If the business is carrying on buying house activities, such as sourcing, merchandising and coordinating orders for foreign buyers from Bangladesh factories, then registration with the Department of Textiles has been mandatory since 2019 under the Textile Act 2018 framework. Operating without it can cause problems with banks, trade associations, buyers and the authorities, and can leave commission payments exposed. Businesses that describe themselves differently but do the same work should take advice, because the label used in contracts does not change the regulatory analysis or the obligation to register. We confirm early whether buying house registration applies.

Applicants normally need a valid trade licence, a TIN and a BIN, an RJSC incorporation certificate and constitutional documents if the business is a company, a current income tax certificate, a bank solvency certificate, an estimate of annual turnover, national identity documents of the owners, and a trade association membership certificate. Office lease documents and an inspection report may also be required. We prepare a checklist tailored to the business, collect and review each document, and check that names, addresses and activities match across every certificate before filing. Mismatched details are the commonest cause of delay.

Generally not on a wholly owned basis. Buying house and indenting services are among the limited sectors where local ownership requirements apply, so a foreign brand cannot usually incorporate its own buying house and obtain buying house registration in the ordinary way. Common alternatives are a liaison office approved by Invest Bangladesh, which can coordinate but cannot earn commission, or a contractual relationship with a locally owned buying house. We advise foreign groups on these options and on the governance, data and compliance protections they should negotiate with local agents. Local partners should hold buying house registration themselves.

The total cost has several parts: the Department of Textiles registration and renewal fees, RJSC incorporation fees and stamp duty, the trade licence, trade association membership fees, and import or export registration fees where needed. Government and association fee schedules are revised from time to time, so we confirm current amounts before any payment is made. Professional fees depend on the scope of work. Our insight article on opening a buying house sets out the published fee figures and their sources, and we provide a written estimate at the outset. Budget also for annual renewals and association subscriptions.

Not always. A buying house that only provides sourcing and merchandising services and earns commission may not need an import or export registration certificate. If it imports samples or materials in its own name, exports goods itself, or acts as an indenting agent for foreign suppliers, the relevant registration from the import and export control office under the 2023 registration order will be needed. We look at the actual flow of goods and money and advise which certificates are required alongside buying house registration, avoiding unnecessary applications and fees. This keeps buying house registration and trade licensing aligned.

The consolidated export circular issued in July 2026 requires exporters to declare the full invoice value without netting off agent commission and caps the commission an exporter may pay unless Bangladesh Bank allows a higher rate. Separately, buying agents holding the necessary permissions and association membership may retain part of their foreign currency earnings. These rules affect how commission is invoiced, paid and banked. We review existing agreements and bank arrangements and update them so that the buying house and its factory partners remain compliant with current foreign exchange law. Older agreements and bank mandates often need amendment.

Commission paid to a buying house out of export proceeds is subject to tax deducted at source, and fees received from foreign principals through the banking channel are also taxed at source, at rates set by the Income Tax Act 2023 as amended by each Finance Act. Whether the deduction is the final liability or a credit against regular tax depends on the current law and the type of income. VAT may also apply to some services. We advise on the position alongside buying house registration and coordinate closely with the client's accountant on returns and records.

Renewal deadlines matter. A lapsed certificate can attract late fees, cause banks to delay processing commission, create problems with trade association membership and raise questions from buyers carrying out supplier due diligence. In more serious cases the authorities may treat the business as operating without registration. We help clients renew promptly, regularise any gap, and update the Department of Textiles on changes in directors, ownership or address, which should be reported so that the registered details match the business as it actually operates. Renewals should be diarised well ahead of each expiry date by the business.