How to obtain trade license in Bangladesh
Every type of business organization in Bangladesh requires a trade license. It is issued by the appropriate area’s municipal authority. Each local authority where a company works requires it to get a Trade License. If a company operates many locations, it must seek a Trade License from each local authority. It is valid for one year and must be renewed every year. The government charges a price for a trade license, which varies depending on the type of business.
The procedure for getting a Trade License for enterprises operating inside the Dhaka City Corporation region is outlined below. Similar laws apply to other municipal governments. For additional information, you should contact the relevant local government.
TRADE LICENSE FOR A COMMERCIAL FIRM
STEP 1: GET THE RIGHT FORM FROM THE RIGHT OFFICE.
Depending on the sort of company, the Dhaka City Corporation (DCC) offers two types of trade licenses. The “K” Form is required for a business firm. Despite the fact that all ten zone offices utilize the same K Form, a company must purchase the form from its own zonal office. It is distinguished from other zones by a seal and the initials of the officer selling the form. The form is Tk. 10 in price.
STEP 2: ASK THE LOCAL WARD COMMISSIONER FOR CERTIFICATION.
After completing the form, it must be presented to the local ward commissioner for approval.
STEP 3: COLLECT LICENSE BOOK BY TK. 50 AND SUBMIT APPLICATION TO DCCS ZONAL OFFICE WITH SUPPORTING DOCUMENTATION.
A rent receipt for the premises where the firm operates or, if owned, a municipal tax payment receipt must be submitted for the K Form. The following are some of the supporting documents:
- 3 copies of a PP-size photo of the owner
- Rent receipt or evidence of ownership of the premises
- Commercial Address is necessary
Step 4: WAIT FOR THE LICENSING SUPERVISOR’S INQUIRY (LS).
Following the filing of the form, the LS normally pays a visit to the business entity to double-check the information supplied.
STEP 5: PAY THE FEE AND RECEIVE THE TRADE LICENSE.
After the LS has completed their inspection, the business is sent to the DCC office to pay the set cost and obtain their trade license. The fee structure is determined by the type of business for which the application was submitted.
STEP 6: SUBMIT THE SIGNBOARD FEE
A signboard charge must also be paid when obtaining a trading license. The signboard fees will be 30% of the License cost for all sorts of businesses.
STEPS TO RENEW TRADE LICENSE:
The renewal procedure is rather simple, and there is no need for an inspection. When the trade license has to be renewed, the company must go to the LS.
STEP 1: PICK UP THE DEMAND BILL FROM THE LICENSE BOOK (THIS BOOK IS VALID FOR FIVE YEARS)
The LS fills up the details in a demand bill and provides the booklet to the firm after checking the expiration trade license. The demand bill is a four-page booklet that looks like a deposit slip from a bank. All of the pages have the same information: one is for the bank, and the other is for the company.
STEP 2: PAY THE APPLICABLE FEE AT THE DESIGNATED BANK
The license will be automatically renewed if you deposit money into the appropriate bank using a demand bill.