How to Start a Bakery Business in Bangladesh?

With the rapid GDP growth, Bangladesh is moving forward to becoming a developing nation and economic power in the near future. Driving this growth is the business sector of Bangladesh. The government has promoted entrepreneurship opportunities for the youth to drive the economy further and contribute to the growth. For small-scale entrepreneurs, a bakery business can be a profitable business venture. This article will detail everything related to starting a bakery business in Bangladesh.

Bakery Business in Bangladesh

The bakery business is easily one of the most profitable business ventures in Bangladesh. Currently, the biscuits and bakery sector are noticing a 15% year-on-year growth. The industry holds strong ground with around 6,000 crore BDT of market cap.

However, the market is grossly monopolized by a few business conglomerates. But that doesn’t explicitly bar new entry to the market. Several new entrants started with area-based bakery business and shifted to larger denominations.

The onset of Covid has also had a boost in the home-based bakery business. A good number of home cooks started selling bakery and pastry products through F-commerce channels. The formal and informal sector together makes for a host of opportunities in this sector.

Essentials for Starting a Bakery Business in Bangladesh

There are two ways to get started with the bakery business – either with an initial investment and manpower or to start from home as a home cook. For home cooks, there are not many initial regulations to follow. The small-scale business can easily be categorized into the informal sector of the economy.

It is easy to start a bakery business from home as it virtually does not require much investment to get started. But to set up it as a business with an initial investment, certain key factors should be taken into account.

Business Plan

The process starts with a business plan. A business plan will outline product, production cost, material cost, and manpower cost. The business plan will essentially determine whether the business can be profitable or not in the long run.

After that comes the selection of location. Large scale bakeries have their own store as well as supply mechanism to supply to different shops and outlets. For a newbie, selection of location is important as it will determine how many customers it can attract.

Lastly, chef and staff selection should be done with utmost importance. Because the product and the packaging will determine whether the product will be a success or not.

However, to scale up the business, there are certain regulations that an entity must fulfill to legally run the business in Bangladesh. Bangladesh has consistently performed low in the global ease of doing business index. As a result, there are a lot of bureaucratic regulations and permissions that every business needs to follow to run operations. The following are the foremost important ones.


TIN or Tax Identification Number is one of the first of a string of documents required to legally operate in Bangladesh. As it will become clear later on, each of these permissions and certifications acts as a complementary document to apply for the latter regulation. And it all starts with the TIN.

The TIN officially recognizes a person or a business as a tax-paying citizen of the country. A business must have TIN to be eligible to submit tax returns every year. The process of obtaining a TIN is fairly simple. Just go to the local zonal office of the NBR and apply for a TIN with the required personal documentation. It might take a few days to issue the TIN but there are no costs associated with the TIN generation.

Trade License

Trade License is important documentation for a number of reasons. Firstly, it enables a person to set up a business. Secondly, without a trade license, a person cannot legally engage in any form of commercial exchange of goods. So a trade license is like the initial block to get government certification as a business entity.

Usually, a trade license requires 3 days for issuance. There is a 5000 BDT charge associated with the licensing. The trade license can be obtained from the zonal city corporation office. A person needs to provide personal details, business details, and TIN along with the relevant application form to apply for a trade license.


Trademarks are essential to running a bakery business. It acts as a distinct identity for the business and allows for passive business promotion. The process of filing for a trademark is long and full of minute details. As a result, it is suggested to contact a trademark counsel lawyer to aid in the process.

Generally, the trademark application is filed to the Trademark office or branch located in the territory of the business. For Dhaka, it is determined by the city corporation. The initial application fee for a trademark is 3500 BDT. After application, it might take up to 3 months to get the trademark vetted and approved for usage. The initial approval is for 7 years. However, after that, it can be renewed for a period of 10 years each.

BSTI Certification

The BSTI or Bangladesh Standards and Testing Institution is the proprietary institute that oversees food safety and regulation in the country. Naturally, any business dealing in the food business, procurement, production, and selling must obtain a quality control certification from BSTI.

To get a BSTI certification, all the above documents including personal and business details are required. In addition to that, a label marking document must be submitted along with the application. After submission of the application, there will be an inspection from the BSTI authority. After facility and infrastructural investigation, there will be a random sample test to ensure quality all across the line.

Final Thoughts

So far, we have discussed the process and essential documents of starting a bakery business in Bangladesh. The demand for bakery products is on the rise in Bangladesh. The sector has been profitable for quite some time with an increasing contribution to the economy. With the right approach and mindset, anyone can make significant growth and ensure easy ROI in the bakery business.

Source: United News of Bangladesh