Do you know Trade License Importance in Bangladesh as a foreigner and local entrepreneurs? Yes, a Trade license is such important that you never ignore it. When can apply for Trade License, at the beginning of starting a business? There are two ways Trade License need to start a business in bd.

• Proprietorship
• Limited Company

For information, foreigners are not eligible to apply as a proprietorship. So, private and public limited is an option to open for the foreigner and register Pvt Ltd company in Bangladesh. Proprietor-businessmen can apply directly to obtain without RJSC approval.

Limited Company-owned will apply of trade license after company incorporation. There might have a question; business can start up without trade license? The answer is NO.

Steps of Trade License in Bangladesh

1. Collect form from city corporation and fill up as need
2. Contact license officer and speak to clear
3. Or, contact expert of S & F CONSULTING FIRM LIMITED
4. Make payment in Government bank, recommended Sonali Bank
5. Wait for 2-3 days unless verification is done
6. Sometimes Trade License can obtain by 1-2 days (not for foreigner)
7. Miscellaneous cost must remember to pay

Documents required for obtaining a trade license in BD for LLC

Various types of document are needed in order to obtain trade license. In this section I am going to highlight all the necessary document that is required for trade license registration—

• You need to collect trade license application Form Dhaka City Corporation.
• If you are a foreigner you must need a copy of your passport.
• Receipt of ownership evidence & tax payment receipt.
• 3 passport size photographs (Width-45mm, Height-55mm)
• Statement of Court, Printing for Compliance with the Rules and Regulations of City Corporation.
• Articles of Association (AoA) & Memorandum of Association (MoA)
• Incorporation Certificate
• Agreement paper of partnership
• Work Permit certificate or document from the board of investment of Bangladesh.
• Statement
• Bank Solvency i.e. statement
• TIN Certificate

Visit www.dscc.gov.bd for e-trade license

Cost of Trade License in Bangladesh

Chalan form- Collect a form from Government Sonali Bank at the nearest branch (TR Form No. 6 that is SR 37). Fill up form as  –

1. Chalan No
2. Date
3. Certain district
4. Place of bank branch
5. Code no. 1-1133-0010-0311 for Dhaka City Corporation
6. Name and address on company
7. Person or company name and address on behalf
8. New license or renewal
9. Cash, cheque, Draft
10. Amount in Taka

Note: Amount of Taka 350-10,000 depend up on nature of business.

City Corporation tax department-They will deduct an amount of Taka 200—and above in receipt book. Amount of Taka 2310 to above will deduct in another Chalan form with bank receipt copy.

Miscellaneous-Without speed money file runs like a turtle. Now the question is how much is that? I guess three times more than government fees, as manageable.

Time of Trade License obtain in Bangladesh

Generally, it takes 2-3 working days if all are OK. But if the area is rural where need to get from Union Porishad might 1 day is enough.

Problems of obtaining Trade License in Bangladesh for Foreigner

Lot of problems if the applicant is foreigner. We welcome them but not allow to have sit. Problems from A-Z if the company is foreign shareholders. Major problems are as follows: –

1. Require Work Permit
2. Cost is not same like local

Authority

City Corporation and Union Porishad are eligible to deliver business license in Bangladesh.

License application form

Collect form from any city corporation office at your office nearest place. Fill up information as need: –

1. Name of application
2. Passport/ NID number
3. Nationality
4. Present and permanent address
5. Business address (in commercial place)
6. Contact number and email
7. Paid up and authorized capital
8. Nature of business (3-5 items)
9. Number of applicant (alone/ joint)
10. Signature

License renewal

Issuance license is valid for one year and renewal must before December. Pay renewal fee whether business start up or not.

Procedure for renewal

The applicant is required to deposit the prescribed fees at government bank. Upon receipt of the fee, the City Corporation or the relevant District Office of the Municipality will complete the renewal process.

If the all the requirements are met your license will be successfully renewed.

Trade license for commercial firm

Depending on the type of business, Dhaka City Corporation offers two kinds of trade license Forms. For setting up a commercial firm, you must use K-Form.

The K-Form are available within the respective zonal office. The cost of the of the Forms is TK 10 which may vary for the foreigners.

Once you complete the forms, you must submit it to the local ward commissioner for the verification. Once the audit is done, you must collect the license (cost you 50 to 100 taka) and submit the K-Form with necessary documents to the zonal office. Trade license is the part of company registration, it could be foreign or local.

Upon submission of the papers, the licensing supervisor will visit in your business area for further verification. Once your business is done successfully, and no issue is found you will be asked to go to the nearest DCC office.

