How to obtain Trade License in Bangladesh

Every business entity in Bangladesh requires a formal permission from Dhaka City Corporation or Municipality’s relevant office (Union Parishad, Pouroshava, upozilla or zillaparishad) to operate. This permission is given in the form of Trade License. In order to obtain a Trade License in Bangladesh the legal basis of this requirement is found in Dhaka City Corporation Ordinance, 1983 and Municipal Taxation Rules, 1986. Operating business without a trade license is illegal in Bangladesh. For successfully obtaining a trade license, the entrepreneur is required to use the appropriate form and apply through the relevant authority’s office. For instance, Dhaka City Corporation is divided into two parts, North and South. The applicant shall require choosing the correct form depending on the area where the business is located.

The List of documents required for obtaining a trade license are:
Application Form from Dhaka City Corporation (North Form) or (South Form)

National ID card of the entrepreneur

Recent receipt or ownership proof

Holding Tax payment receipt

Recent passport size photo of the entrepreneur

Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad

Memorandum of Association and Articles of Association

Certificate of Incorporation

Agreement of partnership

Work Permit from Board of Investment

Statement of Bank Solvency

TIN Certificate

Procedure
Applicant is required to obtain the designated Application Form from the City Corporation or relevant Municipality’s Office. Then, the applicant is required to submit filled-in Application Form from the taxation officer together with prescribed supporting documents which will be inspected by the Licensing Supervisor. Upon payment of scheduled fees at the City Corporation or Municipality’s relevant office, the applicant shall receive the trade license provided that all the requirements are met.

Time Limit
Estimated Processing Time for issuing the license is 3-4 working days, however, may vary depending on the nature of the and type of the business.

Scheduled Government Fee
The application fee is BDT 10.00.

License fee varies between BDT 100.00- 40,000.00 depending on the nature and type of business.

For Limited Company, License fee is determined based on paid-up capital.

Renewal of Trade License (Commercial Firms)
Trade Licenses are required to be renewed annually. The documents required are License Book which is provided at the time of issuance of Trade License, challan Book, rent and receipt of ownership proof and TIN Certificate.

Procedure for Renewal
The applicant is required to deposit the scheduled fees at the designated bank. Upon receiving the fee receipt, the City Corporation or Municipality’s relevant zonal office shall complete the renewal process if all the other requirements are met.

Time limit
Estimated processing time for renewing the License is 1-2 working days, however, may vary depending on the nature and type of business.

Scheduled Government Fee
The application fee is BDT 10.00.

License fee varies between BDT 100.00- 40,000.00 depending on the nature and type of business.

For Limited Company, License fee is determined based on paid-up capital.