TRADE LICENSE PROCESS AND COST
Obtaining a business license is the first stage in starting a business. In order to conduct business in Bangladesh, formal authorization from Dhaka City Corporation or a municipal office (Union Parishad, pouroshava, Upozilla, or Zilla parishad) is required. This permission is granted as a Trade License. This text describes the procedure and cost for obtaining a commercial license in Dhaka, Bangladesh.
FIRST STEPS:
Bangladesh’s City Corporation Taxation Rules 1983 and Municipal Taxation Rules 1986 stipulate the legal basis for this requirement in order to obtain a Trade License. It is issued when a business visionary is linked via the license structure/form. In Bangladesh, conducting commerce without an exchange permit is illegal.
To successfully obtain a foreign exchange license, the entrepreneur must use the correct application format and submit an application to the relevant authority’s office. For example, Dhaka City Corporation is divided into north and south sections. The candidate will be required to select the appropriate structure based on the location of the business. Begin by obtaining the legal authorization and business license from the City Corporation or City Council of the applicable business zone. The cost of obtaining a business license is BDT 2,000.
PROCEDURE:
The procedure is supervised by the City Corporation or city committee in the location where the enterprise is located. A permit is issued solely for the licensee’s benefit and cannot be transferred. The licensee will not use the permit for anything other than the reason and nature of calling, commerce, or calling for which it was issued. The concerned personnel of the zonal tax collection office issues a renewed Business License. An expenditure for a foreign exchange permit must be maintained at any bank, as indicated on the Trade License application/structure.
The list of required archives for obtaining a commerce license is as follows:
- Dhaka City Corporation Application Form (North Form) or (South Form)
- National identification certificate of the business owner
- A recent receipt or confirmation of ownership
- Recent photograph of the entrepreneur in passport size Work Permit from the Board of Investment Statement of Bank Solvency & TIN Certificate
ADDITIONAL DOCUMENTS REQUIRED FOR TRADE LICENSE:
- In the case of a standard Trade License, an attested copy of the rent receipt or rental agreement, as well as a copy of the Holding Tax payment confirmation, are required.
- In the case of a Trade license for industries – Everything mentioned in serial number 1 plus the following:
- No objection notice on the adjacent Location Map
- Fire certificate copy
- Statement on non-judicial stamp of tk 150/to comply with DCC rules and regulations.
- In the case of a Clinic or Private Hospital, the Director General of Health must grant permission.
- In the case of a Limited Company: Articles of Association Certificate of Organization
- In the event that Printing Press and Residential Hotel Permission is Required from DC
- In the case of Recruitment Agencies, a license from the Manpower Man-power Export Bureau is required.
- In the event of Arms and Ammunition – Arms License Copy.
- In the case of drugs and narcotics, please provide a copy of your drug/narcotics license.
- In the instance of Travailing Agency – Civil aviation authority approval.
PROCESSING TIME LIMIT:
The estimated Processing Time for issuing the license is three to four business days, but may vary depending on the type of business.
RESERVED ADMINISTRATION PAYMENT:
The fee for submission is BDT 10.00.
The license fee ranges from BDT 100.00 to BDT 40,000.00 depending on the character and type of business.
The License fee for a Limited Company is determined by the amount of paid-in capital.
RECERTIFICATION OF BUSINESS (COMMERCIAL COMPANIES):
Licenses for conducting business must be renewed annually. The required documents are a License Book, which is issued at the time of obtaining a Trade License, a Challan Book, evidence of rent and ownership, and a TIN Certificate.
The candidate is required to store the scheduled charges at the designated bank as part of the renewal strategy. If the various requirements are fulfilled, the relevant zonal office of the City Corporation or Municipality will complete the restoration process after receiving the charge receipt.
All Business Licenses in Bangladesh
Once a company is registered or is about to register, it is absolutely essential that the person in charge should know the business niche and comply in a much-needed legal manner in order to avoid challenges. For example, if a business that may have an impact on the environment has to procure a company’s relevant licenses, permits and certificates in Bangladesh. We at TR Barristers in Bangladesh Associates provides Company and Corporate Legal services to help acquire such Licenses.
