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Ease of Doing Business in

Bangladesh

Bangladesh Download Profile (1990KB, pdf)
Region South Asia
Income Category Lower middle income
Population 160,995,642
GNI Per Capita (US$) 1,190
City covered Dhaka , Chittagong

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 176 178 up
2
40.84 40.68 down
0.16
Starting a Business 122 115 down
7
81.74 81.72 up
0.02
Dealing with Construction Permits 138 138
-
61.60 61.25 up
0.35
Getting Electricity 187 187
-
16.17 15.22 up
0.95
Registering Property 185 186 up
1
27.58 27.48 up
0.10
Getting Credit 157 152 down
5
25.00 25.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 151 148 down
3
55.56 56.07 down
0.51
Trading across Borders 173 173
-
34.86 34.86
-
Enforcing Contracts 189 189
-
22.21 22.21
-
Resolving Insolvency 151 153 up
2
27.02 26.36 up
0.66

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

61.12

DB 2016 DTF (% points):

60.75

Change in DTF (% points):

up0.37

STANDARDIZED WAREHOUSE
Estimated value of warehouse BDT 5,020,296
City Dhaka
Indicator Dhaka South Asia OECD high income
Procedures (number) info_outline 14 16.4 12.1
Time (days) info_outline 278 196.4 152.1
Cost (% of warehouse value) info_outline 2.7 16.7 1.6
Building quality control index (0-15) info_outline 10 8.7 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain cadastral survey map from Land Settlement Office

    Agency: Land Settlement Office

    3 days USD 25
    2

    Obtain zoning clearance

    Agency: Rajuk (Capital Development Authority)

    To obtain clearance, BuildCo must present proof of land ownership and the cadastral maps showing the exact site location. An anticorruption drive of the interim government of Bangladesh stemmed from massive violations of building regulations on one hand and collapse of buildings with casualties on the other hand impacted the work of some areas of construction regulation. Obtaining zoning clearance takes on average 2 -- 3 months if no bribes are paid, while the time limit by law is 15 days.

    45 days no charge
    * 3

    Obtain soil test report

    Agency: Private Company

    An external firm is generally hired for conducting a soil test.

    24 days BDT 59,500
    4

    Obtain project clearance from the local authority (Ward Commissioner, Dhaka City Corporation)

    Agency: Dhaka City Corporation

    To obtain the local authority’s approval, BuildCo must submit an application with the proposed design plans. The approval may take anywhere from 3 to 7 days.

    3 days no charge
    5

    Obtain project clearance from the Environmental Directorate

    Agency: Environmental Directorate

    The Environmental Directorate of Rajuk issues three types of clearances based on the type of establishment: green (nonpolluting), orange (low polluting), and red (high polluting). For the green category, the environmental clearance is issued for a fee of USD 25.00. If unofficial payments are made, the environmental clearance can be obtained in a week. For other categories, the cost and time to obtain a clearance are higher. To obtain a project clearance, the following documents are required, depending on the environmental category:
    • Approval from the Ward Commissioner, Dhaka City Corporation
    • Project profile, feasibility report, and drawings
    • Land ownership documents
    • Cadastral survey map and location map
    • Trade license (copy)
    • Registration of the Board of Investment (copy)
    • EIA/ IEE/ EMP Report
    • Fees payable to DOE

    Fees by total project cost
    USD 0–0.08 million: USD 25.00
    USD 0.08 million–0.16 million: USD 50.00
    USD 0.16 million–0.8 million: USD 80.00
    USD 0.8 million–1.6 million: USD 160.00
    USD 1.6 million–32 million: USD 400.00
    USD 32 million–80 million: USD 800.00
    USD 80-million and above: USD 1,600.00

    Renewal fees by total project cost
    USD 0–0.08 million: USD 5.00
    USD 0.08 million–0.16 million: USD 12.00
    USD 0.16 million–0.8 million: USD 20.00
    USD 0.8 million–1.6 million: USD 40.00
    USD 1.6 million–32 million: USD 125.00
    USD 32 million–80 million: USD 250.00
    USD 80-million and above: USD 400.00

    30 days USD 80
    * 6

    Obtain fire safety clearance

    Agency: Fire Department

    15 days BDT 8,000
    * 7

    Obtain clearance from Dhaka Electricity Supply Co (DESCO)

    Agency: Dhaka Electricity Supply Co (DESCO)

    BuildCo must obtain the clearance from Dhaka Electricity Supply Co (DESCO) for the electrical plans.

    15 days no charge
    * 8

    Obtain water and sanitation clearance

    Agency: Dhaka Water and Sewerage Authority (WASA)

    The plumbing plans must be cleared by the relevant agencies.

    15 days no charge
    9

    Request and receive inspection from the City Development Authority (RAJUK)

    Agency: City Development Authority (RAJUK)

    Before the building permit is issued, the authorized officers must visit the site to ascertain its location according to the drawings and maps. However, with only a handful of officers and a massive number of applications, it is extremely difficult to comply with the original 30-day time limit established by the government. The procedure still takes 2 -- 5 months on average.

    60 days no charge
    10

    Obtain project clearance and building permit from the City Development Authority (RAJUK)

    Agency: City Development Authority (RAJUK)

    The approving panel of the City Development Authority (RAJUK) meets weekly to discuss cases. In early 2007, officials in the Ministry of Works imposed a 30-day time limit on the process. Applicants must obtain all relevants clearances, water, sanitation, electricity and a fire safety clearance certificate before applying for the building permit.
    Each agency that provides approval is given a 7-day time limit, but it is generally not complied with.

    105 days BDT 30,000
    11

    Receive random inspection from the City Development Authority (RAJUK)

    Agency: City Development Authority (RAJUK)

    According to the 2006 National Building Code, Section II, chapter 3, all inspections during construction are carried out by a structural engineer who must sign the certificate of supervision. However, a building officer from the City Development Authority may carry out one random inspection during construction to verify that the work is being done according to the approved plans

    1 day no charge
    12

    Submit notice of completion and obtain the certificate of conformity

    Agency: City Development Authority (RAJUK)

    According to the 2006 National Building Code, chapter 3, section 3.3.4, the completion notice must be signed by the structural engineer who has supervised the entire construction phase. The notice of completion certifies that the building has been built in compliance with the existing regulations. The authorities may or may not inspect the building. It is only after receipt of this completion notice that the certificate of conformity can be issued.

    21 days no charge
    13

    Request and obtain water and sewerage connection

    Agency: Dhaka Water and Sewerage Authority (WASA)


    10 days BDT 30,000
    * 14

    Receive inspection by tax inspector from Dhaka City Corporation upon completion of construction

    Agency: Dhaka City Corporation

    A tax inspector from the Dhaka City Corporation visits the site to assess the completed building. No appointment is necessary and there are no fees paid. The tax authority then sends the annual tax bill which will arrive 30 days later.

    1 day no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 10.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Unscheduled inspections. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer. 1.0