A trade
license is one of the most important documents if you are doing business in
Bangladesh. Under Bangladeshi law, it recognizes a person or organization as a
commercial entity. It also gives them the authority to perform any sort of
transaction. Needless to say, obtaining a trade license to conduct legal
business is a must.
Now,
You may be wondering how to get a trade license in Bangladesh and what kinds
are available. Here, Our post will cover all of the answers you need.
Types of Trade
Licenses
The business
license was introduced as an official document that could be used just once to
conduct any kind of commercial enterprise. After that, the process involved
various non-profit organizations, foundations, NGOs, and other similar
organizations. The Companies Act of 1994 outlines the rules and processes for
business licensing. It was further detailed in the Council Tax Ordinance 1986
and City Corporations Ordinance 1983.
According
to company, type, channel, and service sector, business licenses can be classified
into 1,200 different types. Where all of them are active according to the
current legal regulation.
However,
for convenience of understanding, commercial licenses can be broadly classified
into three types –
1. General Trade License
This
category of business licenses is used for almost every form of business
excluding manufacturing or trading business.
2. Commercial Trade License
Here,
This business license is necessary for anybody who wants to engage in
commercial operations such as retail establishments, etc.
3. Manufacturing Trade License
Manufacturing
companies must get a manufacturing license because these businesses usually
have factories or industries.
How to Get a Trade License in Bangladesh
There are
various measures you may take to get a trade license in Bangladesh. These steps are as
follows:
Step 1: Find out the Business
area
First,
identify your own business/area of operation to find out under which city
corporation you will operate your business. Accordingly, submit your
application to the responsible city administration.
Step 2: Collect Application
Form
Basically,
Dhaka City Corporation provides two types of business license forms, depending
on the type of business. In brief, To create a trading firm, fill out the K
form, and to start a manufacturing company, fill out the I form.
Firstly,
you have to contact the licensing officer at the relevant Dhaka City
Corporation office if necessary. Afterward, you have to collect the form from
City Corporation and fill it out as required. After completing the forms, you
must submit them to the local district commissioner for verification.
Read Also: What is E-Tender?
Step 3: Required Documents to
Obtain a Business License
You
need to have these listed papers to acquire a business license-
1. Copy of the
National ID card of the entrepreneur
2. Three (3)
Passport size Images
3. A copy of
Passport (in case of Foreigner)
4. Necessary
Information to fill up the Form
5. Holding Tax
payment receipt
6. Recent
receipt (papers) or ownership proof
7. 3 copies of
Passport size photos of the business holder (attested)
8. A
non-judicial stamp of Tk. 150/- for abiding rules of the city Corporation
9. Memorandum
& Articles of Association (for Limited Company)
10. Agreement of
partnership (If he/she has a partner)
11. TIN
Certificate of Individual and entity
12. Certificate
of Incorporation (For Limited Company)
13. Statement of
Bank Solvency (Full Clearance)
14. Work Permit
from Bangladesh Investment Development Authority (BIDA)
15. License from
Fire service & Civil Defence (Applicable for Industry)
After
the license Supervisor has reviewed it, you have to collect the license book
(LS). Then, the License Supervisor (LS) will normally visit your organization
after you submit your application to evaluate the information you have given.
After
completing the license supervisor’s verification. So, you need to proceed to
the Dhaka City Corporation office to pay the pre-determined sum and assess your
business license. The charge is decided by the category for which you have
applied for a trade license. Therefore, When picking up the trade license, a
registration fee must be paid. The signing cost for trade licenses is 30% of
the trade license charge.
Procedure
The
application form must be obtained from the responsible city administration or
municipal office by the applicant, afterward, the applicant must submit the
completed tax officer application form along with the supporting papers which
will be examined by the licensing department Supervisor. Upon payment of the
required fees to the local government or appropriate municipal office, the
applicant will be issued the business license.
Time Limit
The
expected turnaround time for issuing a license is generally 3-4 business days;
however, it may vary depending on the nature and type of business.
Scheduled Government Fee
·
The registration fee is BDT 10.00.
·
The license fee varies usually from BDT 100.00 to 40,000.00
depending on the type of license and type of business.
·
For limited partnerships, the license fee is determined based on
paid-up capital.
Application Process for E-Trade
License
E-Trade
Licensing helped in the digitalization of Bangladesh’s business licensing
procedure. The E-Trade licensing system is used to get all three types of
trading licenses. Municipal corporations and appropriate zoning departments issue
business licenses within their jurisdiction.
To
begin the process, the applicant must go to the Division of Local Government’s
E-Trade License website. The applicant should then pick the “New Registration”
option. On the next page, there is a form for the applicant’s information. On
the following page, there is a form where you can enter the type of business
and other information. The candidate must accurately fill in the information in
the corresponding field.
A digital copy of the above-mentioned attachments must be
uploaded with the application, depending on the kind of business license. The
application will be resubmitted for evaluation after the procedure is completed
successfully. At the same time, the applicant will receive a tracking number that allows them to follow the status of their application.
Following
verification, the applicant must pay the applicable charge and obtain an online
copy of the provisional license. From the same website, applicants may renew,
reissue, and even cancel their business license.
Final Word
The trade license is an important document that permits anybody
in Bangladesh to lawfully conduct business and other activities. Hence, To prevent legal difficulties, a license must be obtained by all interested businesses. If
you want to establish a business in Bangladesh but don’t know where to start
then you can take help from S&F Consulting Firm. Here, They have been
assisting clients in establishing businesses abroad since 2012.
The S&F
consultancy firm has skilled people that can help you prepare all of the
paperwork needed to start a business in any country, including Bangladesh.
Their service rates are lower than others because they constantly maintain
client satisfaction.
This article originally published at techbillions.com
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