Trade License Fee in Bangladesh
In addition to the initial steps and requirements outlined in the previous response, the trade license application process in Bangladesh also involves submitting necessary documents and information to the relevant authority. These may include proof of ownership of the business location, business registration documents, and personal identification documents for the business owner.
Once the application is submitted and the required fee is paid, the authority will conduct an inspection of the business location to ensure that it meets necessary health and safety standards. If everything is in order, the trade license will be issued. Hence hire the best law firm in Bangladesh you possibly can for the application for your trade license.
Types of Trade Licenses in Bangladesh
There are few different versions of trade licenses in Bangladesh, the types of trade licenses available in Bangladesh are mentioned below:
1. General Trade License
This is the category of trade licenses that can be used for businesses of all most all types except the Commercial or Manufacturing businesses.
2. Commercial Trade License
This trade license is required for an individual or a separate legal business entity that wishes to conduct commercial businesses, such as retail stores etc.
3. Manufacturing Trade License
The manufacturing trade license is required for businesses who are involved in manufacturing businesses. Such businesses usually have factories or industries.
Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for General Businesses, as follows:
Step 1 | Collecting the required Application Form from the City Corporation or Municipality Office.
Step 2 | Fill in the Trade License application form.
Step 3 | Arrange the copies of the required documents.
Step 4 | Submit the filled-in application form and required documents to the concerned office.
Step 5 | Verification of the application and supporting documents by the Licensing Supervisor.
Step 6 | Next, the Required fees shall be deposit at the concerned office.
Step 7 | If the Concerned Authority is satisfied after verification, it shall issue a Trade License Certificate to the applicant.
Step 8 | Collection of Trade License Certificate form the City Corporation/ Municipal Corporation.
Required Documents for Obtaining General Trade License in Bangladesh
- Prescribed Trade License Application Form
- A National ID Card of the Owner
- 3 Copies of the Passport Size Picture of the Owner
- A Holding Tax Payment receipt
- A company Incorporation Certificate
- A certified copy of the Memorandum of Association and Articles of Association
- A VAT registration certificate.
- Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad
- Copy of Financial/Bank Solvency Certificate of the company
- Tax Clearance Certificate (TIN)
- An Agreement of Partnership
- Work Permit from Bangladesh Investment Development Authority (BIDA)
- Copy of Passport if the director is a foreigner.
Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for Trade Businesses, as follows:
In order to understand the procedure as to how to obtain trade licenses in Bangladesh Commercial or Corporate entities or businesses, firstly, the “K” Form shall be collected from the Dhaka City Corporation (DCC). The K form is used by ten zoning offices, which shall be obtained from the respective zoning office depending on its location. However, the initials and the seal of the officer selling the form are what separates it from those of the other regions. The form will cost as low as Tk. 10.
Step 1 | Collecting the proper form from Dhaka City Corporation. (K form shall be obtained from the respective zonal office)
Step 2 | Fill in the Trade License application form “K”.
Step 3 | Arrange the copies of the required documents.
Step 4 | Submit the filled-in application form and required documents to the concerned office.
Step 5 | Verification of the application and supporting documents by the Licensing Supervisor.
Step 6 | Next, the Required fees shall be deposit at the concerned office.
Step 7 | If the Concerned Authority is satisfied after verification, it shall issue a Trade License Certificate to the applicant.
Step 8 | Collection of Trade License Certificate form the City Corporation/ Municipal Corporation. License book shall be collected by Tk 50 and application shall be submitted along with supporting documents.
Step 9 | Payment for the signboard fee. (shall charge 30 percent of the license fee for all types of business)
Required Documents for Obtaining Trade License for Commercial Entities in Bangladesh
- 3 copies of Passport size photo of the owner.
- A National ID Card of the Owner
- A Rent receipt or premises ownership proof
- A Holding Tax Payment receipt
- A company Incorporation Certificate
- A certified copy of the Memorandum of Association and Articles of Association
- A VAT registration certificate.
- Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad.
- Copy of Financial/Bank Solvency Certificate of the company.
- Tax Clearance Certificate (TIN)
- An Agreement of Partnership
- Work Permit from Bangladesh Investment Development Authority (BIDA)
- Copy of Passport if the director is a foreigner.
Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for Manufacturing Businesses, as follows:
In order to understand the procedure as to how to obtain Trade Licenses in Bangladesh for Manufacturing entities, firstly, Form “I” shall be collected from the Dhaka City Corporation (DCC) zonal office, where the application has to be submitted.
Step 1 | Collecting the “I” form from the Zonal Office of the DCC.
Step 2 | Arrange the copies of the supporting documents.
Step 3 | After completing the application, it shall be sent for approval to the local ward commissioner.
Step 4 | Then Licensing Supervisor shall verify the information’s provided, by visiting the business entity.
Step 5 | After the verification is conducted by the Licensing supervisor, A predetermined fee shall be paid which depends on the class under which the application was made.
Step 6 | Payment for the signboard fee. (shall charge 30 percent of the license fee for all types of business)
Step 7 | Obtain the Trade License Certificate form the City Corporation.
Required Documents for Obtaining Trade License for Manufacturing Company
- 3 copies of Passport size photo of the owner.
