Garments Business in Bangladesh: Step by Step Guide to Start Your Own

How to Start a Garments Business in Bangladesh?

Bangladesh’s development is accelerated by the ready-made garments sector. Bangladesh is the world’s second-largest exporter of RMGs. In the near future, it is expected to lead the globe in exports. The industry has expanded over the past few years and is continually expanding steadily. The RMG sector employs a large number of people and has factories all throughout the nation.

It is not the most difficult industry to get into, particularly in Bangladesh where the government has been relatively progressive regarding this area. However prior knowledge of the apparel sector is crucial when establishing one. A competent businessman cannot successfully launch a clothing business without the necessary understanding of textiles. Thus, a large number of them failed in this industry because they lacked expertise in clothing. Nonetheless, with the right knowledge and training, the lack of information about the clothing sector can be overcome. 

A Step-By-Step Guide to Launching Your Garments Business in Bangladesh

Despite the fact that there will always be a demand for clothing and the companies who provide it, the garment industry is extremely cutthroat, particularly in Bangladesh. You must therefore possess the information required to launch a prosperous clothing Manufacturing company in Bangladesh. The process of starting a clothing company in Bangladesh is discussed in this piece.

Legal Requirements: Licence and Registration 

The first step in opening a garment factory in Bangladesh is often registering the business with the Registrar of the Joint Stock of Companies, or RJSC. A public limited corporation or a private limited company are the choices. Unlike private limited companies, which have a fixed list of shareholders, public limited firms can raise money from the public by selling stock. Any company’s incorporation process begins with a Name Clearance Certificate, followed by the other documents on the RJSC’s list of prerequisites. The Articles and Memorandum of Association specify who owns and runs the companies. Depending on what the RJSC requires, there may be different document standards if there are overseas investors concerned.

Upon the establishment of a corporation, licences for establishing a factory are required. The list that follows consists of potential licences that a clothing manufacturer may need to operate, based on the sort of operations. The list consists Export Registration Certificate, Import Registration Certificate, Fire Permit, Factory Licence, Factory Layout Plan Approval, Membership of the Chamber of Commerce, Membership & certification of Bangladesh Garments Manufacturers & Exporters Associate (BGMEA), Trade License, Export Promotion Bureau Enrolment Certificate, Value Added Tax Registration Certificate, Tax Identification Number, Bank Solvency Certificate, BOND License & General BOND (if applicable), etc.

The clothing sector is heavily reliant on real estate purchases. Through buying houses, several of the larger global brands place orders with regional businesses and manufacturers. A company, partnership, or sole proprietorship can be set up to buy houses. The simplest type of ownership is a sole proprietorship, in which the owner assumes all obligations. A sole proprietorship can be established by merely acquiring a trade licence, which must be renewed yearly. A partnership agreement that has been registered with the RJSC can be used to create partnerships in Bangladesh. A buying house could also be established as a subsidiary firm, with the parent corporation owning a portion of it.

The majority of foreign owners, though, favour establishing a branch office or liaison office just for this function. The Bangladesh Investment Development Authority (BIDA) must grant such a branch/liaison office licence to conduct business. In addition, a work permit is required for every foreign national who wants to work in Bangladesh.

In addition to registration and licensing, there are challenges with site acquisition, which require finding a suitable property and obtaining the necessary permits for the factories to be built. According to Bangladeshi legislation, it is important to perform a land search to determine who owns the land and to confirm the title and interest of the legitimate owners. As per Bangladeshi legislation, it is required to execute, record, and update the records to the new owner’s name in order to hand over the property to them.

Due to the high volume of international transactions in the apparel business, the execution of banking rules raises a number of legal concerns. Also, you could run into legal problems with contracts, termination, wrongful dismissal, leaves, payment, etc. To operate your business without any difficulties, you must make sure that these challenges can be resolved.

Business Plan

After you have resolved the legal complexities, you should decide on a business plan for your apparel company. To do so, you must first master the fundamentals and seek money or other forms of assistance. It also includes an executive summary and an overview, along with a clear blueprint of how your clothing line will launch, develop, and get ready to scale. You should also comprise the results of your investigation as well if you want to comprehend your consumer base and potential rivals. Furthermore, you need to take into account that it needs to be solid, preferably based on work you’ve done with other sources, and data-oriented.

In addition to operational processes, you also need strategies for marketing, sales, and promotion. Also, you want to include in your business plan your present financial situation, expansion priorities, managing a business, scaling the company, assessing products, marketing ploys, manufacturing processes, and many more topics.


