Learn how to register a trade license in Dhaka with this detailed guide. We explain the step-by-step process, required documents, fees, and how BreakBite eBusiness can help with your registration.
Introduction:
Obtaining a trade license is a crucial step for any business operating in Bangladesh. This legal document, issued by the local government authority, certifies that a business is permitted to operate in a specific area and trade in a particular sector. Whether you’re starting a small business or a larger company, knowing the process and requirements for obtaining a trade license ensures that your business is compliant with local laws.
This guide provides a step-by-step breakdown of the registration process, documents required, and the associated fees. For those looking for professional help, BreakBite eBusiness offers complete solutions for trade license registration and renewal services in Dhaka.
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Step 1: Identify Your Business Type and Local Authority
Trade licenses are issued by local governing bodies depending on the location of your business. For example:
- If your business is in Dhaka, you’ll need to apply for a trade license through the Dhaka North City Corporation (DNCC) or Dhaka South City Corporation (DSCC).
- Businesses in other cities will need to apply to their respective City Corporation or Municipality.
It’s important to determine where your business is located and understand which local authority governs that area. You will also need to classify your business as a commercial, industrial, or professional entity.
Step 2: Gather the Required Documents
To register for a trade license, you need to prepare the following documents:
- Application Form: Obtain the trade license application form from your respective city corporation office or download it from their website.
- National ID Card (NID) or Passport: Copy of the owner’s NID or passport.
- TIN Certificate: A Tax Identification Number (TIN) certificate is required to prove your tax status.
- Proof of Ownership/Rental Agreement: A deed of ownership or a rental agreement showing the address of the business premises.
- Recent Passport-Sized Photographs: Typically, two copies of passport-sized photographs of the business owner.
- VAT Registration Certificate: Depending on your business type, a VAT certificate may be required.
- Municipal Holding Tax Payment Receipt: Proof of payment of the municipal holding tax for your business premises.
- Fire Service Clearance Certificate: For businesses that handle sensitive or hazardous materials, a clearance from the fire department may be required.
Check with your local authority for any additional documents that may be specific to your business type.
Step 3: Submit Your Application
Once you have gathered the required documents, you will need to submit them along with your filled-out application form to the City Corporation’s Trade License Department.
- For Dhaka North and Dhaka South, the application can typically be submitted in person at the city corporation office or through online portals where available.
- You will be given an application reference number to track the status of your application.
Step 4: Pay the Trade License Fees
After submitting the application, you will need to pay the required trade license fee. The fees vary based on the type and size of the business and location. Typically, trade license fees range from BDT 500 to BDT 40,000, depending on the nature of the business.
The payment can be made through the designated bank branches or online payment portals of the respective city corporations.
Step 5: Inspection by the Licensing Authority
After the fee payment, the licensing authority may conduct a site visit to inspect the business premises. This is particularly common for businesses that require specific safety measures, such as industrial units or those dealing with hazardous materials.
The inspection ensures that the business complies with local regulations before the trade license is issued.
Step 6: Issuance of Trade License
Once the application is approved, the City Corporation will issue the trade license, which will typically include:
- License number
- Business name
- Business location
- Type of business
This trade license is valid for one year and needs to be renewed annually.
Step 7: Trade License Renewal Process
To ensure your business remains compliant, you must renew your trade license every year. The renewal process is simple and involves submitting:
- Your existing trade license
- Updated documents, if any
- Renewal fees (often the same or slightly higher than the initial fee)
Failure to renew the license on time may result in penalties.
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Benefits of Having a Trade License
- Legal Compliance: Operating with a valid trade license ensures your business is legally recognized.
- Trustworthiness: A registered trade license builds trust with customers and clients.
- Government Assistance: Only businesses with a trade license are eligible for government subsidies, grants, and other support services.
- Tax Filing: Having a trade license allows you to maintain better tax records and simplifies VAT/TAX filings.
Conclusion:
Obtaining a trade license in Dhaka is essential for running a compliant business. By following this guide, you can easily navigate the process. However, if you prefer professional assistance, BreakBite eBusiness offers complete trade license registration and renewal services to ensure a smooth process for your business.