Factory License

The Government has introduced an online application service for obtaining the license of establishment. The Department of Inspection for Factories and Establishments (DIFE) issues the factory registration certificate through The Labor Inspection Management Application (LIMA).

The requirements for obtaining a factory license (DIFE) in Bangladesh may vary depending on the type of factory and the products being manufactured. However, in general, the following are the requirements: • Registration: The factory must be registered with the Registrar of Joint Stock Companies and Firms (RJSC). • Building and location: Building and location must comply with local zoning and building regulations, and must be suitable for the type of manufacturing activities being conducted. • Safety measures: It must have adequate safety measures in place to protect workers and prevent accidents, including fire safety equipment, emergency exits, and first aid supplies. • Environmental standards: Environmental standards set by the Department of Environment (DOE), including waste management and pollution control measures. • Employment and labor standards: The factory must comply with employment and labor standards, including minimum wage requirements, working hours, and labor laws. • Submission of documents: Owner must submit various documents, including the factory registration certificate, layout plan of the factory, ownership documents, and proof of compliance with safety and environmental standards. • Payment of fees: The owner must pay the necessary fees for the issuance of the factory license (DIFE). It is important to note that the specific requirements may vary depending on the type of factory and the products being manufactured. Therefore, it is recommended to consult with the Department of Inspection for Factories and Establishments (DIFE) or seek professional guidance for further information.

Operating a factory without a valid factory license (DIFE) in Bangladesh is illegal and can result in a range of consequences, including: • Closure of the factory: The Department of Inspection for Factories and Establishments (DIFE) can order the closure of the factory if it is found to be operating without a valid license. • Fines: The factory owner may be fined for operating without a valid factory license (DIFE). • Legal action: The government may take legal action against the factory owner for operating without a valid factory license (DIFE). • Loss of credibility: Operating without a valid factory license (DIFE) can result in a loss of credibility and reputation for the factory owner. • Negative impact on workers: Without a valid factory license (DIFE) can put the safety and well-being of workers at risk, which can result in injuries or even fatalities. • Negative impact on the environment: If operating without a valid factory license (DIFE) can also result in negative environmental impact due to the lack of compliance with environmental standards. Therefore, it is highly recommended for factory owners to obtain a valid factory license (DIFE) before operating a factory in Bangladesh to avoid legal and financial consequences, and to ensure the safety and well-being of workers and the surrounding community.

Yes, there are various types of assistance available for small businesses or entrepreneurs who need to obtain a factory license (DIFE) in Bangladesh. • Government support: The Government of Bangladesh has several programs to support small businesses and entrepreneurs. The Department of Inspection for Factories and Establishments (DIFE) can provide information and guidance to small business owners and entrepreneurs on the process for obtaining a factory license (DIFE) and the requirements to comply with safety and environmental standards. • Business associations: Various business associations in Bangladesh, such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), can provide support and guidance to small businesses and entrepreneurs who need to obtain a factory license (DIFE). • Consulting firms: There are several consulting firms in Bangladesh that provide professional services to small businesses and entrepreneurs, including assistance with obtaining a factory license (DIFE).

• What are the steps to secure a Factory License in Bangladesh? To get a Factory Establishment License, use the online Labour Inspection Management Application (LIMA). Navigate to "Forms", select “Form 77” (License Application), create a User ID, and log in to proceed. • What documents are mandatory for factory setup? Setting up a factory, especially in EPZs, requires a Trade License, TIN, VAT certificate, Fire License, Boiler License, EPB permission, and membership with relevant associations like BTMA. • How is business trade classified? Trade is broadly divided into two categories: domestic trade (transactions within the country) and international trade (cross-border transactions between countries).