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Every 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.
The key to forming a legal entity in Bangladesh is a trade license. It is the primary proof of the legitimacy of your business as per the Local Government (City Corporation) Act 2009. Whether you are a sole proprietorship or a Limited Company (LLC), no commercial transaction is legal in Bangladesh without this license.
Key Facts at a Glance:
The type of license and compliance varies based on the business sector. Applying in the wrong category can lead to major legal complications while opening a bank loan or LC.
Bangladesh Consultant essentially relieves entrepreneurs from this bureaucratic complexity. We work directly with you to select the right category for your business type, fill out forms (K-Form or I-Form), and ensure the necessary environmental or fire clearances.
Trade licenses in Bangladesh are mainly divided into three categories according to the nature and scope of business activities.
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.
Short list of documents that might be required of you depending on the type of business you are performing in Bangladesh. These include:
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:
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.
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.
Obtaining a trade license depends on the geographical location of the business and the relevant zonal office. In city corporation areas like Dhaka, Chittagong or Sylhet, the application form has to be collected from the specific regional office. The form varies according to the type of business: ‘K’ form is prescribed for commercial establishments and ‘I’ form is prescribed for manufacturing industries.
In case of manufacturing or manufacturing units, fire license, environmental clearance and NOC of the ward commissioner are mandatory. While inspection is optional for commercial establishments, physical inspection by the licensing supervisor is a mandatory legal step for manufacturing establishments.
The local government department operates the e-Trade License system for issuing licenses in a digital process. On this platform, entrepreneurs can upload digital files by providing personal and business information through the “New Registration” option. If the application is successful, a tracking number is provided, which can be used to verify the processing status.
After online verification and payment of prescribed government fee, it is possible to download an electronic copy of the temporary license. This portal is also used for applications for license renewal, correction of information or cancellation.
In case of manufacturing or manufacturing units, fire license, environmental clearance and NOC of the ward commissioner are mandatory. While inspection is optional for commercial establishments, physical inspection by the licensing supervisor is a mandatory legal step for manufacturing establishments.
Bangladesh Consultant ensures the fastest possible trade license through skilled legal consultants and experienced staff. We provide direct assistance to entrepreneurs in collecting, verifying and selecting the correct category for the required documents (NID, Certificate of Incorporation, MOA/AOA).
We collect, compile and draft the necessary legal documents for the application. After the client signs, our team submits all the documents to the concerned department.
We handle different licensing processes for commercial and industrial organizations. Our professional coordination with government agencies like BIDA and RJSC makes the work of the client easy.
We directly complete every step from payment of government fees to collection of the final trade license certificate.
We complete the renewal process before the expiration of the license and provide legal assistance regarding any type of tax litigation.
Contact our expert team today to get the right and fastest trade license solution for your business. We handle your legal complexities so you can focus on growing your business.