Any business in Bangladesh requires a trade license. It is a license issued by your municipal or local city corporation. This license will enable you to run your business in that region with legal authorization. You require it to open a bank account and other permits. Your local government office deals with the process. You should apply it to operate your business without any legal difficulties.
Legal Advice BD is here with a comprehensive guide on how to get a trade License in Bangladesh! Let’s get started!
Why Should You Get a Trade License in Bangladesh?
Legal Permission to Operate
A trade license is a legal authorization. It provides you with an authoritative right to conduct business. You obtain it through your municipal or city corporation. It is unlawful to operate without this license.
It is subject to punishment, fines, or even the closure of your business. The license certifies that your business is using the local zoning regulations.
Legal Requirement
A trade license is mandatory under the law. It is mandated by the ordinances of city corporations and municipal laws. Without it, you cannot get other important documents.
As an example, you require it to open a corporate bank account. You also require it to secure a loan for your business. It is a general legal document for all businesses.
Renewal and Compliance per Annual
A trade license is not a single document. You must renew it every year. This is a process of renewal that keeps your business in check. It assures you that you are abiding by local health, safety, and fire rules.
Frequent renewal helps to keep your business in fine legal shape. It does not have issues with the local government authorities.
Development of Trust and Credibility
Being licensed is a source of trust. It helps customers and partners realize that your business is not fake. It contributes to the credibility of your company. Individuals treat you as a stern and legal business owner.
It is a trust that you need to expand your business and attract new customers. It is one of the most important components of your business.
What Documents Do You Need to Get a Trade License in Bangladesh?
Identity and Address Proof
You must carry a copy of your National ID card (NID). A certificate on mutation of a tenement (Tenement certificate) should be furnished by the landlord. This certifies that you can use the address in business. An up-to-date utility bill of the address is also needed.
Indications of Legitimacy in the Business
You have to demonstrate that the business is lawful. In the case of a company, submit the Certificate of Incorporation to the RJSC.
In the case of a partnership, give the deed of the partnership. A single owner may apply their TIN certificate. This is one of the pieces of evidence that the business is an established legal entity.
Completed Application Form
You have to complete the official application form. Obtain this form at the office of the local city corporation or a local municipality. The shape requests simple business information.
It contains business name, type, and owner information. This form should be submitted together with other documents.
Start your trading business confidently with our detailed guide How to Obtain an Export Import License in Bangladesh?
How To Get a Trade License In Bangladesh: Explained
1. Determine the Right licensing Authority
Depending on your business location, your licensing authority is determined. You have to apply to the office that regulates your locality. Big cities such as Dhaka have City Corporations. These are divided into areas such as DNCC or DSCC. Smaller towns are governed by local municipalities, called Pourashava.
Application in the wrong office will lead to delays in the law. Never forget to always ensure that you first establish your local jurisdiction. This will see to it that your application is done without going through unnecessary legal cases.
2. Get ready for the Required Legal Paperwork
There are certain documents that you need to bring to your application. These are the legal evidence of your identity and business rights. You must carry a copy of your National ID card. You need a Tenement Certificate from your property owner. This is an indication that it was granted to use commercially.
The existence of a business is also needed. Businesses require a Certificate of Incorporation. Sole proprietors are to submit their certificate of TIN. You also need a recent utility bill to the address to be verified.
3. Fill the Application Form Correctly
Get the official form at your local office or website. Write all information with care. Your business name and your activities should be in line with your other documents. Any mistake will be subject to legal rejection.
Turn in the form together with your entire documentation. This is a full submission of your legal request to operate. It should be precise to comply with the government requirements.
4. Make the obligatory Government payments
When you apply, you will be required to pay fees. The price will vary depending on your business type and size. The office will advise you of the amount. You will receive a formal receipt for payments.
Keep this receipt carefully. It is your financial record of payment. And this completes your application by local government rule.
5. Pass Inspection and Renew Yearly
An officer can come and inspect your business address. They check the application details of yours. Your trade license is issued after approval. This license lasts no more than a year. It has to be renewed before the expiry date.
The renewal needs payment of the fee and updated documents. This makes your business lawful and evades fines. The major legal obligation of every business owner is renewal on an annual basis.
Learn the registration process and legal steps in our How To Open A Limited Company In Bangladesh guide.
Conclusion
Obtaining your trade license is a major step. It registers your business with the local government. Always remember to apply under the local authority to which you are addressing. Keep your license secure and renew it before expiry. This will guide you through the obstacles of penalties and make sure that your business can run well and lawfully. It is a very simple, though significant requirement.
Hopefully, this guide on how to get a trade License in Bangladesh has been useful!