How to set up a Ready-Made Garments business in Bangladesh
Bangladesh is one of the world’s leading garment exporters. We guide local and foreign investors through incorporation, factory approvals, trade-body membership, bonded warehouse facilities and ongoing labour and safety compliance.
An export industry with detailed compliance requirements
The RMG sector is the backbone of Bangladesh’s export economy and enjoys a mature supply chain, experienced workforce and established buyer relationships. It is also one of the most closely regulated sectors, with requirements covering factory buildings, fire and electrical safety, worker welfare and customs-bonded imports of raw materials.
Investors can establish a factory in a general industrial area, or inside an Export Processing Zone (EPZ) or Economic Zone, where a separate one-stop regime applies. The right choice depends on your capital, timeline, export market and need for duty-free imports.
Key steps to get started
Company Formation
Incorporate a private limited company with RJSC and obtain a trade licence, e-TIN and BIN.
Factory Premises
Secure land or a building suitable for industrial use and verify title and permitted land use.
Building & Safety Approvals
Building plan approval, fire licence and structural, electrical and fire safety compliance.
Factory Licence
Obtain the factory licence and plan approval from the Department of Inspection for Factories and Establishments (DIFE).
Trade Body Membership
Membership of BGMEA (woven) or BKMEA (knit), needed for export documentation such as UD/UP.
Bonded Warehouse & IRC/ERC
Bonded warehouse licence for duty-free raw materials, plus Import and Export Registration Certificates.
What you are likely to need
Requirements vary by location and factory size. A typical RMG unit outside an EPZ will need:
- RJSC certificate of incorporation
- Trade licence
- e-TIN & VAT/BIN registration
- Fire licence (Fire Service & Civil Defence)
- Environmental Clearance Certificate (DoE)
- DIFE factory licence
- BGMEA or BKMEA membership
- Bonded warehouse licence (Customs)
- IRC (industrial) & ERC
- BIDA registration (where applicable)
Key laws & regulators
- Companies Act, 1994
- Bangladesh Labour Act, 2006 & Labour Rules, 2015
- Bangladesh Environment Conservation Act, 1995
- Customs Act, 2023
- Import and Export (Control) Act, 1950
- Bangladesh Export Processing Zones Authority Act, 1980
- Bangladesh Economic Zones Act, 2010
- Regulators: RJSC, DIFE, DoE, NBR, BIDA, BEPZA
Your legal partner from day one
We advise on the right structure — company, branch, liaison office or joint venture.
We handle name clearance, RJSC incorporation and constitutional documents.
We obtain sector licences, registrations and regulatory approvals.
We support ongoing filings, contracts, employment and disputes.
Frequently asked questions
Can a foreign investor own 100% of an RMG company?
Foreign investment in the garment sector is generally permitted, including full foreign ownership, subject to registration and Bangladesh Bank reporting requirements. We confirm the position for your specific structure.
Is BGMEA or BKMEA membership mandatory?
In practice, membership is needed to obtain export-related documents such as the Utilization Declaration (UD). Woven manufacturers usually join BGMEA and knitwear manufacturers BKMEA.
What is a bonded warehouse licence?
It allows export-oriented factories to import fabrics and accessories without paying duty, provided they are used for export production and properly accounted for.
Should I set up inside an EPZ?
EPZs offer ready infrastructure and one-stop services, but have their own rules on labour, sales and approvals. We help you compare the options.
Speak with our legal team
Tell us about your matter. A Premier Law Services lawyer will review it and advise you on the right next step — in person at our Dhaka chamber or online.