A trade license is the first and integral document to start a business. A trade license is one of the most important documents that must be obtained to operate a business in Bangladesh. Trade license approval is taken from the local government. This license is issued based on the application of the entrepreneur. The trade license is specifically issued only by the name of the licensee and is not transferable in any way. This license may not be used for any purpose other than commercial purposes. Thus, it is mandatory to obtain a trade license for any legitimate business. It is issued for one year and must be renewed annually.

Importance of trade license

A trade license in Bangladesh is a document that proves that you are allowed to do certain business by obtaining a trade license. It is illegal to operate a business without a trade license in Bangladesh.

Fixed age limit for trade license

Any citizen with a minimum age of 18 years can apply for a trade license.

Types of trade licenses in Bangladesh

Three types of trade licenses available in Bangladesh

1. General Trade License:

A general trade license is applied for small and medium-sized businesses. This general trade license can be used for all types of business except commercial or manufacturing business.

 

2. Commercial Trade License:

This license is required for those who want to operate the business commercially. Commercial licenses incorporate companies in the name of a separate legal entity or an individual.

 

3. Manufacturing Trade License:

All factories in Bangladesh must have a factory establishment license. Almost all large factories or businesses involved in manufacturing goods in Bangladesh require a manufacturing trade license.

 

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Process of obtaining a trade license

  • Collecting the required application form from the city corporation municipality office or union parishad office.
  • Fill in the trade license application form.
  • Arrange copies of the required documents.
  • Submit the filled-in application form and required documents to the concerned office.
  • Verification of the application and supporting documents by the licensing supervisor
  • The required fees will be deposited at the concerned office.
  • The applicant must pay the signboard fee in addition to the license fee.
  • If the concerned authority finds no errors after verification, they will issue a trade license certificate to the applicant.

Documents required for obtaining a trade license

  • Prescribed trade license application form.
  • Three copies of a passport-size photo of the applicant.
  • A National ID Card copy of the applicant.
  • A Rent receipt or premises ownership proof.
  • No objection certificate (NOC) from the neighborhood.
  • A written undertaking on judicial stamped paper.
  • A fire license from the local fire department and an Environmental Certificate from the Department of Environmental (DOE).
  • A holding tax payment receipt.
  • A company incorporation certificate.
  • A certified copy of the memorandum of association and articles of association.
  • A VAT registration certificate.
  • Declaration on the non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Perished.
  • Copy of Financial/Bank Solvency certificate of the company.
  • Tax Clearance Certificate (TIN).
  • An agreement of partnership.
  • Work permit from Bangladesh Investment Development Authority (BDA).
  • Copy of Passport if the director is a foreigner.

Cost of Obtaining a Trade License

The application fee is BDT 10.00. The license fee ranges from BDT 100.00 to BDT 40,000.00 depending on the nature and type of business.

The time limit for getting a trade license

It usually takes around 2 to 7 days (if there is no issue found within the

documents).

Reason for automatic rejection of license

A license is revoked if a person obtains a license with false information or violates any rule issued by the licensee while obtaining the license. But everyone has a chance to correct the problematic issue.

Trade License Renewal Process in Bangladesh

A trade license is usually issued for one year. However, the trade license can be renewed for a maximum of five years at the time of renewal. After the expiry of the trade license, up to three months are given for renewal. It is mandatory to renew the license within this period.

Trade License can be renewed by following the listed steps -

  • Collect the trade license renewal form from the City Corporation Municipality Office or Union Perished office.
  • Fill out the form with valid information.
  • Pay the relevant fee at the designated bank.
  • Submit application form.

Cost of Renewing Trade License

The amount of money to be spent on obtaining a trade license is the same amount of money to be spent on renewing a trade license. The license fee ranges from BDT 100.00 to BDT 40,000.00 depending on the nature and type of business. Trade Licenses are required to be renewed annually.

(For more information regarding trade license, contact the office of City Corporation, Union Parishad, Municipality, Upazila, or Zilla Parishad of the particular area).

 

For more information or any specific information, contact us –

Email: Info Sheba:  Info.Sheba@rescue.org |  WhatsApp: +8801810008500  |  Facebook Messenger: facebook.com/Signpost.Infosheba

 

 

Source:

Bangladesh Business Trade License | Relin Consultants

Trade License in Bangladesh (sfconsultingbd.com)

Procedure to Obtain All The Types of Trade Licenses in Bangladesh (fmassociatesbd.com)