, and a corporate profile that buyers' compliance teams expect. Our guide to private limited company registration in Bangladesh covers name clearance, constitutional documents and incorporation filings.

Liaison office for a foreign brand

A foreign retailer or brand that wants its own people on the ground usually opens a liaison office. Applications are filed through the online one-stop service and approved by an inter-ministerial committee at headquarters in Dhaka, which meets twice a month.[1] Practitioner guidance records that a liaison office must bring in at least US$50,000 within two months of the permission letter, is usually approved for three years at a time, must file quarterly returns of income and expenditure, and may not earn any local income.[2] It can supervise sourcing, quality and compliance for its parent, but it cannot invoice factories for commission.

Branch office

A branch can carry on approved business, but given the local ownership requirement a foreign company should not assume a branch will be permitted to act as a commission-earning buying agent. The usual solution is a liaison office for the brand's own team alongside a contract with a locally owned buying house. Since August 2026 Invest Bangladesh has taken over BIDA's functions; our guide on how to invest in Bangladesh explains the 2026 framework.

How to open a buying house in Bangladesh: the core registrations

Once ownership is settled, buying house registration Bangladesh work follows a predictable order. Each registration depends on the one before it, so sequencing matters more than speed.

Incorporation and constitutional documents

Incorporate the company with the RJSC, with objects that cover sourcing, buying agency, quality control, indenting where relevant, and export-related services. A narrow objects clause invites questions later from banks and the Department of Textiles. Shareholder arrangements between local owners should be documented at this stage, particularly where a foreign partner provides the client relationships but cannot hold equity.

Trade licence

Obtain a trade licence from the city corporation or municipality where the office sits. The trade licence underpins every later step: the Department of Textiles requires an updated licence, and BGMEA will not renew buying house membership without one.[3] [6] For fees and renewal, see our guide to the trade licence in Bangladesh.

TIN and BIN

Register for a Taxpayer Identification Number with the tax authority and a Business Identification Number for VAT. An income tax certificate is required for Department of Textiles registration and for renewal of BGMEA buying house membership.[3] [6] Our guide to VAT registration for companies in Bangladesh explains the BIN process.

Bank account and solvency certificate

Open a business account with an authorised dealer bank that has an active export and garment trade desk. A bank solvency certificate is one of the documents the Department of Textiles has required for buying house registration, and the same bank will later receive commission and handle withholding tax.[3]

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Buying house registration Bangladesh: the Department of Textiles

The step that most distinguishes buying house registration Bangladesh practice from ordinary company formation is registration with the Department of Textiles. The Textile Act 2018 made the Department the sponsoring authority for the textile sector and brought buying houses under its oversight for the first time.[3]

Who must register under the Textile Act 2018

The Ministry of Textiles and Jute made registration with the Department of Textiles mandatory for buying houses from 1 April 2019, and a revised circular of 28 May 2019 required existing buying houses to register within 60 days, extendable by another 60 days, with the government warning of legal action against firms that missed the deadline.[3] [5]

Documents the Department expects

The 2019 circular listed an updated trade licence, an income tax certificate, the certificate of incorporation for a limited company, an estimate of yearly turnover and a bank solvency certificate.[3] The Department's own annual report also refers to the national identity card, the trade licence, the income tax return and a membership certificate from the relevant trade association, with local inspection reports and land documents where applicable.[4]

Registration fees and validity

The Department of Textiles publishes a fee schedule for buying houses of Tk 20,000 for registration, Tk 5,000 for renewal, Tk 2,000 for a duplicate certificate, Tk 1,000 for each year of late renewal and Tk 1,000 for other services such as a name change.[4] The registrar decides applications after reviewing the documents and, where needed, an inspection report, and a registration certificate has been issued for three years.[3] Applications run through the Department's one-stop service centre.[4]

Trade association membership: BGBHA and BGMEA

Trade association membership is not a formality in buying house registration Bangladesh practice. It is a condition of other registrations and a practical requirement for visas, airport assistance and dispute support. When the Department of Textiles made registration mandatory in 2019, applicants needed a certificate from a relevant trade body.[5]

Bangladesh Garment Buying House Association

The Bangladesh Garment Buying House Association, often abbreviated as BGBA or BGBHA, is the dedicated trade body for the sector. In August 2020 the Ministry of Textiles and Jute stated that it is the relevant trade body for buying houses, after a dispute in which BGMEA had asked the Department of Textiles to register around 1,500 buying houses holding BGMEA associate membership.[5] At that time around 700 buying houses were BGBHA members, of which roughly 450 had registered with the Department.[5]