- A Rent receipt or premises ownership proof.
- No objection certificate (NOC) from the neighbourhood.
- A written undertaking on a Tk 150 non-judicial stamped paper.
- A Fire License from the local fire department and an Environmental Certificate from DOE.
- A Holding Tax Payment receipt
- A company Incorporation Certificate
- A certified copy of the Memorandum of Association and Articles of Association
- A VAT registration certificate.
- Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad
- Copy of Financial/Bank Solvency Certificate of the company
- Tax Clearance Certificate (TIN)
- An Agreement of Partnership
- Work Permit from Bangladesh Investment Development Authority (BIDA)
- Copy of Passport if the director is a foreigner.
It is important to note that trade licenses must be renewed on a regular basis, typically annually. This involves submitting a renewal application and paying the required fee. Failure to renew a trade license can result in penalties and fines.
Furthermore, it is important to follow any regulations and laws that are specific to the business industry. For example, a restaurant must follow food safety regulations and a factory must follow safety and environmental regulations.
Moreover, it is worth mentioning that the fees and procedure may vary from city to city and from place to place. It is always best to check with the local authority for the exact fees and process of trade license application.
Overall, obtaining a trade license in Bangladesh is a necessary step for starting and operating a business, and it is important to understand the requirements and process for obtaining and renewing a license to ensure compliance with local laws and regulations.
The List of archives required for acquiring atrade permit are as follows:
- Application Form from Dhaka City Corporation (North Form) or (South Form)
- National ID card of the entrepreneur
- Recent receipt or ownership proof
- Recent passport size photo of the entrepreneur
- Work Permit from Board of Investment
- Statement of Bank Solvency&TIN Certificate
ADDITIONAL REQUIRED DOCUMENTS FOR TRADE LICENSE:
- In case of general Trade License – Attested Copy of Rent Receipt or Rental Agreement and also the copy of the Holding Tax payment receipt.
- In case of Trade license for industries – Everything mentioned in serial no. 1 plus:
- No objection declaration on the surrounding
- Location Map
- Copy of fire certificate
- Declaration on non-judicial stamp of tk 150/to abide by the rules & regulation of DCC.
- In case of Clinic/Private Hospital: permission from the Director General of Health.
- In case of Limited Company :Memorandum of Articles Certificate of In-Corporation
- In case of Printing Press & Residential Hotel Permission from DC
- In case of Recruitment Agency – License from Manpower Man-power export Bureau.
- In case of Arms and Ammunition – Copy of Arms License.
- In case of Drug and Narcotics – Copy of Drug/Narcotics License.
- In case of Travailing Agency – Approval from civil aviation authority.
PROCESSING 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.
RESERVED ADMINISTRATION PAYMENT:
- The submission fee is BDT 10.00.
- License fee varies between BDT 100.00- 40,000.00 subjects on the nature and type of business.
- For Limited Company, License fee is determined based on paid-up capital.
RENEWAL OF BUSINESS CERTIFICATE (COMMERCIAL COMPANIES): Business Licenses are compulsory to be renewed yearly. The papers 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.
STRATEGY FOR RENEWAL: The candidate is required to store the planned charges at the assigned bank. After getting the charge receipt, the City Corporation or Municipality’s pertinent zonal office will finish the restoration procedure if the various necessities are met.
| Question | Answer |
|---|---|
| What is a trade license in Bangladesh? | A trade license is a formal authorization from Dhaka City Corporation or Municipality’s important office (Union Parishad, pouroshava, upozilla or zillaparishad) required to do business in Bangladesh. |
| What is the cost of obtaining a trade license in Bangladesh? | The expense of getting a business permit is BDT 2000. |
| How do I apply for a trade license in Bangladesh? | The procedure is overseen by the City Corporation or city committee where the business exists. A candidate will be required to pick the right structure contingent upon the territory where the business is found. An application form must be filled out and submitted to the relevant office. |
| Is it mandatory to have a trade license to do business in Bangladesh? | Yes, working business without an exchange permit is unlawful in Bangladesh. |
| What documents are required to apply for a trade license in Bangladesh? | The legal authorization and trade permit from City Corporation or City Council of the relevant business zone must be obtained. |
| Can a trade license be transferred to another person? | No, a permit is issued solely for the sake of the licensee and such permit is not transferable. |
| How often do I need to renew my trade license? | A renewed Trade License is given by the concerned staff of the zonal tax collection office. |
| Where do I pay the fee for the trade license? | An expense for exchange permit must be kept at any Bank as demonstrated on the Trade License form/structure. |
| Can a trade license be used for any other purposes? | No, the licensee will not utilize the permit for some other purposes, with the exception of the reason and nature of calling, trade or calling it was issued. |
| What is the punishment for running a business without a trade license in Bangladesh? | Running a business without a trade license is illegal in Bangladesh and can result in fines and/or legal action. |
Hire Tahmidur Remura TLS for your trade license in Bangladesh:
TLS has experience consulting and assisting numerous international clients with utmost care and attention throughout their legal troubles, in addition to handling various issues related to marriage and divorce among domestic clients on a regular basis.
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