BIDA
Bangladesh Investment Development Authority (BIDA)
Chief Adviser's Office
 

EASE OF DOING BUSINESS

Bangladesh Investment Development Authority (BIDA) has been coordinating targeted reforms for the World Bank’s Ease of Doing Business with technical assistance from the International Finance Corporation (IFC). Currently at the 168th position, Bangladesh has been unwavering in its goal to achieve double-digit ranking for the economy. Working with BIDA, government agencies have implemented a series of systematic reforms.

National Steering Committee for monitoring the progress of EoDB activities is headed by the Honourable Finance Minister

National Committee for Monitoring & Implementation of Doing Business (NCMID) is headed by the Cabinet Secretary, who monitors reforms progress and coordinates with the concerned agencies

Hon’ble Private Industry and Investment Adviser to the Prime Minister is guiding the overall process of achieving the targeted reforms.

  • Requirement for company seal is abolished
  • Trade license issuance time is reduced to 2 days for companies registered with RJSC or BIDA OSS
  • Three (3) procedures of RJSC (Name Clearance, Company Registration, and Fee payment) have been merged into a single procedure.
  • VAT registration for RJSC registered companies in Dhaka and Chattogram are issued within 2 days with a risk-based inspection system (less than 20%).

  • A risk-based construction permit system for RAJUK and CDA has been introduced for low-risk residential buildings and warehouses
  • RAJUK has eliminated 8 procedures out of 16 and CDA has eliminated 7 procedures out of 15. Now following procedures are not required:
    - Requirement of taking clearance from DoE, Fire Service, DESCO/BPDB, WASA and Ward Commissioner;
    - Requirement of submitting cadastral map, specialized project clearance, and soil test report.
  • Time has been reduced for the following 3 procedures:
    - RAJUK issues land use clearance within 7 days (from previously given in 45 days);
    - Construction permit is issued in 7 working days for low-risk establishments (previously given in 105 days).
    - Occupancy certificate is issued in 5 working days (previously given in 21 days).

  • The mutation of the company-to-company land transfer is issued in 7 days (previously given in 53 days in Dhaka and in 75 days in Chattogram).
  • Municipality tax has been reduced to 1% from 2% for company-to-company land transfer in Dhaka and Chattogram.
  • Registration fees were reduced to 1% from 2% of property value through an amendment to Bangladesh Registration Rules 2014.
  • An original copy of a land deed is issued in 7 working days for the company-to-company transfer (previously given in 180 days).
  • The non-encumbrance certificate is issued in 2 days.
  • Proper implementation of a specific and independent mechanism for filing complaints.
  • Proper implementation of publication of official statistics of the number of transactions (property transfers) at the immovable property registry.

  • The time to obtain permission for underground cable installation is reduced to 3 days from 21 days in Dhaka.
  • The time to obtain an electrical license from ELB is reduced to 7 days from 28 days.
  • The time to submit an application for new electricity connection to DESCO and BPDB and await estimate is reduced to 13 days in Dhaka (from 30 days) and Chattogram (from 50 days).
  • The process of purchase meter from the firm contracted by the electric provider office is eliminated in Dhaka.
  • The time to meter testing, installation, final inspection, and electricity flow is reduced to 2 days in Dhaka and Chattogram.
  • Cost of applying for new electricity connection for 140kW at BPDB Chattogram is reduced to BDT 2,58,000 from BDT 3,81,678.11.
  • The cost for hiring an electrical contracting firm to purchase substation equipment, get it tested and carry out installation and earthing is reduced to 12,38,500 Taka.
  • Introduced fast track for providing new electricity connections for up to 80 kW in general and up to 150 KW for warehouse within 7 working days, through 2 procedures in Dhaka and Chattogram.

  • The record of credit history of the borrowers in the CIB report has been increased from 12 months to 24 months from August 5, 2019.
  • CIB coverage is increased to 7.12% from 5.2% of the adult population from January 1, 2020.

  • Time has been extended to 21days from 14days to call convene an AGM by amending the Company Act, 1994.
  • The 5% share-holders are now present agenda in AGM (the relevant section of the Company Act, 1994 has been amended).
  • Introducing requirement for continuous ongoing disclosure of the primary employment and other engagement including directorship in other companies
  • Exclusion of interested/related party from approving/voting on related party transactions.

  • Cost to border compliance for export has been reduced to US$ 200 from US$ 408
  • Cost to documentary compliance for export has been reduced to US$ 100 from US$ 225
  • Time to border compliance for export has been reduced to 36 hours from 168 hours
  • Time to documentary compliance for export has been reduced to 2 hours from 147 hours
  • Cost to border compliance for import has been reduced to US$ 180-210 from US$ 900
  • Cost to documentary compliance for import has been reduced to US$ 50 from US$ 370
  • Time to border compliance for import has been reduced to 72 hours from 216 hours
  • Time to documentary compliance for import has been reduced to 24 hours from 144 hours

  • Corporate Tax rate has been reduced to 22.5% for listed companies and for non-listed companies 30% from 35%
  • The VAT refund process has been automated and the VAT refund procedure is completed within 3 months.