It is a traditional and profitable Gold business in Bangladesh that has flourished for many generations.
This gold business closely relates to people’s wealth, investment, and culture. Gold plays a vital role in weddings, religious ceremonies, and social rituals.
The gold market continues to expand in line with current economic conditions, offering immense potential for new entrepreneurs.
Starting a gold business can be a timely idea, as technological advancements and changing policies have created more opportunities for success in this business.
In today’s article, you will learn everything about starting a gold business in Bangladesh, including what is required and what the rules are.
What are the types of gold and what?
Gold is divided into different types mainly based on its purity. Gold types are determined based on carat value and color.
Below are the main types and properties of gold:
| Category | Type | Description |
|---|---|---|
| Based on Purity (Carat) | 24-Carat Gold | Pure gold, containing 99.9% gold. Very soft and malleable, not commonly used for jewelry, but ideal for investment. |
| 22-Carat Gold | Contains about 91.6% gold, with the rest made up of other metals (e.g., copper, silver). Widely used in jewelry making. | |
| 18-Carat Gold | Contains 75% gold, mixed with other metals. Strong and durable, making it popular for jewelry. | |
| 14-Carat Gold | Contains about 58.5% gold. More affordable and durable, commonly used in everyday jewelry in many countries. | |
| Based on Color | Yellow Gold | The natural color of gold, often mixed with copper and silver. Traditionally used in classic jewelry designs. |
| White Gold | Made by mixing gold with silver or palladium, it resembles platinum and is popular in modern jewelry designs. | |
| Rose Gold | Made by combining gold with copper, which gives it a pinkish hue. Known for its romantic appeal in jewelry. | |
| Green Gold | A blend of gold and silver, resulting in a greenish tint. Rarely used but applied in unique jewelry designs. | |
| Other Types | Black Gold | Created through special processes or metal combinations to give a black appearance, used in modern and unique jewelry. |
| Blue Gold | Made by mixing gold with indium, giving it a blue hue. Rare and unique for distinctive designs. |
These types are selected according to the jewelry’s purpose and the user’s preference. Variations in carat purity and color determine the quality and value of gold.
Gold Business in Bangladesh
Success in gold trading requires a clear and well-organized plan first.
As a first step, create a business plan that outlines your goals, market analysis, potential competition, and financial strategy.
Next, select a suitable location for the business that is easily accessible to customers and convenient for security.
Identifying target customers is also essential; You need to analyze in detail what kind of buyers your business is targeting (e.g., gold buyers for weddings, gifts, or investments) and what type of design or quantity of gold they prefer.
These initial preparation steps will lay a solid foundation for establishing a business and perfect your preparation to attract buyers.
Gold business financial and legal requirements
Some essential financial and legal requirements must be met to start a gold business in Bangladesh.
| Requirement | Description |
|---|---|
| Capital | A minimum capital of 1 crore BDT is required to obtain a gold import license. |
| Non-refundable Fee | A non-refundable pay order of 5 lakh BDT must be submitted to Bangladesh Bank. |
| Trade License | A valid trade license must be obtained from the local city corporation or municipality. |
| Tax Identification Number (TIN) | A TIN must be obtained from the National Board of Revenue (NBR). |
| VAT Registration | VAT registration must be completed and the certificate collected. |
| Gold Import License | A gold import license must be obtained from Bangladesh Bank. |
| Bank Account | A corporate bank account must be opened to ensure transparency in financial transactions. |
| Approval from Regulatory Bodies | Membership with the Bangladesh Jewellers’ Association (BAJUS) and other relevant bodies should be obtained to build business credibility. |
Fulfilling the above financial and legal requirements is possible to start a gold business. A business can be profitable and long-lasting if it is run according to the right rules and regulations.
