Getting a trade license in Bangladesh is a necessary step for anyone or any business that wants to do business in the country. A legal trade licence enables you run small and large businesses. It shows that your business is legitimate and makes sure you follow the rules in your area.
You must follow local government requirements to receive a Bangladeshi business license. Usually, this means filling out an application, sending the necessary paperwork, and paying the needed fees. Depending on the municipality or city company where you want to do business, the exact steps can be different.
In this guide, How to obtain trade license in Bangladesh? We’ll go over the most important steps and requirements for getting a trade license in Bangladesh. This will help you understand the process and make sure your business runs easily and legally in the country.
Types of Trade License
The trade license was made into a single official document that could be used for any kind of business activity. Over time, the process grew to include non-profits, charities, NGOs, and other groups with similar goals. The Companies Act of 1994 details trade licence requirements. The Municipal Taxation Ordinance of 1986 and The City Corporation Ordinance of 1983 explain it in more detail.
There are 1200 different types of trade licenses based on the type of business, the channels it uses, and the area it serves. All of these are legal under the law as it stands right now.
But, to make things easier to understand, there are three main types of trade license:
How to Obtain Trade License in Bangladesh
Every business in Bangladesh needs an official permit from the Union Parishad, Pouroshava, upazila, or zilla parishad office of the Dhaka City Corporation or Municipality in order to run. This permission is given in the form of a Trade License. The Dhaka City Corporation Ordinance of 1983 and the Municipal Taxation Rules of 1986 explain why you need a Trade License in Bangladesh. In Bangladesh, it is against the law to run a business without a license. For an individual to get a business license, they must use the right form and apply through the office of the right authority. For example, Dhaka City Corporation is split into North and South. The applicant must fill out the right form for the area where the business is based.
The List of documents required for obtaining a trade license are:
- Application Form: You will typically need to fill out a prescribed application form provided by the local municipal or city corporation authorities.
- Proof of Identity: Copies of the National Identity Card (NID) for individuals or a copy of the passport for foreign nationals may be required.
- Photographs: Recent passport-sized photographs of the applicant.
- Proof of Address: Documents confirming the business’s physical address, such as a rental agreement or utility bill.
- Ownership or Rental Documents: If you own the property where the business will operate, you may need to provide property ownership documents or a copy of the deed. If you rent the premises, a rental agreement may be required.
- TIN (Tax Identification Number): A copy of your TIN certificate or acknowledgment receipt from the National Board of Revenue (NBR).
- Trade License Fee: Payment receipt for the applicable trade license fee.
- Fire Safety Certificate: In some cases, businesses may need to provide a fire safety certificate from the local fire department.
- Environmental Clearance Certificate: Depending on the nature of your business, you may require an environmental clearance certificate from the Department of Environment.
- TIN Certificate: A TIN (Tax Identification Number) Certificate is one of the documents often required when obtaining a trade license.
- Other Specific Documents: Certain types of businesses may have additional requirements. For example, restaurants may need food safety certificates, while healthcare facilities may need health department approvals.
Procedure
Applicants must get the designated Application Form from the City Corporation or appropriate Municipality’s Office. Then, the applicant has to turn in a filled-out Application Form from the taxation officer along with the required supporting papers. The Licensing Supervisor will check these out. If all the requirements are met, the application will get the trade license after paying the required fees at the City Corporation or Municipality office.
Time Limit
Planned Handling The time it takes to get the license is usually 3–4 business days, but this can change based on the type of business and how it works.
Scheduled Government Fee
- The fee to fill out the form is BDT 10.00.
- Depending on the type and size of business, the license fee can range from BDT100 to BDT40,000.
- The paid-up cash is used to figure out the license fee for a Limited Company.
Renewal of Trade License (Commercial Firms)
In Bangladesh, businesses need to renew their trade licenses every year to make sure they can legally run their businesses. In order to renew, you have to bring important papers to the local municipal or city corporation office. These include the current business license, a new proof of address, and the receipt for the renewal fee. To avoid fines or problems with your business, you must follow the date for renewing your license that is written on it. By quickly updating your business license, you can make sure that your business stays legal and stays within the limits of Bangladeshi law.
Time limit
Estimated time to renew a license is one to two business days, but this can change based on the type of business.
Scheduled Government Fee
- The fee to fill out the form is BDT 10.00.
- Depending on the type and size of business, the license fee can range from BDT100 to BDT40,000.
- The paid-up cash is used to figure out the license fee for a Limited Company.
The General Trade License
The general trade license is for all types of small and medium-sized businesses. The government has set a limit on the amount of money you can make and the number of transactions you can make before you can get a general trade license. Basically, every other form here besides the last two will fall under general trade license.
Commercial Trade License
Any business that is established in Bangladesh must have a license to do commercial trade. You can set up the business under your own name or as a different entity. This is true for small shops, big stores, and different kinds of providers.
The Manufacturing Trade License
Almost all of Bangladesh’s big business groups have this license. As the name suggests, this group includes all businesses that make and sell things. The manufacturing trade license is for any business that makes things or has factories or companies.
Process of Obtaining a Trade License
There are a few big changes between the different kinds of business licenses. Because of this, they have different rights, ways to apply, and papers they need. Here are the steps you need to take to get each type of business license.
Final Thoughts
Getting a trade license in Bangladesh is a crucial step for businesses because it makes sure they work legally and within the rules. In order to get a permit, you have to get all the necessary paperwork, fill out an application, send it to the local city office, pay any fees, and follow any inspections or checks. It’s important to know about local rules, deadlines, and unique requirements for your type of business. By following these steps and staying compliant, businesses can not only run smoothly but also add to the formal economy, which is important for Bangladesh’s economic growth and development.
