Guide to Setup Bangladesh Business
Human Resource Immigration
Bangladesh Industry Digital Plan
Corporate Compliance Requirement
Finances and Grants
Legally Start A Ready Made Garments (RMG) Business in Bangladesh
Start A Ready Made Garments (RMG) Business in Bangladesh is very Profitable. NetworkBD is one of Bangladesh’s best law firms, with extensive experience working with the garments industry for both domestic and international clients. NetworkBD has developed an exceedingly trustworthy reputation through its activities. As a full-service law office, we can assist you with practically every aspect of the RMG industry, from obtaining a business name to preparing articles and memorandums of association and registering with the RJSC. We also assist with obtaining various licenses such as I.R.C, E.R.C, VAT, TIN, Trade License, and so on.
Why Start A Ready Made Garments Business in Bangladesh With Us?
Our focus will be on your sales strategy, procurement policy, quality and productivity, FICO, and cash flow management. We can also assist you with Customer Relationship Management, Training & Grooming, and Analyze. Investment opportunities are also crucial for the company’s growth and achievement of its aims and objectives. Bargaining and negotiating are required for price setting. Buyers are placing low-cost orders. Entrepreneurs must hire people who can negotiate and bargain effectively.
1. Planning :
The first and most crucial task is to create a company strategy and pick short and long-term objectives, and we can assist you in doing so. The second responsibility of an RMG entrepreneur is to choose a suitable product line. After that, determining the project cost and deciding on a method of funding is the first step in getting the business up and running.
2. Human Resources and Company Processes :
Companies must plan for recruitment and layout policies to turn employees into assets. You must schedule the project design milestone for trial production. Our skilled staff assists you in ensuring a more efficient business process.
3. Finance :
Personal investment or intercompany investment can be used to arrange finances. Local commercial banks also provide project financing for the establishment of apparel-related businesses. Entrepreneurs can also take out a foreign currency loan. A loan from a strategic partner’s customer might potentially be a source of funding.
4. Creating Designs:
Our experts will assist you in creating the ideal design for your company. Product creation for any clothing business is one of the most exciting stages, not just for our firm but for any other. Even if you only have a design concept for one product in these early stages, start sketching it out on paper or on the computer.
4 Additional Crucial Steps We Take For Start A Ready-Made Garments Business
1. We evaluate your competitors.
2. We’ll show you how to figure out how to best serve your clients.
3. We assist in the establishment of suppliers.
4. We can assist you in marketing your company.
Necessary Process To Setting License And Registration Process
The registration of a firm at the Registrar of the Joint Stock of Companies, often known as RJSC, is usually the first step in establishing a garments factory in Bangladesh. A public or private limited business is the two alternatives. Private limited firms have their own group of shareholders, whereas public limited companies can raise capital from the public by selling shares. For any company, the process begins with a Name Clearance Certificate and continues with the RJSC’s required document list for company incorporation. The Articles and Memorandum of Association outline the companies’ ownership and operations.
When there are foreign shareholders, the document needs will vary depending on the RJSC’s requirements. Foreign owners have the option of forming a subsidiary business that will be a limited liability corporation with the parent company’s ownership.
After a company has been established, the next set of criteria is obtaining factory licenses. The following is a general list of the licenses that a garments manufacturer may require for operation, depending on the type of operations. This list is non-exhaustive:
- Certificate of Export Registration (E.R.C)
- Certificate of Import Registration (I.R.C)
- Approval of the Factory Layout Plan.
- A fire license is required.
- Factory Permit
- Certificate for the Environment
- Belonging to a Chamber of Commerce.
- Bangladesh Garment Manufacturers & Exporters Associate membership and certification (BGMEA)
- Certificate of Registration for Value Added Tax.
- A business license.
- Certificate of Enrolment in the Export Promotion Bureau.
- Tax Identification Number (TIN) (TIN)
- Certificate of Bank Solvency
- Bond License and General Bond (If Applicable) and so on.
