Trade License in Bangladesh: A trade license is an essential document for any business in Bangladesh. Issued by local government authorities, it serves as legal permission to operate within a specified jurisdiction.
In Bangladesh, obtaining a trade license is a fundamental step for starting and operating a business legally. This document is issued by the local government authority and serves as proof that a business complies with the necessary regulations and can operate within a specific jurisdiction. Whether you’re starting a small retail shop, a manufacturing unit, or a service-oriented business, obtaining a trade license is the first step toward formalizing your operations. Trade license agencies are the entities responsible for facilitating the issuance and management of these licenses.
Importance of Trade License in Bangladesh
A trade license ensures that your business complies with local laws and regulations. It offers several benefits, including:
- Legal recognition and credibility for your business
- Access to loans and government programs
- Avoidance of penalties or legal action for operating without a license
Who Issues Trade Licenses?
Trade license agencies in Bangladesh are typically governed by city corporations, municipalities, or union councils, depending on the business’s location. These agencies ensure that businesses adhere to legal, safety, and environmental standards before granting permission to operate. Trade licenses in Bangladesh are issued by:
- City Corporations: For businesses in major metropolitan areas like Dhaka or Chittagong.
- Municipalities: For businesses in smaller urban centers.
- Union Parishads: For businesses in rural areas.
The Role of Trade License Agencies in Bangladesh
- Verification of Documents:
Trade license agencies ensure that all submitted documents, such as identification, tax information, and property records, are accurate and meet legal requirements. - Inspection:
Agencies may conduct site inspections to verify that the business premises align with zoning laws and safety standards. - Categorization of Business Activities:
Trade license agencies classify businesses into categories (e.g., retail, manufacturing, or services) to ensure proper regulation and taxation. - Revenue Collection:
Trade licenses are a source of revenue for local authorities. Businesses must pay an annual fee, which varies based on their nature and size.
Requirements for Obtaining a Trade License in Bangladesh
To apply for a trade license, you need to prepare the following documents:
- National ID Card or Passport: Proof of identity of the business owner.
- Business Premises Documents: ownership or rental agreement for the location of your business.
- Photographs: passport-sized photographs of the business owner.
- Other Documents: Depending on the business type, additional documents such as fire safety clearance or environmental clearance may be needed.
Required Document
1. Application Form
2. National ID Card of the Entrepreneur
3. Holding Tax Payment Receipt
4. Recent passport-size picture of the Entrepreneur
5. Declaration of non –Judicial stamp to abide by the rules & regulations of City Corporations & Municipal corporations
6. A certified copy of the memorandum and articles of association
7. A copy of the certificate of incorporation
8. Agreement of Partnership
9. Tax Identification Number certificate
10. A copy of the lease agreement of the registered office
11. Work Permit from Board of Investment
12. Statement of Bank Solvency
Trademark Registration in Bangladesh: Protecting Your Brand Identity
Steps to Obtain a Trade License in Bangladesh
- Application Submission: Visit the local trade license office or use an online platform (available in some cities) to submit your application.
- Document Verification: The authorities will review your application and verify the documents provided.
- Payment of Fees: Pay the applicable trade license fee, which varies depending on the business type and location.
- Inspection (if applicable): For certain businesses, a physical inspection of the premises may be conducted.
- Issuance of License: Upon approval, the trade license is issued. This process usually takes 3–7 working days.
Process Step
Step 1: Collect the prescribed Application Form from the City Corporation/ Municipal Corporation/Union Parishad’s Office
Step 2: Submit the completed Application Form with supporting documents to the concerned section
Step 3: Inspection by the Licensing Supervisor
Step 4: Deposit the required fees at the concerned office
Step 5: Obtain a Trade License from the City Corporation/ Municipal Corporation/Union Parishad office
Validity and Renewal of Trade License in Bangladesh
A trade license is valid for one year and must be renewed annually. Renewal involves submitting an application, paying the renewal fee, and ensuring compliance with any updated regulations.
Challenges in the Process
Although the process is straightforward, some challenges include:
- Bureaucratic Delays: Lengthy approval times can be frustrating for business owners.
- Lack of Awareness: Many small business owners are unaware of the importance of a trade license.
- Corruption: Instances of unofficial fees or demands can complicate the process.
Digital Transformation in Trade Licensing
The government has introduced digital initiatives to simplify trade licensing. Online portals for trade license applications and renewals are available in major cities, providing transparency and convenience to business owners.
tag: Trade license in Bangladesh
A trade license is not just a legal requirement—it’s a vital tool for establishing your business as a credible entity in Bangladesh. By ensuring compliance with trade license regulations, you safeguard your business’s future and contribute to the broader economic development of the country.
For new entrepreneurs, understanding the trade license process is an important first step toward achieving long-term success in Bangladesh’s thriving business landscape.
Government Agency for Dhaka City
Dhaka South City Corporation (DSCC)
Email: administrator@dhakacity.org
Dhaka North City Corporation (DNCC)
Email: cro@dncc.gov.bd