A Trade License in Bangladesh is a mandatory legal document for anyone running a business. Whether you are a small entrepreneur, startup founder, or a multinational branch, a valid Trade License is essential to operate legally within any city or municipality in Bangladesh.
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This guide explains how to register, renew, and stay compliant with Trade License regulations so your business runs smoothly without legal risks.
What is a Trade License
A Trade License in Bangladesh is an official permission issued by the local government authority — such as a City Corporation, Municipal Office, or Union Parishad — that allows you to carry out commercial or industrial activities within a specific area. It verifies that your business has been reviewed and approved for compliance with local laws, zoning, and taxation.
In Bangladesh, operating without a valid Trade License can result in fines, legal actions, or even closure of the business.
Why a Trade License is Important
- It legally authorizes your business to operate.
- It is required to open a business bank account.
- It is often mandatory for VAT, TIN, and other registrations.
- It ensures your business meets safety, tax, and environmental standards.
- It builds credibility when dealing with suppliers and customers.
Where to Get a Trade License
Trade Licenses are issued by:
- City Corporations (for businesses within city limits like Dhaka, Chattogram, Khulna, etc.)
- Municipalities (Pourashava) (for businesses in smaller towns)
- Union Parishads (for rural areas)
For example, in Dhaka, the Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC) are responsible for issuing Trade Licenses.
Types of Trade License in Bangladesh
Depending on your business nature, the local authority may issue:
- Commercial Trade License – For shops, trading, and service businesses.
- Manufacturing Trade License – For factories or production-based companies.
- Import-Export Trade License – For businesses involved in international trade.
Each type may require additional documents such as factory layout approval or environmental clearance.
How to Register a Trade License in Bangladesh
Step 1: Collect the Application Form
Visit your respective City Corporation or Municipality office and collect the Trade License application form. In Dhaka, forms are available at zonal offices of DSCC or DNCC. In some areas, online application options are also available through city portals.
Step 2: Prepare the Required Documents
The documents required may vary slightly based on business type and area, but generally include:
- Completed application form.
- Passport-sized photographs of the business owner.
- National ID or passport copy.
- Recent rent agreement or proof of ownership of business premises.
- Holding Tax payment receipt (if applicable).
- NOC from building owner (for rented premises).
- TIN certificate.
- Trade License copy (if renewing or expanding).
- For limited companies: Certificate of Incorporation, Memorandum and Articles of Association, and Board Resolution.
Step 3: Submit the Application
Submit the filled form with supporting documents to the zonal Trade License office of the local authority. Officials will verify your business location and documents.
Step 4: Pay the License Fee
After verification, you will receive a payment slip. Fees depend on the business type, size, and location — usually ranging from BDT 500 to BDT 10,000. You can pay at designated bank branches mentioned by the authority.
Step 5: Collect Your Trade License
Once payment is confirmed, you can collect your Trade License from the issuing office. Some city corporations issue digital copies with QR codes for faster verification.
Processing Time: Usually within 3 to 7 working days after document verification and payment.
How to Renew a Trade License
A Trade License in Bangladesh is valid for one fiscal year (July to June). Renewal must be done annually to keep it active.
Renewal Process
- Visit the respective City Corporation or Municipality office.
- Collect and fill out the renewal form.
- Submit your existing Trade License copy.
- Pay the annual renewal fee and any arrears.
- Obtain the renewed license, usually stamped with a new validity date.
Some city corporations, such as DNCC and DSCC, have online renewal systems to make the process easier for business owners.
Fees for Trade License Renewal
Renewal fees depend on business category and area. For small shops, fees may start at around BDT 500, while for larger companies or factories, it can go up to BDT 50,000 or more. Always confirm your applicable rate with the issuing authority.
How to Comply with Trade License Regulations
- Display Your License: The license must be clearly visible at your business premises.
- Renew Annually: Always renew before the new fiscal year to avoid penalties.
- Update Information: Report any change in ownership, address, or business activity to the authority.
- Maintain Safety and Hygiene Standards: For manufacturing and food-related businesses, compliance with health and safety regulations is mandatory.
- Coordinate with Tax Authorities: Use your Trade License for VAT registration, tax filings, and import-export permissions.
Common Reasons for Rejection or Delay
- Incomplete or incorrect application forms.
- Missing documents such as rent agreement or TIN certificate.
- Failure to comply with zoning or building use restrictions.
- Non-payment of due municipal or holding taxes.
Ensure all paperwork and payments are in order before submission to avoid these issues.
Penalties for Operating Without a Trade License
Operating without a valid Trade License in Bangladesh can result in:
- Fines or financial penalties.
- Seizure of goods or temporary closure of the business.
- Legal action by the local government authority.
To avoid complications, ensure your Trade License is always current and displayed at your place of business.
FAQs
How long does it take to get a Trade License in Bangladesh?
Usually 3 to 7 working days after submission, depending on document verification and workload at the local office.
Can I apply for a Trade License online?
Yes. Some city corporations, including DNCC and DSCC, now offer online portals for registration and renewal.
What happens if I forget to renew my license?
You may be charged a late renewal fee or penalty. Continued operation without renewal can lead to license cancellation.
Do I need a Trade License for an online business?
Yes. Even if your business operates online, you need a valid Trade License under your registered business address.
Is a Trade License the same as company registration?
No. Company registration is done under the Registrar of Joint Stock Companies (RJSC), while the Trade License is issued by the local government authority for business operation.
Why Choose Dewey & LeBoeuf
Dewey & LeBoeuf is a global law firm assisting local and international entrepreneurs in Bangladesh. We help clients:
- Prepare and submit Trade License applications.
- Handle renewals and compliance issues.
- Resolve disputes with municipal authorities.
- Streamline VAT, tax, and company registration alongside licensing.
Our experienced legal team ensures that your business stays fully compliant and protected under Bangladeshi regulations.
Contact our team today to get professional guidance on obtaining or renewing your Trade License in Bangladesh quickly and correctly.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE