Factory Establishment License In Bangladesh in 2023
Practical, high‑level guide for international businesses seeking a factory establishment licence in Bangladesh. Covers the regulatory authority, typical documentation, operational compliance, cross‑border considerations and a practical checklist for planning and due diligence.
From our London office at Holborn Gate, 330 High Holborn, WC1V 7QH, this note provides a concise, business‑focused overview of the principal regulatory and practical issues foreign investors should consider when pursuing a factory establishment licence in Bangladesh. It is aimed at general planning and project diligence and is not a substitute for local legal advice.
Overview and regulatory authority
In Bangladesh, the Department of Inspection for Factories and Establishments (DIFE) is the principal authority responsible for licensing factories and enforcing statutory standards for health, safety and welfare. The government has moved many workflows online, including the Labour Inspection Management Application (LIMA), which is used to lodge and track certain applications. Licensing is often a prerequisite to start production and can be linked to other approvals such as land use, environmental clearance and connections to utilities.
Core procedural steps and typical documentation
Procedures vary by industry, factory size and site. At a high level, the sequence commonly includes:
- Site and title confirmation: verify land ownership/lease and permitted use under local planning rules.
- Pre‑application compliance checks: environmental impact assessment (where applicable), fire safety planning and waste management strategy.
- Preparation of the licence application: supporting documents typically include company incorporation papers, site plans and drawings, structural and fire safety certificates, list of machinery, proposed workforce and health & safety arrangements.
- Submission and inspection: DIFE (or its district office) will review documents and normally conduct a physical inspection prior to grant.
- Issuance and post‑licence obligations: licences may carry conditions (e.g. maximum workforce, operational limits) and periodic inspections or renewals.
Timings can vary depending on the completeness of submissions, whether an environmental assessment is required, and the need for coordinated approvals from other agencies.
Operational, health & safety and employment considerations
Obtaining a licence is a gateway to continuous regulatory obligations. Key operational areas to plan for include:
- Worker safety systems and fire prevention measures calibrated to the workforce size and process risks.
- Occupational health arrangements and mandatory welfare facilities.
- Compliance with statutory reporting, accident notification and inspection regimes.
- Alignment of employment contracts, working hours and wage practices with national labour laws and collective bargaining where relevant.
Investors should also consider supply chain risks, insurance, and contingency planning for industrial incidents that can trigger regulatory investigations.
Practical checklist
- Confirm project structure and foreign investment restrictions; engage local counsel for title and sector checks.
- Secure site control (lease or title) and confirm planning zoning/land‑use compatibility.
- Commission technical drawings, fire safety and environmental assessments early.
- Prepare a workforce plan and draft health & safety policies for submission and operational readiness.
- Register and monitor the application via the LIMA portal and coordinate inspections with DIFE district office.
- Plan for post‑licence compliance: training, recordkeeping and renewal timelines.
Jurisdiction and sources
For primary, up‑to‑date information consult official Bangladeshi authorities and portals, including:
- Department of Inspection for Factories and Establishments (DIFE)
- Labour and Employment Ministry of Bangladesh
- Labour Inspection Management Application (LIMA) portal
- Bangladesh Investment Development Authority (BIDA) for investment incentives and sectoral guidance
For UK/EU investors, consider parallel advice under England and Wales law on corporate structuring, export control, sanctions screening and anti‑bribery compliance. Where statutory regimes differ, separate advice should be obtained for Scotland or Northern Ireland.
General information only; not legal advice and not a substitute for advice on a particular matter.
Bring the question into focus.
Contact the London office with a high-level, non-confidential outline of the issue. We can discuss the appropriate next step.