To avoid any complications, at least during the initial few months, you require strong financial backing. It may be simpler to debut with a small product catalog and one design that you adore if you know how to create it and have received positive feedback than it may be to do so. It is beneficial to set a specific budgetary amount aside and plan how you will use it in conjunction with your goals. Furthermore, you need to leave room for flexibility because you might not yet be informed about the pricing of a certain material or the expenses of producing your garment business in Bangladesh. 

But if you keep that initial spending limit in mind, it will assist you decide what to do to generate your first sales. Your budget will be large or modest, based on whether you intend to design and produce the outfits yourself or purchase them from manufacturers. The best course of action in this situation is to begin small. Moreover, if demand increases, you can analyse your major expenses.


Product creation is one of the most thrilling phases of any business, especially one in the apparel industry. If you simply have a conceptual design for one product at this point, you can even begin by sketching it out on paper or a computer screen. Once you’re set, transform your unfinished digital designs from your rough thoughts. Also, using applications like Illustrator, PhotoShop, etc., you can complete a lot of labor-intensive tasks. You’ll have to consider your technology package after creating your sketches. This is crucial because you’ll be providing your manufacturer with this info. The characteristics and technical details of your product must be included; this includes everything from design and proportions to materials and any configuration or features.


It’s finally time to deliver your product to the producers once your design work is complete. At this stage, you’ll be looking for the individual who will take your concepts and put them into practice. But, if you want to manufacture everything yourself for the time being, or with your own crew, you can skip this stage. Also, you can do this if all you want to do is acquire wholesale goods that have already been created and resell them.

To begin your hunt for the ideal manufacturer, you should also ask for the assistance of any connections you may have by asking around and establishing your goals. No matter how big the business is, or how long it takes to compile, contact, and assess a solid list of potentials, you need to make it a priority. It has to be perfect as manufacturing is an essential component of any clothing enterprise in Bangladesh.

Product Testing

Another crucial step in starting a firm is to test samples using trial designs before putting them on the market. It can be a fantastic way to test your product without investing in the entire manufacturing run. You’ll discover that the testing phase never really ends because you’ll be constantly introducing additional products to your range. Also, take into account customer feedback as you improve your items because it is a crucial kind of commercial currency and a tool to monitor your expansion. Market trade areas, online platforms, and other methods are some of the ways to evaluate your products.

Once you complete it, your garment business will be up and running, and you will have generated your first revenue. While you manage your business, there are additional crucial actions to take into consideration. One of them is to evaluate your competition. You’ll have the edge in the market to succeed due to it. Your top priority should be to keep your clientele content and delighted. Identify how you can provide the best service to your consumers. To develop and grow your business, you also need to establish suppliers and sell your product or service. Yet if you’re a driven business owner with plans for new items, scaling might be on your mind. Give yourself some time to consider how your firm is doing before making any major commitments. It’s advisable to keep things modest and straightforward for your first few seasons before moving on to the next obstacle.


One of the industries in the nation that is still experiencing growth is RMG. The government of Bangladesh has announced the opening of newer export processing zones since it has shown a great deal of support for this industry. Also, the government has required the construction of a deep sea port and an additional airport in addition to significant investments in internal infrastructure, making trade much easier in the coming days. The government of Bangladesh also promotes international investment there. It may not be a bad decision to establish a clothing business, given the state of the industry.

You must make sure that all legal criteria have been met before moving on with your business. The next step is to create a business plan that details how your clothing brand will debut, grow, and prepare for expansion while also including financial projections. The next stage is to create products and choose the best manufacturer for your company. It’s wise to test your product before going into mass production. In addition to this, you should evaluate your competition, decide how to best serve your clients, identify suppliers, and market your company. Now you may launch your company with success and even grow it as you go.

Frequently Asked Questions (FAQs)

What position does Bangladesh’s apparel industry hold in the global economy?

According to the news of The Daily Star, Bangladesh is the world’s second-largest exporter of ready-made garments, just after China.

How much money is made in Bangladesh’s apparel industry annually?

More than $22 billion in sales are produced annually in Bangladesh’s garment industry.

How many people are employed in Bangladesh’s garment sector?

The Bangladeshi garment sector employs around four million people, according to estimates.

How many factories producing clothing are there in Bangladesh?

In Bangladesh, there are about 4,500 textile export facilities and garment manufacturers.

How much of the Bangladeshi Economic output is contributed by the apparel sector?

The majority of Bangladesh’s textile exports, or 84% of exports, are ready-made garments.



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