The government of Bangladesh has announced plans to significantly streamline the process of starting a business, aiming to reduce bureaucratic delays and simplify licensing procedures in a bid to create a more investment-friendly environment.
Commerce Minister Khandaker Abdul Muktadir stated that the administration is working to cut the time required to establish a new business from nearly one year to just 14 days. Under the proposed framework, companies would be able to commence operations and, under ideal conditions, open letters of credit for importing machinery by the 15th day of registration.
He made the remarks on Monday at a briefing session titled “Aligning Investment, Trade and Decent Work Agenda for Resilient and Inclusive Supply Chains”, held at Hotel InterContinental in Dhaka. The event was jointly organised by the International Labour Organisation and the Bangladesh Investment Development Authority.
The minister emphasised that the extension of Bangladesh’s timeline for graduating from the Least Developed Country (LDC) category, as recommended by the UN Committee for Development Policy, should not be viewed merely as additional time. Instead, he said, it should be treated as a structured opportunity for institutional strengthening, enhancing competitiveness, diversifying the production base, and preparing the economy for post-LDC realities.
He also highlighted that the latest national budget reflects a shift towards a “democratic, humane and inclusive” economic framework. According to him, these are not rhetorical expressions but core principles guiding policy reforms aimed at improving business facilitation, reducing licensing complexity, and expanding market diversification.
Addressing global trends, he noted that international buyers and investors are increasingly prioritising stability, sustainability, transparency, compliance, and responsible business conduct. Global supply chains, he added, are being reshaped by environmental protection standards, labour rights, human rights due diligence, climate resilience, and geopolitical considerations.
To support this transition, the Ministry of Commerce has recently established a Responsible Business Conduct (RBC) Cell. This platform is designed to enhance coordination among government agencies, regulatory bodies, business associations, labour representatives, and development partners, ensuring that future economic growth aligns with international standards of sustainability and accountability.
The minister further confirmed that a dedicated committee has already been formed to identify bottlenecks in business processes and eliminate procedural redundancies. A public announcement detailing reforms and implementation strategies is expected in July.
Key Reform Commitments
Area of Reform
Current Situation
Proposed Improvement
Business registration time
Up to 1 year
Reduced to 14 days
Import readiness (LC opening)
Delayed due to approvals
Possible by 15th day
Licensing process
Complex and multi-layered
Simplified and streamlined
Policy coordination
Fragmented across agencies
RBC Cell for unified coordination
Reform roadmap
Case-by-case improvements
Structured public implementation plan
The briefing was attended by senior officials including the EU Ambassador Michael Miller, Executive Member of the Bangladesh Investment Development Authority Md Humayun Kabir, UN Resident Coordinator Caroline Flore-Smereczniak, and Foreign Secretary (Bilateral East and West) Dr Md Nazrul Islam, among others.
Officials reiterated that Bangladesh’s long-term growth strategy will depend on building a transparent, efficient, and globally competitive business ecosystem capable of attracting sustained foreign investment.
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