Learn all the details about E-Trade License Online Application Bangladesh from here.
A trade license is the permission given by the government to start a business. To obtain a trade license, one must visit the local government tax officer’s office and apply with specific documents.
Once these steps are completed, the license supervisor investigates the business establishment and issues the trade license if everything is in order.
Trade License Application BD
A trade license essentially means permission to engage in trade or business. Any business venture in Bangladesh requires a trade license.
Trade licenses are granted by the government to ensure that a person’s business activities are conducted within the bounds of the law.
Operating without a trade license can render the business illegal, subjecting the owner to penalties and fines.
Necessity For a Trade License
For anyone starting a business, obtaining a trade license is mandatory.
- A trade license gathers comprehensive information about the business and serves as the basis for determining applicable taxes.
- A trade license is necessary for paying taxes related to the business, ensuring the accurate assessment of taxes for various trade activities.
- Without a trade license, it is assumed that no taxes have been paid for that particular trade, and the business is deemed illegal.
- As per the Local Government City Corporation Act, conducting business without a trade license may lead to a fine of 5,000 TK for the first offense and 500 TK per day thereafter.
- Additionally, individuals can face fines and legal consequences for lacking a trade license. Therefore, obtaining a trade license is crucial when initiating a new business.
What Types of Businesses Require a Trade License?
It is important to note that not all businesses require a trade license; specific categories of businesses necessitate one. Below is a list of business types that require a trade license:
- Proprietorship Business
- Partnership Business
- Company
- Branch Office
- Clinic or Private Hospital
- Printing Press
- Residential Hotel
- Recruiting Agency
- Arms and Ammunition
- Medicines and Drugs
- Any Type of Factory
- Import-Export Suppliers, etc.
If a person is engaged in any of the above trades, it is imperative to obtain a trade license promptly to avoid penalties and fines.
Where to Apply for a Trade License?
Obtaining a trade license is a straightforward process. You need to apply through your local government for a trade license.
- First, determine which local government jurisdiction your business falls under, such as a city corporation, municipality, or union council.
- Visit the respective local government office and inform them of your intention to apply for a trade license.
- They will provide you with the necessary forms and collect the required documents and fees, which are discussed in detail below.
Required Documents for a Trade License Application
The required documents for obtaining a trade license in Bangladesh vary depending on the type of business. Here is a breakdown of the documents needed for different business organizations:
For Proprietorship or General Business:
- Photocopy of the shop rent agreement
- Photocopy of utility bills and tax payments (if the shop is owned)
For Partnership or Partnership Business:
- Attested photocopy of the shop rent agreement
- Photocopy of tax payments (if the shop is owned)
- Partnership business agreement with a 300-TKstamp and its photocopy
- Three copies of color photographs and voter ID cards of the partners
For Company:
- Attested photocopy of the shop rent agreement or tax payments (if the shop is owned)
- Certificate of the company you are establishing and its photocopy
- Memorandum and Articles of Association
- Three color photocopies of the Managing Director and voter ID card
For Factories:
- Partnership deed (if the factory is a partnership)
- Company documents
- A copy of the environmental permit for the factory’s location
- Detailed location description of the factory, including a design
- Permission letter from the owner of the factory location
- Fire service clearance
- A stamped 300-TK undertaking to comply with all rules and regulations
For Industrial Establishments:
- Partnership deed (if applicable)
- Environmental permit
- Location design of the establishment
- Fire service certificate
- A 150-TKstamped undertaking to comply with DC rules
For Other Businesses:
- Permission letter from the Director General of the Health Department (for clinics or private hospitals)
- Permission from the Deputy Commissioner (for printing presses and residential hotels)
- License issued by the Human Resources Export Bureau (for recruiting agencies)
- Arms license (for arms and ammunition)
- Permission from civil association authorities (for drug licenses related to drugs and narcotics)
E-Trade License Online Application Bangladesh
For those interested in online trade licensing, You can apply for a trade license online by visiting the E-Trade License Bangladesh website.
- First, go to the website and go to the ‘Click for New Registration’
- After registering, you will get the application form.
- Fill up the form with the correct information and follow all the instructions on the page to apply online for an E-Trade License
- But, to obtain a trade license for a shop or business, you can follow the traditional or offline process, as described above.
However, various online services related to trade licenses can be accessed on the E-Trade License website. To avail of these services, create an account on the website and log in to access them.
E-Trade License Application Offline Process
Now, let’s break down the steps to obtain a trade license for your business in an easy-to-understand way:
- First, you need to find the right office for your business’s local government area. Go to this office to start the process.
- Once at the office, ask for the trade license application form. There are two types:
- Form I: For small businesses.
- Form K: For larger businesses.
- Each form costs 10 TK.
- Carefully fill out the form with accurate information. Double-check your National ID card and other documents to avoid any mistakes, as errors can cause tax issues.
- Submit the completed form along with the required documents. The specific documents needed will depend on your type of business.
- Pay the fee for the trade license:
- Follow the instructions given by the authorities.
Pay directly at the office if allowed, or go to the specified bank, pay the fee, and keep the receipt. - After submitting everything, your application will be processed.
The Trade License Office will inspect your business. If everything is in order, you’ll receive your trade license within a certain timeframe.
You can then verify or print your trade license by visiting the Trade License Download page.
Trade License Fee: Cost of Trade License in BD
The cost of obtaining a trade license cannot be specified in a single figure, as it varies based on the type of business and location. Businesses under city corporations generally incur higher fees than those in rural areas.
Typically, obtaining a trade license for a business organization costs from 500 to 10,000 taka.
To know the details about the Trade license fee, please visit Trade License Application Fee Bangladesh
Rules for Renewal of Trade License
A trade license is not a lifelong permit; it must be renewed periodically. Trade licenses are typically valid for one year and must be renewed every July.
Failure to renew your trade license can result in penalties and fines similar to those incurred for not having a trade license at all. Renewing your trade license in July each year is essential.
To renew your trade license, visit the office where you originally obtained it. Inform them of your intent to renew the trade license, and follow the instructions provided.
The fee for renewing a trade license is typically the same as the initial issuance fee.
FAQs About E-Trade License
Follow the frequently asked questions and answers for additional information about E-Trade License in Bangladesh.
What is a trade license in Bangladesh?
A trade license in Bangladesh is a legal permit issued by the government that grants permission to conduct business activities. It is a mandatory requirement for operating a business within the country.
Why is obtaining a trade license important?
Obtaining a trade license is essential as it ensures that your business operates legally within the bounds of the law. Without a trade license, your business may be considered illegal, leading to penalties and fines.
How much does it cost to get a trade license in Bangladesh?
The cost of a trade license varies depending on the type of business and its location. Generally, the fee for obtaining a trade license in Bangladesh ranges from 500 to 10,000 Bangladeshi Taka.
Where can I apply for a trade license in Bangladesh?
You can apply for a trade license by visiting the local government office that corresponds to your business’s jurisdiction, such as a city corporation, municipality, or union council.
What are the consequences of not having a trade license?
Operating a business without a trade license in Bangladesh can result in fines and legal consequences. For the first offense, a fine of 5,000 Taka may be imposed, along with a daily penalty of 500 Taka thereafter.
How often does a trade license need to be renewed?
Trade licenses in Bangladesh are typically valid for one year and must be renewed annually, usually in July. Failure to renew a trade license on time can result in penalties.
Can I apply for a trade license online?
Yes, you can apply for a trade license online through the E-Trade License Bangladesh website. After registering an account, you can access the application form and related online services.
What types of businesses require a trade license?
Several types of businesses require a trade license in Bangladesh, including sole proprietorships, partnerships, companies, clinics, printing presses, residential hotels, recruiting agencies, arms and ammunition dealers, factories, import-export suppliers, and more.
How can I verify or print my trade license after obtaining it?
You can verify or print your trade license by visiting the Trade License Download page, which is typically available on the official government website.
Final Thoughts
Best of luck if you are starting a new business! Remember that obtaining a trade license from the government is an essential step to gaining legal permission for your business activities.
It is also crucial to renew your trade license within the specified timeframe once it expires.
If you have any questions or concerns regarding trade licenses, feel free to ask in the comment box, and we will do our best to provide you with information. Thank you.