BGMEA buying house associate membership

BGMEA continues to offer buying house and liaison office associate membership. Its renewal circular for 2026, dated 18 December 2025, set a renewal fee of Tk 10,000 and requires an application, the payment receipt, an updated trade licence or investment authority permission, an updated income tax certificate and the previous year's membership certificate, all attested by an authorised person and uploaded to its online membership system.[6] BGMEA lists services such as visit visa recommendations, airport assistance, directory listing and arbitration support for trade disputes.[6]

Which association to join

Because the ministry has named BGBHA as the sector's trade body, BGBHA membership is the safer foundation for buying house registration Bangladesh filings with the Department. BGMEA associate membership adds value where the buying house works mainly with BGMEA member factories. Check current rules with each body before applying.

IRC, ERC and indenting registration for buying houses

Import and export registration is administered by the Office of the Chief Controller of Imports and Exports. Bangladesh Bank's consolidated export circular requires banks to ensure that exporters are registered under the Importers, Exporters and Indentors (Registration) Order 2023.[8] Whether a buying house needs a certificate depends on what it actually does.

Export Registration Certificate

A pure buying agent that never exports goods in its own name does not ship anything, but buying houses that export samples, consolidate shipments or invoice buyers directly need an Export Registration Certificate. Following the commerce ministry's 2022 fee revision, the ERC registration fee rose to Tk 10,000, and a separate ERC for indenting service rose to Tk 50,000, with effect from September 2022.[7] Confirm the current schedule under the 2023 Order before paying.

Indenting registration

A buying house that also takes orders for imported fabric, accessories or machinery on behalf of a foreign supplier acts as an indentor and needs indenting registration under the same Order.[8] Indenting income is taxed differently from buying commission, so keep the two revenue streams in separate contracts and, ideally, separate ledgers.

Import Registration Certificate

An IRC is needed only if the buying house imports goods in its own name, for example samples, testing equipment or trims for distribution. IRC fees are set by import value slab, and the 2022 revision set registration fees from Tk 24,000 for the Tk 25 lakh to Tk 50 lakh slab up to Tk 80,000 for the highest slab.[7] Registration certificates must be renewed each financial year, so diarise renewal from the start. For the wider regime, see our guide to import and export licensing in Bangladesh.

Buying house registration fee in Bangladesh: what to budget

Buying house registration Bangladesh costs are not a single fee. They are the sum of separate government and association charges, plus professional fees for incorporation, document preparation and filings. The table below collects the published figures we have verified, with the year of each source. Treat older figures as indicative and confirm the current schedule before paying, because fees are revised by circular.

Three practical points follow. First, budget for renewals as well as first registration: the Department of Textiles, the trade associations, the trade licence and import and export certificates all renew on their own cycles. Second, late renewal is penalised: the Department of Textiles charges Tk 1,000 for each year of delay.[4] Third, government fees are usually small compared with the cost of a refused bank credit or a lost buyer audit, so the real saving lies in getting the file right first time.

Bank account, foreign exchange and receiving commission

Commission is the lifeblood of a buying house, and the banking channel decides whether it arrives cleanly. Bangladesh Bank's Foreign Exchange Policy Department-1 issued a consolidated circular on export transactions on 30 July 2026 under section 20(3) of the Foreign Exchange Regulation Act 1947, replacing FE Circular No. 31 of 31 July 2025 and later instructions.[8]

How commission flows

Commission reaches a buying house in two main ways. A buyer may remit a service fee or commission directly to the buying house's bank, or the factory's bank may pay the buying agent out of export proceeds under the letter of credit or other instructions. The 2026 circular requires exporters to declare the full invoice value on the EXP form without deducting foreign agent commission, and requires proceeds repatriated through a buying agent's bank to be transferred in foreign currency to the exporter's bank.[8] Our note on receiving foreign currency in Bangladesh covers inward remittance procedure.

The 5 per cent commission ceiling on exporters

Where an exporter pays commission or brokerage to foreign importers or agents, it may deduct the commission from the bill or remit it after full realisation up to 5 per cent of the value of the goods. Higher rates need a standing authority from Bangladesh Bank.[8] Buying house agreements that assume a higher commission paid by factories to an offshore entity should be checked against this limit before signature.

