How to get a Trade License in Bangladesh
A trade license is issued in accordance with the local government’s taxation rules. It is issued by the local governments in the relevant areas. Every business should get a Trade License from the local government in which it operates. Banks in Bangladesh typically refuse to enable a business organization to operate a bank account without a valid trade license, making a trade license a required permit. If a business entity operates more than one location, it must obtain a Trade License from each local authority. It is valid for one year and must be renewed annually. Trade Licenses incur government fees, which vary depending on the type of business.
We have outlined the process of obtaining a Trade License for enterprises operating in the Dhaka City Corporation region. Other local governments follow similar regulations. You should contact the appropriate local government for more information.
Trade License for a Commercial Firm
PROCESS STEPS:
STEP 1: Obtain the appropriate form from the proper office.
Dhaka City Corporation (DCC) has two types of trade licenses based on the type of business. Commercial firms must utilize the “K” Form. Despite the fact that all 10 zone offices utilize the same K Form, a business must purchase the form from the appropriate zonal office. The seal and initials of the officer selling the form differentiate it from those in other zones. The form costs Tk.10.
STEP 2: Obtain a certificate from the local ward commissioner.
After the form is completed, it must be presented to the local ward commissioner for approval.
STEP 3: COLLECT THE LICENSE BOOK BY TK. 50 AND SUBMIT THE APPLICATION WITH SUPPORTING DOCUMENTATION TO THE DCCS ZONAL OFFICE.
The K Form requires a rent receipt for the premises where the firm operates, or, if owned, a municipal tax payment receipt. The supporting documents include:
Three copies of a PP-sized photo of the owner, along with a rental receipt or evidence of premises ownership.
Step 4: Wait for an inquiry from the Licensing Supervisor (LS).
After submitting the form, the LS usually visits the business entity to check the information supplied.
STEP 5: PAY THE PREDETERMINED FEE AND COLLECT TRADE LICENSE.
After the LS inspection, the business is instructed to go to the DCC office to pay the set price and obtain their trade license. The cost structure varies depending on the business type for which the application was filed.
STEP 6: SIGNBOARD FEE.
When collecting the trade license, a signboard charge must be paid as well. For all sorts of businesses, signboard fees will be 30% of the license price.
TRADE LICENSE FOR A MANUFACTURING FIRMS
PROCESS STEPS:
STEP 1: Obtain the correct form from the appropriate office.
The “I” Form must be bought for Tk. 10 at the DCC zonal office where the manufacturing firm would submit its application.
STEP 2: Obtain a certificate from the local ward commissioner.
The completed form must be validated by the local ward commissioner.
STEP 3: SUBMIT THE APPLICATION WITH SUPPORTING DOCUMENTATION.
The supporting documents include:
Three copies of a PP-sized photo of the owner, along with a rental receipt or evidence of premises ownership.
There is no objection certificate from the neighborhood.
Required documents include a signed undertaking on Tk 150 non-judicial stamped paper and a fire license from the local fire department. Environmental Certificate from DOE
STEP 4: AWAIT AN INQUIRY FROM THE LICENSING SUPERVISOR (LS).
After submitting the form, the LS usually visits the business entity to check the information supplied.
STEP 5: PAY THE PREDETERMINED FEE AND COLLECT TRADE LICENSE.
After the LS inspection, the business is instructed to go to the DCC office to pay the set price and obtain their trade license. The cost structure varies depending on the business type for which the application was filed.
STEP 6: SIGNBOARD FEE.
When collecting the trade license, a signboard charge must be paid as well. For all sorts of businesses, signboard fees will be 30% of the license price.
Renewal of Trade License
The renewal process is rather routine, and no inspection is required. When the trade license is due for renewal, the business must go to the LS.
PROCESS STEPS:
STEP 1: GET A DEMAND BILL FROM THE LICENSE BOOK (THIS BOOK IS VALID FOR FIVE YEARS)
After verifying the expiration trade license, the LS fills out the details in a demand bill and hands over the booklet to the business. The demand bill is a four-page booklet, comparable to a bank deposit slip. The same information is entered on all pages: one for the bank, one for the business.
Step 2: Pay the relevant fee at the designated bank.
Deposit the selected bank’s demand bill, and the license will be immediately renewed.
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