In Bangladesh, obtaining a trade license is an important step for any business seeking to operate legally within the country. A trade license serves as proof that a business complies with local regulations and has the necessary permits to operate. Whether you’re starting a small shop, a large corporation, or anything in between, understanding the process of obtaining a trade license is essential. In this article we will show you How to Obtain Trade License in Bangladesh.
What Is Trade License?
A trade license is a legal document issued by a government that allows a business to engage in commercial or industrial activities within a specific jurisdiction. This serves as proof that the business complies with all necessary regulations and is authorized to operate Trade licenses are essential for businesses to operate within the law and maintain safety standards while conducting their operations.
Types of Trade Licenses
In Bangladesh, there are primarily two types of trade licenses:
- Commercial Trade License: This type of license is required for businesses engaged in commercial activities, such as trading goods or providing services.
- Industrial Trade License: Businesses involved in industrial activities, such as manufacturing or manufacturing, must obtain an industrial trade license.
Document Required For Obtain Trade License
- Application form: The specific form depends on the type and location of your business.
- General Business: Form “I” from City Corporation or Municipal Corporation Office.
- Commercial or Corporate Business: Form “K” from Dhaka City Corporation (DCC) or concerned City Corporation Office.
- National identity card of entrepreneur or authorized representative
Recent receipt or proof of ownership of the business premises (rent agreement, utility bill, etc.) - Receipt of payment of holding tax for business premises.
- Recent passport size photograph of entrepreneur.
- Non-judicial stamp declaration indicating your commitment to comply with local regulations.
- Certificate of Incorporation (for Company)
- Memorandum of Association and Articles of Association (for companies)
- VAT Registration Certificate (for businesses exceeding the VAT threshold)
- Partnership Agreement (for Partnership)
- Work permit from Board of Investment (for specific industry)
- Statement of Bank Solvency (may be required in some cases)
- TIN Certificate (Tax Identification Number)
How to Obtain Trade License in Bangladesh? Step by Step Process
Trade license is an important step to start a business in Bangladesh. This allows you to operate your business legally and ensures compliance with local regulations. This guide will take you through the process of obtaining a trade license in Bangladesh, including the steps involved, required documents and relevant fees. The process of obtaining a trade license can be roughly divided into six steps:
Collecting the Application Form:
The first step involves collecting the appropriate application form from the concerned authorities. The specific form you need depends on the type and location of your business.
- General Business: For general business, you will need Form “I”, which is available at the City Corporation or Municipal Corporation office of your area.
- Commercial or Corporate Business: Commercial and corporate business requires Form “K” from Dhaka City Corporation (DCC) or relevant City Corporation office.
Completing the Application Form:
Fill out the application form carefully, providing accurate and complete information about your business, including:
- Business name and address
- Type of business activity
- Nature of ownership (sole proprietorship, partnership, etc.)
- Trade License Department
- TIN (Tax Identification Number)
Gathering Supporting Documents:
Along with the filled application form, you need to submit various supporting documents:
- National identity card of entrepreneur or authorized representative
- Recent receipt or proof of ownership of the business premises (rent agreement, utility bill, etc.)
- Receipt of payment of holding tax for business premises
- Recent passport size photograph of entrepreneur
- Non-judicial stamp declaration indicating your commitment to comply with local regulations
- Additional documents specific to your business type may be required. Consult the concerned authority for details.
Submitting the Application:
Once you have filled the form and collected the required documents, submit them to the designated office:
- City Corporation or Municipal Corporation office for general business.
- Dhaka City Corporation (DCC) office for commercial or corporate business located in Dhaka.
Verification and Inspection:
The Licensing Supervisor will review your application and supporting documents. They can also visit a site to verify the information provided.
Payment and Collect:
After successful verification and fulfillment of additional requirements, you will have to pay the prescribed license fee. Once the payment is processed, you can collect your trade license from the same office.
Trade license fees vary depending on your business type, location and other factors. You can inquire about the applicable fees at the relevant office or visit the Bangladesh Trade Portal website. In addition to the trade license fee, you may have to pay a separate fee for displaying a signboard outside your business premises. Trade licenses are generally valid for one year and need to be renewed annually.
Trade License Fees & Application Fees In BD
- Application Fee: 10 Tk.
- License Fee: BDT 1000-20000 depending on the nature/type of business (Information can be obtained from City Corporation/Municipal Corporation/Union Council) . License fee for limited companies is determined on the basis of paid up capital.
How to Renewal Trade License in Bangladesh?
Renewing your trade license in Bangladesh is a straightforward process that can be completed online or through the office of the issuing authority.
Gather Required Documents:
- Previous Trade License: This serves as proof of your existing license and helps facilitate the renewal process.
- Renewal Application Form: Usually available online or at the office of the issuing authority.
- Payment Receipt for Holding Tax: Check if there is any holding tax due for your business premises.
- Other documents (if applicable): Depending on the type of business you have, additional documents such as an updated partnership agreement or VAT registration certificate may be required.
Choose Your Renewal Method:
- Online Renewal: Many city corporations and municipalities offer online renewal options through their dedicated portals. Just log in, fill the renewal application, upload the required documents and pay the fee online.
- Renewal in office: Visit the office of the issuing authority (usually the City Corporation/Municipality office where you got your initial license). Submit the filled application form, previous license, payment receipt and other necessary documents.
Pay the Renewal Fee:
Your trade license renewal fee depends on your business type and location. You can inquire about the fees online, through the authority’s portal or directly at their office. Payment options usually include online payment, cash deposit at designated bank or office counter payment.
Collect Your Renewed License:
Once your application and payment are processed, you will receive your renewed trade license. The process can be to collect it personally from the office or receive it electronically through the online portal.
Aim to renew your trade license before it expires to avoid any fines or disruptions to your business operations. Requirements and procedures may change slightly over time. It is recommended to check with the issuing authority or their website for the latest information on trade license renewal.
Why Need Trade License For Business In BD?
In Bangladesh, obtaining a trade license is essential for businesses for several reasons:
- Legal Requirements: It is a legal requirement for businesses to obtain a trade license to operate within the country. Operating without a trade license is considered illegal and may result in fines, penalties or even business closure.
- Compliance: Obtaining a trade license ensures that businesses comply with local laws, regulations and safety standards. It shows that the business has met all the necessary requirements set by the government authorities.
- Credibility: Having a trade license increases the credibility and credibility of the business in the eyes of customers, suppliers and other stakeholders. This indicates that the business is legitimate and operates within the limits of the law.
- Access to facilities and services: Proof of a valid trade license may be required for certain facilities and services, such as bank accounts, utilities and government tenders. Having a trade license enables businesses to easily access these facilities and services
- Protection: A trade license provides legal protection to the business owner by establishing a clear framework for conducting operations. It helps resolve disputes and protects the business from potential legal liability.
Overall, obtaining a trade license is important for businesses in Bangladesh to operate legally, maintain compliance, increase credibility, access essential services and protect themselves from legal risks.
Final Thought
A trade license is a legal document issued by a government that allows a business to engage in commercial or industrial activities within a specific jurisdiction. This serves as proof that the business complies with all necessary regulations and is authorized to operate Trade licenses are essential for businesses to operate within the law and maintain safety standards while conducting their operations.