Trade License in Bangladesh | Fees, Processing and Renewal

One of the important steps of starting business in Bangladesh is acquiring a trade license. A businessman must obtain a business license from the respective business area’s City Corporation or City Council. Here, in this post in details we will explain the procedure of obtaining a trade license in Bangladesh, the fees and finally the renewal process of trade license in Bangladesh.

Step by Step Process of acquiring Trade License for any Business Entity

The acts/legal authorities which overseen the process of obtaining the trade license in Bangladesh are 1)The Companies Act- 1994, 2)Dhaka City Corporation Ordinance – 1983, 3) Municipal Taxation Rules – 1986. And, the responsible organisations which authorise the trade license are Municipal/City Corporation or Union Parishad.

Step by Step Process:

Below is an overview of the process of obtaining a trade license for companies operating within the zone of Dhaka City Corporation. Many local authorities have similar rules.

Step 1: 
Collect prescribed Application Form from the City Corporation/ Municipal Corporation/ Union Parishad’s Office.
Step 2:
Submit completed Application Form with supporting documents to the concerned section.
Step 3:
Inspection by the Licensing Supervisor.
Step 4:
Required fees to deposit at the concerned office.
Step 5:
Obtain Trade License form the City Corporation/ Municipal Corporation/ Union Parishad office.

The trade license filled-in application form must be accompanied by the required documents.

Required Documents:

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 & regulation of City Corporation & Municipal Corporation
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 Bangladesh Investment Development Authority
12. Statement of Bank Solvency.

Trade Licesne For Commercial/ Corporate Entities.

STEP 1: OBTAIN THE PROPER FORM OF THE PROPER OFFICE.

Depending on the type of business, Dhaka City Corporation (DCC) has two forms for a trade license. The “K” form must be used by a commercial firm. Although the ten zonal offices use the same K form, the form must be obtained by a client from their respective zonal office. What distinguishes it from that of other zones is a seal and the officer’s initials selling the form. The form will cost Tk. 10 (Yes, it’s that low to encourage potential business ventures).

STEP 2: GET CERTIFICATION OF THE LOCAL WARD COMMISSIONER.

On completion of the application, it must be sent for approval to the local ward commissioner.

STEP 3: BOOK BY TK 50, COLLECT LICENSE, AND SUBMIT APPLICATION WITH SUPPORTING DOCUMENTATION TO DCCS ZONAL OFFICE.

For the K Form, the receipt of the lease for the premises from which the company operates or, if purchased, the receipt of the municipal tax payment shall be made. Supporting documents include: 3 copies of owner’s PP size photo Rent receipt or proof of ownership of premises

Step 4: Await Licensing Supervisor (LS) inquiry.

The LS usually goes to the business entity for a visit when submitting the form to verify the information provided.

STEP 5: PAY FEE AND COLLECT TRADE LICENSE PREDETERMINED.

The business is asked to go to the DCC office to pay the predetermined fee and collect their trade license after the LS inspection is completed. The fee schedule depends on the class under which the application was made.

STEP 6: SIGNBOARD FEE.

Another choice for commercial licensing is the signboard charge. The company’s charge is compulsory for all types of business. A trader has 30% of his license fee to pay.

TRADE LICENSE FOR A MANUFACTURING COMPANY

 STEP 1:PROCURE THE PROPER FORM FROM THE OFFICE OF THE PROPER OFFICE.

From the zonal office of the DCC where the manufacturing company must submit its request.

STEP 2:GET CERTIFICATION OF THE LOCAL WARD COMMISSIONER.

Local ward commissioner must validate the completed form.

STEP 3:SUBMIT APPLICATION WITH SUPPORTING DOCUMENTATION.

Supporting documents include:
1. 3 copies of the owner’s PP size photo

2.Rent or premises ownership proof

3. No neighbourhood objection certificate

4. Written undertaking on a Tk 150 non-judicial stamped paper

5. Fire license from the local fire department.

STEP 4: Sign OF THE SUPERVISOR LICENSING (LS).

The LS usually goes to the business entity for a visit when submitting the form to verify the information provided.

STEP 5: PAY PREDETERMINED FEE AND COLLECT TRADE LICENSE.

Once the LS has completed its inspection, the company is asked to go to the DCC office to pay the predetermined fee and collect its trade license. The fee schedule depends on the class under which the application was made.

STEP 6: SIGNBOARD FEE

A signboard fee must also be paid when collecting the trade license. The signboard fees must charge 30 per cent of the license fee for all types of business.

Trade License Renewal Process in Bangladesh 

The renewal process for your business licenses You must collect a form. There will be options in the form from 1 to 18. From 1 to 6, you must write the name of the institution, the name of the applicant, the name of the applicant’s parents.

If there are two people to start trading, the name of two people should be included. In addition, the two applicants ‘ pictures should be included. But you have to pick one from the business while dealing with different people. Accessing this person can accomplish the application.

The address of the company should be noted in the 7 number blank box. You must write the number of national identity cards in the 8 number blank boxes. You need to write down seriously in the 10 number empty boxes. You’ve got to write your mobile number there. You have to fill in the entire form in this way until the end. You must submit this to the authority by completing the form. You will then have the approval for renewal to continue your business legally. It’s not difficult to renew trading licenses. Only, according to the procedure, you have to go. You can do all the work perfectly within one day.

You may contact us to know how to renew your business license in detail.

All Business Licenses in Bangladesh

Once a company is registered or is about to register, it is absolutely essential that the person in charge should know the business niche and comply in a much-needed legal manner in order to avoid challenges. For example, if a business that may have an impact on the environment has to procure a company’s relevant licenses, permits and certificates in Bangladesh. We at Counsels Law Partners Associates provides Company and Corporate Legal services to help acquire such Licenses.

Hence to summarise the renewal steps:

STEP 1: PICK-UP DEMAND BILL FROM THE LICENSE BOOK (THIS BOOK IS VALID FOR FIVE YEARS)

When the expiring trade license is checked, the LS fills the details in the demand bill and gives the business booklet. The demand bill is like a bank deposit slip, a four-page booklet. All the pages contain the same information: one page is for the bank and one page is for the business.

STEP 2: PAY RELEVANT FEE AT DESIGNATED BANK

Deposit by application bill designated bank and automatically renew the license.