Do you know Trade License Importance in Bangladesh as a foreigner?
Yes, Trade license is such a license that you never ignore.
When can apply of Trade License, at the beginning of start business?
There are two ways Trade License need to start a business:
B) Limited Company.
For information, foreigners are not eligible to apply as a proprietorship. So, private and public limited is an option to open for the foreigner. Proprietor-businessmen can apply directly to obtain without RJSC approval.
Limited Company-owned will apply of trade license after company incorporation. There might have a question; business can start up without trade license? The answer is NO.
Read Also: The process of company registration in Bangladesh
- 1 Steps of Trade License in Bangladesh
- 2 Documents required for obtaining a trade license
- 3 Cost of Trade License in Bangladesh
- 4 Time of Trade License obtain in Bangladesh
- 5 Problems of obtaining Trade License in Bangladesh for Foreigner
- 6 Authority
- 7 License application form
- 8 License renewal
- 9 Trade license for commercial firm
- 10 Trade license for a manufacturing firm
- 11 License Matrix of Sole, Limited and Proprietorship company
- 12 Frequently Asked Question (FAQ)
- 13 Conclusion
Steps of Trade License in Bangladesh
- Collect form from city corporation and fill up as need
- Contact license officer and speak to clear
- Or, contact expert of S & F CONSULTING FIRM LIMITED
- Make payment in Government bank, recommended Sonali Bank
- Wait for 2-3 days unless verification is done
- Sometimes Trade License can obtain by 1-2 days (not for foreigner)
- Miscellaneous cost must remember to pay
Documents required for obtaining a trade license
Various types of document are needed in order to obtain trade license. In this section I am going to highlight all the necessary document that is required for trade license registration—
- You need to collect trade license application Form Dhaka City Corporation.
- If you are a foreigner you must need a copy of your passport.
- Receipt of ownership evidence & tax payment receipt.
- 3 passport size photographs (Width-45mm, Height-55mm)
- Statement of Court, Printing for Compliance with the Rules and Regulations of City Corporation.
- Articles of Association (AoA) & Memorandum of Association (MoA)
- Incorporation Certificate
- Agreement paper of partnership
- Work Permit certificate or document from the board of investment of Bangladesh.
- Bank Solvency i.e. statement
- TIN Certificate
Visit www.dscc.gov.bd for e-trade license
Cost of Trade License in Bangladesh
Chalan form- Collect a form from Government Sonali Bank at the nearest branch (TR Form No. 6 that is SR 37). Fill up form as –
- Chalan No
- Certain district
- Place of bank branch
- Code no. 1-1133-0010-0311 for Dhaka City Corporation
- Name and address on company
- Person or company name and address on behalf
- New license or renewal
- Cash, cheque, Draft
- Amount in Taka
Note: Amount of Taka 350-10,000 depend up on nature of business.
City Corporation tax department-They will deduct an amount of Taka 200—and above in receipt book. Amount of Taka 2310 to above will deduct in another Chalan form with bank receipt copy.
Miscellaneous-Without speed money file runs like a turtle. Now the question is how much is that? I guess three times more than government fees, as manageable.
Time of Trade License obtain in Bangladesh
Generally, it takes 2-3 working days if all are OK. But if the area is rural where need to get from Union Porishad might 1 day is enough.
Problems of obtaining Trade License in Bangladesh for Foreigner
Lot of problems if the applicant is foreigner. We welcome them but not allow to have sit. Problems from A-Z if the company is foreign shareholders. Major problems are as follows: –
- Require Work Permit
- Cost is not same like local
City Corporation and Union Porishad are eligible to deliver Trade License.
License application form
Collect form from any city corporation office at your office nearest place. Fill up information as need: –
- Name of application
- Passport/ NID number
- Present and permanent address
- Business address (in commercial place)
- Contact number and email
- Paid up and authorized capital
- Nature of business (3-5 items)
- Number of applicant (alone/ joint)
Issuance license is valid for one year and renewal must before December. Pay renewal fee whether business start up or not.
Procedure for renewal
The applicant is required to deposit the prescribed fees at government bank. Upon receipt of the fee, the City Corporation or the relevant District Office of the Municipality will complete the renewal process.
If the all the requirements are met your license will be successfully renewed.
Trade license for commercial firm
Depending on the type of business, Dhaka City Corporation offers two kinds of trade license Forms. For setting up a commercial firm, you must use K-Form.
The K-Form are available within the respective zonal office. The cost of the of the Forms is TK 10 which may vary for the foreigners.
Once you complete the forms, you must submit it to the local ward commissioner for the verification. Once the audit is done, you must collect the license (cost you 50 to 100 taka) and submit the K-Form with necessary documents to the zonal office.
Upon submission of the papers, the licensing supervisor will visit in your business area for further verification. Once your business is done successfully, and no issue is found you will be asked to go to the nearest DCC office.
You need to pay the necessary predetermine to the DDC office to obtain a trade license. You also need to pay for signboard license while collecting trade license. You must pay 30 % of the license fee to obtain a signboard license.
Trade license for a manufacturing firm
To obtain a manufacturing trade license, you need to collect “I” Form, from the regional DCC office. You must complete I-from with necessary information and verify it from the local ward commissioner.
Once the verification is done, submit the application with all the essential documents (3 pp size photograph, receipt of ownership proof, legal stamped paper, etc.) to the zonal office.
Read Also : Company registration Bangladesh for foreigner
Once you submit the paper, the licensing supervisor will arrive at your business place for further verifications. After the inspection is done, you will be asked to go DCC office to collect trade license by paying predetermined fees.
License Matrix of Sole, Limited and Proprietorship company
|SI-Num||Sole- Proprietorship||Limited Company||Proprietorship|
|1||Trade license||Name clearance certificate||Deed of partnership|
|2||Tin certificate||Incorporation certificate||Commercia trade license|
|3.||Certificate of Bank Solvency||Commercial trad license||Certificate of bank solvency|
|4.||Certificate of Vat Registration||Tin certificate & bank solvency certificate||Commercia ERC& IRC & fire license|
|5.||Commercial ERC or IRC||Commercial ERC or IRC||Certificate of vat registration & land registration document|
|5.||License of Retail from DC office (if needed)||Vat certificate, fire license, BOI registration||Tin certificate & brand license|
|6.||CMC (chamber membership certificate)||Environmental clearance certificate (if needed)||CMC (chamber membership certificate)|
Frequently Asked Question (FAQ)
Q: How much time it takes to obtain trade license?
- It usually takes around 2 to 3 days (if there is issue found within your document)
Q: How many types of From are available for trade license?
- Two types of forms are available for trade license such as: I-Form and K-form. For commercial business you need I-Form and for manufacturing business you need K-Form.
Q: How much it costs to obtain trade license.
- It usually cost around 350-10,000 taka depending on the type of business.
Q: How much I need to pay for signboard license?
- You need to pay 30% for the license to obtain signboard license.
If you want to start a business in Bangladesh but do not know the procedures, do not worry! We are here to help you out.
Since 2012 S&F Consulting Firm is helping people to set up business in foreign countries.
We have experienced professional who will assist you in preparing all the documents that are needed for setting business in any foreign country including Bangladesh.
Our service fees are comparatively low than others, and we always maintain customer satisfaction. We do not share any confidential business information with others.