Agent's retention quota

In January 2025 Bangladesh Bank allowed buying agents to hold foreign currency under an agent's retention quota, similar to the exporters' retention quota, keeping up to 10 per cent of their foreign currency earnings for legitimate overseas payments. The conditions reported included holding any permissions required by the relevant authorities and being active members of trade associations.[9] This is another reason why Department of Textiles registration and association membership matter in practice. Confirm the current limit with your bank, because export circulars were consolidated in July 2026.

Repatriation and keeping money offshore

The 2026 circular applies the four-month repatriation period for goods exports to services, and treats keeping export proceeds abroad outside approved accounts as a contravention of the Foreign Exchange Regulation Act, whether held as investments, physical or virtual assets, or cryptocurrency.[8] Service remittances above US$20,000 require a Form-C declaration.[8] A buying house that lets commission accumulate in an offshore account of its owners is taking a serious regulatory risk.

Tax on buying house commission and indenting income

Tax on a buying house is collected mainly at source, by the bank that handles the money. The rates are revised often, so the mechanism matters as much as the number. Our wider guide to withholding tax in Bangladesh explains how credits and returns work.

Commission paid out of export proceeds

Section 116 of the Income Tax Act 2023 applies where a bank, through which an exporter receives payment, pays any amount out of the export proceeds to an agent or representative of the foreign buyer as commission, charges or remuneration. The bank must deduct tax at the time of payment.[10] The authentic English text published in October 2025 states a rate of 10 per cent, while PwC's summary reviewed on 31 July 2026 lists 7.5 per cent for commission paid to an agent of a foreign buyer.[10] [11] Confirm the rate your bank is applying under the current Finance Act and rules.

Fees remitted from abroad

Where the buyer pays a service fee directly from abroad, section 124 requires the paying bank to deduct tax on fees, service charges or remuneration for services rendered by a resident to a foreign person. The rate was reduced from 10 per cent to 7.5 per cent by the Finance Act 2024 from 1 July 2024.[10] Whether a payment falls under section 116 or section 124 depends on the route the money takes, which is one more reason to fix the payment route in the contract.

Indenting commission

Indenting commission is a separate withholding category. PwC's summary lists a 7.5 per cent rate on indenting commission paid to residents.[11] A buying house that also indents should invoice and account for each stream separately so that credits can be matched against the right deductions when the return is filed.

Factories, export proceeds and corporate tax

The factories a buying house works with suffer their own deduction: under section 123, the bank through which export proceeds are received deducts 1 per cent of total export proceeds.[10] The buying house itself remains liable to corporate income tax on its profits, with withheld tax credited against the final liability. See our guide to corporate income tax in Bangladesh for current company rates.

VAT on buying house services

Export of services is zero-rated under section 24(5) of the VAT Act 2012, but section 24(6) imposes conditions. The recipient must be outside Bangladesh at the time of supply, and the service must not be physically provided on goods situated in Bangladesh, among other exclusions.[12] Inspection and quality control of garments in Bangladeshi factories is arguably a service performed on goods in Bangladesh, so a buying house should not assume that all of its income is zero-rated. Take advice on how the contract describes the service before the first invoice.

Contracts with brands and factories

Registration lets a buying house operate; contracts decide whether it gets paid. Most disputes concern unpaid commission, cancelled orders, quality claims and detained shipments.

The buying agency agreement

The agreement with the brand should define the services precisely, the territory and product categories, exclusivity, the commission or fee and its basis, when it is earned, who pays it and through which bank route, and what happens on cancellation or chargeback. It should allocate compliance responsibilities, including factory audits, traceability records and corrective action. A clear description of services also supports the right tax and VAT treatment. For general drafting principles, see our guide to commercial agreements in Bangladesh.

Factory-side terms

Where the factory pays commission out of export proceeds, the buying house needs written confirmation of the rate, the bank instructions under the letter of credit and an obligation to declare the full invoice value. It should also require factories to disclose subcontracting and raw material origin, accept unannounced audits and remediate findings, because the buyer will expect those rights to pass down the chain.

Disputes and enforcement

Choose a dispute clause that will work against the likely defendant. A buying house suing a Bangladeshi factory may prefer arbitration seated in Dhaka, while a claim against an overseas brand may need a foreign seat with a New York Convention award. Our international arbitration practice advises on clause design.

Compliance: forced labour import controls and social audits

Brands rely on their agents' records to answer customs authorities in their own markets, and an agent that cannot trace inputs quickly loses orders.

