Start Shipbuilding & Shipbreaking Business in Bangladesh

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    Start Your Dream In Shipbuilding & Shipbreaking Business Smoothly With Us

    NetworkBD has a strong and capable staff that can quickly and efficiently establish to Start Shipbuilding & Shipbreaking enterprise. Our legal experts can help clients with any form of business incorporation through consultations and meetings, as well as providing them with recommendations.


    Shipbuilding, or the construction of ships, is a burgeoning sector in Bangladesh, with roots dating back to the early modern period. In recent years, shipbuilding has emerged as a significant prospective industry, with domestically made vessels beginning to be exported outside of the country. Shipbuilding has evolved as an important way of diversifying exports in recent years, and it has established a good name in a competitive worldwide market.


    Get Affordable Benefit From Us To Setup Shipbuilding & Shipbreaking Business

    Because ships are utilized for commercial purposes, the demand for ships on the international market in Bangladesh is directly related to the economy. The Bangladeshi shipbuilding industry has been looking for export opportunities in the small vessel segment. Bangladeshi shipyards have been delivering small and medium-sized vessels to Europe’s fiercely competitive market. The industry has begun to compile a list of foreign ship owners who have placed building orders. In 2017-18, the value of exports increased from USD 5.7 million to USD 30.0 million.


    Shipbuilding and shipbreaking are among our country’s most promising export-oriented industries. The need for various types of vessels has expanded around the world, and Bangladesh is a viable destination in this industry. At the same time, due to the large amount of profit earned each year, demand for shipbuilding and shipbreaking is expanding. Many foreign investors are interested in this area since Bangladesh has proven to be a new and advantageous destination for this type of business.


    The Ship Building and Ship Recycling Board (SBSRB) is a Ministry of Industries-designated entity that provides a one-stop-shop for shipbuilding and ship recycling.

    License & Registration Process Of Starting Shipbuilding & Shipbreaking Business

    There is no doubt that shipbuilding and shipbreaking are the most promising export-oriented industries in our country. Bangladesh has been a lucrative destination for vessels from around the world, and the shipbuilding and ship breaking industries have also increased due to huge profits it earns every year. Bangladesh has proven to be a new and attractive destination for this business, and foreign investors are showing interest in this sector.

    In Bangladesh, you can start a shipbuilding business by forming a company:

    Company Procedure :


    A company that has been lawfully registered in Bangladesh can participate in any business activity that the company’s Object Clause stipulates in its Memorandum of Association. A firm in Bangladesh might be either public or private. A minimum of seven shareholders is necessary to create a public business. A private business, on the other hand, requires a minimum of two stockholders.


    A private corporation cannot invite the public to subscribe to its shares, whereas a public firm can make its shares available to the general public. In actuality, foreign and local entrepreneurs prefer a private firm to a public company. There are no restrictions on foreign equity participation in foreign direct investment,  100 percent foreign equity is permitted. Foreign investment, like other locally invested companies, is fully protected and secure in Bangladesh. Bangladesh’s rules ensure non-discriminatory treatment of international and domestic investment, as well as the repatriation of revenues from stock and profit transactions.

    The Stages of Forming a Company Are as Follows:


    1. The proposed company’s name must be cleared with the Registrar of Joint Stock and Companies.

    2. Preparing and signing the following documents:


    •     The company’s Memorandum and Articles of Association
    •     Form I: Declaration of Company Registration
    •     Form VI: Notification of Changes at the Registered Office
    •     Form IX: Director’s permission to act
    •     Form X: List of Individuals Agreeing to Serve as Directors
    •     Particulars of the directors, manager, and managing agents (Form  XII).

    3. Establishing a temporary bank account for the Proposed Company in any Bangladeshi scheduled bank.

    4. Transfer the paid-up capital amount from each foreign shareholder’s account to the proposed company’s Bangladesh bank account.

    5. Obtain an encashment certificate from the proposed company’s bank for each foreign transaction.

    6. Send all relevant documents to the Company House.

    7. Pay the registration fees to the government.

    8. Obtain a certificate of registration from the Company House.


    A 100 percent foreign-owned corporation can register as a Branch Office to start a Shipbuilding business in addition to setting up the above-mentioned format. However, a branch office can only undertake the functions that the parent business has specified after receiving prior clearance from the Bangladesh Investment Development Authority. Depending on the expansion/scope of the firm, extra licenses or permissions may be necessary after the company is established.

    Additional Licenses For Shipbuilding & Shipbreaking Business

    The additional licenses required for establishing a Shipbuilding industry are mentioned below:


    1. Trade License
    2. TIN Certificate
    3. VAT Registration Certificate
    4. Registration of Industrial Investment Project
    5. Factory Layout Approval
    6. The license of Factory
    7. Membership Certificate
    8. Import Registration Certificate (applicable for Import Business)
    9. Export Registration Certificate (applicable for Export Business)
    10. Environment Clearance Certificate
    11. Fire License
    12. Registration of Trademark
    13. Permission for Ship Breaking

    We Helps To Get Permission For Starting Shipbuilding & Shipbreaking Business

    In order to operate a ship breaking/recycling business in Bangladesh, you must first obtain approval from the Ministry of Industries’ “Ship Building and Ship Recycling Board (SBSRB).”


    To begin, a NOC (No Objection Certificate) must be obtained from the SBSRB in order to import the ship for scrapping or recycling in Bangladesh. SBSRB issues a letter of credit to enable the import of scrap vessels by analyzing and examining the ship’s details, MOUs, and hazardous waste inventory in accordance with government import policy orders.


