Starting a restaurant business in Bangladesh can be exciting, profitable, and deeply rewarding. With a growing middle class, booming food delivery platforms, and vibrant dining culture, the restaurant industry continues to attract entrepreneurs across Dhaka, Chittagong, Sylhet, and beyond.
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However, opening a restaurant isn’t just about great food or décor — it requires legal setup, compliance, and licensing to avoid costly mistakes. In this complete guide, Dewey & LeBoeuf, a global law firm, explains every legal, operational, and regulatory step to help you start a restaurant business confidently and lawfully in Bangladesh.
Why Start a Restaurant in Bangladesh
Bangladesh’s restaurant sector is one of the fastest-growing in South Asia. According to industry data, the urban food service market has grown by double digits in recent years, fueled by:
- Rising disposable income of the young population
- Growth of food delivery apps like Foodpanda, Pathao Food, and HungryNaki
- Increased demand for global cuisines and café culture
- Expanding commercial and residential zones in Dhaka and Chittagong
For investors and entrepreneurs, this means strong demand and plenty of room for differentiation in concept, cuisine, or experience.
Step-by-Step Guide to Start a Restaurant Business in Bangladesh
Step 1: Plan Your Concept and Business Model
Start with a clear concept. Decide on:
- Type of restaurant (fine dining, casual, café, fast food, rooftop, etc.)
- Cuisine (local Bangladeshi, fusion, Indian, Chinese, continental)
- Target audience (students, families, corporate professionals)
- Location (urban, commercial, or residential area)
A well-defined concept helps you attract investors, obtain licenses faster, and meet food authority requirements later.
Step 2: Choose the Right Business Structure
Before starting operations, legally register your restaurant business under the proper structure:
- Sole Proprietorship: Suitable for small cafés or owner-run setups.
- Partnership: If two or more people invest together.
- Private Limited Company: Recommended for larger restaurants, franchises, or investors looking to expand.
Why this matters: The structure determines your tax obligations, liability, and ability to open business bank accounts or sign rental contracts.
At Dewey & LeBoeuf, we assist entrepreneurs in choosing the most appropriate structure, preparing all incorporation documents, and ensuring compliance with the Registrar of Joint Stock Companies and Firms (RJSC).
Step 3: Register Your Business Legally
Once you select your structure, complete registration with the RJSC (Registrar of Joint Stock Companies and Firms).
You’ll need:
- Proposed business name (check availability)
- Memorandum and Articles of Association (for limited companies)
- National ID/passport copies of owners and directors
- Business address
- Paid-up capital details
- Digital signature (DSC) for online filing
After approval, you’ll receive your Certificate of Incorporation, which is essential to open a bank account, sign a lease, or apply for trade licenses.
Step 4: Obtain Trade License and Other Local Permits
Every restaurant must have a Trade License from the local city corporation or municipality.
Documents required:
- Application form (available from City Corporation office)
- Business incorporation certificate or partnership deed
- NID of the owner
- Rent agreement or ownership proof of premises
- Holding tax receipt
- Fire safety and environmental clearance certificates
The license must be renewed annually. Without it, your restaurant can face fines or closure.
Step 5: Get Food Safety and Hygiene Certifications
Restaurants in Bangladesh are regulated by the Bangladesh Food Safety Authority (BFSA) under the Food Safety Act 2013.
You must apply for:
- Food License (to handle and serve food)
- Health Safety Certificate from your local health department
- Fire Safety Certificate from the Fire Service and Civil Defence Department
Your kitchen and service area will be inspected for hygiene, waste management, and staff sanitation compliance.
Step 6: Register for Tax, VAT, and Import (if applicable)
- Tax Identification Number (TIN): Required for every business.
- Business Identification Number (BIN): Register for VAT through the National Board of Revenue (NBR).
- Import Registration Certificate (IRC): Needed if you import ingredients or kitchen equipment.
Proper tax registration builds credibility with suppliers and ensures you can operate smoothly without legal interruptions.
Step 7: Choose Location and Sign Rental Agreement
Location determines your restaurant’s success. Choose an accessible and visible space with adequate parking, ventilation, and water facilities.
When signing a lease or rental agreement, review the following carefully:
- Duration and renewal clause
- Utility responsibilities
- Maintenance obligations
- Sublease permissions
Our real estate and corporate law team at Dewey & LeBoeuf can draft and review commercial lease agreements to ensure your business is protected from landlord disputes or hidden costs.
