Experts have called for sweeping regulatory reforms to reduce administrative burdens on businesses, saying simplified rules and digitalised licensing systems are essential to encourage formalisation, improve the business climate and support the growth of micro, small and medium enterprises (MSMEs) in Bangladesh.
The observations came at a stakeholders' consultation titled "Regulatory Streamlining for an Enabling Business Environment for Formalization", jointly organised by Business Initiative Leading Development (BUILD), the Ministry of Industries (MoI) and the International Labour Organization (ILO) at the ministry's conference room in Dhaka on Thursday.
The event brought together senior government officials, representatives from business chambers, employers' and workers' organisations, development partners and researchers to discuss regulatory reforms ahead of Bangladesh's graduation from Least Developed Country (LDC) status.
Speaking as the chief guest, Industries Secretary Abdun Naser Khan said the government was committed to reducing administrative complexities that hinder businesses, particularly SMEs.
He said a high-level committee led by the Minister for Industries, Textiles, Jute and Commerce had already been formed to accelerate regulatory reforms and expected progress in simplifying business procedures soon.
Referring to BUILD's proposal for a deregulation action plan to be implemented within the next 90 days, Mr Khan said efforts were underway to strengthen the One Stop Service (OSS) platform through greater digitalisation in collaboration with the Prime Minister's Office.
BUILD Chairperson Abul Kasem Khan said the organisation had published business licensing guidebooks to help investors better understand permit and approval requirements.
He proposed introducing a unified application system for utility connections, joint inspection mechanisms and legally enforceable Service Level Agreements (SLAs) to reduce delays in obtaining government approvals.
Presenting the keynote paper, BUILD Chief Executive Officer Ferdaus Ara Begum said around 65 per cent of economic units in Bangladesh remained informal, citing data from the Bangladesh Bureau of Statistics (BBS), despite registered enterprises accounting for more than half of total employment.
Drawing on findings from more than 50 key informant interviews, she highlighted the scale of the compliance burden faced by businesses.
According to BUILD, a plastic waste management enterprise currently requires up to 31 licences, submission of more than 235 documents and approval processes that can take as long as 650 days.
Similarly, light engineering businesses need around 30 licences, more than 200 supporting documents and processing periods of up to 600 days. Around 50 to 60 per cent of documentation requirements are repetitive across different government agencies, the study found.
To address these challenges, BUILD proposed introducing a Single Digital Business Identity Number, a unified one-stop licensing platform and multi-year licence validity, estimating that such reforms could reduce business compliance costs by 30 to 50 per cent.
Representing the ILO, Peter Jr. Bellen said eight out of every 10 workers in Bangladesh remained in the informal economy.
During the panel discussion, Additional Secretary and Registrar of Joint Stock Companies and Firms (RJSC) A.K.M. Nurunnabi said company registrations were now completed in less than 48 hours for a fee of Tk 2,500, provided all documents were in order.
He also said amendments to the Companies Act, 1994 were under preparation and that physical signatures for share transfers were being phased out in favour of fully digital processes.
Joint Secretary of the Ministry of Local Government, Rural Development and Cooperatives Md Shamsul Hoque said more than 5,500 autonomous local government bodies currently issued trade licences. He identified the absence of a centralised trade licence database as a major challenge and supported further collaboration between BUILD, the ILO and the Ministry of Industries to streamline licensing.
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