A trade license, often known as a business license, is a legal declaration that you are authorized to do business in the particular sector that is selected therein. It is also known as a business license or permission in Bangladesh. In Bangladesh, all businesses must have a trade license to function, whether they be Sole Proprietorships, Partnerships, or Limited Liability Companies.
Obtaining a trade license is one of the most effective procedures for beginning a Bangladesh business. Every business entity in Bangladesh must get a legal permit to operate from the appropriate office of the City Corporation or Municipality. This authorization comes in the form of a Trade License. The local Government (City Corporation) Act of 2009 and Municipal Taxation Rules of 1986 provide the legal foundation for getting a Trade License in Bangladesh. In Bangladesh, doing business without a trade license is prohibited. To receive a trade license, the entrepreneur must complete the proper form and submit it to the competent authority’s office.
Obtaining a trade license requires the following documents:
- Application Form from the office of the City Corporation or Municipality.
- National identification cards (NID) for the business owner, each partner, and each director.
- Copy of Passport. (If the director is a foreigner)
- Three (3) Passport size Photographs.
- TIN Certificate for the business owner, each partner, and each director.
- Proof of Tax return submission for the business owner, each partner, and each director.
- Declaration on the non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad.
- Recent receipt or ownership proof. (If applicable)
- Holding Tax payment receipt. (If applicable)
- Lease Agreement. (If applicable)
- Memorandum of Association and Articles of Association. (If applicable)
- Certificate of Incorporation. (If applicable)
- Agreement of partnership. (If applicable)
- Work Permit from Bangladesh Investment Development Authority (BIDA) or Board of Investment (BOI). (If applicable)
- Certification of the Local Ward Commissioner. (If applicable)
- Statement of Bank Solvency. (If applicable)
- Fire license from the local fire department. (If applicable)
Procedure for obtaining a trade license
Step 1: Collect the application form from the City Corporation or Municipality office.
Step 2: Complete the Trade License form.
Step 3: Prepare the appropriate document copies.
Step 4: Submit the completed application form and supporting documentation to the appropriate office.
Step 5: The Licensing Supervisor will examine the application and its accompanying materials to ensure its legitimacy.
Step 6: The next step is to submit the necessary payments to the designated department or the bank.
Step 7: After conducting its investigation, the Appropriate Authority will decide whether or not to grant the applicant a Trade License Certificate.
Step 8: Obtaining a Trade License Certificate from the appropriate City Corporation or Municipality office.
Time Limit
Processing Expectations The license may be issued in 3 to 7 working days; however, this might change depending on the business and its type.
Renewal of Trade License
Every year, you’ll need to renew your trade license. The documents required are a License Book, given out when a Trade License is issued, a Challan Book, proof of rent and ownership, and evidence of a tax return. Every year, the renewal deadline is September 30.
Procedure for Renewal
The applicant must put the scheduled fees in the account at the right bank. The City Corporation or Municipality’s relevant zonal office will complete the renewal once it receives the payment, provided that all other conditions are satisfactory.
Time limit
The estimated time to renew a license is one to three working days, but this can change depending on the type and nature of the business.
Scheduled Government Fee
- The application fee is BDT 10.00 – BDT 100.00.
- Depending on the type and nature of the business, the license fee can range from BDT 100.00 to BDT 50,000.00.
- The paid-up capital determines the license fee for a Limited Company.
- BDT 80.00 for each square foot of introductory signboard.