Step 8: Hire Staff and Comply with Labor Laws
You’ll need kitchen staff, chefs, service personnel, and administrative employees. Make sure you:
- Provide legal employment contracts
- Register employees for taxes
- Maintain a safe workplace under the Bangladesh Labour Act 2006
- Follow fair wage and overtime policies
Non-compliance with labor laws can lead to penalties, so having properly drafted contracts and HR policies is crucial.
Step 9: Set Up Accounting and Business Bank Account
Open a business bank account in your company’s name to handle all financial transactions. Choose a bank offering corporate services for restaurants.
Then set up an accounting system to track income, expenses, salaries, VAT, and tax. Having an accountant or financial consultant ensures transparency and helps during tax filing.
Step 10: Marketing, Branding, and Digital Presence
Once your restaurant is ready to open, focus on branding and marketing:
- Build a professional logo and signage.
- Create social media pages (Facebook, Instagram, TikTok).
- Register on food delivery platforms like Foodpanda or HungryNaki.
- Encourage online reviews and loyalty programs.
Strong digital presence is key for customer trust and growth in Bangladesh’s competitive restaurant market.
Estimated Cost to Start a Restaurant in Bangladesh
The startup cost depends on scale and location. A small café might start from BDT 10–15 lakh, while a mid-sized restaurant may require BDT 40–80 lakh or more.
Key expenses include:
- Rent and interior design
- Kitchen and cooking equipment
- Licensing and permits
- Furniture and décor
- Staff salaries and uniforms
- Marketing and branding
- Legal and registration fees
Having legal and financial guidance from day one prevents overspending or compliance issues later.
Legal and Compliance Checklist
To summarize, your restaurant must have:
- Business registration with RJSC (if applicable)
- Trade license from local authority
- Fire safety certificate
- Health and hygiene certificate
- Food license from BFSA
- TIN and VAT registration
- Environmental clearance (if needed)
- Employee contracts and compliance under Labour Act
At Dewey & LeBoeuf, we manage the entire process — from company formation and licensing to drafting agreements and ensuring ongoing compliance — so you can focus on running your restaurant smoothly.
Common Challenges and How to Overcome Them
- Delays in trade license approval:
Work with an experienced legal team to prepare all documents correctly and communicate with the city corporation efficiently. - Landlord disputes or hidden charges:
Always review your rental agreement before signing. Our lawyers can negotiate favorable terms for your restaurant. - Tax or VAT confusion:
Early registration and professional accounting prevent future tax complications. - Food safety inspections:
Maintain hygiene standards and proper documentation for regular BFSA inspections.
Frequently Asked Questions (FAQs)
How much does it cost to start a restaurant in Bangladesh?
Costs vary depending on size and location. A small restaurant may start from BDT 10–15 lakh, while a larger establishment can exceed BDT 1 crore.
Do I need to register my restaurant business with RJSC?
If you are starting as a private limited company or partnership, yes. Sole proprietors can operate with a trade license, but limited registration adds credibility and protection.
What licenses are mandatory for restaurants?
You must obtain a trade license, food license, fire safety clearance, and health certificate. TIN and VAT registration are also mandatory.
How long does it take to open a restaurant legally?
With all documentation ready, licensing usually takes 2–4 weeks. Company registration can be completed within 5–7 working days.
Can foreigners open restaurants in Bangladesh?
Yes. Foreign investors can open or co-own restaurants by forming a company under Bangladesh Investment Development Authority (BIDA) guidelines.
Why Choose Dewey & LeBoeuf for Your Restaurant Setup
As a global law firm, Dewey & LeBoeuf assists entrepreneurs, investors, and hospitality owners in legally establishing and expanding restaurant businesses in Bangladesh.
Our services include:
- Restaurant business formation under RJSC
- Trade license and food license processing
- Lease agreement drafting and property due diligence
- Employment and tax compliance
- Trademark and brand registration
- Ongoing legal support for business expansion
We make the process simple, compliant, and completely stress-free.
Final Thoughts
The restaurant industry in Bangladesh holds tremendous potential, but success depends on more than just good food. Legal compliance, licenses, and business structure are the backbone of a sustainable and profitable operation.
With Dewey & LeBoeuf as your legal partner, you can focus on what truly matters — creating a brand people love — while we handle every registration, permit, and compliance detail for you.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE