To obtain a trade license in Bangladesh in 2024, an entrepreneur needs to apply to the City Corporation or Municipality office where their business is located. This involves submitting the appropriate application form along with required documents and paying the prescribed fee. The process is governed by the City Corporation Taxation Rules 1983 and Municipal Taxation Rules 1986, which make it mandatory for all businesses to have a valid trade license to operate legally in Bangladesh
What is Trade License
Trade Licenses are issued under municipal taxation rules. Local governments issue it. Every firm needs a Trade License from its local government. Bangladeshi banks usually require a trade license for business accounts. A business with many locations must seek Trade Licenses from each local authority. The one-year license must be renewed annually. Trade Licenses incur government costs based on business type.
TYPES OF TRADE LICENSES IN BANGLADESH
1. GENERAL TRADE LICENSE
A general trade license can be applied for by any type of small or medium-sized business that meets the requirements. For a business to get a general trade license, it must meet certain sales and income requirements. There are some instances, like when you’re making something or running a business.
2. COMMERCIAL TRADE LICENSE
A business wants to do something commercial, like opening a store, a supermarket, or a different kind of seller. The business can be set up as a different legal entity or in the name of a person.
3. MANUFACTURING TRADE LICENSE
Any business that runs a production center, like a factory or an industry, can get a manufacturing trade license. Most of Bangladesh’s big businesses need this license. This group includes any business that makes and sells things.
APPLICATION PROCESS FOR E-TRADE LICENSE IN BANGLADESH
Through the E-Trade licensing system, you can get all three types of trade licenses online. Trade permits will be given out by the relevant city corporations and zonal offices.
The person who wants to apply must go to the website for the E-Trade License that is run by the local government section and click on “New Registration.” After that, there will be a form on the page with the applicant’s personal information on it. Then there will be a form where you can write down what kind of business you have.
The applicant needs to put the right information.
No matter what kind of business license you want, you must upload a digital copy of the necessary papers along with your application. The application will be sent to be checked. A tracking number will be sent to the applicant at the same time so they can keep an eye on how their entry is going.
When everything is checked out, the fee is due and the digital copy of the Trade License can be retrieved from the same website.
DOCUMENTS REQUIRED FOR OBTAINING A TRADE LICENSE IN BANGLADESH
- Three Passport size Photographs of the business owner
- Copy of Passport if the business owner is a foreigner
- Information required to fill out the form
- Ownership Documents or recent papers
- A non-judicial stamp of Tk. 150/- for abiding guidelines of the city Corporation
- Memorandum of Association & Articles of Association in case of a Limited Company
- Agreement of partnership if the business owner is in a Partnership
- TIN Certificate of a Person and the business organization
- Certificate of Incorporation in case of a Limited Company
- Copy of bank solvency certificate of the company
- Work Permit from Bangladesh Investment Development Authority (BIDA)
- License from the Civil Defense and Fire Services if applying for The Manufacturing Trade License
HOW RECOM CAN HELP YOU IN OBTAINING A TRADE LICENSE IN BANGLADESH
If you wish to open your business in Bangladesh, you must have a suitable trading license for your business. Relin Consultants has helped many businesses secure trade licenses in Bangladesh.Reach out to our team to know the exact license requirements for your company in Bangladesh, and we will help you apply for the trading license applicable to your business.
Steps for Trade License for a Commercial Firm
- Procure the Form: Buy the “K” Form from the respective zonal office (cost: Tk. 10).
- Certification from Local Ward Commissioner: Submit the completed form for validation.
- Submit Application with Documents: Provide necessary documents and the completed form to the DCC zonal office.
- Await Enquiry by Licensing Supervisor (LS): The LS will visit the business to verify information.
- Pay Fee and Collect License: Pay the predetermined fee and collect the trade license.
- Pay Signboard Fee: Pay a fee (30% of the license fee) for the business signboard.
Steps for Trade License for a Manufacturing Firm
- Procure the Form: Buy the “I” Form from the DCC zonal office (cost: Tk. 10).
- Certification from Local Ward Commissioner: Submit the completed form for validation.
- Submit Application with Documents: Provide necessary documents, including no-objection certificates and environmental certificates.
- Await Enquiry by Licensing Supervisor (LS): The LS will visit the business to verify information.
- Pay Fee and Collect License: Pay the predetermined fee and collect the trade license.
- Pay Signboard Fee: Pay a fee (30% of the license fee) for the business signboard.
RENEWAL OF TRADE LICENSE
The renewal process is comparatively routine and no inspection is required. When the trade license comes up for renewal the business has to go to the LS.
PROCESS STEPS:
STEP 1: PICK-UP DEMAND BILL FROM THE LICENSE BOOK (THIS BOOK IS VALID FOR FIVE YEARS)
Upon checking the expiring trade license, the LS fills in the particulars in a demand bill and gives the booklet to the business. The demand bill is a four page booklet similar to a bank deposit slip. The same information is filled into all the pages: one page is for the bank and one is for the business.
STEP 2: PAY RELEVANT FEE AT DESIGNATED BANK
Deposit a designated bank through a demand bill and it will automatically renew the license.
Getting a trade license in Bangladesh in 2024 is now easier than ever. By knowing the steps, preparing the required documents, and following the application process, you can quickly get your trade license. This allows you to run your business legally and take advantage of many opportunities. Staying informed and prepared will help you succeed in Bangladesh’s growing business environment.
FAQ
How can I access the trade license application form online in Bangladesh?
You can access the trade license application form online through the official website of the Dhaka City Corporation or other relevant municipal corporations. Visit their website, navigate to the “Trade License” section, and look for the online application form.
What is the cost of obtaining a trade license in Bangladesh?
The cost of obtaining a trade license in Bangladesh varies depending on the type and size of the business. Fees typically range from BDT 500 to BDT 15,000.
What are the steps to apply for a trade license in Bangladesh?
The steps to apply for a trade license in Bangladesh include filling out the application form, submitting required documents such as a national ID, proof of address, and business details, paying the necessary fees, and submitting the application to the relevant municipal corporation office.
Where can I download the trade license form for Bangladesh?
You can download the trade license form from the official website of your local municipal corporation or the Dhaka City Corporation. Look for the “Forms” or “Downloads” section on their website to find and download the trade license form.