You need to pay the necessary predetermine to the DDC office to obtain a trade license. You also need to pay for signboard license while collecting trade license. You must pay 30 % of the license fee to obtain a signboard license.

Trade license for a manufacturing firm in BD

To obtain a manufacturing trade license, you need to collect “I” Form, from the regional DCC office. You must complete I-from with necessary information and verify it from the local ward commissioner.

Once the verification is done, submit the application with all the essential documents (3 pp size photograph, receipt of ownership proof, legal stamped paper, etc.) to the zonal office.

Once you submit the paper, the licensing supervisor will arrive at your business place for further verifications. After the inspection is done, you will be asked to go DCC office to collect trade license by paying predetermined fees.

License Matrix of Sole, Limited and Proprietorship company

SI-NUM	SOLE- PROPRIETORSHIP	LIMITED COMPANY	PROPRIETORSHIP
1	TRADE LICENSE	NAME CLEARANCE CERTIFICATE	DEED OF PARTNERSHIP
2	TIN CERTIFICATE	INCORPORATION CERTIFICATE	COMMERCIA TRADE LICENSE
3.	CERTIFICATE OF BANK SOLVENCY	COMMERCIAL TRAD LICENSE	CERTIFICATE OF BANK SOLVENCY
4.	CERTIFICATE OF VAT REGISTRATION	TIN CERTIFICATE & BANK SOLVENCY CERTIFICATE	COMMERCIA ERC& IRC & FIRE LICENSE
5.	COMMERCIAL ERC OR IRC	COMMERCIAL ERC OR IRC	CERTIFICATE OF VAT REGISTRATION & LAND REGISTRATION DOCUMENT
5.	LICENSE OF RETAIL FROM DC OFFICE (IF NEEDED)	VAT CERTIFICATE, FIRE LICENSE, BOI REGISTRATION	TIN CERTIFICATE & BRAND LICENSE
6.	CMC (CHAMBER MEMBERSHIP CERTIFICATE)	ENVIRONMENTAL CLEARANCE CERTIFICATE (IF NEEDED)	CMC (CHAMBER MEMBERSHIP CERTIFICATE)

 

How To Obtain E-Trade License In Bangladesh?

Trade license is issued by 2 city corporations in Dhaka, North, and South City Corporation. Application process of trade license in North City Corporation is still in manual system. But DNCC will be digitalized soon as South City Corporation is already been applied digitalization. In district cities, trade license application procedure is manual system and local council, and city corporation offices provide license book. Without having trade license on one is permissible to do business in Bangladesh, legally. Trade License obtaining is must for Limited Liability Company, Proprietorship and Partnership businesses. Although, foreign shareholders are not permissible to do proprietorship and partnership business by law. There are regional offices of city corporations situated in Dhaka where application is submitted with supporting documents and license is provided.

The process of trade license application

There is a prescribe form must fill up and sign by applicant if you are inside of Dhaka North City Corporation. E-Trade License application must submit by online if your business address is in South City Corporation. Necessary information must fill up as: –

1. Business Name
2. Name of applicant
3. Parents name
4. Business address
5. Present address (applicant)
6. Permanent address (applicant)
7. National ID Number
8. Nationality
9. Nature of business
10. Tentative date of commence of business
11. Investment capital
12. TIN
13. Shop/ office is rent/ own
14. Office is situated on government land/ private land
15. Shop/ office at the floor of 1^st, 2^nd, 3^rd, 4^th etc.
16. Contact number of the applicant
17. Signature of the applicant

Documents are enclosed with application:

1. 3 copies color picture of owner/ director
2. No Objection Certificate (for new enterprise)
3. Certified copy in case of limited company (MoA, AoA)
4. Tenancy agreement
5. Holding tax payment receipt (if necessary)
6. Fire license and factory setup license in case of industry
7. National ID copy

In case of online application must sign up and fill up necessary information and submit to city corporation office. The form must submit to the officer in charge of issuance trade license or his/ her assistant without broker.

Fees of trade license

Tarde License fee vary upon nature of business. There is a fixed fee imposed by government and 15% VAT additional must count while applying. Further information, unless pay speed money application will be proceeded slowly. Expected fees of trade license start from Taka 7000 to Taka 12000.

Renewal of trade license in Bd

Tarde license must renew every year by the month of June to avoid penalty of Taka 200 for delay of every month consequently.

If trade license is lost

In case of loosing trade license must apply to police station (General Diary) and a copy of GD submit to City Corporation with application.

Ownership changing of trade license

In terms of changing ownership must submit supporting papers and application of changing same. Your update information will be written in a blank page of trade license about new ownership.

Frequent Ask Questions