We Guide You Make A Better Plan For A Ready Made Garments Business
In the clothing industry, buying houses play a significant role. Some of the world’s largest brands employ buying houses to make orders with local enterprises and manufacturers. A Sole Proprietorship, Partnership, or Corporation can be formed to purchase houses. The Sole Proprietorship is the most basic type of business ownership, with the proprietor bearing full responsibility for all liabilities, including profits, dues, and taxes. It is simple to set up by acquiring a Trade License, which must be renewed annually. Bangladeshi partnerships require a minimum of two and a maximum of twenty participants. It can be carried out through a cooperation agreement that has been registered with the RJSC. There’s also the possibility of forming a buying house as a subsidiary firm with the parent corporation owning a majority stake. Most foreign owners, on the other hand, prefer to have a dedicated branch or liaison office for this purpose. To operate, such a branch/liaison office must first seek approval from the Bangladesh Investment Development Authority (BIDA).
Why Trust Us For Start A Ready Made Garments Business in Bangladesh?
NetworkBD is one of the best full-service law companies in Bangladesh, capable of delivering any legal solutions for the RMG industry. We have a lot of experience with company formation and getting licenses, which is exactly what is needed in this scenario. We also have departments dedicated to expatriate immigration and the financial department, which deals with things like taxation and payroll.
Despite the recent outbreak of Covid-19 and its devastating impact on the RMG sector, it remains the greatest sector in Bangladesh to invest in. Bangladesh’s government has been proactive in this area, and it can only grow in the future. NetworkBD has the solution to all of your legal problems.
Our Special Expertise On Start A Ready Made Garments Business
- We assist expatriates with all types of immigration issues, including getting E-visas, FE visas, and Work Permits.
- We work with some of the largest companies in the world, both domestically and internationally, when it comes to expatriates.
- Assistance with getting encashment certificates and account openings is also available.
- NetworkBD has a separate wing dedicated to financial and taxation issues, which can handle all tax difficulties, payroll, and so on.
- Our labor experience is unrivaled, and it often provides guidance on a wide range of labor matters, including termination, payments, and so on.
- Our legal team includes some exceptional lawyers who can effectively represent any aggrieved party in the Bangladeshi court system on any labor, contract, or other relevant problem involving the RMG industry.
- NetworkBD has a strong team of arbitrators, mediators, and negotiators on its side. Overall, NetworkBD is a one-stop-shop for all types of legal difficulties.
FAQs For Starting A Ready Made Garments Business In Bangladesh
1. How much does it cost to set up a garment factory?
The amount of money needed to start a garment factory is determined by the size of the operation. A minimum expenditure of roughly 20 lacs and a production space of 600 sq. ft. is required to start a small-scale garment manufacturing company.
2. How does COVID-19 impact RMG business in Bangladesh?
Bangladesh has never encountered a situation like this since its foundation. The world economy has been severely harmed as a result. Locking down and quarantining the crowd has been a difficult task in and of itself. Bangladesh’s RMG sector has taken the biggest damage, with almost USD 2.5 billion in canceled orders already.
3. How is the future of the RMG industry in Bangladesh?
The RMG industry is still one of the most vibrant in the country. The Bangladesh government has declared the opening of new export processing zones since it is very supportive of this sector. In addition, the government has mandated the construction of a deep seaport and a new airport, as well as significant investments in internal infrastructure, implying that trading will become easier in the near future. The government of Bangladesh is also encouraging international investors to invest in the country. Given the state of the industry, this might not be a bad idea.
4. How I can start an RMG business successfully?
Sales Strategy, Procurement Policy, Quality & Productivity, FICO, and Cash Flow Management should be the top priorities for RMG entrepreneurs. Customer Relationship Management, Training & Grooming, and Analyze Investment Opportunities are equally critical to accelerating the company and meeting organizational goals and objectives. Price setting necessitates bargaining and negotiation. Buyers are placing orders at a low price. Entrepreneurs must hire people who are skilled at negotiating and bargaining.