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BUSINESS TRADE LICENSE BANGLADESH
After you successfully register a Private Limited company in Bangladesh. The company must obtain a trade license before it can commence any business. A trade license is also referred to as a business permit.
A trade license in Bangladesh allows the private limited company to conduct business in the specific field mentioned in the trade license. If the company has more than one business activity, it must ensure that all the relevant trade license is obtained.
Trade license requirements apply to all types of businesses, like sole proprietorships, partnerships, or limited liability companies. The company must apply for a trade license that is suitable for the business, and it must choose the correct application form depending on the location of your business in Bangladesh.
The process and requirements of a trade license have been outlined in the Bangladesh Companies Act of 1994. The municipal taxation ordinance of 1986 and the city corporation ordinance of 1983 have also further explained the requirements.
TYPES OF TRADE LICENSES IN BANGLADESH
1. GENERAL TRADE LICENSE
All types of qualifying small and medium-sized businesses can apply for a general trade license. Businesses must meet the specified revenue and transaction threshold to qualify for the general trade license. There are some exceptions, such as manufacturing or commercial business.
Process For Obtaining A General Trade License
Step 1
Collection of the form
The applicant can go to the City Corporation/ Municipal Corporation/ Union Parishad office and collect the required application form.
Step 2
Submission of the form
Submit the completed application form with the required documents to the concerned office.
Step 3
Inspection
The licensing supervisor will then verify all the submitted documents.
Step 4
Payment of the fees
The applicant must pay the required fees to the concerned office.
Step 5
Collection of the Trade License
The Trade License must be collected from the City Corporation/ Municipal Corporation/ Union Parishad office.
2. COMMERCIAL TRADE LICENSE
A business wishes to undertake a commercial business activity such as retail stores, super shops, and different kinds of suppliers. The company can be incorporated as a separate legal entity or under a person’s name.
Process For Obtaining A Commercial Trade License
Step 1
Collection of the form
Dhaka City Corporation (DCC) offers two types of commercial trade Licenses, depending on the type of business. A commercial firm must fill out the “K” form. Although all ten zonal offices utilize the same K form, the entity must collect it from its own zonal office. A seal and the officer’s initials selling the form set it apart from other zones. The cost of the form is Tk.10.
Step 2
Certification of the local ward commissioner
Once the application is done, it must be submitted to the local ward commissioner for approval.
Step 3
Collect the license and submit an application to DCC’s zonal office with supporting documents
Once it is approved by the local ward commissioner, it can be submitted to the zonal office with supporting documents.
Step 4
Inquiry by the Licensing Supervisor
While submitting the paperwork, the licensing supervisor usually visits the company to confirm the supplied information.
Step 5
Payment of the fee
After the inspection by the licensing supervisor is over, the predetermined fee must be paid to the DCC office, and the license must be collected. The fee schedule depends on the class under which the application was made.
Step 6
Signboard Fee
The company must also pay a signboard fee that is approximately 30% of the license fee.
3. MANUFACTURING TRADE LICENSE
The manufacturing trade license may be obtained by any company that operates a production facility, including factories and industries. This license applies to most of Bangladesh’s major businesses. Any company that produces and distributes items belongs to this category.
Process For Obtaining A Manufacturing Trade License
Step 1
Collection of the form
The “I” form must be purchased for TK.10 from the DCC zonal office, where the manufacturing firm’s application must be submitted.
Step 2
Certification of the local ward commissioner
The local ward commissioner must verify the filled-out application form.
Step 3
Submission of the documents
Supporting documents that need to be submitted include 3 copies of the passport-size photo of the owner, Rent receipt or premises ownership proof, No objection certificate from the neighborhood, A written undertaking on a Tk 150 non-judicial stamped paper, Fire License from the local fire department Environmental Certificate from DOE.
Step 4
Payment of the fee
Once the inspection and document verification by the licensing officer is done, the required fee must be paid to the DCC office. The business must collect its Manufacturing license.
Step 5
Signboard fee
30% of the license fee must be paid as the signboard fee.
APPLICATION PROCESS FOR E-TRADE LICENSE IN BANGLADESH
The three types of trade Licenses can be obtained digitally through E-Trade licensing system. The applicable city corporations and zonal offices will issue trade licenses under their scope.
The applicant must visit the E-Trade License website operated by the local government division and select the “New Registration” option. A form with the applicant’s personal information will be on the page after that. Then, there will be a form with information on the business type.
The applicant must enter the appropriate data.
Depending on the type of trade license, a digital copy of the required documents must be uploaded together with the application. The application will be sent for verification. The applicant will receive a tracking number at the same time so they can monitor the progress of their application.
After verification, the required fee must be paid, and the online copy of the Trade License can be collected from the same website.
RENEWAL PROCESS FOR TRADE LICENSE IN BANGLADESH
To renew the trade license, the licensee must collect the renewal form from the relevant government department. In general, a trade license is issued for one year and has to be renewed annually. The renewal fees will depend on the type of business.
Steps For Renewing The Trade License
Step 1
Collecting demand bill from the license book
licensing supervisor checks the expiring trade license, fills the information in the demand bill, and gives the business booklet. The demand bill is a four-page booklet. One sheet is for the bank, and one page is for the business, and they both include the same information.
Step 2
Payment of the fee
After depositing the fee at the designated bank, the license will renew automatically.
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 RELIN CONSULTANTS 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.
FAQs
How to obtain a business license in Bangladesh?
You can obtain a business license by following the steps listed below.
- Collect the suitable form for your business from the office
- Get verification from the local word commissioner
- Submit the required documents to the office
- Pay the determined fee and collect the trade license from the office.
What is a drug license in Bangladesh?
If you wish to trade or distribute drugs, you must obtain a drug license. The Ministry of Health and Family Planning’s Department of Medicine Administration is responsible for issuing this drug license. The license fee is TK1,500 to TK3,000 depending on the location.
How to renew a Trade License in Bangladesh?
Trade License can be renewed by following the listed steps
- Collect the correct form to renew the license
- Get the Demand Bill from the license book
- Pay the relevant fee at the designated bank and the license will be renewed automatically.
How much does a Trade License cost in Bangladesh?
The average application fee is TK. 10.to TK. 3,000.
The license fee verifies depending on the type of trade license you are applying for.
Why do we need a Trade license in Bangladesh?
To conduct any business in Bangladesh, you will need a trade license. A trade license in Bangladesh allows you to conduct business in the specific field mentioned in your trade license.
What is the difference between a commercial license and a trade license in Bangladesh?
A general trade license is applicable for all types of small and medium-sized businesses. A commercial trade license is applicable for big stores and retail suppliers.
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