Want a restaurant permit? Brace for a red tape nightmare

Md Abul Ahsan Anwar secured almost a dozen licences from a similar number of agencies for his restaurant Pan Pacific Lounge, located at Gawsia Twin Peak building on Satmasjid Road in Dhaka. The process took about 3 to 4 months, and Anwar alleged he sometimes faced demands for bribes to expedite approvals.

"In most of these places, I had to submit the same type of documents. After going through all this trouble, when will I have time to do business? A single point of contact would be far more efficient," he told The Business Standard.

These challenges are not isolated incidents; many restaurant owners in Dhaka face similar difficulties.

Restaurateurs said to start a business, they need to produce various papers, such as ownership documents, a rent deed if applicable, trade licence, occupancy, NOC from surrounding establishment owners, environment certificate, fire clearance certificate, business and establishment certificates VAT, and TIN certificates.

These documents need to be collected or submitted to 13 different agencies, including Rajuk, city corporation, fire service, environment division, deputy commissioner office, food safety authority, labour ministry, civil surgeon office, factories and establishments inspection department, and revenue board.

Anwar's restaurant, however, was shut down by Rajuk on 4 March despite possessing the necessary permits.

Another restaurant owner, on condition of anonymity, told TBS that there are no clear guidelines by Rajuk about what type of building can be used for a restaurant.

"Furthermore, obtaining licences is a lengthy and expensive process. It took me almost two years to obtain the required licences after paying from Tk30,000 to Tk2 lakh as bribes in various steps," the businessperson said.

He added that without bribes, even having proper paperwork does not guarantee a licence.

Restaurant owners have called for a streamlined licensing system, urging the government to implement a one-stop service for acquiring permits and clearances. They believe this approach would significantly reduce the burden on businesses and promote a more favourable environment for entrepreneurs.

Meanwhile, both traders and government agency sources admitted that despite known safety risks, many restaurants continue to operate, often with just a city corporation trade licence.

Raids by various agencies are reportedly circumvented through bribery.

According to Fire Service and Civil Defence, approximately 96% of Dhaka city's 5,000 restaurants and food shops operate under risk, often lacking proper permits. This increases fire hazard concerns.

Statistics from Bangladesh Poribesh Andolon (Bapa), Bangladesh Institute of Planners, and Bangladesh Environmental Lawyers Association show that there have been 190,167 fire incidents in the past nine years, resulting in over 1,051 deaths and 3,606 injuries.

A recent fire at the Green Cozy Cottage building in the capital's Bailey Road, where restaurants occupied most floors, underscores the dangers.

Worryingly, restaurants are found in residential areas of the capital, including Khilgaon, Dhanmondi, Mirpur, and Mohammadpur.

Some restaurant owners, however, expressed frustration as they claimed that establishments with proper permissions are also being forced to shut down.

Gulshan's Mallika Restaurant, with nearly 30 years of operation and possessing several licences, faces closure threats due to the sudden demand for additional permits.

"We have a city corporation licence, labour court certificate, fire service clearance, VAT certificate from the NBR, and income tax certificate. These are all the ones we knew about. Now they are asking for 12-13 certificates.

"We have no problem following regulations but we have not been notified about so many licence requirements. Why are they asking for certificates without prior notifications?" said Md Ratan Mollah, owner of Mallika Restaurant.

Ratan Mollah proposed a centralised system to streamline the process.

Bangladesh Restaurant Owners Association (Broa) General Secretary Imran Hasan also lamented the current licensing process.

"We should not have to run from agency to agency just to acquire permits. We implore the government to implement a designated authority where our members can submit all the paperwork and obtain the necessary licences. This would significantly ease the burden on legitimate businesses," he told TBS.

He also acknowledged that only a small percentage of restaurants, about 70,000 out of 450,000 nationwide, are approved by Broa.

"We need the government's support to establish a safe and thriving restaurant sector. While action against those operating outside the rules is necessary, a streamlined licensing system would greatly benefit compliant businesses," he further added.

Authorities' stance on licence and regulations

Rajdhani Unnayan Kartripakkha (Rajuk), the agency responsible for coordinating urban development in the capital, acknowledged the complexities in existing regulations and their commitment to swift improvements.

Rajuk Chairman Anisur Rahman Miah recently said that Rajuk is amending the National Building Code to address issues related to multi-storey buildings and fire safety, in collaboration with the Fire Service.

Dhaka North City Corporation Chief Executive Officer Mir Khairul Alam told TBS that establishments are given a timeframe to acquire other certificates after getting their trade licence.

"Our teams regularly visit the establishments to ensure regulations are not being violated. However, due to limited manpower, we are not able to inspect all establishments across the city," he said.

He expressed support for the creation of a task force and a one-stop service for licensing.

Rajuk's Chief Urban Planner Ashraf-ul Islam explained the regulations regarding restaurant locations and fire safety plans.

"Rajuk's regulations do not directly mention fire safety requirements. This is being amended. Building owners will have to get their architectural design and fire safety plans approved. We are also working on making the approval process easier," the official added.

He further stressed Rajuk's commitment to safety and facilitating business operations.

Experts call for specialised task force

Iqbal Habib, co-president of Bapa, urged the formation of a task force to address fire safety concerns in restaurants. This task force, coordinated with licensing agencies, would identify and rectify high-risk buildings in Dhaka.

He emphasised the need for a similar approach in other cities, alongside the public identification of dangerous buildings.

"The current practice of raids is ineffective and disruptive. These raids are a mere show enriching a select few while destroying the business environment," Iqbal Habib said about the recent incidents of restaurant shutdowns.

Brigadier General (retd) Ali Ahmed Khan, former head of Fire Service and Civil Defense, recently highlighted the importance of inter-agency collaboration.

He advocated improved information sharing and coordinated licensing procedures. Additionally, he suggested the implementation of a fire code to proactively prevent fire accidents.