
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.
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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.
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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.
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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.
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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.
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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.
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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.
Discuss a Business Challenge
Speak with our advisory team about the business issue behind the regulation.
Discuss a Business Challenge
Regulatory Insight.Commercial Intelligence.Practical Execution.
Practice areas
- Customs
- VAT
- Tax
- Trade
- Regulatory Strategy
- Commercial Advisory