To start a business in Bangladesh, the very first step is to obtain a Trade license from local authority — City Corporation, Municipality, or Union Parishad based on your business location. A valid Trade license is the gateway of your business and you need to renew it to continue the business.

What is a Trade License?

A trade license is a legal permit required to operate any business in Bangladesh, issued by City Corporations, Municipalities, or Union Parishads under the City Corporation Taxation Rules 1983 and Municipal Taxation Rules 1986. It certifies compliance with local laws, enhancing credibility and protecting against penalties. Operating without one is illegal, risking fines or closure. Dhaka Consulting ensures your business secures the right license efficiently, whether for a retail shop, manufacturing unit, or service-based firm.

Why is a Trade License Important?

A trade license is essential for:

  • Legal Compliance: Ensures adherence to Bangladesh’s regulations, avoiding legal issues.
  • Credibility: Builds trust with clients, partners, and banks, often required for opening business accounts.
  • Access to Opportunities: Enables participation in government tenders and contracts.
  • Protection: Safeguards intellectual property and business identity.

Dhaka Consulting simplifies the process, ensuring compliance with minimal hassle.

Types of Trade Licenses in Bangladesh

Bangladesh offers three types of trade licenses, each suited to specific business models:

  • General Trade License: For small to medium businesses (e.g., retail, services) meeting minimum revenue thresholds.
  • Commercial Trade License: For businesses like retail stores or trading firms, requiring the “K” form from Dhaka City Corporation.
  • Manufacturing Trade License: For factories or industries, requiring the “I” form and additional permits like fire licenses.

Dhaka Consulting guides you in selecting and obtaining the appropriate license for your business.

How to Obtain a Trade License with Dhaka Consulting

Dhaka Consulting streamlines the trade license process for seamless compliance:

General Trade License

  1. Collect the application form (BDT 10) from the City Corporation, Municipality, or Union Parishad.
  2. Fill out the form with accurate business details.
  3. Submit with required documents (see below).
  4. Await verification by the Licensing Supervisor.
  5. Pay the license fee (BDT 100–40,000, based on business type) and signboard fee (30% of license fee).
  6. Receive your trade license within 3–7 days.

Commercial Trade License

  1. Obtain the “K” form from Dhaka City Corporation’s zonal office.
  2. Complete the form and attach required documents.
  3. Submit to the Taxation Officer for verification.
  4. Pay the applicable fee and collect your license.

Manufacturing Trade License

  1. Collect the “I” form from Dhaka City Corporation’s zonal office.
  2. Submit the form with documents, including BIDA work permit and fire license.
  3. Obtain local ward commissioner approval.
  4. Await Licensing Supervisor’s site inspection.
  5. Pay the fee and collect your license.

Our team at Dhaka Consulting handles all steps, ensuring accuracy and efficiency.

Required Documents for Trade License

Documents vary by business type but typically include:

  • Completed application form (K or I form for commercial/manufacturing).
  • National ID (for Bangladeshi applicants) or passport copy (for foreigners).
  • Three passport-size photographs (45mm x 55mm).
  • Memorandum and Articles of Association (for limited companies).
  • Rent agreement or ownership proof with tax payment receipt.
  • Bank solvency certificate.
  • Non-judicial stamp (BDT 150) for compliance declaration.
  • Work permit from BIDA (for foreign businesses).
  • Fire license and environmental clearance (for manufacturing).

Dhaka Consulting ensures all documents are prepared and submitted correctly.

Renewal Process

Trade licenses are valid for one year and must be renewed by June 30 annually to avoid penalties (50%–70% of original fee). The process includes:

  1. Collect the demand bill from the license book.
  2. Submit the license book, challan book, TIN certificate, and ownership proof.
  3. Pay the renewal fee at a designated bank.
  4. Receive the renewed license within 1–2 days.

Dhaka Consulting manages renewals, ensuring timely compliance.

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