Business Licensing & Regulatory Approvals in Bangladesh

by Barrister Tahmidur Rahman | Sep 13, 2026

Trade, Competition & RegulationPermissions mapped before launch9 min read

Business Licensing & Regulatory Approvals in Bangladesh

Business licensing and regulatory approvals in Bangladesh for local companies, foreign investors, start-ups and growing groups: we map the trade licence, tax and VAT registrations, site permits and sector licences a plan needs, then sequence the filings so operations can start lawfully.

Business Licensing & Regulatory Approvals in Bangladesh: Business licensing with TRW & Co
Matter planTrade, Competition & Regulation
  1. Scope the activity
  2. Build the licence map
  3. File and follow up
  4. Maintain and renew
Overview

How business licensing works in Bangladesh

Incorporating a company in Bangladesh does not, on its own, give it permission to trade. Business licensing here is layered: a local trade licence from the city corporation or municipality, tax and VAT registrations with the National Board of Revenue, premises-based permits such as fire and environmental clearances, and, for many activities, a licence from a sector regulator. We advise founders, family groups, multinational subsidiaries and foreign investors on which of these apply to a specific plan and in what order to obtain them. The work sits within our wider regulatory practice in Bangladesh.

Good business licensing advice starts with the activity rather than the form. Selling software, importing raw materials, running a clinic and operating a factory each attract different permissions, and a single company doing several of these may need several regimes at once. We test the planned activities, the premises, the ownership structure and the expected timetable against the current rules, then produce a written map that separates what is required now, what is needed before a particular step, such as the first import, and what depends on facts still to be decided, such as the choice of site.

Foreign-owned businesses add a further layer. Since 23 August 2026, the functions of the former BIDA, BEZA and PPP Authority have been carried out by Invest Bangladesh under the Invest Bangladesh Act 2026, so registrations, work permit support and some approvals that investors used to seek from BIDA now run through the new authority. Export processing zones remain with BEPZA and hi-tech parks with the Hi-Tech Park Authority. Our business licensing work for foreign investors therefore links company formation, Invest Bangladesh steps, Bangladesh Bank reporting on inward capital and the local licences needed on the ground.

Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise on investment structures, corporate approvals and the regulatory consents that follow from them, and Adv Syed Wahid, our founding partner, leads where a refusal, cancellation or enforcement notice needs to be challenged. We work with counsel in the UK, US, UAE, China, India and Singapore when a Bangladeshi licence is part of a wider regional roll-out. Business licensing is also a recurring theme in acquisitions, where buyers need to know whether permits held by a target are valid, transferable and renewed on time. Each review is tailored to the deal.

Licences are not a one-time exercise for any company. Trade licences are renewed for each financial year, many sector permits carry conditions and reporting duties, and changes of address, activity, name or ownership can require fresh approval or a formal amendment. We help clients build a simple register of their permits, renewal dates and conditions so that business licensing does not become a source of penalties or blocked bank and customs transactions. If you are planning a launch, a new site or a change of activity, you can arrange an initial review through our Dhaka office.

01 · What we handle

Core workstreams

  • Permission mapping for new ventures
  • Trade licence and local registrations
  • Foreign investor approvals
  • Sector and premises permits
02 · How it runs

Four clear stages

  1. 01Scope the activity
  2. 02Build the licence map
  3. 03File and follow up
  4. 04Maintain and renew
03 · Start here

Talk to a partner

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

Book →
How we help

What we handle

Workstream 01Trade, Competition & Regulation

Permission mapping for new ventures

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
Workstream 02Trade, Competition & Regulation

Trade licence and local registrations

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
Workstream 03Trade, Competition & Regulation

Foreign investor approvals

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
Workstream 04Trade, Competition & Regulation

Sector and premises permits

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
Workstream 05Trade, Competition & Regulation

Renewals, changes and audits

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
Workstream 06Trade, Competition & Regulation

Refusals, notices and enforcement

  • Scope the activity
  • Build the licence map
  • File and follow up
  • Maintain and renew
01

Permission mapping for new ventures

We review the business plan, intended activities, premises and ownership and produce a business licensing map listing each registration, licence and clearance that appears to apply, the authority responsible, the documents usually requested and the dependencies between them. Where a point needs confirmation from an authority, we say so clearly instead of treating it as settled, so that management can plan budgets and timelines on realistic assumptions.

02

Trade licence and local registrations

We prepare and file trade licence applications with city corporations, municipalities and union parishads, and handle the related company, tax identification and VAT registration steps. For businesses with several branches or warehouses, we check whether each location needs its own trade licence and signboard tax treatment, and we align the registered and operating addresses across RJSC, NBR and bank records to avoid later mismatches. Each branch or factory may need its own permits and renewals, so a single head office licence is not enough.

03

Foreign investor approvals

For foreign-owned companies and branch or liaison offices, we coordinate registration with Invest Bangladesh, work permit and visa support, Bangladesh Bank reporting on inward remittances and the repatriation position. We explain how business licensing obligations differ for companies inside BEPZA zones or hi-tech parks, and we help investors moving from an old BIDA registration to the new Invest Bangladesh framework understand which records need updating. Annual returns, renewals and other reporting duties are entered in a compliance calendar so that none are missed.

