What it takes to become a CIP

Being a big businessman will no longer be enough to earn Commercially Important Person (CIP) status from the industrial sector.

Under the government’s new policy, entrepreneurs will have to demonstrate production, investment, profitability, tax compliance, job creation and wider economic contribution to compete for the recognition.

Tap here to add The Daily Star as a trusted source

The Industries Ministry issued the Commercially Important Person (Industry) Selection Policy, 2026 through a gazette on August 23 this year, replacing the policy introduced in 2008.

Under the 2008 policy, CIP selection was largely based on broad measures of industrial contribution, including business turnover, export performance, production, employment generation and contribution to national income.

The new policy, however, introduces a scoring-based system that puts greater emphasis on measurable performance and verified economic contribution. It also limits the number of industrial CIPs to 55 a year, making competition significantly tougher.

For large and medium industries, actual production carries 20 points, the highest among the criteria.

Entrepreneurs will also earn points based on employment generation, paid-up capital and long-term investment, net profit and tax payments.

Employment generation will carry 10 points, while paid-up capital and long-term investment will account for eight points and net profit for five points.

Tax payments will also be considered, with both institutional and individual tax contributions taken into account.

Additional points are available for corporate social responsibility, use of local raw materials, compliance with national and international standards, waste management, research and development, employee welfare, and innovative or creative products.

The focus is therefore shifting from business size and broad indicators to measurable, verifiable performance.

Small, micro and cottage industries, along with several specialised categories, have a different scoring structure.

For these businesses, use of local raw materials carries 20 points, one of the highest-weighted criteria.

This gives smaller entrepreneurs an opportunity to compete by demonstrating strong domestic sourcing, production, employment generation and compliance, even without the financial scale of larger firms.

Meeting the scoring criteria will not be enough if an entrepreneur fails basic compliance requirements.

Loan defaulters and those who failed to properly pay applicable duties, VAT or income tax in the previous financial year will be ineligible.

The policy also excludes applicants involved in specified disputes with foreign buyers, certain criminal offences, share-related irregularities and other violations.

Submitting false or inaccurate information will result in a three-year ban on applying for CIP status.

An entrepreneur selected as a CIP for one year will also be ineligible for selection for the following two years.

Industrial establishments penalised for specified government revenue-related offences during the five years before the application period will likewise be excluded.

The government has sharply reduced the number of available CIP positions.

The number reached 184 in 2023, compared with just 140 in 2021. Under the new policy, only 55 positions will be available annually.

The 55 CIP positions will be allocated across categories, with large industries receiving 15 positions for production and five for services, medium industries 10 for production and three for services, and small industries four for production and two for services.

The remaining positions will cover emerging technology-based industries, hi-tech industries, logistics, tourism, micro industries and cottage industries.

With only 55 positions, applicants will effectively compete on their scores rather than simply meeting eligibility requirements.

After applications are submitted, a primary selection committee will prepare a preliminary list. Applicants’ information may then be verified with Bangladesh Bank, the National Board of Revenue, the Commerce Ministry and the Bangladesh Securities and Exchange Commission.

Applications are scheduled to be accepted from July 15 to September 30, followed by scrutiny, verification and final selection.

CIP status provides several privileges, including a one-year identity card, invitations to national events and civic receptions, certain government transport facilities, visa-related assistance through the Foreign Ministry and priority cabin facilities at government hospitals for the entrepreneur and immediate family members.

CIPs may also use VIP airport lounges and be considered for government committees dealing with industrial policy.

The benefits, however, are conditional. Status can be withdrawn if an entrepreneur is later found to have provided false information or becomes involved in specified financial, legal or regulatory violations.

The new policy fundamentally changes the basis of CIP selection.

Entrepreneurs must now prove—not simply claim—that their businesses produce, invest, pay taxes, create jobs, use local resources and contribute to the economy.

With only 55 positions available, performance, compliance and verifiable economic contribution will determine who makes the cut.

Alongside CIP (industry) status, the Commerce Ministry also offers Commercially Important Person status in two broad categories: CIP (export) and CIP (trade), with the export category covering 35 sectors under the CIP (Export and Trade) Policy 2023.

Around 140 individuals are selected annually for CIP (Export) based on export performance, tax compliance, and product/market diversification, while an additional 38-44 individuals receive CIP status under the Ex-Officio/Trade category, bringing the total number of annual CIP recipients to approximately 176-184.