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Reducing regulatory hassles can be approached in three ways. By information dissemination, by improving infrastructure and making institutional changes to reduce paper work, introducing transparency and increasing efficiency in terms of time and cost of doing business.
BEI-SEDF SME Advisory Service on Regulatory Constraints (BSAS), and action-oriented project, funded by SEDF has undertaken an initiative
to assist entrepreneurs to set up a business and fulfill the statutory requirements. This would entail, specifically, to procure or renew a Trade License through Dhaka City Corporation (DCC) or other municipality as appropriate obtain or renew Export Registration Certificate ERC) and Import Registration Certificate (IRC) from Chief Controller of Imports and Exports (CCI&E), and obtain Certificate of Incorporation of an enterprise for a
limited company from the Registrar Joint Stock Companies and Firms (RJSC) and obtain Tax Identification Number (TIN) from the National
Board of Revenue (NBR). It has also produced an "Entrepreneurs Guide to Regulatory Processes". BSAS prepared these process charts after
consultation with these regulatory bodies. This manual is available at SEDF. In order to create public awareness and reach the information to
entrepreneurs interested in setting up a business, SEDF will be publishing these manuals in Financial Express in a series. The first of
such an effort is today's issue on regulatory process of Board of Investment.
Reducing regulatory hassles can be approached in three ways. By information dissemination, by improving infrastructure and making institutional changes to reduce paper work, introducing transparency and increasing efficiency in terms of time and cost of doing business.
BEI-SEDF SME Advisory Service on Regulatory Constraints (BSAS), and action-oriented project, funded by SEDF has undertaken an initiative
to assist entrepreneurs to set up a business and fulfill the statutory requirements. This would entail, specifically, to procure or renew a Trade License through Dhaka City Corporation (DCC) or other municipality as appropriate obtain or renew Export Registration Certificate ERC) and Import Registration Certificate (IRC) from Chief Controller of Imports and Exports (CCI&E), and obtain Certificate of Incorporation of an enterprise for a
limited company from the Registrar Joint Stock Companies and Firms (RJSC) and obtain Tax Identification Number (TIN) from the National
Board of Revenue (NBR). It has also produced an "Entrepreneurs Guide to Regulatory Processes". BSAS prepared these process charts after
consultation with these regulatory bodies. This manual is available at SEDF. In order to create public awareness and reach the information to
entrepreneurs interested in setting up a business, SEDF will be publishing these manuals in Financial Express in a series. The first of
such an effort is today's issue on regulatory process of Board of Investment.
In the first visit, investors are advised to have clarifications of the following issues:
l How could BOI assist him in the project implementation?
l What procedures have to be completed?
l What are the pre-conditions or pre-requisites in each procedure?
l How much time would take to complete each process?
Such specific queries would remove any ambiguity therein and help in efficient functioning of the process.
l Among the above, which are placed before a meeting, the letter of recommendation/ permission is issued within 3(three) days of the issuance of minutes of the meeting.
l Among the above, which require physical inspection only, the recommendation letter is issued within 3(three) days of such inspection, but within 15(fifteen) days of complete application received.
l Bonded warehouse license recommendation is made for those industries that have been issued IRC.
Steps those may be require by an Entrepreneur of an Industry at BOI
1. Application for local investment registration and the registration process:
the registration letter alongwith conditions laid down for the registered industry for such registration
or Application for foreign investment registration and the registration process:
The registration letter and condition laid down for the registered industry
2. Importation of Machinery for the Industry
3. The First Ad-hoc IRC
4. Regular Ad-hoc IRC
or Second Ad-hoc IRC
5. Bonded Warehouse License
6. Remittance of Technical Transfer fees
7. Issuance of Work permit
8. Foreign Borrowings
9. Allotment of Plot in the public Industrial Zones
10. Acquisition of land by the relevant Deputy Commissioner of the district Registration:
l BOI Registers Industrial concerns (100% Local, Joint Venture & 100% Foreign) set-up anywhere in the country other than EPZs and BSCIC Industries Estates.
l Registration with the sponsoring agency is a must for any industry set-up in private sector in Bangladesh as per BOI Act (No 10 of Investment Board Act 1989)
l As per Industrial Policy 1989, no prior permission will be necessary to start a new industry out side those in the list "Reserved Industries" and to undertake its subsequent Balancing, Modernization, Rehabilitation and Expansion (BMRE).
l As per Industrial Policy 1999, all foreign investment projects to be registered in the prescribed manner with the concerned promotional body before setting up an Industry.
l Local Investment projects are registered in the same manner but both as an existing or a proposed Industry.
l All BOI registered Industries has a registration number like F-0000000-0000-H. In this number, F stands for 100% foreign Investment, it may be J for joint venture and L for 100% Local Investment. The first four digit represents the main product as per HS code number; the next three digits represent the serial number of registration in that month and the rest four number stands for the year and month of registration. The last alphabet stands for the registering office (Say, H for Head Quarter of BOI, C for Division office of BOI at Chittagong, K for same of Khulna, R for the same as Rajshahi, B for the same at Barisal and S for the same at Sylhet).
l The system of providing "Registration Number" for all BOI registered industries had been introduced in early 1994. Since 2000 on H.S. Code No. (First 4 digits) has been added to it. All industries are now required to have a registration number of BOI. The Joint Venture and 100% Foreign Investment industry can only register as proposed industry as per industrial policy. So the foreign invested industry which were registered by BOI or erstwhile Department of Industries applied for this number as existing industry.
lThere is a prescribed registration fee for each industrial undertaking and each application is made, which is based on slabs of proposed/existing investment outlay. The registration fee is as follows:
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