04

Sector and premises permits

Many activities need specialist approvals: import and export registration certificates, fire licences, Department of Environment clearances, factory licences from the labour inspectorate, BSTI certification, drug, food or telecom permits. We identify which of these apply, prepare applications with technical consultants, track inspections and respond to queries, keeping the overall business licensing plan in step with construction or fit-out schedules. Technical reports are reviewed before filing.

05

Renewals, changes and audits

We run business licensing health checks for existing businesses, reviewing whether permits are current, held by the correct entity and consistent with actual operations. Where a business has moved premises, added products, changed its name or brought in new shareholders, we advise on amendment filings and fresh approvals. We also prepare groups for bank, investor or buyer due diligence on their licensing position.

06

Refusals, notices and enforcement

When an application is refused, a licence is suspended or an authority issues a show-cause notice, we review the legal basis, assemble the factual record and prepare a written response or appeal. If administrative routes fail, our litigation team considers judicial review in the High Court Division. We aim to keep operations running where possible while the business licensing issue is resolved. Deadlines for responses are diarised immediately.

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.

Trade, Competition & Regulation 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 business licensing steps does a new company in Bangladesh usually need?

Most companies start with incorporation at the Registrar of Joint Stock Companies and Firms, then a trade licence from the local authority where the office is located, a tax identification number and VAT registration with the National Board of Revenue, and a corporate bank account. From there, the list depends on the activity. Importers and exporters need registration certificates before their first shipment, manufacturers need factory, fire and environmental approvals, and regulated sectors need their own licences. We prepare a business licensing map for each client, because generic checklists often miss permits. We also flag which permits come first.

02

Does a foreign-owned company follow a different process?

The core steps are similar, but foreign ownership brings additional ones. Inward share capital must come through banking channels and be reported so that later dividends and capital can be repatriated. Registration with Invest Bangladesh, which took over the investment promotion and registration functions of the former BIDA from 23 August 2026, is commonly needed for work permits and certain incentives. Some sectors also limit or condition foreign shareholding. We review business licensing and structure together, because a choice made at incorporation is costly to unwind later. Branch and liaison offices follow a separate approval route with their own limits.

03

How long does business licensing take in practice?

There is no single answer, and we do not promise timetables the authorities will not commit to. Incorporation and a trade licence can often be completed in a few weeks when documents are ready, but site-based clearances depend on inspections and building approvals, and sector licences can take considerably longer, especially where policy is under review. The most common delays come from incomplete documents, inconsistent addresses, missing board resolutions or attestation of foreign papers. We reduce delay by preparing a full document pack, filing in parallel where the rules allow, and following up methodically with each office.

04

Can we start operating while some licences are still pending?

Sometimes, but it needs care. Some preparatory activities, such as hiring staff, signing leases or setting up systems, can usually proceed while business licensing is under way. Trading, importing, manufacturing or providing a regulated service before the relevant permission is granted can expose the company and its officers to fines, seizure of goods, sealing of premises or a refusal of the licence itself. Banks and customs may also refuse to process transactions. We set out clearly which activities can start, which must wait and what evidence of a pending application, if any, an authority will accept as sufficient.

05

Do we need a separate trade licence for each branch or warehouse?

Often yes. Trade licences are issued by the local authority with jurisdiction over the premises, so a company with an office in Dhaka, a warehouse in Gazipur and a showroom in Chattogram may need separate licences from each relevant city corporation, municipality or union parishad. Fees and signboard charges also vary by location and category of business. Factories and warehouses may also need their own fire and environmental clearances. We review the operating footprint and prepare a location-by-location business licensing schedule, which also helps when banks or auditors ask for evidence that every site is properly authorised.

06

What happens if a licence has expired or was never obtained?

Regularisation is often possible, but the consequences depend on the permit and how long the gap has lasted. A late trade licence renewal usually attracts surcharges, while operating a regulated activity without a licence can trigger penalties, criminal exposure or closure. We first establish the facts, then advise on whether to apply for renewal, a fresh licence or a formal regularisation, and how to approach the authority. Where a sale, financing or investment is planned, we also advise on how the business licensing gap should be disclosed and whether warranties, indemnities or conditions precedent are needed to protect the parties.

07

How do licences work when we buy or restructure a business?

Many licences are personal to the holder and do not pass automatically with assets or on a merger. In a share purchase, the licences usually stay with the company, but a change of control may need prior approval or notification to the regulator. In an asset purchase or a group restructuring, the buyer may need fresh licences or a formal transfer. We review the target's business licensing position during due diligence and build any required approvals into the transaction timetable, so that completion does not leave the business operating without valid permissions. Larger deals may also need competition clearance.

08

Can a refusal or cancellation of a licence be challenged?