Laws and regulations for gold business in Bangladesh
To conduct gold business in Bangladesh, several legal principles and rules must be followed. The following are the main principles:
| Policy | Description |
|---|---|
| Customs Act, 2023 | This act outlines the regulations for gold import, export, and trade, with Section 247 being particularly relevant to gold businesses. |
| Gold Import Policy, 2018 (Amended 2021) | This policy covers aspects such as gold import, refinery establishment, and partial processed gold import permissions. |
| Baggage Rules, 2016 | This regulation defines the limit and duty requirements for passengers bringing gold and silver from abroad. For example, passengers can bring up to 100 grams of jewelry duty-free and 117 grams of gold bars with applicable duty. |
| Bangladesh Bank Directives | A license from Bangladesh Bank is mandatory for gold import and trading. Additionally, gold refineries must adhere to international standards. |
| National Board of Revenue (NBR) Regulations | Regulations related to customs duty, tax, and VAT on gold imports and sales. As of the 2023-24 fiscal year, the duty on gold bars is set at 4,000 BDT per bhori. |
Adherence to the above principles and rules ensures transparency and accountability in the gold business and helps to avoid legal complications.
Gold Supplier Selection and Security Measures
Selecting reliable suppliers and adequate security measures are essential to ensure success in gold trading.
| Category | Details |
|---|---|
| Supplier Selection |
|
| Security Measures |
|
By following these steps, the supply chain and security systems can be strengthened, ensuring the success and stability of the gold business.
Gold Marketing and Promotion Strategies
Effective marketing and promotion strategies are essential for gold business success. The right strategy can attract new customers and increase brand awareness.
| Category | Strategies |
|---|---|
| Marketing Strategies |
|
| Promotion Strategies |
|
By following these strategies, a strong marketing and promotion plan for the gold business can be created, which will help attract customers and expand the business.
Steps to Start an Online Jewelry Business
Starting an online jewelry business requires careful planning, reliable sourcing, and a solid online presence to attract customers and build a reputable brand.
New entrepreneurs can successfully navigate the competitive jewelry market by taking a strategic approach, using effective marketing, and providing excellent customer service.
The table below outlines the essential steps for running a successful online jewelry business.
| Step | Description |
|---|---|
| Business Plan Creation | Create a detailed business plan including goals, target customers, market analysis, and competition overview. This plan will help estimate budget and expenses. |
| Product Supply and Sourcing | Find reliable suppliers for quality jewelry. Ensure the purity and carat of the products, and secure international quality certifications if available. |
| E-commerce Website Setup | Develop a professional, user-friendly website that showcases your jewelry. Ensure it is mobile-friendly for easy access and purchasing on various devices. |
| Social Media Marketing | Create pages on platforms like Facebook, Instagram, and Pinterest. Regularly post high-quality images and offers to engage customers, and use social media ads to boost visibility. |
| Marketing and Advertising | Utilize email marketing, SEO, and influencer marketing. Build an email list to keep customers informed about offers and new products, and consider listing on e-commerce marketplaces. |
| Payment and Shipping | Set up secure payment options such as mobile banking, credit, and debit card payments. Partner with a reliable courier service for timely and safe deliveries. |
| Customer Service | Provide excellent customer service to address queries and resolve issues. Establish a return policy and focus on customer satisfaction to build long-term trust. |
How to profit in the gold business
The profit from the gold business in Bangladesh depends on the carat of gold, purchase price, selling price, and other costs.
See the table below for the estimated buying price, selling price, and potential profit for various carats of gold:
| Gold Carat | Purchase Price (per bhori) | Selling Price (per bhori) | Estimated Profit (per bhori) |
|---|---|---|---|
| 24 Carat | 115,350 Taka | 117,000 Taka | 1,650 Taka |
| 22 Carat | 112,908 Taka | 114,500 Taka | 1,592 Taka |
| 21 Carat | 107,776 Taka | 109,200 Taka | 1,424 Taka |
| 18 Carat | 92,983 Taka | 94,000 Taka | 1,017 Taka |
- The prices listed are based on the latest Bangladesh Jewelers Association (BAJUS) rates.
- Profit estimates are approximate and may vary depending on demand, competition, and operational costs.
- Gold prices change daily, so always refer to the latest price list before making business decisions.
So, if you want to know about the latest gold in Bangladesh, visit the Bajus—Bangladesh Jewellery Association website.
Ways to recognize original gold
Identifying genuine gold is crucial for a thriving gold business, ensuring quality and customer trust. Below are reliable methods to help you verify gold’s authenticity and purity.
- Pure gold usually has a karat mark such as 24K, 22K, or 18K, which indicates the purity of the jewelry. A hallmark is a good indicator of genuine gold.
- Magnets do not attract pure gold. If gold jewelry is attracted to a magnet, it is not real gold; It may contain other metals.
