The Government of Bangladesh has unveiled an ambitious programme of administrative reforms aimed at making it significantly easier, faster, and more investment-friendly to start a business in the country. The announcement was made by Trade Minister Khondkar Abdul Muktadir, who highlighted that the existing bureaucratic framework has historically created substantial delays for entrepreneurs.
According to the minister, the process of establishing a business previously took up to a year due to complex licensing procedures, fragmented approvals, and slow administrative coordination. Under the proposed reform framework, however, the government aims to reduce the business startup timeline to just 14 days. In addition, under optimal conditions, companies would be able to open letters of credit for importing machinery by the 15th day following incorporation, significantly accelerating operational readiness.
He made these remarks while addressing a policy dialogue titled “Aligning a Resilient and Inclusive Supply Chain, Investment, Trade and Decent Work Agenda”, held at a five-star hotel in the capital. The event was jointly organised by the Bangladesh Investment Development Authority in collaboration with the International Labour Organization.
The Trade Minister stressed that the United Nations Committee for Development Policy’s recommendation regarding Bangladesh’s transition timeline from Least Developed Country status should not be viewed merely as an extension of time. Instead, he described it as a crucial preparatory window to strengthen institutional capacity, enhance economic competitiveness, diversify production, and prepare for post-transition challenges.
He further emphasised that recent national budget priorities reflect a commitment to building a democratic, humane, and inclusive economic model. Structural reforms aimed at simplifying business registration, reducing licensing complexity, and diversifying market access have been placed at the centre of government policy.
Addressing global economic trends, he noted that international buyers and investors are increasingly prioritising transparency, sustainability, labour rights, human rights compliance, environmental protection, and responsible business conduct. As a result, global supply chains are undergoing a structural transformation towards higher compliance standards.
To support this shift, the government has established a “Responsible Business Conduct Cell” under the Ministry of Commerce. This unit will coordinate among government agencies, regulatory bodies, business associations, worker representatives, and development partners to ensure alignment with global best practices.
Business Reform Targets Overview
| Area | Current Situation | Reform Target |
|---|---|---|
| Business startup time | Up to 1 year | Reduced to 14 days |
| Company registration process | Lengthy, fragmented approvals | Streamlined, integrated system |
| Letter of credit opening | Subject to delays | Possible by day 15 |
| Policy coordination | Disjointed implementation | Unified reform framework |
| Responsible business governance | Limited coordination | Dedicated coordination cell |
The dialogue also featured participation from a European regional representative, a senior executive of the Bangladesh Investment Development Authority, the United Nations Resident Coordinator, and a senior official from the Ministry of Foreign Affairs. Speakers collectively underscored the importance of improving Bangladesh’s investment climate and strengthening its position within global supply chains.
In conclusion, the minister stated that a dedicated committee is currently working to identify procedural bottlenecks and determine where time reductions are feasible. A detailed implementation roadmap for the reforms is expected to be announced in the coming month.