Yes, in most cases. The first step is usually to request reasons and respond in writing, correcting factual errors or supplying missing documents. Some statutes provide an internal review or appeal to a higher authority, with short time limits that must be checked for the specific licence. Where an authority acts without legal basis, ignores relevant material or treats an applicant unfairly, a writ petition in the High Court Division may be available. Our dispute resolution team handles these challenges, and we consider whether a negotiated fix to the business licensing problem would be faster and cheaper than litigation.

How a matter runs

From first call to resolution.

  1. 01

    Scope the activity

    We review the business plan, ownership, premises and timetable, and identify the regulated activities involved, including any that management may not have treated as licensable, such as imports of samples or online sales. This scoping sets the business licensing budget.

  2. 02

    Build the licence map

    We prepare a written business licensing schedule of each registration, licence and clearance, the responsible authority, the supporting documents and the order of filing, flagging points that need confirmation from officials before committing to dates. Where one approval must be obtained before another can be filed, the plan shows that sequence so dates are realistic.

  3. 03

    File and follow up

    We prepare business licensing applications, collect attested documents, coordinate with engineers and consultants for site permits, attend to inspections and queries, and report progress against the agreed plan so management knows what remains outstanding. Where an application stalls, we follow up with the authority and tell management what is needed to move it on.

  4. 04

    Maintain and renew

    Once licences are issued, we set up a register of renewal dates, conditions and reporting duties, and advise on amendments when the business changes its address, activity, name or ownership. A periodic check of licences against actual operations catches expired or mismatched details before an inspection does. Directors receive short summaries of upcoming renewals and open obligations so that accountability stays with the board.

“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 a trade licence enough to run a business in Bangladesh?
Rarely. A trade licence is a local authority permission to carry on a trade at particular premises. It sits alongside company registration, tax and VAT registration and, depending on the activity, import and export certificates, site clearances and sector licences. Treating the trade licence as the whole of business licensing is a common and costly mistake, particularly among new importers and service providers. We map the full set of permissions before launch. Gaps are cheaper to fix early.
How often do licences need to be renewed?
Trade licences are renewed for each financial year, which runs from July to June. Other permits have their own validity periods, often one to several years, and some must be renewed before the existing licence expires to avoid a gap. We recommend keeping a single register of every permit with its renewal date, responsible person and supporting documents, and reviewing it at least each quarter. A missed business licensing renewal can also hold up bank facilities, tenders and customs clearance, so early reminders are worth the effort.
Does business licensing change when we move office?
Usually. A trade licence is tied to premises within a local authority area, so a move can require a new licence or an amendment. Tax, VAT, bank and regulator records also need updating, and site permits such as fire or environmental clearances may need a fresh application. We advise on sequencing the move so that the business is not left operating from an unlicensed address. Lease negotiations should allow time for this. Notices to customers and suppliers may follow. Signage and insurance records also change.
Who in the company should be responsible for licences?
Responsibility usually sits with the company secretary, finance or compliance function, but operational managers need to know which activities are licensed and where. We suggest naming one owner for the licence register, with clear escalation to the board when a renewal is at risk or an authority raises a concern. Directors can face personal exposure for some regulatory breaches, so board oversight matters. A short business licensing report at each board meeting is usually enough to keep directors informed and to show that oversight is in place.
Can business licensing be handled remotely by foreign investors?
Largely, yes. Many steps can be completed through online portals and authorised representatives, using documents signed abroad and properly notarised and attested. Some steps, such as opening bank accounts, attending certain inspections or collecting original certificates, may need a local director, employee or representative. We coordinate the document chain from abroad and explain in advance which steps require someone to be physically present in Bangladesh. Planning these visits early avoids repeated trips. Courier timelines for originals matter too. Video calls cover most planning meetings.
Do online businesses need business licensing approvals too?
Yes. An e-commerce or digital services company still needs incorporation, a trade licence, tax and VAT registration and, in many cases, registration under government guidance on digital commerce. Payment collection must go through licensed channels, and businesses handling personal data should consider the Personal Data Protection Act 2026. Selling regulated products online, such as medicines or food, also brings the relevant sector permissions into play. We review the platform model before launch. Sellers on third-party marketplaces may need trade licences, tax registration and product approvals, depending on what they sell. Delivery and logistics partners need checking as well.
What documents are usually needed for licence applications?
Typical documents include the certificate of incorporation, memorandum and articles, board resolutions, tax and VAT certificates, the lease or title deed for the premises, layout plans, identity documents of directors and, for foreign shareholders, notarised and attested corporate papers. Sector licences often require technical reports, staff qualifications and financial statements. Gathering consistent documents early is the simplest way to speed up business licensing. Translations of foreign documents may also be needed. Expired documents are a frequent cause of delay.
How can TRW help with an existing licensing problem?
We start with a short review of the permits held, the activities actually carried on and any notices received. We then advise on the quickest lawful fix, whether that is a renewal, an amendment, a fresh application or a written response to the authority. Where a dispute cannot be resolved administratively, our litigation team can act in the courts on the business licensing issue. We also help prevent the same issue recurring. Fees and timing are agreed in advance.

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Business licensing: TRW & Co, Dhaka
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