    To examine the ship, the SBSRB, in collaboration with the customs department, pays a visit to it at the outer anchorage to check its inventory. If the agency determines that the ship does not carry any cargo or items prohibited by Bangladeshi legislation, demolition permission is granted. The ship is evaluated by the surveyors.


    Furthermore, the Department of Environment checks the ship for Hazardous Waste and materials excluding in-built hazardous and poisonous materials at the same time and may grant an environment clearance certificate for that ship.


    Two certificates are issued by the Department of Explosives:

    1. For man entry, there is no charge for gas.
    2. For heated work, no gas is required.

    The Importation Process of Start Shipbuilding & Shipbreaking Business

    The following paperwork must be filed in order to import a ship for breaking or recycling:


    1. SBSRB’s nod of approval
    2. Certificate of environmental clearance
    3. Particulars of the ship
    4. MOU with the buyer, as well as the hazardous items inventory on board
    5. A letter of credit from a pre-approved financial institution

    6 Procedure For Recycling Shipbuilding & Shipbreaking

    The two documents required to begin the ship recycling process are the Ship Recycling Plan and the Ship Recycling Facility’s Plan.


    The Ministry of Industry’s Ship Building and Ship Recycling Board (SBSRB) has the authority to approve the Ship Recycling Facility Plan in a prescribed form with the following document requirements:


    1. Annexure III and IV of the shipbreaking and recycling rules contain a prescribed application form.
    2. The DOE provided authorization for handling hazardous material generated from ship recycling activities.
    3. Registration as a member of a trade body and a member of the Hazardous Waste Management Association
    4. SBSRB will facilitate or run a Treatment, Storage, and Disposal Facility (TDSF) under the Ministry of Industries.
    5. License for the storage of LPG, acetylene, carbon dioxide, oxygen, and all other flammable liquids and cylinders.
    6. Obtaining SBSRB approval for a license and SRFP, as well as a map depicting the yard layout and other facility components.

    Ship Recycling Facility Plan Will Have The 15 Following Facilities:

    1. Temporary storage for Hazardous/Non-Hazardous Waste Materials has been reduced.
    2. Asbestos removal, processing, and storage facility.
    3. Sanitation and restroom facilities for at least 50 personnel are required.
    4. Availability of sufficient and safe drinking water
    5. Workers come in and out of the space to change and renew it
    6. A first-aid station
    7. A fire station and an emergency response system (ERS)
    8. Personal Protection Equipment (PPE) and Material Handling Equipment (MHE) (PPE)
    9. A list of all disciplines’ trained labors (lightening, gas cutting, waste handling, working in confined spaces, using various gadgets like oxygen and other gas detectors, crane and material handling systems, etc.)
    10. Other required amenities, as directed by the Department of the Environment

    Why You Start Shipbuilding & Shipbreaking Business With NetworkBD?

    1. Several deeds, agreements, and documents must be created in order to incorporate any form of business. The legal staff at Network BD can help customers prepare and draft these documents.


    2. In order to start a business, you must first find a suitable piece of property. NetworkBD can assists the client by locating a suitable location for the client’s business to be established. Furthermore, we may assist with the development of leasing agreements, land vetting from the appropriate land registry office, and land acquisition preparation, including registration.


    3. NetworkBD may also help with the payment of government fees to the appropriate authorities, such as BIDA or RJSC, as well as liaise with them to get necessary documentation for business incorporation. Our legal professionals have outstanding working relationships with government offices, making obtaining any certificate or license much easier.


    4. Trademark/Copyright/Patent registration is sometimes required in order to incorporate a corporation in order to obtain protection against infringement, provide value to the company, and strengthen legal protection. Network BD aids its clients in acquiring Trademark / Copyright / Patent registration from the Department of Patents, Designs, and Trademarks (DPDT), ensuring legal protection for the company.


    5. NetworkBD also offers services for getting or renewing any form of license. For example, in order to undertake a shipbuilding business, various licenses are required. The legal experts at Network BD can help you obtain those licenses and, if necessary, renew them on time.


    6. NetworkBD provides clients with labor-related services such as preparing employment agreements, resolving labor-related issues, and offering legal opinions on labor legislation.


    7. NetworkBD may advise and assist in meeting regular legal compliances in order to keep the firm running smoothly.

    FAQs For Start Shipbuilding & Shipbreaking Business

    1. How much do shipbreakers pay for a ship?

    The vessel is then purchased by the ship-breaker from an international broker who trades in obsolete ships. The price paid is roughly $400 per tonne, with the higher the price the worse the environmental laws are.

    2. How does the shipbreaking business operate?

    On its final journey, the ship must float stably until it reaches the shipping yard’s beach, where it staggers and comes to a halt. The engine is turned off and the anchor is dropped once the ship has reached the land. After creating a plan, the shipbreakers get to work.

    3. How long does it take to dismantle a ship?

    Workers scrape the ship using torches, sledgehammers, and pure elbow grease in a methodical and tidy sweep. Dismantling a ship can take anywhere from two weeks to a year.

    4. Is shipbreaking a viable option?

    The shipbreaking procedures now used by shipbreakers around the world are unsustainable… As a result, if it rains during breaking activities, dangerous materials could be diluted in water, and this polluted water would diffuse into the yard ground, contaminating the entire ecosystem.

    Build A Strong Reputation In The Competitive Market With Shipbuilding Business