How To Get Trade License In Bangladesh (Complete Guideline)
Dec 26, 2020
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Introduction
Business is one of the most important ways to increase the economy of the country. But anybody cannot do business whenever they like. They need to go through a legal procedure abided by the government. And that is known as a trade license.
In this article, you will get to know how to get a trade license in Bangladesh without any hassle. But the process does not stop here as you need to renew it every year. The fee of making a trade license is also affordable.
Moreover, you can get trade services from single platform like City Corporation or Chairman Office. Go to the nearest forum from your business site.
Importance Of Trade License
A trade license is essential for those who want to get launched in the business world for the first time. Without this, the people interested in open business cannot step their foot forward to start their journey in this field. If they do so, this will be recognized as illegal.
The government of our country has made this procedure mandatory to be done to start an open business. Moreover, it is being followed for the last forty years and is regulated by the municipal corporation.
It has been made compulsory to eradicate immoral business practices. This license is proof that all business owners follow the same guidelines and rules to run a business. Through this, the government can also control numerous trade actions in the country.
The main objective to issue this is to control the areas by limiting the people from performing certain business from their residents to maintain the locality environment and business environment.
How To Get Trade License In Bangladesh
The procedure of getting a trade license in Bangladesh is not that much hard. You just need to follow a few steps to get this document in your hand and start the business. Keep reading if you are also about to start a fruitful business.
Find A Business Area
Initially, you will have to find out a business area in which City Corporation you want to set your business. Then you need to apply to the city corporation office.
Collect Application Form
Dhaka City Corporation gives two sorts of trade license forms based on the business type. To set up a commercial firm, you need "K-Form," and for a manufacturing company, you will need "I-Form."
If you are still confused about the license type, you can communicate with a Dhaka City Corporation's license officer. After that, collect your required "form" from the City Corporation and fill it up as instructed. Next, the Form needs to be verified by the local ward commissioner.
Documents For Getting A Trade License
A candidate requires the following documents:
- Photocopy of National ID Card (NID)
- Photocopy of Passport (if available)
- Three passport size photograph
- Tax payment receipt
- Ownership proof of the business holder
- A non-judicial stamp of TK. 150
- Partnership agreement (if any)
- TIN Certificate
- Memorandum and incorporation certificate (for Limited Companies)
- Bank Solvency Statement
- Work authority from Bangladesh Investment Development Authority (BIDA)
- Civil Defence and Fire Service License (for industries)
Collect License Book After The Inspection
After the form is submitted, the Licensing Supervisor (LS) visits the business site to verify the provided information. Once the inspection is completed, the business owner is asked to pay the DCC office's predetermined fee. And then they will get their trade license.
The fee is based on the business type under which the Form was filed. Moreover, when collecting the trade license, they will have to pay a signboard fee, which is 30% of the license fee.
How To Renew Trade License
Everything expires over time. So do the trade license. Basically, the trade license is issued for one year and needs to be renewed annually. It is also essential for you to know the renewal process of a trade license if you are new.
Deposit Slip Of Trade License
With the trade license, a deposited slip is given. After the end of June month, every year, the trade license should be renewed.
Pay The Fee At Sonali Bank
The renewal fee should be deposited to the Sonali Bank, and your license will be renewed automatically.
Conditions For Getting Trade License
There are a few conditions applicable for getting a trade license. They are:
- One needs to be above 18 years old
- The candidate must not have any illicit record
- The business must be legal
If you fulfill all the above terms and want to be an entrepreneur, apply for a trade license within no time. Within the metro cities, you will get it between 7 to 10 days, whereas, in small towns, it may take a little longer.
The Bottom Line
A trade license is an essential document to start a business legally, whether alone, limited company, or in partnership. According to your business site location, you need to go to the Chairman Office or City Corporation Office to get your trade license. Moreover, you should not forget to renew it every year within the June month as the business year is from June to July.
Therefore, from the above information, you have already known How To Get Trade License In Bangladesh. In the early days, it was somewhat challenging to get a trade license. But now, with the blessing of the internet, any entrepreneur can know everything about a trade license in detail within no time.