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Doing Business in Bangladesh

Six Stages, and the One You Skip Is the Expensive One

Establishing and running a business here is a sequence, not a checklist. Each stage assumes the one before it, and the decisions that cost most are taken earliest.

Where to Begin

An orientation for a business deciding whether and how to operate in Bangladesh, written by people who work these decisions rather than summarise them.

It sets out the sequence and names what each stage turns on. It does not give timelines, fee schedules or thresholds, because those move and because the answer in any real case turns on facts this page does not have.

Where a stage raises a question worth an answer, the capability that handles it is linked beside it.

From Entry to Exit

Numbered because they run in this order. A business cannot import before it exists, or defend a position it has not yet taken.

  1. 01

    Decide

    Whether, and in what form

    The question before any filing is what the business actually needs to do here: sell, source, manufacture, or hold an interest. That answer sets the entity form, and the entity form sets almost everything after it.

  2. 02

    Establish

    Entity, approvals and licences

    Registration, BIDA, and BEZA or BEPZA where the operation sits in a zone; trade licensing; IRC and ERC for import and export. These run in sequence and each step assumes the one before it, so the order they are taken in sets the timeline.

  3. 03

    Import

    Machinery, inputs and goods

    Classification and valuation decide landed cost; concessionary treatment for capital machinery is settled before the plant produces anything; a bonded operation is administered continuously rather than licensed once.

  4. 04

    Operate

    The recurring obligations

    VAT registration and deduction at source, corporate tax and withholding, and the reconciliations that hold or fail when they are examined. Exposure here accumulates quietly rather than arriving as an event.

  5. 05

    Defend

    When a position is questioned

    A show cause notice, an audit finding or a valuation query escalates on its own timetable. Sequencing the response matters as much as the technical argument, because detention and demurrage accrue while it is made.

  6. 06

    Plan

    Repatriation, growth and exit

    How profit, management fees and licence payments leave the country is settled by the structure and the agreements signed at the start — which is why the last stage belongs in the first conversation.

Our Perspective

Entry decisions made well at the start avoid costly restructuring later.

Read It Through Your Own Position

The sequence is the same for everyone. What changes is which stage bites first, and that is a question about your sector and your structure.

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Practice areas

  • Customs
  • VAT
  • Tax
  • Trade
  • Regulatory Strategy
  • Commercial Advisory