Bangladesh Unifies Investment Governance under the Invest Bangladesh Act, 2026

Effective 20th August 2026, the Government of Bangladesh has enforced the Invest Bangladesh Act, 2026 (IBA 2026) to bring the service functions such as approvals, registration, import-export, incentives, zones under a unified framework. Prior to the IBA 2026, the Bangladesh Investment Development Authority Act, 2016 (BIDA) regulated the domestic and foreign investment, the Bangladesh Economic Zones Act, 2010 (BEZA) dealt with the establishment and governance of the economic zones, the Bangladesh Public-Private Partnership Act, 2015 (PPPA) comprised the promotion of the PPP module and the One-Stop Service Act, 2018 (OSSA) introduced a single window system for investment related processes. Now, with the IBA 2026 all these procedural formalities are unified into one platform with an aim towards improving the business-enabling environment in the country and consequently the BIDA, BEZA, PPPA and OSSA Act/s stand repealed.

What changes for businesses?

The IBA 2026 brings investment registration, industrial-zone administration, PPP functions and investment-related services under one institutional framework. For businesses, the following compliance requirements are particularly significant.

Registration of new industrial projects

Any person proposing to establish an industry in the private sector in Bangladesh, unless operating under another statutory authority or organization, must apply to the Invest Bangladesh Authority (IBA) for registration. The IBA will issue a registration certificate specifying the timeline for implementation of the project and commencement of production. Businesses may also be required to furnish additional information concerning the proposed project.

Existing unregistered industries must register

Private-sector industries that remain unregistered must obtain registration in accordance with the guidelines to be issued under the IBA 2026. However, industries already registered before the commencement of the IBA 2026 are not required to re-register themselves.

Foreign company offices require permission

A foreign private commercial company seeking to establish a branch office, liaison office, representative office or project office must obtain permission from the IBA. Existing offices that had already obtained permission before commencement of the IBA 2026 are not required to renew their permissions under the IBA 2026.

Comply with registration and approval conditions

Businesses must adhere to the conditions attached to registrations, approvals, permits, land allotments and leases. Facilities granted for a particular industrial project cannot be used for another purpose and businesses cannot change the type of industry or ownership of an approved industry without prior permission of the Authority. Failure to comply can attract suspension or cancellation of approvals, permits, allotments or leases.

Use allotted land only for its approved purpose

Businesses should not use land, acquired or allotted for an industrial project, for another purpose without the IBA’s prior written approval.

Import and export permissions

Industrial establishments requiring imports of machinery, parts, construction materials, raw materials or packaging materials must apply to the IBA for a license.

Foreign royalty and technical-fee payments

Where an industrial establishment proposes to pay royalties, technical know-how or technical-assistance fees or franchise fees to a foreign person or entity, it must apply to the IBA for determination of the permitted amount and pay the fee accordingly.

Cooperate with inspections

The IBA or an authorized body may inspect project implementation and enter private industrial or commercial establishments for inspection or investigation. Businesses are required to provide the necessary facilities for such inspections.

Single digital platform for business approvals

One of the most important reforms is the introduction of a single digital platform covering investment and business-related services, approvals, licences, clearances and permits. Existing one-stop and other service-delivery portals have been integrated into this platform. This potentially brings environmental, fire, construction, boiler and other clearances, as well as visas, work permits and utility connections, within a more coordinated approval mechanism. All permit requirements, approvals etc. under the IBA 2026 must be done through this platform.

What businesses should do now?

Businesses should take the following steps to align themselves with the latest framework –

1. Verify if the existing industrial registrations, branch/liaison office permissions, licences and project approvals remain valid under the transitional provisions of the IBA 2026.
2. Private-sector industries that are not yet registered should assess their obligation to register with the IBA.
3. Have internal processes to ensure that industrial projects, allotted land, permits and other facilities are strictly used for their approved purposes.

Conclusion

The IBA 2026 aims to achieve a unified investment framework through which businesses can easily manage their investment-related approvals in Bangladesh and is a step towards ease of doing business. While complementary regulations and guidelines under the IBA 2026 are awaited, the guidelines and rules made under the repealed laws (BIDA, BEZA, PPPA and OSSA Act/s) will remain effective to the extent, they are consistent with the IBA 2026 until new regulations are rolled out.

Source: https://www.dpp.gov.bd/upload_file/gazettes/62339_38792.pdf

Authored by: Debashis Banerjee & Antara Dasgupta

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