United States: section 307 and the UFLPA

Section 307 of the Tariff Act 1930 prohibits importing goods made wholly or partly with forced labour, forced child labour or prison labour. US Customs and Border Protection can issue a withhold release order where information reasonably but not conclusively indicates a violation, and detained goods are released only on proof that they were not made with forced labour, or re-exported.[13] Under the Uyghur Forced Labor Prevention Act, goods made even partly in Xinjiang or by listed entities are presumed to be forced labour products unless the importer proves otherwise by clear and convincing evidence.[13] For Bangladeshi garments, the risk usually sits in imported cotton, yarn and fabric.

European Union: the Forced Labour Regulation

Regulation (EU) 2024/3015 prohibits placing or making available on the EU market, or exporting, products made with forced labour. It entered into force on 13 December 2024 and applies from 14 December 2027. Competent authorities can ban products and require their withdrawal and disposal.[14] EU buyers are already asking their Bangladeshi agents for traceability data in preparation.

What a buying house should hold on file

Expect buyers to ask for supplier lists including subcontractors, fabric and yarn origin documents, purchase orders and invoices up the chain, audit reports and corrective action plans, worker grievance records and evidence that recruitment fees were not charged. The US Department of Labor describes reasonable care as including supplier vetting, supply chain tracing, contract terms banning forced labour and periodic audits.[13] Factories must also comply with the Bangladesh Labour Act 2006 as amended in 2026; our guide to labour law in Bangladesh summarises the changes.

Mistakes to avoid when opening a buying house

Most problems we see at TRW come from treating buying house registration Bangladesh requirements as paperwork to finish later. The recurring mistakes are predictable.

• Putting foreign equity into a buying house: local ownership is required for buying houses and indenting agents, so a foreign-owned structure invites refusal of permissions or bank questions.[1]
• Using a liaison office to earn commission: a liaison office has no local source of income and must be funded from abroad.[2]
• Skipping Department of Textiles registration: buying houses have been required to register since 2019, and registration supports banking and retention quota access.[3] [9]
• Letting renewals lapse: the Department charges a late fee for each year of delay, and association renewal needs current tax and licence documents.[4] [6]
• Keeping commission offshore: retaining export proceeds abroad outside approved accounts contravenes the Foreign Exchange Regulation Act.[8]
• Assuming zero-rated VAT: services performed on goods in Bangladesh fall outside the export-of-services rule.[12]

A buying house that completes its buying house registration Bangladesh file, bank route and contracts at the outset spends its time on sourcing, not regulatory repair. Our export licensing and market access practice and branch and foreign company establishment practice handle these projects end to end. To plan your buying house registration Bangladesh file, contact TRW.

Frequently asked questions

Can a foreigner own a buying house in Bangladesh?

The investment authority's guidance lists buying houses and indenting agents among the limited cases where local ownership is required. A foreign brand usually opens a liaison office for its own sourcing team and works with a locally owned buying house.[1]

Is Department of Textiles registration mandatory for buying houses?

Yes. The Textile Act 2018 brought buying houses under the Department of Textiles, and the ministry made registration mandatory from April 2019.[3] [5]

What is the buying house registration fee in Bangladesh?

The Department of Textiles publishes Tk 20,000 for registration and Tk 5,000 for renewal. Association, trade licence, tax and import or export registration fees are charged separately.[4]

How long does buying house registration Bangladesh last?

Registration certificates under the 2019 circular were issued for three years, with renewal on payment of the renewal fee and late fees for delay.[3] [4]

Which trade association should a buying house join?

The Ministry of Textiles and Jute has identified the Bangladesh Garment Buying House Association as the relevant trade body. BGMEA also offers buying house associate membership, with a Tk 10,000 renewal fee for 2026.[5] [6]

Does a buying house need an ERC or IRC?

Only if it exports or imports in its own name, or acts as an indenting agent. Registration is governed by the Importers, Exporters and Indentors (Registration) Order 2023.[8]

Can a liaison office earn buying commission?

No. A liaison office has no local source of income, is funded by its parent and is limited to coordination and information activities.[2]

How is buying house commission taxed?

Banks deduct tax at source: under section 116 where commission is paid out of export proceeds, or under section 124 where fees are remitted from abroad. Check the current rate with the bank.[10] [11]

Can a buying house keep part of its earnings in dollars?

Since January 2025, buying agents have been allowed an agent's retention quota of up to 10 per cent of foreign currency earnings, subject to holding required permissions and trade association membership.[9]

Why do forced labour laws matter to a Bangladeshi buying house?

US customs can detain goods linked to forced labour, and the EU Forced Labour Regulation applies from 14 December 2027. Buyers rely on their agents' traceability records to clear shipments.[13] [14]