Trade License

Introduction

Trade License is mandatory for every form of business entity in Bangladesh. It is issued by the local government of the respective areas. Every business entity must obtain Trade License from each local government where it operates. If a business entity has more than one place of business, it must obtain Trade License from each local government.  It is issued for one year and have to be renewed annually. Trade License attracts some government fees, which usually depends on the types of business.

Below, we have described the process of obtaining Trade License for businesses that operate within Dhaka City Corporation area. Other local government have similar rules. 
You are advised to contact the respective local government for more information.

TRADE LICENSE FOR A COMMERCIAL FIRMPROCESS STEPS:

STEP 1: 

PROCURE THE PROPER FORM FROM THE PROPER OFFICE.

Dhaka City Corporation (DCC) has two forms for a trade license depending on the type of business. A commercial firm must use the “K” Form. Even though the ten zonal offices use the same K Form, a business must buy the form from its respective zonal office. A seal and the initials of the officer selling the form is what distinguishes it from that of other zones. The form costs Tk. 10.

 STEP 2: 

GET CERTIFICATION FROM THE LOCAL WARD COMMISSIONER.

After the form is completed it has to be submitted to the local ward commissioner for validation.

 STEP 3: 

COLLECT LICENSE BOOK BY TK. 50 AND SUBMIT APPLICATION WITH SUPPORTING DOCUMENTATION TO DCCS ZONAL OFFICE.

For the K Form, a rent receipt for the premises where the business is operating from or, if owned, the municipal tax payment receipt has to be provided. Supporting documents include:

3 copies of PP size photo of owner.  Rent receipt or premises ownership proof

Step 4: 
Await enquiry by the Licensing Supervisor (LS). 
Upon submission of the form, the LS usually goes to the business entity for a visit to verify the information provided.

 

STEP 5: PAY PREDETERMINED FEE AND COLLECT TRADE LICENSE.

After inspection by the LS is concluded, the business is asked to go to the DCC office to pay the predetermined fee and collect their trade license. The fee schedule depends on the business category under which the application was filed.

STEP 6: SIGNBOARD FEE

When collecting the trade license, a signboard fee has to be paid as well. For all types of business the signboard fees will payable 30% of the License fee.

TRADE LICENSE FOR A MANUFACTURING FIRM

PROCESS STEPS:

STEP 1:PROCURE THE PROPER FORM FROM THE PROPER OFFICE.

The “I” Form will have to be purchased for Tk. 10 from the DCC zonal office where the manufacturing firm has to submit its application.The completed form has to be validated by the local ward commissioner. STEP 2:

GET CERTIFICATION:

Get the certification from local ward commissioner.

STEP 3:SUBMIT APPLICATION WITH SUPPORTING DOCUMENTATION.

Supporting documents include:

• ·         3 copies of PP size photo of owner
• ·         Rent receipt or premises ownership proof
• ·         No objection certificate from the neighborhood
• ·         A written undertaking on a Tk 150 non-judicial stamped paper
• ·         Fire License from the local fire department Environmental Certificate from DOE

 STEP 4: 

AWAIT ENQUIRY BY THE LICENSING SUPERVISOR (LS).

Upon submission of the form, the LS usually goes to the business entity for a visit to verify the information provided.

STEP 5: PAY PREDETERMINED FEE AND COLLECT TRADE LICENSE.

After inspection by the LS is concluded, the business is asked to go to the DCC office to pay the predetermined fee and collect their trade license. The fee schedule depends on the business category under which the application was filed.

STEP 6: SIGNBOARD FEE
RENEWAL OF TRADE LICENSE

When collecting the trade license, a signboard fee has to be paid as well. For all types of business the signboard fees will payable 30% of the License fee.

The renewal process is comparatively routine and no inspection is required. When the trade license comes up for renewal the business has to go the LS.

PROCESS STEPS:

STEP 1: PICK-UP DEMAND BILL FROM THE LICENSE BOOK (THIS BOOK IS VALID FOR FIVE YEARS)

Upon checking the expiring trade license, the LS fills in the particulars in a demand bill and gives the booklet to the business. The demand bill is a four page booklet similar to a bank deposit slip. The same information is filled into all the pages: one page is for the bank and one is for the business.

STEP 2:  PAY RELEVANT FEE AT DESIGNATED BANK

Deposit designated bank through demand bill and it will automatically renew the license.