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Procedure to Obtain All The Types of Trade Licenses in Bangladesh

How_to_obtain_trade_license_in_bangladesh

This is an overall guideline stating the procedure to obtain all types of trade licenses in Bangladesh, from manufacturing to trade businesses, this guideline will help you understand the types of trade licenses required for your business and step by step procedure as to how to obtain a trade license in Bangladesh. It shall also lay down the procedure to obtain the suitable trade license for your businesses in Bangladesh. 

In this guideline we shall provide you with a step by step procedure for obtaining trade licenses in Bangladesh, starting from explaining what trade license is, and what are the reasons why one must have trade license to do business in Bangladesh and how to obtain trade license in Bangladesh.

What is Trade License in Bangladesh and Why it is Required to Obtain Trade License in Bangladesh to do Business

Trade License or Business License in Bangladesh is a document which certify that you are permitted to do business on the specified field mentioned therein in the trade license. Therefore, it can also be called a business permit or business license in Bangladesh.

Businesses in Bangladesh let it be a Sole-Proprietorship, Partnership or a Limited Liability Company, all need a trade license to operate. Upon successfully incorporating/registering a company in Bangladesh, one must obtain trade license to proceed with the businesses in Bangladesh. 

One can obtain Trade License from the respective City Corporation Offices in Bangladesh or City Council offices in Bangladesh of the respective district. The legal basis as to how to obtain Trade Licenses in Bangladesh is found in Local Government (City Corporation) Act 2009 and Municipal Taxation Rules, 1986. 

In order to obtain the Trade License that is suitable and the right one for your business, it is important to choose the correct application form depending on the location of the businesses. Moreover, the process of obtaining a trade license is different for manufacturing and commercial business entities along with the checklist requirements of the business.

Types of Trade Licenses in Bangladesh

There are few different versions of trade licenses in Bangladesh, the types of trade licenses available in Bangladesh are mentioned below:

1. General Trade License

This is the category of trade licenses that can be used for businesses of all most all types except the Commercial or Manufacturing businesses.

2. Commercial Trade License

This trade license is required for an individual or a separate legal business entity that wishes to conduct commercial businesses, such as retail stores etc.

3. Manufacturing Trade License

The manufacturing trade license is required for businesses who are involved in manufacturing businesses. Such businesses usually have factories or industries.


The Step by Step Procedure as to how to for Obtain a Trade License for General Businesses in Bangladesh

Procedure_for_obtaining_trade_license_for_general Business_in_bangladesh

Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for General Businesses, as follows:

Step 1 | Collecting the required Application Form from the City Corporation or Municipality Office.

Step 2 | Fill in the Trade License application form.

Step 3 | Arrange the copies of the required documents.

Step 4 | Submit the filled-in application form and required documents to the concerned office.

Step 5 | Verification of the application and supporting documents by the Licensing Supervisor.

Step 6 | Next, the Required fees shall be deposit at the concerned office.

Step 7 | If the Concerned Authority is satisfied after verification, it shall issue a Trade License Certificate to the applicant.

Step 8 | Collection of Trade License Certificate form the City Corporation/ Municipal Corporation.

Required Documents for Obtaining General Trade License in Bangladesh

    1. Prescribed Trade License Application Form
    2. A National ID Card of the Owner
    3. 3 Copies of the Passport Size Picture of the Owner
    4. A Holding Tax Payment receipt 
    5. A company Incorporation Certificate
    6. A certified copy of the Memorandum of Association and Articles of Association
    7. A VAT registration certificate.
    8. Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad
    9. Copy of Financial/Bank Solvency Certificate of the company
    10. Tax Clearance Certificate (TIN)
    11. An Agreement of Partnership
    12. Work Permit from Bangladesh Investment Development Authority (BIDA)
    13. Copy of Passport if the director is a foreigner.
sample_trade_license_Bangladesh
Sample of a Trade License Certificate in Bangladesh | This is how a Trade License Certificate looks in Bangladesh

The Step by Step Procedure for Obtaining Trade License for Commercial or Corporate Businesses in Bangladesh

Step_by_Step_Procedure for_Obtaining Trade_License_for_Commercial_or_Corporate_Businesses_in_Bangladesh

Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for Trade Businesses, as follows:

In order to understand the procedure as to how to obtain trade licenses in Bangladesh Commercial or Corporate entities or businesses, firstly, the “K” Form shall be collected from the Dhaka City Corporation (DCC). The K form is used by ten zoning offices, which shall be obtained from the respective zoning office depending on its location. However, the initials and the seal of the officer selling the form are what separates it from those of the other regions. The form will cost as low as Tk. 10.

Step 1 | Collecting the proper form from Dhaka City Corporation. (K form shall be obtained from the respective zonal office)

Step 2 | Fill in the Trade License application form "K".

Step 3 | Arrange the copies of the required documents.

Step 4 | Submit the filled-in application form and required documents to the concerned office.

Step 5 | Verification of the application and supporting documents by the Licensing Supervisor.

Step 6 | Next, the Required fees shall be deposit at the concerned office.

Step 7 | If the Concerned Authority is satisfied after verification, it shall issue a Trade License Certificate to the applicant.

Step 8 | Collection of Trade License Certificate form the City Corporation/ Municipal Corporation. License book shall be collected by Tk 50 and application shall be submitted along with supporting documents. 

