Government plans major reforms to reduce business startup process to 14 days

The government is set to introduce sweeping reforms to streamline business registration and cut red tape, aiming to reduce the time required to launch a business to just 14 days.

Speaking as the chief guest at a briefing titled “Aligning Investment, Trade and Decent Work Agenda for Resilient and Inclusive Supply Chains” at Hotel InterContinental Dhaka on Monday, Commerce Minister Khandaker Abdul Muktadir said the initiative is part of a broader effort to improve the country's business environment.

He noted that establishing a business previously took nearly a year, but the government now intends to shorten the process to two weeks. Under the proposed framework, entrepreneurs would be able to open a letter of credit (LC) for importing machinery by the 15th day.

The event was jointly organised by the International Labour Organization and the Bangladesh Investment Development Authority.

Referring to the recommendation by the United Nations Committee for Development Policy regarding Bangladesh’s LDC graduation timeline, the minister said it should be viewed not simply as an extension but as a strategic window for preparation. He stressed the need to strengthen institutions, boost competitiveness, diversify production and equip the economy for the post-LDC era.

Muktadir said the proposed national budget is built around the vision of a “democratic, humane and inclusive” economy, reflecting the government's policy priorities. Key measures include simplifying business procedures, reducing licensing requirements and expanding access to new markets.

He also highlighted changing global business trends, noting that investors, buyers and consumers are increasingly focused on sustainability, transparency, regulatory compliance and responsible business practices. Global supply chains, he said, are being reshaped by concerns over environmental protection, labour rights, human rights due diligence, climate resilience and geopolitical developments.

According to the minister, countries that successfully combine economic growth with social responsibility and sustainability will be best positioned to succeed in the evolving global economy. He reaffirmed the government's commitment to supporting that transition.

As part of these efforts, the Ministry of Commerce has established a Responsible Business Conduct (RBC) Cell to promote ethical business practices. The unit will serve as a coordination platform linking government agencies, regulators, business groups, worker representatives and development partners. Its goal is to help build a growth model that is sustainable, inclusive, accountable and internationally competitive.

Responding to recommendations raised at the forum, Muktadir said the government supports measures to expand trade, attract greater investment and simplify business operations to strengthen Bangladesh’s position as a reliable manufacturing and sourcing destination. He added that a committee has already been formed to identify opportunities to shorten processing times and eliminate overlapping procedures.

The minister said a detailed roadmap for implementing the reforms and easing business startup procedures will be announced in July.

Other speakers at the event included Michael Miller, Md Humayun Kabir, Gwyn Lewis and Dr Md Nazrul Islam.