Building a business and making it operable in a certain region are two different things. To create a business and give it a legal identity, giving it a name and incorporating it into the registry suffice. However, to make it operational, trade licenses come as the first and foremost priority. Without it, no business can prove itself as a law-abiding entity. Consequently, it faces legal and regulatory setbacks at every step of its business operations.
However, the process to get a trade license can be puzzling to anyone with no or little judicial knowledge. The formal source of required information also describes those processes in difficult and ineffable vocabulary. So, to save you from going through that clutter and describe the requisites in the simplest terms and definitions, this guide will articulate how to apply for a trade license in Bangladesh.
What Is a Trade License in Bangladesh?
The Bangladesh government mandates businesses to register for a trade license before operating as a legally viable entity. Specifically, a trade license is a piece of document given to a business as a demonstration of its lawfully coherent operative model and its prospect to abide by the Country’s jurisdictions.
The license is only given when requested through proper regulatory bodies that also have jurisdictional authority. In Bangladesh, such regulatory bodies are basically sorted into three types: city corporations, municipalities or paurashavas, and union parishads.
While all the bodies require businesses to apply and follow the same set of procedures, their scope of services is confined by the regional provisions. To be more evident, a city corporation is a viable authority for businesses that want to operate in big cities. For smaller cities and rural areas, the responsibility respectively falls to a municipal office and a union parishad.
The complete procedure for businesses to obtain a trade license and related mandates has been prescribed and also described in the Local Government (City Corporation) Act 2009 and Municipal Taxation Rules, 1986.
Types of Trade Licenses in Bangladesh
Trade licenses in Bangladesh fall under three primary categories based on the types of businesses and their operational scope. Let’s learn how many types of trade licenses are there:
General Trade License: A general license is given to businesses that don’t fall into the commercial or manufacturing categories. For example, freelance ventures, small, and medium-sized businesses.
Commercial Trade License: A commercial license is given to commercial business entities, like retail stores, super shops, and product suppliers.
Manufacturing Trade License: Any company that produces and distributes products falls under the manufacturing type. The license that allows these entities to be operable is defined as the manufacturing trade license.
General Requirements for Getting a Trade License
To proceed to get a trade license, the first obligation is to have a registered business. It must be verified, certified, and registered by following the guidelines and procedures of the Registrar of Joint Stock Companies and Firms (RJSC). For registered businesses, the other obligatory documents and information include:
For General Trade License
Requirements for a general trade license are quite rudimentary. The include:
- NID card (of each owner for joint ventures)
- Prescribed trade license application form
- Passport-size photos (three copies of each owner)
- Address attestation documents (Holding tax payment slip or electricity bill)
- Incorporation or registration certification of the company
- Attested and certified copies of the Memorandum of Association and Articles of Association
- Financial or bank solvency certificate of the company
- TIN certificate
- Documents of the partnership agreement
- The Bangladesh Investment Development Authority (BIDA) certified work permit
- A copy of the passport (In case the owner is a foreigner)
For Commercial Trade License
Pursuers of a commercial trade license need to submit a few additional documents. These include:
- Proof of ownership (a rent receipt will do)
- VAT registration certificate
- A non-judicial stamp declaring the company’s adherence to the rules and regulations of the authoritative body
NB: These are additional documents submittable with all the requirements for a general trade licence
For Manufacturing Trade License
Manufacturing trade license requires a different set of additional documents:
- No objection certificate (NOC) from the surrounding communities and neighbourhoods
- Explanatory written documentation on a BDT 150 non-judicial stamp
- A fire license from the local fire department
- An environmental certificate from the Department of Environment (DOE)
NB: These are additional documents submittable with all the requirements for a general and commercial trade licence
Step-by-Step Process to Obtain a Trade License in 2025
The required criteria and procedures vary for issuing each type of trade license. However, the fundamental steps will be the same for every type. Let’s get into their details:
Steps for Obtaining a General Business Trade License in Bangladesh
Here are all the obligatory measures to apply and get a trade license in Bangladesh for a General Business:
Step 1: Form Collection: Visiting regional directorial offices, like City Corporation or Municipality, and collecting the application form
Step 2: Form Fill Up: Looking through all the required fields in the application and filling them up with caution
Step 3: Preparing Required Documents: Collecting, certifying, or getting all the above-mentioned required documents for a general business trade license, attested, and preparing a copy to submit
Step 4: Document Submission: Physically visiting the concerned office and submitting the documents
Step 5: Authentication: At this stage, a government officer, known as the Licensing Supervisor, will go through every submitted document for authentication
Step 6: Payment: Once the required documents are authenticated and approved, the requisitory payment must be carried out
Step 7: Approval and Collection: If the respective regulatory bodies find the documents satisfactory, they will grant the license and make it available for the owners to collect.
Steps for Obtaining a Commercial Business Trade License in Bangladesh
Here are all the measures to apply and get a trade license in Bangladesh for a Commercial Business:
Step 1: K Form Collection: Commercial business owners must visit their zoning offices and collect the “K” form.
What is a K Form?
A “K” form is an obligatory document every commercial business owner must collect and submit from any of the 10 zoning offices under the Dhaka City Corporation. The form will bear the signature and seal of the respective official who disburses them. The “K” is essential for understanding the nature and the governance procedures of commercial businesses.
