A buying house in Bangladesh acts as a licensed trade intermediary between foreign buyers — mainly international garment brands and retailers — and local manufacturers. Rather than purchasing goods itself, a buying house sources orders, negotiates with factories, manages quality control, and earns a service commission from its foreign principal. Bangladesh’s position as the world’s second-largest garment exporter makes the buying house model highly attractive, but operating legally requires registration with the Department of Textile (DoT) along with a set of supporting licenses.
This guide explains the full registration process, required documents, government fees, and compliance obligations.
What Is a Buying House?
A buying house (also called a sourcing agency) represents foreign buyers in the local garment supply chain. Its core functions include:
- Identifying and vetting factories on behalf of international buyers
- Placing and managing export orders from local RMG (Ready-Made Garment) manufacturers
- Overseeing quality inspection, shipment scheduling, and documentation
- Earning a commission from the foreign principal — typically 3–7% per order
Buying houses do not import or export goods directly. They are pure service intermediaries, which keeps the capital requirement low and the margin potential high.
Three Core Steps to Set Up a Buying House
Setting up a legal buying house in Bangladesh involves three major phases:
- Register a business entity with RJSC (company, partnership, or proprietorship)
- Register with the Department of Textile (DoT)
- Obtain all supporting licenses and trade association memberships
Phase 1 — Business Entity Registration (RJSC)
Before approaching DoT, you must establish a legal business structure. Most buying houses register as a Private Limited Company for credibility with foreign buyers, though proprietorship and partnership structures are also permitted.
Step 1 — Name Clearance
Apply to the Registrar of Joint Stock Companies and Firms (RJSC) for name approval. Government fee: BDT 230 (including VAT). Processing time: 1–2 working days.
Step 2 — Draft MOA and AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), specifying the company’s objectives, capital structure, and governance rules. Drafting typically takes 2 days.
Step 3 — RJSC Incorporation
Submit the MOA, AOA, director details, NID/passport copies, and authorized capital information to RJSC. Filing fee: BDT 1,200. Government registration fee depends on authorized capital — for BDT 50 lakh authorized capital, the fee is approximately BDT 13,570 (+ 15% VAT). Foreign shareholders must first deposit share capital into a provisional bank account and obtain an encashment certificate before submitting.
Step 4 — TIN, Trade License, and VAT/BIN
After incorporation, obtain your Tax Identification Number (TIN) from NBR, a Trade License from the relevant City Corporation (DNCC or DSCC), and a VAT Business Identification Number (BIN). Trade license processing takes 3–4 working days.
Phase 2 — Department of Textile (DoT) Registration
All buying houses in Bangladesh must be registered with the Department of Textile under the Ministry of Textiles and Jute. This is the principal regulatory license for operating as a buying house.
Documents Required for DoT Registration
- Registration letter addressed to the Director General of DoT
- Duly filled DoT registration application form
- Attested copy of Trade License
- Attested copy of Income Tax (TIN) Certificate
- Certificate of Incorporation, MOA, and AOA
- Estimated yearly turnover statement
- Membership Certificate of BGBA or BGMEA (attested copy)
- Bank Solvency Certificate
- Bank draft / pay order for DoT registration fee
DoT Registration Process and Timeline
Temporary Registration Certificate
Upon submission of primary documents, DoT issues a Temporary Registration Certificate valid for 60 days. All remaining documents must be submitted within this 60-day window. A temporary certificate is issued only once.
Full Registration Certificate
After DoT verifies all submitted documents, the full Registration Certificate is issued within 60 days of receiving the complete file. The certificate is valid for 3 years.
Renewal
Apply for renewal at least 60 days before expiry. DoT issues the renewed certificate within 30 days. Renewal fee: BDT 5,000. Renewed certificate is again valid for 3 years.
Phase 3 — Supporting Licenses and Memberships
In addition to DoT registration, the following are required for full legal operation:
- Export Registration Certificate (ERC) — issued by CCI&E, required for facilitating export transactions
- Import Registration Certificate (IRC) — required if the buying house handles any import activity
- Chamber of Commerce Membership
- BGMEA or BGBA Membership — Bangladesh Garment Manufacturers & Exporters Association or Bangladesh Garment Buying Houses Association
Government Fee Summary
| Particulars | Govt. Fee (BDT) | Notes |
| RJSC Company Registration | BDT 13,570+ | Depends on authorized capital (+ 15% VAT) |
| DoT Registration Fee (New) | BDT 20,000 | Deposited via bank draft |
| DoT Registration Renewal | BDT 5,000 | Every 3 years |
| Export Registration Certificate (ERC) | BDT 6,000+ | CCI&E; varies by category |
| Trade License | Varies | City Corporation (DNCC/DSCC) |
| BGMEA / BGBA Membership | Varies | Association-set fee |
Compliance Obligations After Registration
- Display the DoT certificate at your registered office premises
- Maintain export transaction records for DoT audit
- Submit annual export performance details at renewal
- File quarterly VAT returns and pay VAT by the 15th of each month
- Renew Trade License annually and DoT registration every 3 years
- Update DoT if you add new foreign principals or change your agreement terms
How RegisterCorp BD Can Help
From RJSC incorporation to DoT registration, BGMEA/BGBA membership coordination, and all supporting licenses, RegisterCorp BD provides end-to-end support for buying house formation in Bangladesh. We pre-audit your documents, manage government submissions, and track compliance deadlines so your buying house is fully operational without delay.
