In Bangladesh, you need a trade licence to run a business legally. Getting a trade licence is one of the first steps to starting your business. It is basically the legal permission from city corporation of your business area. Outside the city area, the union parishad, pouraoshava, upazila or zilla parishad will issue trade licences for their respective areas.
Trade licence was introduced in Bangladesh under the City Corporation Taxation Rules, 1983. It is issued when any entrepreneur applies through the prescribed form and to the proper authority.
How to apply for a trade licence
If you want to do business in Dhaka, you need to get your trade licence issued from Dhaka City Corporation. Since Dhaka City Corporation is now divided into Dhaka City Corporation (North) and Dhaka City Corporation (South), you need to approach the appropriate office depending upon the location of your business. Both parts of Dhaka City Corporation have five designated zones to deal with trade licences.
Filling in the form
There are two kinds of forms available to apply for a trade licence. You will have to fill in the appropriate form based on the nature of your business or trade. You will have to submit your photograph and some other necessary documents along with the form. A fee for the trade licence has to be deposited at the bank as indicated on the trade licence form. The fee for getting trade licence varies depending upon the nature of the trade.
Issuing of trade licence
Upon submission of required documents and payment of required fees, it generally takes around a week to issue a trade licence. Sometimes the city corporation conducts an investigation about the nature of trade one has applied for and issue the trade licence upon receipt of satisfactory report. A licence is issued exclusively in the name of the licencee and such licence is not transferable. The licencee is not allowed to use the licence for any other purposes, except for the purpose and nature of profession or trade it was issued.
Renewal of trade licence
A trade licence is generally issued for one year and is renewable. You need to apply for renewal of your trade licence three months prior to its expiry. For renewal of your trade licence you have to contact the concerned zonal taxation office. You also have to bring with you the previous trade licence. The fee for renewal is the same as applicable for a new trade licence, which has to be deposited at a bank indicated on the trade licence. Upon completion of all these formalities, concerned staff of the zonal taxation office will provide a new trade licence.
Cancellation of trade licence
A trade licence will be cancelled if the applicant provides false statement or wrong information while applying for a trade licence.
If anybody who holds a trade licence does not comply with the terms and conditions of the trade licence and city corporation rules, his or her trade licence will also be cancelled.
Moreover, legal action may be taken against one who has done any of the offence mentioned above.
