TRW & Co · Investment, Economic Zones & Projects
BEPZA Lawyer in Chittagong (Chattogram): EPZ Approvals and Compliance
A BEPZA lawyer in Chittagong guides investors through the Bangladesh Export Processing Zones Authority's permission, lease, customs, foreign exchange and labour rules. Chattogram hosts the country's first EPZ, the Karnaphuli EPZ and BEPZA Economic Zone at Mirsharai. BEPZA stayed outside the 2026 Invest Bangladesh merger, so zone enterprises still deal with it directly.
Key pointInside an EPZ, BEPZA is landlord, licensing office and labour supervisor at once. Ownership changes, domestic sales and lease conditions all need its approval, and most zone disputes start with a permission that was assumed rather than obtained.
At a glance
Created by a 1980 Act
BEPZA was established by Act No. 36 of 1980 and operates through a Board of Governors, an Executive Board and individual zone offices.
Outside Invest Bangladesh
The 2026 merger of BIDA, BEZA and the PPP Authority left BEPZA separate, so EPZ enterprises still apply to and report to BEPZA.
Permission then lease
Section 12 of the Act requires permission to set up in a zone; section 13 lets BEPZA lease land or buildings to permission holders.
Three investment types
Type A is wholly foreign owned, Type B is a foreign and local joint venture, and Type C is wholly owned by resident Bangladeshis.
Separate labour law
Zone workers fall under the Bangladesh EPZ Labour Act 2019, which has its own rules on worker welfare associations and disputes.
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What a BEPZA lawyer in Chittagong does
A BEPZA lawyer in Chittagong advises investors and enterprises on the rules of the Bangladesh Export Processing Zones Authority: permission to set up in an export processing zone, the lease of land or factory space, bonded imports and exports, sales into the domestic market, foreign currency, expatriate work permits and labour relations under the EPZ regime. The work runs from the first application to the day an enterprise expands, restructures or leaves the zone.
Chattogram matters more to BEPZA than any other city. The country's first EPZ opened in South Halishahar in 1983, the Karnaphuli EPZ followed in the city, and BEPZA Economic Zone in Mirsharai has added a much larger site to the north. Together they host garment, footwear, electronics, bicycle, light engineering and accessories manufacturers, many of them foreign owned.
Who needs this advice? Foreign manufacturers entering Bangladesh for the first time, local exporters weighing a move into a zone, buyers of existing zone factories, lenders taking security over zone assets, and enterprises facing a customs demand, a lease notice or a labour dispute. Each comes to the same authority with a different question.
Zone enterprises live inside a self-contained legal system. BEPZA grants the permission, leases the land, issues import and export permits, handles work permits and supervises labour relations. That makes life simpler in many ways, but it also means that a dispute with the authority, or a breach of zone rules, can affect every part of the business at once.
This page sets out the legal framework, the zones in and around Chattogram, the investment categories, the approval process and the compliance points that most often cause trouble. For a step-by-step guide to setting up in the oldest zone, see our Chittagong EPZ company setup page.
The legal framework: BEPZA Act 1980 and its satellite rules
BEPZA was created by the Bangladesh Export Processing Zones Authority Act 1980 (Act No. 36 of 1980). According to its official profile, the authority works under the Prime Minister and is structured around a Board of Governors, an Executive Board headed by the Executive Chairman, an executive office and individual zone offices.
Key provisions of the Act
- Section 12 requires anyone wishing to set up an industry in a zone to apply to the authority for permission, which is granted once the authority is satisfied the applicant meets the zone's requirements.
- Section 13 lets the authority allot or lease land and building space to a person holding that permission, on terms it decides.
- Section 15 provides the bonded framework: goods imported into a zone, and goods exported from it, are relieved of customs duty and similar charges, subject to the rules.
The Act also creates a Post Sanction Clearance Committee to assist with registration and the operational needs of sanctioned enterprises, and gives the authority power to sanction employment of foreign nationals in the zones.
