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When it comes to running a successful company in Bangladesh, one of the most essential pieces of documentation is a trade licence. In essence, it certifies a person or an organization as a commercial entity under the legislation of Bangladesh and permits them to participate in any kind of transaction that may be necessary. It should go without saying that having a trade licence is required in order to legally do business. In Bangladesh, a Trade Licence, also known as a Business Licence, is a document that certifies that you are authorized to do business in the particular sector that is defined inside the trade licence. Because of this, other names may be used to refer to it in Bangladesh, including business licence and business permission.
Every kind of business in Bangladesh, whether it be a sole proprietorship, partnership, or limited liability company, is required to obtain a trade licence in order to legally conduct business therein. After a successful incorporation or establishing a company in Bangladesh, an individual is required to secure a trade licence before continuing with the commercial activities in Bangladesh. One can obtain a Trade Licence from the appropriate City Corporation Offices or City Council Offices in Bangladesh of the respective district. The Local Government (City Corporation) Act 2009 and the Municipal Taxation Rules, 1986 provide the legal framework for how to go about acquiring a Trade Licence in Bangladesh.
It is essential to choose the appropriate application form dependent on the geographical location of the companies in order to acquire the Trade Licence that is appropriate and suitable for your company. In addition, the steps necessary to get a business licence, as well as the standards that must be met on the checklist, are distinct for commercial and manufacturing businesses. In order to engage in any kind of commercial transaction, a trade licence is now required by law as the only authoritative document. Over the course of time, the procedure expanded its scope to include a variety of non-profit organizations, foundations, NGOs, and other organizations with a similar mission. The Companies Act of 1994 lays out the steps involved in obtaining a trading licence as well as the standards that must be met. The Municipal Taxation Ordinance of 1986 and The City Corporation Ordinance of 1983 both provide further information on this topic.
There are 1200 various sorts of trade licences that may be grouped according on the type of company, the types of channels available, and the servicing industry. Under the terms of the existing legislative rule, each of these is operational. However, for the sake of clarity and simplicity, trade licences may be broken down into three distinct categories. They are General Trade Licence, Commercial Trade Licence, and Manufacturing Trade Licence. Each of the types would be discussed in this short guideline along with the procedure of how to obtain these trade licences and the relevant documents that are required to apply for a trade licence successfully. This is important because the application process, the required documents and authority are different which mostly depends on the type of the trade licence an entrepreneur is applying for.
The general trade licence is necessary for starting up and operating any kind of small or medium-sized enterprise. In order to qualify for a general trade licence, the government has established a maximum allowable level of both income and transactions. In this context, everything else, with the exception of
the last two forms i.e., commercial trade licence and manufacturing trade licence is going to be considered a general trade licence.
The local government is the entity that is authorized to issue licences for ordinary commercial activity. It might be the office of the city corporation, the ward council, the union parishad office, or the municipal authority, depending on where you are. The application form for a general trade licence requires supporting evidence in the form of a few important papers. For the convenience of our valued clients, here is a short list of documents that might be required of you depending on the type of business you are performing in Bangladesh. These include:
Please contact ABC Partners’ Documentation team for more information on how to obtain these documents or click here to read more on these documents and how to procure them.
The application cannot be processed without these required pieces of documentation. It is possible that the issuing authority may demand further documentation in addition to that, but that will depend on the kind of company you run. The first step in the procedure consists of submitting the application form together with the attachments listed above. The application will then be sent out for verification when this step has been completed by the relevant authorities. Following the completion of a satisfactory inspection, the company is obligated to pay the necessary charge. After submitting the required documents and a successful inspection, it would take usually 3 to 5 working days to obtain the provisional trade licence.
For a better understanding of the procedure for obtaining a commercial trade licence in Bangladesh, the entrepreneur at first, must obtain the “K” Form from the respective City Corporation, Union Parishad, or ward council offices. This is necessary in order to understand how to obtain trade licences in Bangladesh. Ten different zoning offices make use of the K form, which may be received from any one of those zoning offices, depending on the location of the office in question. The initials and official seal of the officer who sold the form are the distinguishing factors between it and the forms sold in the other locations. There will be a minimum charge of Tk 10 for the form.
The applicant must at first, obtain the K form and the application form which are required to be filled in with appropriate information. Along with these forms the relevant documents listed below to be submitted to the city corporation or the union parishad office. The application cannot be processed without these required pieces of documentation. It is possible that the issuing authority may demand further documentation in addition to that, but that will depend on the kind of company you run. The application will then be sent out for verification when this step has been completed by the relevant authorities. Following the completion of a satisfactory inspection, the company is obligated to pay the necessary charge. After submitting the required documents and a successful inspection, it would take usually 3 to 5 working days to obtain the provisional trade licence. There would be an additional charge for the signboards or bill boards that displays the name and type of the company in front of the business premises. Usually, the signboard fee is at 30% of the commercial trade licence fee. If the applicant intends to collect a licence book, it could be done by submitting an application when all the required documents were submitted and paying a fee of BDT 50.
For the convenience of our valued clients, here is a short list of documents that might be required of you depending on the type of business you are performing in Bangladesh. These include:
Please contact ABC Partners’ Documentation team for more information on how to obtain these documents or click here to read more on these documents and how to procure them.
