Company registration by 2 days, licensing by 7: Big automation plan unveiled

The government has unveiled an ambitious deregulation agenda aimed at transforming Bangladesh's business environment by sharply reducing bureaucratic hurdles, digitising regulatory services and introducing strict time-bound approvals in key economic sectors.

Under the deregulation package, company registration will be completed in 48 hours. Licencing procedures within a maximum of seven days through a mandatory online single-window system. Investor visas are expected to be processed within 10 days, while work permits for foreign professionals will be issued within seven days.

The government also plans to expand plug-and-play industrial facilities and streamline security clearance processes for foreign workers through an integrated digital platform.

The wide-ranging reforms were announced during the national budget presentation in parliament by Finance Minister Amir Khosru Mahmud Chowdhury, who described the initiative as a "landmark shift in Bangladesh's economic governance framework" designed to accelerate investment, industrial expansion and job creation.

Under the proposed framework, the entire lifecycle of business activity from company registration and licensing to taxation, customs clearance, banking and capital market operations will gradually be automated and brought under a fully digital system.

A central feature of the reform is the introduction of a "deemed approval" mechanism. If relevant authorities fail to provide comments, clearance or objections within the stipulated time frame, approvals will automatically be considered granted.

"The objective is to make government services faster, simpler and more predictable for investors," the finance minister told parliament. "We are reducing uncertainty in licensing, tax administration and customs procedures while ensuring transparency through digital systems."

To ensure effective implementation, the government will establish a high-level task force and launch a dedicated online portal where businesses can file complaints, track service delivery and monitor resolution status in real time.

Officials said the system will strengthen accountability, reduce delays and ensure transparency in public service delivery.

Business leaders have welcomed the announcement but stressed that implementation will be the real test.

"There have been long standing demands for a true single-window system and simplified taxation. The introduction of clear timelines is a very positive step," said Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry.

"If deregulation is implemented effectively across licensing, customs and tax systems, investment momentum in Bangladesh could increase significantly," he added.

Overhaul of tax administration

A major pillar of the reform focuses on income tax modernisation. From the next fiscal year, both individuals and companies will be able to submit corporate tax returns fully online. Taxpayers will be allowed to file returns throughout the year, with incentives for early submission.

Excess withholding tax will be refunded automatically through a faceless, digital system. Tax and VAT audits will be selected through risk-based automated mechanisms.

Foreign investors will be able to obtain Tax Residency Certificates online, while dispute resolution mechanisms will be expanded through alternative channels.

Business expense allowances will be rationalised in line with international standards, interest expense calculations will be aligned with global practices, and the scope of alternative tax dispute resolution will be widened.

Customs, VAT simplification

The reform package proposes major changes in customs and VAT administration. All export-oriented industries beyond the ready-made garment sector will gradually be brought under bonded warehouse facilities.

Compliant exporters will be exempted from mandatory annual bond audits, while bond tenure will be extended to three years. Restrictions on raw material inventory limits will be removed.

Ten new sectors will receive duty-free raw material import facilities. Additionally, mandatory e-VAT implementation, instant BIN issuance, quarterly VAT returns, automated VAT refunds and eased conditions for tax payment in appeals are expected to simplify compliance procedures.

Capital market, foreign investment reforms

In the capital market, authorities plan to reduce listing complexities for high-quality companies and promote deeper participation from pension funds, insurance companies and asset management firms. Settlement cycles will be reduced.

Market expansion measures also include deeper development of corporate bonds, sukuk instruments, infrastructure funds and municipal bond issuance by local governments to finance urban development.

Chattogram Chamber President Amirul Haque said, "If these reforms are implemented as proposed, most business bottlenecks will disappear. The key challenge is how quickly and effectively they are executed," he said.

Policy experts have described the reform as a potential structural shift in Bangladesh's economic governance.

"This is not just administrative reform; it is a structural transformation of the economy," said Dr M Masrur Reaz of the Policy Exchange. "If implemented properly, Bangladesh could become significantly more competitive in South Asia."

Countries such as Singapore, South Korea and India have successfully implemented deregulation-driven reforms to improve their investment climate, largely by reducing procedural complexity and strengthening digital governance.