How to Get a Trade License in Bangladesh?

A trade license is one of the most important documents if you are doing business in Bangladesh. Under Bangladeshi law, it recognizes a person or organization as a commercial entity. It also gives them the authority to perform any sort of transaction. Needless to say, obtaining a trade license to conduct legal business is a must.

Now, You may be wondering how to get a trade license in Bangladesh and what kinds are available. Here, Our post will cover all of the answers you need.

Types of Trade Licenses

The business license was introduced as an ocial document that could be used just once to conduct any kind of commercial enterprise. After that, the process involved various nonprofit organizations, foundations, NGOs, and other similar organizations. The Companies Act of 1994 outlines the rules and processes for business licensing. It was further detailed in the Council Tax Ordinance 1986 and City Corporations Ordinance 1983.

According to company, type, channel, and service sector, business licenses can be classified into 1,200 dierent types. Where all of them are active according to the current legal regulation.

However, for convenience of understanding, commercial licenses can be broadly classified into three types –

1. General Trade License

This category of business licenses is used for almost every form of business excluding manufacturing or trading business.

2. Commercial Trade License

Here, This business license is necessary for anybody who wants to engage in commercial operations such as retail establishments, etc.

3. Manufacturing Trade License

Manufacturing companies must get a manufacturing license because these businesses usually have factories or industries

How to Get a Trade License in Bangladesh

There are various measures you may take to get a trade license in Bangladesh. These steps are as follows:

Step 1: Find out the Business area

First, identify your own business/area of operation to find out under which city corporation you will operate your business. Accordingly, submit your application to the responsible city administration.

Step 2: Collect Application Form

Basically, Dhaka City Corporation provides two types of business license forms, depending on the type of business. In brief, To create a trading firm, fill out the K form, and to start a manufacturing company, fill out the I form.

Firstly, you have to contact the licensing ocer at the relevant Dhaka City Corporation oce if necessary. Afterward, you have to collect the form from City Corporation and fill it out as required. After completing the forms, you must submit them to the local district commissioner for verification.

Read Also: What is E-Tender?

Step 3: Required Documents to Obtain a Business License

You need to have these listed papers to acquire a business license-

Copy of the National ID card of the entrepreneur 1

Three (3) Passport size Images 2.

A copy of Passport (in case of Foreigner) 3

Necessary Information to fill up the Form 4.

Holding Tax payment receipt 5

Recent receipt (papers) or ownership proof 6.

3 copies of Passport size photos of the business holder (attested) 7

A non-judicial stamp of Tk. 150/- for abiding rules of the city Corporation 8.

Memorandum & Articles of Association (for Limited Company) 9

Agreement of partnership (If he/she has a partner) 10.

TIN Certificate of Individual and entity 11

Certificate of Incorporation (For Limited Company) 12. Statement of Bank Solvency (Full Clearance) 13

Work Permit from Bangladesh Investment Development Authority (BIDA) 14. License from Fire service & Civil Defence (Applicable for Industry) 15

After the license Supervisor has reviewed it, you have to collect the license book (LS). Then, the License Supervisor (LS) will normally visit your organization after you submit your application to evaluate the information you have given.

After completing the license supervisor’s verification. So, you need to proceed to the Dhaka City Corporation oce to pay the pre-determined sum and assess your business license. The charge is decided by the category for which you have applied for a trade license. Therefore, When picking up the trade license, a registration fee must be paid. The signing cost for trade licenses is 30% of the trade license charge.

Procedure

The application form must be obtained from the responsible city administration or municipal oce by the applicant, afterward, the applicant must submit the completed tax ocer application form along with the supporting papers which will be examined by the licensing department Supervisor. Upon payment of the required fees to the local government or appropriate municipal oce, the applicant will be issued the business license.

Time Limit

The expected turnaround time for issuing a license is generally 3-4 business days; however, it may vary depending on the nature and type of business.

Scheduled Government Fee

The registration fee is BDT 10.00.

The license fee varies usually from BDT 100.00 to 40,000.00 depending on the type of license and type of business.

For limited partnerships, the license fee is determined based on paid-up capital.

Application Process for E-Trade License

E-Trade Licensing helped in the digitalization of Bangladesh’s business licensing procedure. The E-Trade licensing system is used to get all three types of trading licenses. Municipal corporations and appropriate zoning departments issue business licenses within their jurisdiction.

To begin the process, the applicant must go to the Division of Local Government’s E-Trade License website. The applicant should then pick the “New Registration” option. On the next page, there is a form for the applicant’s information. On the following page, there is a form where you can enter the type of business and other information. The candidate must accurately fill in the information in the corresponding field.

A digital copy of the above-mentioned attachments must be uploaded with the application, depending on the kind of business license. The application will be resubmitted for evaluation after the procedure is completed successfully. At the same time, the applicant will receive a tracking number that allows them t o follow the status of their application.

Following verification, the applicant must pay the applicable charge and obtain an online copy of the provisional license. From the same website, applicants may renew, reissue, and even cancel their business license.

Final Word

The trade license is an important document that permits anybody in Bangladesh to lawfully conduct business and other activities. Hence, To prevent legal diculties, a license must be obtained by all interested businesses. If you want to establish a business in Bangladesh but don’t know where to start then you can take help from S&F Consulting Firm. Here, They have been assisting clients in establishing businesses abroad since 2012.

S&F consultancy firm has skilled people that can help you prepare all of the paperwork needed to start a business in any country, including Bangladesh. Their service rates are lower than others because they constantly maintain client satisfaction.