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How to Get a Trade License in Bangladesh [Complete Guide]
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Obtaining a trade license is the most crucial step in initiating a new business in Bangladesh. The owner must acquire a trade license from the City Corporation, Municipal Corporation, or Union Parishad to conduct business in a local area.
So, how do you obtain a trade license in Bangladesh? To obtain a trade license in Bangladesh, get an application form, fill it out with appropriate information, submit the form to the Taxation Officer, get the approval, pay the fees, and finally collect the license.
Keep reading till the end to learn how to get a trade license for your business in 7 days and the straightforward process of renewing the trade license.
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What is a Trade License, and Why Do You Need It?
- A trade license is a government-issued business permit that allows private limited companies to run a business in a specific field.
- Before starting a business, you must obtain a trade license for the specific business field.
- According to the Bangladesh Companies Act of 1994, a trade license is mandatory to operate any legal business in Bangladesh.
- A company with more than one business must ensure that all the necessary trade licenses are obtained for each business.
- It is the initial stage of beginning a business in a particular area. You won’t be allowed to do business-related activities unless you obtain a trade license for your business.
- Depending on the business, there are several types of trade licenses that you have to collect from the authority.
Different Types of Trade Licenses in Bangladesh
Bangladesh’s government offers three types of trade licenses: general trade license, commercial trade license, and manufacturing trade license.
You must collect one of the trade licenses depending on your business model. Consider the subsequent instructions to learn everything about obtaining a trade license.
1. General Trade License
You must collect a general trade license if you own a small or medium business. The business must meet the minimum revenue and transaction threshold to get a general trade license.
To obtain a general trade license, perform the subsequent steps.
- Collect the application form (price is BDT 10) from the City Corporation, Municipal Corporation, or Union Parishad office.
- Fill out the form with the appropriate information.
- Submit the filled application to the Taxation Officer.
- Wait until the licensing supervisor verifies the application.
- Pay the authority the necessary amount (the licensing fee is around BDT 100- 40,000).
- Collect the license from the City Corporation or Union Parishad office.
2. Commercial Trade License
As the name suggests, a commercial trade license is required for commercial businesses such as retail stores, supermarkets, etc.
Consider the following steps to obtain a commercial trade license.
- Collect the “K” form from DCC or Zonal offices.
- Fill out the form with the necessary information.
- Submit the form to the local ward commissioner and get his approval.
- Collect the application and submit it to DCC or your zonal office. Attach supporting documents.
- Allow the licensing supervisor to confirm the provided information.
- Pay the required fee to DCC or the zonal office.
- Pay a signboard fee (usually 25%-35% of the license fee).
- Collect the trade license.
3. Manufacturing Trade License
If you’re seeking a trade license for your factories or industries, go for the manufacturing trade license. Any company responsible for manufacturing and distributing an item must have this license.
Perform the subsequent steps to obtaining a manufacturing trade license.
- Collect the “I” form from the DCC zonal office.
- Fill out the form and get permission from the local ward commissioner.
- Manage the following supporting documents:
- Owner’s passport-size photo 3 pieces.
- Site ownership or rent proof.
- Neighborhood’s NOC.
- Fire license from Bangladesh Fire Service & Civil Defence.
- Environmental certificate from the Department of Environment.
- Verify all the documents by a licensing officer.
- Manage the following supporting documents:
- Pay the required fees to the DCC office.
- Pay the Signboard fee (30% of the license fee).
- Collect the manufacturing trade license.
Remember, getting the trade license can take up to 7 days after completing all the aforementioned steps. Moreover, the process can take even more than 10-20 days depending on the business type and size.
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What Documents Do You Need to Obtain a Trade License in Bangladesh?
Depending on the license, you will need multiple documents to obtain a trade license. Go through the following table to learn what you will need to get a trade license.
Required Documents | General Trade License | Commercial Trade License | Manufacturing Trade License |
Trade license application form | Yes | Yes | Yes |
Passport-size photo of the owner (3 copies) | Yes | Yes | Yes |
The NID card of the owner | Yes | Yes | Yes |
Holding tax payment receipt | Yes | Yes | Yes |
Company Incorporation Certificate | Yes | Yes | Yes |
Memorandum & articles of association | Yes | Yes | Yes |
VAT registration certificate | Yes | Yes | Yes |
A non-judicial stamp of Tk. 150 | Yes | Yes | Yes |
Financial/bank solvency certificate of the company | Yes | Yes | Yes |
TIN certificate | Yes | Yes | Yes |
Partnership agreement | Yes | Yes | Yes |
Work permit from BIDA | Yes | Yes | Yes |
Fire license | No | No | Yes |
Environmental certificate | No | No | Yes |
No objection certificate (NOC) | No | No | Yes |
Rent receipt or ownership proof | No | Yes | Yes |
Passport copy (for foreigners) | Yes | Yes | Yes |
Now you know everything about the required documents for claiming a trade license. So, collect the documents and apply to the Dhaka North City Corporation (DNCC), Dhaka South City Corporation, or your Zonal office to get the trade license.
How to Apply for an E-Trade License in Bangladesh
For all of the above trade licenses and online-based services, you can obtain an e-trade license by applying on the E-Trade License website.
Each city corporation has its own website, and to get an e-trade license from the authorized local government division, register using the necessary information.
To apply for an e-trade license, perform the following steps accordingly.
- Navigate to the E-Trade License website.
- Click on the New Registration button.
- Fill in the personal information.
- Type the business type and business-related information.
- Upload scanned copies of required documents.
- Wait for the verification process.
Once you perform the above steps appropriately, you will get a tracking number that can be used to track the licensing progress.
After completing the verification process, pay the applicable fee to the authority. Collect your e-trade license from the same website when the process is completed.
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How to Renew Trade Licenses in Bangladesh
Usually, the Bangladesh government issues trade licenses for one year, and every business must renew its licenses annually.
The renewal fee highly depends on the business type, business size, and the business area.
Several documents are required to renew a trade license. For example, you will need the license book, TIN, challan book, and proof of ownership.
The first step is to collect the demand bill from the license book. Then, a licensing supervisor will fill out the necessary information in the bill and provide a business booklet.
This four-page booklet contains all the necessary information for the bank and the business.
Once this process is completed, pay the required fee to the designated bank. When the payment is successful, the trade license will renew automatically.
Another important fact to consider is the trade license renewal processing time. Depending on the business type, most trade licenses need 1-2 working days to renew.
Conclusion
After setting up your startup or new business, you should first acquire all the required licenses to operate your legal businesses in Bangladesh.
I have shown all the required steps and listed the necessary documents to make the process of obtaining a trade license much easier for you.
Also, you can get professional assistance from Law Advisor BD to get a trade license in Bangladesh.
FAQs
Read the quick answers to some of the most frequently asked questions regarding the TIN Certificate of Bangladesh.
The submission form fee for the trade license is only BDT 10. The government fee for the trade license highly depends on the business nature and type of business. The average fee for the trade license is approximately BDT 100-40000.
Yes, all businesses need a trade license to operate their services in Bangladesh. From small retail businesses to limited liability companies, every business must have a trade license approved by the appropriate authority.
Depending on the type of trade license, several legal documents are needed to get one. For instance, NID, TIN, holding tax payment receipts, ownership proof, images, company incorporation certificate, etc, are mandatory to get a trade license.