Step 9 | Payment for the signboard fee. (shall charge 30 percent of the license fee for all types of business)

Required Documents for Obtaining Trade License for Commercial Entities in Bangladesh

  1. 3 copies of Passport size photo of the owner.
  2. A National ID Card of the Owner
  3. A Rent receipt or premises ownership proof
  4. A Holding Tax Payment receipt
  5. A company Incorporation Certificate
  6. A certified copy of the Memorandum of Association and Articles of Association
  7. A VAT registration certificate.
  8. Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad.
  9. Copy of Financial/Bank Solvency Certificate of the company.
  10. Tax Clearance Certificate (TIN)
  11. An Agreement of Partnership
  12. Work Permit from Bangladesh Investment Development Authority (BIDA)
  13. Copy of Passport if the director is a foreigner.

The Step by Step Procedure for Obtaining a Trade License for Manufacturing Businesses in Bangladesh

Step by Step Procedure for Obtaining_a_Trade_License_for_Manufacturing_businesses_in_Bangladesh

Followings are the step by step procedure as to how to obtain trade licenses in Bangladesh for Manufacturing Businesses, as follows:

In order to understand the procedure as to how to obtain Trade Licenses in Bangladesh for Manufacturing entities, firstly, Form “I” shall be collected from the Dhaka City Corporation (DCC) zonal office, where the application has to be submitted.

Step 1 | Collecting the “I” form from the Zonal Office of the DCC.

Step 2 | Arrange the copies of the supporting documents.

Step 3 | After completing the application, it shall be sent for approval to the local ward commissioner.

Step 4 | Then Licensing Supervisor shall verify the information’s provided, by visiting the business entity.

Step 5 | After the verification is conducted by the Licensing supervisor, A predetermined fee shall be paid which depends on the class under which the application was made.

Step 6 | Payment for the signboard fee. (shall charge 30 percent of the license fee for all types of business)

Step 7 | Obtain the Trade License Certificate form the City Corporation.


Required Documents for Obtaining Trade License for Manufacturing Company

  1. 3 copies of Passport size photo of the owner.
  2. A Rent receipt or premises ownership proof.
  3. No objection certificate (NOC) from the neighbourhood. 
  4. A written undertaking on a Tk 150 non-judicial stamped paper.
  5. A Fire License from the local fire department and an Environmental Certificate from DOE.
  6. A Holding Tax Payment receipt
  7. A company Incorporation Certificate
  8. A certified copy of the Memorandum of Association and Articles of Association
  9. A VAT registration certificate.
  10. Declaration on non-judicial stamp to abide by the rules and regulations of City Corporation/Municipality/Union Parishad
  11. Copy of Financial/Bank Solvency Certificate of the company
  12. Tax Clearance Certificate (TIN)
  13. An Agreement of Partnership
  14. Work Permit from Bangladesh Investment Development Authority (BIDA)
  15. Copy of Passport if the director is a foreigner.

Summary of the Procedure for Obtaining Trade Licenses in Bangladesh

Dhaka North and Dhaka South provide different application forms depending on the location of the business. For example, if the business entity is located in Dhaka South Zone, then the application form shall be collected from the South zone office. 

Also, Dhaka City Corporation offers two kinds of trade license Forms, depending on the type of business. The process to obtain a Trade License for manufacturing and commercial business entities may differ a little bit along with the list of documents.  

For setting up a commercial firm, K-Form shall be collected, whereas, for manufacturing companies, the "I” Form is used. For a commercial business, a rent receipt for the premises where the business is operating and a municipal tax payment receipt has to be provided along with other documents, which is not required in the case of Manufacturing business entities. 
Moreover, the Manufacturing company’s needs to provide NOC, fire and environmental license as supporting documents, whereas the commercial firms do not require to obtain such licenses. In addition to this, The Licensing Supervisor completes verification by visiting the Manufacturing business establishment, which is not mandatory in the case of corporate entities. 

How FMA Assist You on obtaining Trade Licenses in Bangladesh

To obtain the Trade License in Bangladesh, the services of FM Associates can provide are as follows:

  • FMA has an excellent and competent team that can proceed in obtaining Trade License efficiently. The legal advisors of FMA can assist the clients through consultations and meetings and ask them to provide necessary documents-NID, Incorporation certificate, photographs, MOA/AOA, etc. to apply for Trade License. Depending on the type of Company or Establishment documents are collected for application.
  • As the procedure for obtaining trade license for commercial and manufacturing business entities may differ a little bit, FMA legal team can assist the client by filing a trade license application in the correct office along with the right supporting documents.
  • Legal experts in FMA can prepare, collect and draft relevant documents, which are necessary to obtain Trade License. The documents are then shared with the clients for execution. After the execution of documents by clients, it is then sent back to FMA along with the other required documents.
  • FMA then completes the application by submitting the application form along with supporting documents. FMA also makes necessary payments of Government fees to the concerned authority and liaise with them to obtain the certified copy of the Trade License.
  • FMA, legal experts have a good working relationship with government offices; for example, BIDA and RJSC, which makes it easier to obtain any certificate.
  • FMA also provides services of renewing the License, if it expires by taking necessary steps at the right time.