- A small spot of nitric acid will not change pure gold. However, if another metal is mixed with it, it will react, and the color will change.
- Cassar kits are readily available for gold testing. This kit allows one to check the karat of gold quickly.
- Pure gold has a density of about 19.3 g/cm³. Determining its density by measuring its weight and volume can confirm its purity.
- Buying gold comes with a certificate of quality and hallmarked jewelry. It contains information about the carat and purity of the jewelry.
- To test pure gold, one can seek the help of a professional lab or an experienced jeweler. They can determine the purity of gold using the right equipment.
Wholesale Gold Purchase Information
You can contact the listed markets in Bangladesh to purchase wholesale gold for retail sale. Before making a purchase, verify the quality and price at each location.
| Market Name | Location | Description |
|---|---|---|
| Baitul Mukarram Jewelry Market | Dhaka, Bangladesh | Located in the heart of Dhaka, this market has numerous wholesalers selling gold at wholesale prices. |
| PatuaTuli Jewelry Market | Old Dhaka, Bangladesh | This market in the PatuaTuli area of Old Dhaka has a congregation of wholesale gold traders. |
| Riazuddin Bazaar | Chattogram, Bangladesh | This market in Chattogram has shops of wholesale gold sellers where you can source gold. |
| Khalishpur Jewelry Market | Khulna, Bangladesh | Located in the Khalishpur area of Khulna, this market has shops of wholesale gold sellers. |
Here are some tips to keep in mind while buying wholesale gold:
- Purity and Quality Check: Make sure the purity and quality of gold are kept while buying.
- Price Comparison: Compare prices by contacting different sellers.
- Legal Process: Collect the necessary receipts and documents at the time of sale.
Rules for importing gold internationally
To import gold internationally, you must follow specific steps and require special permission and documentation to import gold from a reliable source. The process is explained step by step below:
| Step | Description |
|---|---|
| Business Registration and Import License | Obtain an Importer Registration Certificate (IRC) from the Ministry of Commerce, and get approval from Bangladesh Bank for international transactions. |
| Selecting a Reliable International Supplier | Popular sources include Dubai (Gold Souk), Singapore, Malaysia, and Switzerland, known for quality wholesale gold supply. |
| Banking and Transaction Methods | Use a Letter of Credit (LC) through a bank for secure transactions, and ensure you have a foreign currency account for international dealings. |
| Quality and Customs Regulations | Verify the gold’s purity (typically 24 carats), and be aware of import duties and customs fees required by Bangladesh’s customs office. |
| Insurance and Security | Consider insuring the gold for safety during transportation and choose secure courier or freight options. |
| Sales in Bangladesh and Legal Compliance | Join Bangladesh Jewelers Association (BAJUS) for industry standards, and ensure transparent business by filing VAT and income tax returns properly. |
Thus, you can start a gold business in your country by importing gold from gold-supplying countries like Dubai, Singapore, Malaysia, or Switzerland.
Learn more: Petrol Pump Business in Bangladesh
Last word, Gold Business of Bangladesh
Establishing a successful gold business in Bangladesh requires proper planning, reliable suppliers, safety measures, and effective marketing strategies.
Although the competition in the gold market is very high, maintaining reliability, quality, and service standards can attract new and retain old customers.
Adopting legal principles and new strategies to keep pace with market changes is critical to a long-lasting and profitable business.
It can ensure business growth by maintaining transparency and customer satisfaction at every step.
If you like this article, please leave a comment and let us know what’s new. Thank you so much for staying with us.
FAQ
How much capital does the gold business take?
The capital required to start a gold business in Bangladesh depends on the company’s size. 10-15 lakhs to open a small shop, 50-70 lakhs for a medium business, and 1-2 crores to start a big business.
How is the price of gold determined?
The price of gold depends on its price in the international market. It can fluctuate daily, determined by the London Gold Market or the New York Commodity Exchange.
What kind of license is required to start a gold business?
Starting a gold business requires different licenses depending on the type of business. For example, businesses must obtain a “trade license,” VAT registration, and local government approval. Sometimes, it is also necessary to set standards from BSMRC (Bangladesh Standards and Testing Institution).
What kind of precautions should be taken to buy gold?
While buying gold jewelry, it is essential to check the exact quality of the desired jewelry. Buy gold jewelry with BIS size and test marks, old or new, and verify the seller’s credibility.