The application process for the manufacturing trade licence in Bangladesh is similar to the commercial trade licence. However, the documents which are submitted for a manufacturing trade licence are a bit different from the documents submitted for the commercial trade licence. First of all, a Form ‘I’ should be obtained from the respective city corporation or union parishad office where the manufacturing company is located. It would help the applicant to understand the total procedure of applying a manufacturing trade licence. In addition to this, the applicant has to obtain a ‘No Objection Certificate’ (NOC in short) from the relevant ward commissioner or councilor certifying that the industry or the manufacturing company would not cause any social disturbance or nuisance. That is to say the company is equipped with the environmentally friendly appliances i.e., the carbon emission and drainage facilities. Furthermore, the applicant has to apply to the local Fire Service and Civil Defence authority for a fire licence which would confirm that the premises is fire safe and adhered to all the fire safety protocols. In the same way, the applicant has to obtain an environment clearance certificate from the relevant Department of Environment office where the industry is situated. Please contact ABC Partners how to obtain these documents or read through this for further information.
The form ‘I’ and other relevant documents which are listed below should be submitted to the local authority i.e., city corporation or union parishad office. Once submitted the licensing supervisor or the inspector would verify the authenticity of the documents and then forward the application to the local ward commissioner for further verification purposes. If it is verified from the ward commissioner, the licensing inspector would visit the industrial premises for inspection and once he is satisfied a predetermined application fee would have to have to be paid. The fee is dependent upon the class and category of the business entity under which the application was submitted by the applicant. An additional signboard fee has to be paid which is usually 30% of the application fee of manufacturing trade licence. After all these is done the applicant has to collect the trade licence from the relevant trade licence office.
For the convenience of our valued clients, here is a short list of documents that might be required of you depending on the type of business you are performing in Bangladesh. These include:
Please contact ABC Partners’ Documentation team for more information on how to obtain these documents or click here to read more on these documents and how to procure them.
Depending on the district in which the company is located, either Dhaka, Chattogram or Sylhet the city corporation or the union parishad office will provide a distinct set of application forms. For instance, if the commercial enterprise in question is situated in the Dhaka South Zone, the applicant must acquire the application form from the office that serves that zone. In addition, the Dhaka City Corporation provides two distinct types of trade licence Forms, each of which is tailored to a certain kind of enterprise. The procedure to get a Trade Licence may vary somewhat, as may the list of papers required, depending on the kind of company being undertaken, such as manufacturing or commercial.
For establishing a manufacturing company, a “I” Form must be submitted, while the K-Form must be submitted when establishing a commercial enterprise. Along with the other essential papers, a rent receipt for the premises where the firm is running and a municipal tax payment receipt need to be submitted for a commercial business, although they are not required for manufacturing business units. In addition, manufacturing companies are required to present supporting documentation such as a NOC, fire and environmental licence, although commercial companies are not required to get such permits. This is because manufacturing companies produce goods for sale. In addition to this, the Licensing Supervisor must personally visit the Manufacturing business facility in order to complete the verification process. This step is optional in the case of commercial units.
The procedure of obtaining a trade licence in Bangladesh was made more efficient with the introduction of the electronic trade licence (E-Trade licence). Through the use of the E-Trade licensing system, entrepreneurs now may obtain all three kinds of trade licences. Within the limits of their authority, the city corporations, union parishad and zonal offices in question issue trade licences. The prospective licensee has to begin the application process by visiting the E-Trade licensing website, which is managed by the Local Government Division. The applicant must then pick the “New Registration” option after they have arrived at that page. On the page that follows, there will be a form for the applicant to fill out with their personal information. On the following page, there will be a form asking for information on the kind of company and its particulars. The applicant is responsible for entering the information in the appropriate box in the proper manner.
Depending on the kind of business licence being sought, the application must be accompanied by an electronic file including a copy of each of the mandatory attachments listed above. After the application has been submitted and the procedure has been completed effectively, it will be sent on for verification. Simultaneously, an application tracking number that may be used to verify the progress of the application will be produced for the applicant. After the applicant has had their information verified, the applicant will need to pay the appropriate amount and get an electronic copy of his temporary licence. Applicants may use the same website to renounce, renew, or reissue their business licence at their own discretion.
The following is a list of the services that ABC Partners may provide in order to help clients obtain a Trade Licence in Bangladesh:
ABC has a team of competent and experienced staffs that is capable of moving quickly forward in the process of obtaining a Trade Licence. In order to apply for a Trade Licence, the legal advisers at ABC may give assistance to the clients via consultations and meetings, as well as request that the clients to supply the relevant papers, such as their NID, a certificate of incorporation, photos, and MOA or AOA. The kinds of companies and businesses that are considered while compiling an application’s list of required documents vary.
Because the process for obtaining a trade licence for commercial and manufacturing business entities may vary slightly, the legal team at ABC can assist the client by submitting an application for a trade licence to the appropriate office along with the appropriate supporting documents. This will allow the client to obtain a trade licence conveniently without any hassle. Legal professionals at ABC Partners have the ability to compile, collect, and write pertinent papers, all of which are required in order to receive a Trade Licence. After that, the papers are handed out to the clients for their signatures. After the clients have signed the necessary paperwork, they are then returned to ABC together with the other documents that were requested of them.
The next step that ABC Partners takes to finish the application is to send in the application form together with any supporting documentation. ABC is also responsible for making the required payments of government fees to the relevant authorities and maintaining communication with that body in order to get a certificate of the Trade Licence. The legal professionals at ABC Partners have a positive working connection with government agencies such as BIDA and RJSC, which simplifies the process for their clients to obtain any certificate they require. In the event that the Licence expires, ABC will also offer the service of renewing it by completing the required procedures at the appropriate times.