Trade License Process and Cost in Bangladesh: A Comprehensive Guide
Starting a business in Bangladesh necessitates formal authorization, and obtaining a trade license is the initial step in this process. This article delves into the intricacies of the trade license process and associated costs in Dhaka, Bangladesh. The legal foundation for this requirement is outlined in the City Corporation Taxation Rules 1983 and Municipal Taxation Rules 1986.
Initial Steps for Obtaining a Trade License
The process of obtaining a trade license begins with the submission of the appropriate form to the relevant authority. Dhaka City Corporation, for instance, is divided into North and South zones, and the applicant must choose the correct form based on the location of the business. Operating without a trade license is illegal in Bangladesh.
The lawful basis for this requirement is presented in Bangladesh under the City Corporation Taxation Rules 1983 and Municipal Taxation Rules 1986. It is issued when a business entrepreneur applies through the license form/structure. To successfully obtain a trade license, the entrepreneur must use the appropriate form and apply through the relevant authority.
Cost of Trade License
The cost of obtaining a trade license is BDT 2000. This fee is a crucial part of the application process and must be paid to complete the application.
Procedure for Obtaining a Trade License
The procedure is managed by the City Corporation or city committee where the business is located. The license is issued solely in the name of the licensee and is non-transferable. The licensee is restricted from using the license for any purpose other than the one specified during issuance.
The concerned staff at the zonal taxation office provides the renewed trade license. The fee for a trade license must be deposited at any designated bank, as indicated on the trade license form/structure.
List of Documents Required
- Application Form from Dhaka City Corporation (North Form) or (South Form)
- National ID card of the entrepreneur
- A recent receipt or ownership proof
- A recent passport-size photo of the entrepreneur
- Work Permit from the Board of Investment
- Statement of Bank Solvency & TIN Certificate
Additional Documents Depending on the Nature of Business
- In the case of a general Trade License – An attested Copy of the Rent Receipt or Rental Agreement and also a copy of the Holding Tax payment receipt.
- In the case of Trade licenses for industries – Additional documents as specified by the authorities.
The processing time for issuing the license is approximately 3-4 working days, although it may vary based on the nature of the business.
Renewal of Business Certificate for Commercial Companies
Business licenses must be renewed annually. The required documents for renewal include a License Book provided at the time of issuance, a challan Book, rent and receipt of ownership proof, and a TIN Certificate.
Strategy for Renewal
- Deposit the planned charges at the designated bank.
- After receiving the charge receipt, the City Corporation or the relevant zonal office will complete the renewal process if all requirements are met.
The following form/s are used in this procedure
| Title | Description | Created Date | Updated Date | Issued By |  |
|---|---|---|---|---|---|
| Application form for Trade License: Dhaka North City Corporation (DNCC) | This form is required to apply to receive Trade License from Dhaka North City Corporation (DNCC). Please click the PDF mark to view or download the Form | 10-06-2017 | 09-10-2017 | Dhaka North City Corporation (DNCC) | |
| Application form for Trade License: Dhaka South City Corporation | This form is required to apply to receive Trade License from Dhaka South City Corporation. Please click the PDF mark to view or download the Form | 10-06-2017 | 09-10-2017 | Dhaka South City Corporation | |
| Application form for Trade License: Chittagong City Corporation | This form is required to receive Trade License from Chittagong City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Chittagong City Corporation | |
| Application form for Trade License: Comilla City Corporation | This form is required to receive Trade License from Comilla City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Comilla City Corporation | |
| Application form for Trade License: Gazipur City Corporation | This form is required to receive Trade License from Gazipur City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Gazipur City Corporation | |
| Application form for Trade License: Khulna City Corporation | This form is required to receive Trade License from Khulna City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Khulna City Corporation | |
| Application form for Trade License: Rangpur City Corporation | This form is required to receive Trade License from Rangpur City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Rangpur City Corporation | |
| Application form for Trade License: Narayanganj City Corporation | This form is required to receive Trade License from Narayanganj City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Narayanganj City Corporation | |
| Application form for Trade License: Rajshahi City Corporation | This form is required to receive Trade License from Rajshahi City Corporation. Please click the PDF mark to view or download the Form. | 14-09-2017 | 09-10-2017 | Rajshahi City Corporation |
Conclusion
Understanding the trade license process and costs in Bangladesh is crucial for entrepreneurs looking to establish and operate businesses legally. Compliance with the rules and regulations set by the City Corporation or relevant authorities is essential for a smooth and lawful business operation in the country. Seeking legal advice and guidance can be instrumental in navigating the complexities of obtaining and renewing trade licenses in Bangladesh.
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