The rules around the Act
Several instruments sit beside the Act. The BEPZA investor information compendium collects them, including the Principles and Procedures Governing Setting up of Industries in EPZs, the Customs (Export Processing Zones) Rules 1984, the Bangladesh EPZ Labour Act 2019, and the Bangladesh Bank foreign exchange chapters that apply to zone enterprises. The Foreign Private Investment (Promotion and Protection) Act 1980 protects foreign investors in the zones as elsewhere.
BEPZA after the Invest Bangladesh reform
The Invest Bangladesh Act 2026 merged BIDA, BEZA and the Public Private Partnership Authority, as the authority's own announcement explains, but left BEPZA outside the new body. A BEPZA lawyer in Chittagong therefore still deals with BEPZA directly for zone enterprises, while projects in BEZA-era economic zones such as the National Special Economic Zone at Mirsarai now deal with Invest Bangladesh. Our foreign investment page explains the reform in more detail.
BEPZA zones in and around Chattogram
Investors looking at Chattogram usually compare the following sites. BEPZA's list of zones shows eight operating EPZs nationally plus two BEPZA economic zones, and the Chattogram EPZ page gives the oldest zone's figures. Space, rents and incentives change, so we confirm current availability with the zone office before any decision.
| Zone | Operator and law | Location | Notes |
|---|---|---|---|
| Chattogram EPZ (CEPZ) | BEPZA; BEPZA Act 1980 | South Halishahar, near the port | Established 1983; 453 acres and 501 industrial plots according to BEPZA |
| Karnaphuli EPZ | BEPZA; BEPZA Act 1980 | Chattogram city | BEPZA lists it among its operating zones, with the same published rent band as CEPZ |
| BEPZA Economic Zone (EZ-01) | BEPZA | Mirsharai, Chattogram | Established 2018; 640.257 acres according to BEPZA |
| Korean EPZ | Private developer; private EPZ regime | Anwara, across the Karnaphuli | Privately developed zone; Bangladesh Bank applies zone foreign exchange rules to private EPZs |
BEPZA's published rent schedule puts the Chattogram and Karnaphuli EPZs in the same band, at US$2.50 per square metre per year for land and US$3.00 per square metre per month for standard factory buildings, with BEPZA Economic Zone slightly higher. Rents are revised from time to time, so treat these as a guide rather than a quotation. Our article on choosing a zone in Chattogram compares the sites further.
Investment categories: Type A, B and C
Every zone enterprise falls into one of three categories, and the category shapes its foreign exchange position for its whole life.
- Type A: 100 per cent foreign owned, which under the zone principles includes investment by Bangladeshi nationals ordinarily resident abroad.
- Type B: a joint venture between foreign investors and Bangladeshi investors resident in Bangladesh, with no cap on either side's equity share.
- Type C: 100 per cent owned by Bangladeshis resident in Bangladesh.
The category is fixed at the permission stage and recorded in BEPZA's approval, the company's bank documentation and its reporting to Bangladesh Bank. It should therefore match the real ownership and funding plan from the outset, including any expected local partner or future investor.
The differences are practical. Type A and Type B units may keep foreign equity in foreign currency accounts rather than converting it to taka, and their funding conditions assume foreign currency resources. Type C units operate under the ordinary foreign exchange rules for most purposes. Changing category later, for example when a foreign partner buys out a local one, needs BEPZA approval and careful handling of the foreign exchange records.
For non-resident Bangladeshis, the Type A definition is often overlooked. An NRB investing from abroad with foreign currency may qualify as a Type A investor, which can matter for remittance and account options. Our NRB services page covers the wider position for probashi investors.
The BEPZA approval and set-up process
A BEPZA lawyer in Chittagong will usually guide an investor through these stages. BEPZA has automated many steps and runs its own one-stop service centre, but the legal sequence remains the same.
- Project profile and zone choice. Prepare a project proposal covering products, investment, employment, utilities and effluent, and choose the zone and the space type: a serviced plot for your own building or a standard factory building.
- Application for permission. Apply to BEPZA under section 12 of the Act with the prescribed form and supporting documents, including the sponsors' corporate papers and financial standing.
- Permission and agreement. On approval, sign the investment agreement or permission terms and the lease for land or factory space under section 13.
- Company formation. Incorporate the local company with the RJSC, or register the foreign company's office as the zone principles require, and open accounts with a bank operating in the zone.
- Capital inflow. Bring equity in through the banking channel, keeping inward remittance certificates for the share issue and later repatriation.
- Construction and clearances. Obtain building approval from the zone, environmental clearance (which EPZ investors can process online under a 2021 BEPZA and Department of Environment memorandum) and fire safety approvals.
- Import of machinery and recruitment. Import machinery and materials duty-free under zone permits, recruit workers under the EPZ Labour Act 2019 and obtain work permits for expatriates from BEPZA.
- Commercial operation. Start production, file returns with RJSC, NBR and Bangladesh Bank, and renew permits on time.
Documents BEPZA usually expects
Assemble the sponsors' incorporation documents and board resolutions, passports and profiles of directors, bank solvency letters or audited accounts, a project profile with machinery list and layout, and evidence of export orders or buyer relationships where available. Foreign documents should be notarised and attested by the Bangladesh mission. Keep everything consistent: a mismatch between the project profile, the lease and the company's objects causes delay.
Operating compliance inside the zone
Once operating, a zone enterprise has a lighter licensing burden than a mainland factory, but more specific rules.
Imports, exports and customs
BEPZA issues import and export permits, and customs clearance takes place at the factory site. According to BEPZA, zone enterprises do not need the import and export registration certificates that mainland businesses must hold. Exports from EPZs are still declared on EXP forms, stamped as exports from an EPZ, and export proceeds must be repatriated under Bangladesh Bank rules.
Sales into the domestic tariff area
Zone products are meant for export. The zone principles allow sales into the domestic tariff area only in permitted cases, with payment in foreign currency and duties and taxes as if the goods were imported. Sales without permission, or above the permitted level, are a common source of customs disputes. Our article on EPZ customs and DTA sales explains the mechanics.
Subcontracting and local purchases
BEPZA allows intra-zone and inter-zone subcontracting and subcontracting with export-oriented industries outside the zones, as well as purchases from the domestic market. Local goods sold to zone enterprises against foreign currency are treated as exports from Bangladesh. Each of these flows needs the right permit and documentation, because customs and Bangladesh Bank both audit them.
Labour relations under the EPZ regime
Workers in the zones are governed by the Bangladesh EPZ Labour Act 2019 rather than the general Labour Act 2006. The Act has its own rules on worker welfare associations, wages, leave, discipline, termination and dispute resolution, and BEPZA plays a supervisory role. Our EPZ labour page covers the employment side in depth.
Risks and common mistakes
A BEPZA lawyer in Chittagong is most often called in when one of these problems has already surfaced. Each is avoidable with planning.
Signing the lease without reading the conditions
The lease for a plot or factory building is a standard-form document, but it contains conditions on use, construction deadlines, assignment, subletting, utilities and termination. Investors who miss a construction deadline or sublet space informally can face notices and, ultimately, cancellation. Read the lease with the permission terms, diarise every deadline and seek BEPZA's written consent before any change of use or occupation. If a deadline is at risk, apply for an extension early rather than waiting for a notice.
Changing ownership without BEPZA approval
Share transfers, mergers and changes of category from Type A to Type B or C need BEPZA's approval as well as RJSC filings and, for non-residents, Bangladesh Bank compliance. Buyers of zone enterprises sometimes complete the share purchase first and seek approval later, only to find the approval conditioned or refused. Build BEPZA approval into the conditions precedent of the transaction, and check that the target's permissions, lease and foreign exchange records are clean during due diligence.
