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At least 16 individuals have perished after a enormous fire started at a garment factory in Bangladesh, with authorities warning that the death toll could rise.

Sixteen bodies have been found but were incinerated beyond recognition, the fire department said.

Distraught relatives converged outside the four-level factory in the Mirpur district of Dhaka on that day in seeking their dear ones still unaccounted for.

The fire, which erupted at the factory around noon, was extinguished after multiple hours. But an adjacent chemical warehouse remained ablaze, officials confirmed.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts indicated.

Fire service officials have not ascertained which of the two buildings ignited initially.

Based on witnesses, the chemical warehouse stored bleaching powder, plastic materials and hydrogen peroxide, all of which can intensify fires. Polymer products also emits toxic fumes when burned.

Law enforcement and armed forces are still searching for the owners of the factory and the warehouse, fire service director the fire service official briefed the media.

An investigation on whether the warehouse was functioning with proper authorization is also in progress, he noted.

Tearful family members waited outside the charred buildings, many of them holding photographs of their unaccounted for relatives.

Included in the crowd is a man seeking urgently for his daughter, his family member.

"When I learned of the fire, I came running. But I still cannot locate her... I just want my child back," he expressed to reporters.

The catastrophic occurrence has yet again highlighted the hazardous conditions plaguing Bangladesh's garment industry, which engages countless of workers and is a significant provider of foreign revenue for the country.