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Trade license in Bangladesh 2023

Trade License in Bangladesh

The first step to open a business in Bangladesh is to get a trade license. Without Trade License none can open a business in Bangladesh.  Trade license can be obtained from the Government of Bangladesh under City Corporation or Union Parishad.

What is a Trade License and why is it required?

Trade license was introduced in Bangladesh through City Corporation Tax Provision – 1973. These licenses are issued on the basis of the application of the entrepreneurs. The first and integral document of business is the trade license. There are many successful entrepreneurs/businessmen in our country who are doing business without a trade license but it is completely illegal and against the law. So, the first steps for entrepreneurs/businessmen to get a trade license from the competent authority. Trade means business and license means permission, that is, trade license means business license. This trade license is issued by the Government of Bangladesh under the City Corporation Taxation Rules, 1983. Since this trade license is issued from a government organization, this trade license is a symbol of the legitimacy of your business. Trade Licenses in Bangladesh are found in the Local Government (City Corporation) Act 2009 and Municipal Taxation Rules, 1986.

Three types of trade licenses available in Bangladesh. There are a) General Trade License, B) Commercial Trade License, and C) Manufacturing Trade License.

A) Required Documents & steps to be followed for General Trade License

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.

Required Documents:

1. Specific application forms must be filled.

2. Receipt of updated holding tax of City Corporation if the place of business is private, utility

bill if own shop, and attested photocopy of the rental agreement on the stamp of Taka. 300 if the

business is rented.

3. 3 passport size photos of the applicant.

4. If the business is run jointly, then on a non-judicial stamp of Taka. 300 PartnerShip

Commitment / Terms must be submitted.

5. A National ID card of the owner.

6. A Company Incorporation Certificate.

7. Tax Clearance Certificate (TIN)

8. Work Permit from Bangladesh Investment Development Authority (BIDA) 

B) Commercial Trade License.

Step 1: Collecting the proper (K) form from Dhaka City Corporation.

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.

Required Documents:

1) Copy of clearance from the Department of Environment.

2) Design / location map with details of proposed factory / factory surroundings / installation.

3) No objection letter from the owner of the proposed factory/factory side location/installation.

4) Clearance of fire service.

5) 3 passport size photos of the applicant.

6) A VAT Registration certificate.

7) A National ID card of the owner.

C) Manufacturing Trade License.


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 the Licensing Supervisor shall verify the information provided, by visiting the business entity.

Step 5: Obtain the Trade License Certificate form the City Corporation.

Required Documents:

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 neighborhood.

4. A Fire License from the local fire department and an Environmental Certificate from DOE.

5. A Holding Tax Payment receipt

6. A company Incorporation Certificate

7. A certified copy of the Memorandum of Association and Articles of Association

8. A VAT registration certificate.

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.

Fees for Trade License?

The fee for a trade license is determined by a special notification from the Local Government Department, Municipality-1 Branch of the Ministry of Local Government, Rural Development,and Cooperatives. Trade license fees are determined based on the type of business. Informationabout this can be obtained from the local authorities.

Who can get the Trade License in Bangladesh ?

Both men and women must have a trade license but must be involved in some business. He/she must be atleast 18 years old.

Does a Trade License allow for multiple businesses?

No, a trade license applicable to a business only, meaning that the trade license for which the business is conducted may be used only for the conduct of that business and may not be used for any other type of business. If you want to start a new business, you need to get a new trade license.

Would a license allow the use of more than one person?

No, a trade license can only be used by a trader/entrepreneur, which means that it is only applicable to the trader/entrepreneur in whose name the trade license has been issued. It is not transferable in any way.

How and where from to renew the license?

The trade license is renewed from the office from which the trade license is issued. Trade licenses are usually issued for 1 year. Trade licenses have to be renewed.

If you need any help, please contact us.

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