Step 2: K Form Fill Up: After collection, the K form needs to be filled up with authentic information
From here, you have to follow all the steps described in the General Business trade license section.
Steps for Obtaining a Manufacturing Business Trade License in Bangladesh
The key measures to apply and get a trade license in Bangladesh for a Commercial Business are:
Step 1: I Form Collection: Commercial business owners must visit their zoning offices and collect the “I” form.
What is an I Form?
An “I” form is an obligatory document every manufacturing business owner must collect from the Dhaka City Corporation zonal office. The “I” is essential for understanding the nature and the governance procedures of manufacturing businesses.
Step 2: I Form Fill Up: After collection, the I form needs to be filled up with authentic information
From here, you have to follow all the steps described in the General Business trade license section.
Online Application Process in 2025
Businesses can also pursue a trade license online by visiting the government’s web portal. Upon registering on the portal, they will find clear instructions to organize their documents and submissions to obtain the e trade license BD. Here is the detailed procedure:
Account Creation: Once you are on the e-trade portal, you will be required to open an account. The process is rather simple; all you will need to input are your NID number, registered mobile number, and your full name. To verify your registration, you have to submit the six-digit code sent to your mobile.
Profile Completion: Before you access the available services on the portal, you must fill up the detailed form regarding your personal information. It includes your and your parents’ names, addresses of your permanent and current residences, contact credentials, your photo (passport size), and your signature.
Find the Trade License Service: Now, navigate to all the services given online. You will find them organized on the dashboard. From there, find and click on the Trade License icon.
Online Application for the Trade License: Clicking on the Trade License icon will lead you to the application form. On its first page, the form requires your complete business details: name, registration number, type, registered address, and so on. On the second page, you will be asked to upload documents, like NID, TIN certificate, address proof, and other permits.
Submissions and Fees: At the final step, you have to submit your draft form and pay the associated fees for the license. The portal allows for online payment through several possible channels, like bank accounts and mobile financial services.
Renewal of Trade License
Once, trade license renewal was only possibly through regional offices. With the official e-trade web portal, trade license renewal online has become a viable and effortless option. Here is how to renew trade license online:
- Registering and logging in to the e-trade portal
- Completing the personal profile with authentic info
- Selecting the Trade Licensing option from the dashboard
- Selecting Renewal, instead of application for a license in the corresponding field
- Filling up and submitting the required form
Common Challenges and Mistakes to Avoid
The path towards achieving a trade license is not rose-laden. It branches out into several directions based on factors: business types and the regional issuing body. Moreover, the regulated process often takes difficult turns. So, it’s crucial for you to know the common mistakes people commit during getting a trade license to save you from delaying approval or rejection.
General missteps and challenges include:
- Failing to submit all the obligatory documents and information
- Leaving requisite fields blank in any form
- Providing wrong information
- Providing uncertified documents
- Selecting the right business type
- Overlooking any judicial guideline during the application process
Why Choose Bangladesh Consultant for Trade Licensing?
Bangladesh Consultant is a team of legal advisers who know the ins and outs of the country’s judicial system. We are here to give you complete assistance through every step towards getting a trade license, regardless of the type of your business. At Bangladesh Consultant, you will get:
- Support in approaching the judicial bodies and arranging all the essential documents, like the Incorporation Certificate, MOA/AOA, K Form, I Form, etc.
- In-depth explanation of the key differences between the types of business entities and their respective measures to get a trade licence that agrees with their business formations and procedures
- Assistance in collecting, drafting, and submitting all the essential documents, and also in understanding their roles in authenticating the business’s identity and goals
- Explanations and guidelines for paying trade license fees to the proper Government authorities through preset channels
- Formation and maintenance of relationships with all the regulatory bodies, like the RJSC and BIDA, responsible for providing key essential documents and certifications
- Ensured approval from the Licensing Supervisor, advice on how to check trade license in bangladesh, and assistance in collecting the post-license documents
Get Started With Your Trade License Today – Conclusion
Knowing how to get a trade license in Bangladesh will enable you to run your business in your preferred region. But first, you have to know the category your company belongs to and the right license type to pursue. Even though the process to get a trade license may sound easy, one misstep can result in legal complexities. To keep the risk at bay, consulting with a reputable law firm like Bangladesh Consultant will help.
FAQs
Can foreign entrepreneurs or investors get a trade license in Bangladesh?
Yes, foreigners can get a trade license regardless of their registered business types by submitting a few extra documents, like their passport and a mission statement.
How long does it typically take to get a trade license approved in 2025?
The formal procedure to investigate through submitted information and documents, to authenticate, and to approve a trade license may take up to 3 to 7 days.
Is a separate trade license needed for each business location?
Yes, a business to operate in several locations must be licensed by each regional authority.
What are the penalties for operating without a valid trade license in Bangladesh?
Without a valid trade license, businesses will be deemed invalid or illegal and can be punished with a penalty-cash or other legal procedures.
Can I change or upgrade my trade license type later?
Yes, changing, upgrading the types of trade license is possible by applying to the responsible authority.
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