Procedure to Acquire All Forms of Commercial Trade Licenses in Bangladesh
How to obtain trade license in bangladesh
This is a comprehensive guide outlining the procedure for obtaining all types of trade licenses in Bangladesh, from manufacturing to trade businesses. This guide will help you understand the types of trade licenses required for your business and the step-by-step process for obtaining a trade license in Bangladesh. In addition, it will outline the process for obtaining the appropriate business license for your Bangladeshi enterprise.
In this guide, we will outline a step-by-step process for obtaining trade licenses in Bangladesh, beginning with an explanation of what a trade license is, the reasons why a trade license is required to conduct business in Bangladesh, and how to obtain a trade license in Bangladesh.
What is a Trade License in Bangladesh and Why is it Necessary to Obtain One to Conduct Business?
Trade License or Business License in Bangladesh is a document that certifies that you are authorized to conduct business in the specified field listed on the license. In Bangladesh, this document may also be referred to as a business license or a business permit.
Businesses in Bangladesh, regardless of whether they are Sole Proprietorships, Partnerships, or Limited Liability Companies, require a trade license in order to operate. To conduct business in Bangladesh, one must obtain a trade license after successfully incorporating or registering a company there.
One can obtain a Trade License from the respective City Corporation Offices or City Council Offices in Bangladesh, depending on the district. Local Government (City Corporation) Act of 2009 and Municipal Taxation Rules of 1986 provide the legal basis for how to obtain a Trade License in Bangladesh.
It is essential to choose the correct application form based on the location of the business in order to obtain a Trade License that is suitable and appropriate for your business. In addition, the process of obtaining a business license differs for manufacturing and commercial businesses, as do the business’s checklist requirements.
Other Permissions Required for Your Business in Bangladesh
Types of Bangladeshi Business Licenses
In Bangladesh, there are a few distinct types of trade licenses; the types of trade licenses available in Bangladesh are listed below.
- General Trade License
This is the category of trade licenses that can be used by nearly all types of businesses besides Commercial and Manufacturing businesses.
- Commercial Trade License
This license is required for a person or a separate legal entity that wishes to conduct commercial enterprises, such as retail stores, etc.
- Certificate of Manufacture
The manufacturing trade license is necessary for businesses that engage in manufacturing. Typically, these organizations contain factories or industries.
How to Obtain a Trade License for General Business in Bangladesh
Step-by-step instructions on how to obtain trade licenses in Bangladesh for General Businesses are as follows:
Step 1 | Obtain the necessary Application Form from the City Corporation or Municipality Office.
Fill out the application form for a Business License.
Step 3 | Prepare duplicates of the necessary documents.
Step 4 | Submit the completed application form and all necessary documentation to the appropriate office.
Fifth Step | Verification of the application and supporting documents by the Licensing Supervisor
Step 6 | Subsequently, the required fees must be deposited with the appropriate office.
Step 7 | If the concerned authority is satisfied with the results of the investigation, it will issue a Trade License Certificate to the applicant.
Step 8 | Collection of the Trade License Certificate from the City/Municipal Corporation.
Required Documents for Obtaining a General Trade License in Bangladesh
Formal Application for a Business License
Three Passport-Size Copies of the Owner’s Identification Card Ownership Portrait
A receipt for Payment of Holding Tax
A certificate of company formation
A copy of the Memorandum of Association and Articles of Association that has been authenticated.
A VAT registration certificate.
Declaration on non-judicial stamp to comply with the regulations of the City Corporation/Municipality/Union Parishad
Financial/Bank Certificate of the company’s Solvency Tax Clearance Certificate (TIN)
Bangladesh Investment Development Authority Agreement of Partnership Work Permit (BIDA)
Copy of Passport if the director is a non-U.S. citizen.
sample trade license Bangladesh
Example of a Certificate of Trade License in Bangladesh | This is the appearance of a Trade License Certificate in Bangladesh.
Obtaining a Trade License for Commercial or Corporate Businesses in Bangladesh: Step-by-Step Instructions
The step-by-step process for obtaining trade licenses in Bangladesh for Trade Businesses is outlined below.
The “K” Form must be obtained from the Dhaka City Corporation in order to comprehend the procedure for obtaining commercial licenses in Bangladesh (DCC). The K form is used by ten zoning offices, and must be obtained from the appropriate zoning office based on the location of the property. However, the form is distinguished from those of other regions by the officer’s initials and official seal. The form will cost a minimum of 10 taka.