Unauthorised domestic sales or leakage
Goods imported duty-free into a zone must be used for the approved purpose. Selling raw materials, waste or finished goods into the domestic market without permission can lead to customs demands, penalties and seizure, and in serious cases criminal proceedings. Keep a reconciled record of imports, consumption, wastage and exports, and seek permission before any domestic sale. If customs raises a demand, respond within the time allowed and preserve the right to appeal.
Treating the EPZ Labour Act like the Labour Act 2006
Employers coming from mainland factories sometimes apply the general Labour Act to zone workers. The EPZ Labour Act 2019 differs on representation, dispute procedures and some benefits, and BEPZA's own instructions supplement it. Applying the wrong rule to a termination or a wage dispute can invalidate the employer's action and expose it to claims. HR policies should be drafted for the EPZ regime from the start.
Assuming incentives are fixed forever
Tax holidays and other fiscal incentives for zone enterprises are set by the Income Tax Act 2023, Finance Acts and NBR orders, not just by BEPZA's brochures. They have changed over time and can change again. Business plans that assume a particular holiday period or reduced rate should be checked against the law in force for the relevant year, and the enterprise should keep the records needed to claim the incentive properly.
Keep one register of every BEPZA permission, lease, import permit, work permit and approval letter, with its expiry date. Most zone disputes we see start with an expired permit or an approval that was assumed rather than obtained.
Foreign investors, parent companies and buyers
Most zone enterprises in Chattogram have a foreign parent, a foreign joint venture partner or a foreign buyer that drives the business. Each brings its own legal requirements, from parent company approvals and group financing to buyer audits on labour and environmental standards.
TRW & Co's offices in Dhaka, Singapore, Dubai and London help coordinate those requirements. We can review intra-group agreements, align a foreign joint venture agreement with Bangladeshi articles and BEPZA's conditions, and advise on enforcing an arbitration award against a zone counterparty. A BEPZA lawyer in Chittagong who understands the foreign side saves time on both ends.
Inside an EPZ, BEPZA is landlord, licensing office and labour supervisor at once, so the relationship with the authority deserves the same care as the relationship with your largest buyer.
How TRW & Co helps with BEPZA matters
TRW & Co works as a BEPZA lawyer in Chittagong from our office at Court Hill, a short drive from the city's zones, with our Dhaka team handling matters at BEPZA's head office.
Zone entry
We prepare and file the application for permission, negotiate the investment terms and lease, and incorporate the operating company. We keep the project profile, lease and constitutional documents consistent.
Transactions
We run due diligence on zone enterprises, structure share purchases and category changes, and obtain BEPZA, RJSC and Bangladesh Bank approvals as conditions of closing.
Customs and trade
We advise on import permits, DTA sales, subcontracting and customs demands, and represent enterprises in customs adjudication and appeals. See our customs disputes page.
Employment
We draft HR policies and contracts for the EPZ Labour Act 2019, advise on discipline and termination, and handle disputes with workers and their associations.
Expatriates
We manage visa recommendations and BEPZA work permits for foreign managers and technicians, and advise on salary remittance rules. Our work permit page has more.
Disputes with the authority
Where a lease is threatened, a permit refused or a decision taken unfairly, we engage with BEPZA and, where needed, our Bangladesh advocates take the matter to the High Court Division.
You can see the full range of our practices, and read our article on BEPZA investment steps for a shorter introduction.
Checklist for decision-makers
- Have we compared CEPZ, Karnaphuli EPZ, BEPZA Economic Zone and economic zones under Invest Bangladesh for space, rent, workforce and logistics?
- Do we know which investment category (Type A, B or C) applies, and its foreign exchange consequences?
- Is our project profile consistent with the lease, the company's objects and the machinery list?
- Have we diarised construction deadlines, permit expiries and lease renewal dates?
- Do we have a reconciled system for imports, consumption, wastage and exports?
- Are our HR policies written for the EPZ Labour Act 2019?
- Will any ownership change or new partner need BEPZA approval before closing?
- Have we confirmed current tax incentives against the law in force, not a brochure?
To discuss a zone project with a BEPZA lawyer in Chittagong, contact our Chattogram office at info@trw.co or +880 1779 127165, or visit Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000.
Frequently asked questions
01Does BEPZA now come under Invest Bangladesh?
No. The Invest Bangladesh Act 2026 merged BIDA, BEZA and the Public Private Partnership Authority into the Invest Bangladesh Authority, but BEPZA was not included. Export processing zones, including the Chattogram and Karnaphuli EPZs, continue to be regulated by BEPZA under the 1980 Act. Economic zones that BEZA used to run, such as the National Special Economic Zone at Mirsarai, now fall under Invest Bangladesh. Check which body controls your site before you apply.
02Can a Bangladeshi company set up in an EPZ?
Yes. BEPZA's Type C category is for enterprises wholly owned by Bangladeshis resident in Bangladesh, and Type B covers joint ventures with foreign investors. Type C enterprises are subject to the ordinary foreign exchange rules for most purposes, so they do not get every advantage of Type A and Type B units, but they still benefit from bonded status and zone services. The project must be export-oriented to fit the zone model.
03Can an EPZ enterprise sell in the Bangladeshi market?
Only within limits. Zone production is meant for export, and sales into the domestic tariff area need permission, payment in foreign currency and payment of duties and taxes as if the goods were imported. The permitted products and proportions are set by BEPZA and government instructions and change over time. Selling without permission is a serious customs matter, so take advice before agreeing any domestic sale.
04Who issues work permits for foreigners in an EPZ?
BEPZA issues work permits for expatriates working in zone enterprises, under its power to sanction employment of foreign nationals. The employee also needs the right visa, usually supported by a recommendation. Outside the zones, work permits are handled through Invest Bangladesh instead. Expatriates should not start work before the permit is issued, as this can cause problems with visa renewals and tax.
05What happens if we miss the construction deadline in our lease?
BEPZA leases and permissions usually set deadlines for construction and starting production. Missing them can lead to notices, penalties and, in the worst case, cancellation of the allotment. If you expect delay, apply to BEPZA for an extension in writing as early as possible, with reasons and a revised schedule. If a notice has already been issued, respond within the time given; a BEPZA lawyer in Chittagong can help you present the case and protect the investment.
06How are disputes with workers handled in the zones?
Workers in the zones are covered by the Bangladesh EPZ Labour Act 2019, which has its own dispute procedures and worker welfare association framework, with BEPZA in a supervisory role. Employers should follow the Act's procedures for discipline and termination exactly, because procedural mistakes can undo an otherwise justified decision. We advise on the process and represent enterprises when a dispute goes to the forum the Act provides.
07Can we buy an existing EPZ factory instead of starting from scratch?
Yes, and many investors do. A share purchase of a zone enterprise needs BEPZA's approval, RJSC filings and, where non-residents are involved, Bangladesh Bank compliance. Due diligence should cover the permission and lease, import and export reconciliations, customs demands, labour disputes, environmental clearance and the foreign exchange history. Make BEPZA approval a condition of closing, not something to obtain afterwards.
Sources and official materials
- BEPZA: At a glance — Legal basis, zones, investment types, services, rents
- BEPZA: Chattogram EPZ — Year, size, plots and sectors of CEPZ
- BEPZA: Export processing zones — List of BEPZA EPZs and economic zones
- BEPZA: Information for Investors — BEPZA Act 1980, zone principles, customs rules, foreign exchange chapters
- BEPZA and DoE memorandum on online environmental clearance — Online ECC issue and renewal for EPZ investors (2021)
- Invest Bangladesh: press release on the Invest Bangladesh Bill 2026 — Agencies merged into Invest Bangladesh
- Foreign Private Investment (Promotion and Protection) Act 1980 — Investor protection that applies in the zones
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