Step 1 | Collecting the appropriate form from Dhaka City Corporation. (Form K must be obtained from the appropriate zonal office)
Step 2 | Fill out application form “K” for a Commercial License.
Step 3 | Prepare duplicates of the necessary documents.
Step 4 | Submit the completed application form and all necessary documentation to the appropriate office.
Fifth Step | Verification of the application and supporting documents by the Licensing Supervisor
Step 6 | Subsequently, the required fees must be deposited with the appropriate office.
Step 7 | If the concerned authority is satisfied with the results of the investigation, it will issue a Trade License Certificate to the applicant.
Step 8 | Collection of the Trade License Certificate from the City/Municipal Corporation. The application must be accompanied by supporting documents and the license book must be collected by Tk 50.
Step Nine | Payment of the signboard fee. (must impose a 30% surcharge on the license fee for all types of businesses)
Documents Required for Commercial Entities in Bangladesh to Obtain a Trade License
Three copies of the owner’s photograph in passport size.
A rent receipt or proof of ownership of the property
A receipt for Payment of Holding Tax
A certificate of company formation
A copy of the Memorandum of Association and Articles of Association that has been authenticated.
A VAT registration certificate.
Declaration on non-judicial stamp to comply with the regulations of the City Corporation/Municipality/Union Parishad.
Financial/bank certification of the company’s solvency.
Certificate of tax exemption (TIN)
Bangladesh Investment Development Authority Agreement of Partnership Work Permit (BIDA)
Copy of Passport if the director is a non-U.S. citizen.
Obtaining a Trade License for Manufacturing Companies in Bangladesh: Step-by-Step Instructions
The step-by-step procedure for obtaining trade licenses in Bangladesh for Manufacturing Businesses is outlined below.
Form “I” must be collected from the Dhaka City Corporation (DCC) zonal office, where the application must be submitted, in order to understand the procedure for obtaining Trade Licenses in Bangladesh for Manufacturing entities.
First Step | Obtain the “I” form from the DCC’s Zonal Office.
The second step is to organize the copies of the supporting documents.
Step 3 | Once the application has been completed, it must be sent to the local ward commissioner for approval.
Step 4 | Then, the Licensing Supervisor will visit the business entity to confirm the provided information.
Step 5 | After the Licensing supervisor has completed the verification, a fee must be paid, the amount of which is dependent on the application’s class.
Sixth Step | Payment of the signboard fee. (must impose a 30% surcharge on the license fee for all types of businesses)
Step 7: Obtain a Business License Certificate from the City Corporation.
Required Documents to Obtain a Business License for a Manufacturing Company
Three copies of the owner’s photograph in passport size.
A receipt for rent or evidence of property ownership.
The neighborhood has issued a No Objection Certificate (NOC).
A written promise on non-judicial paper with the value of Tk 150.
A Fire License from the local fire department and an Environmental Certification from DOE.
A receipt for Payment of Holding Tax
A certificate of company formation
A certified copy of the company’s Articles of Incorporation and Memorandum of Incorporation A VAT registration certificate.
Declaration on non-judicial stamp to comply with the regulations of the City Corporation/Municipality/Union Parishad
Financial/Bank Certificate of the company’s Solvency Tax Clearance Certificate (TIN)
Bangladesh Investment Development Authority Agreement of Partnership Work Permit (BIDA)
Copy of Passport if the director is a non-U.S. citizen.
The Process for Obtaining Commercial Licenses in Bangladesh, in Brief
Depending on the location of the business, Dhaka North and Dhaka South provide different application forms. For instance, if the business is located within the Dhaka South Zone, the application form must be obtained from the South zone office.
Additionally, Dhaka City Corporation offers two types of trade license forms, depending on the nature of the business. The procedure and document requirements for obtaining a Trade License may vary slightly for manufacturing and commercial businesses.
The K-Form must be collected for the formation of a commercial enterprise, whereas the “I” Form is used for the formation of a manufacturing business. In addition to other documents, a commercial business must provide a rent receipt for the space in which it operates and a municipal tax receipt, whereas manufacturing businesses are exempt from this requirement.
In addition, the manufacturing company is required to provide a NOC, a fire license, and an environmental license as supporting documents, whereas commercial companies are not required to obtain such licenses. In addition, the Licensing Supervisor completes the verification process by visiting the Manufacturing business establishment, which is optional for corporate entities.
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