Trade License in Bangladesh: Online Application, Fee & Documents

A trade license is a mandatory legal document required to operate any business in Bangladesh, ensuring compliance with government regulations.

Whether you run a small shop, a large enterprise, or an online business, obtaining and renewing a trade license is essential.

This guide explains the trade license in Bangladesh application process, required documents, fees, and renewal procedures for both online and local office methods.

What is a Trade License?

A trade license is a legal permit required to operate a business, which certifies that the business is being conducted lawfully and in compliance with government regulations.

Just as a driving license is necessary to drive a vehicle, a trade license is essential for running a business.

It is obtained from the local union council, municipality, or city corporation and must be renewed annually.

The Necessity of a Trade License in BD

There are several important reasons behind registering for a trade license, particularly to avoid legal complications.

• If government authorities find that you are operating a business without a trade license, they can shut down your business and impose fines or other penalties.
• Additionally, if you wish to open a bank account or apply for a loan for your business, a trade license is required, as no authority will provide loans to a business without a valid trade license.
• A trade license is also necessary for paying various business-related taxes and registering for VAT.
• If you want to enter into contracts with other business partners or invest in an organization, a trade license will be required.

In summary, if your business does not have a trade license, operating it can be highly risky, and you may face various legal complications.

Therefore, it is essential to obtain a trade license before starting any type of business.

Minimum Business Requirement for Trade License

In Bangladesh, a trade license is required for any type of business, big or small. There is no minimum monetary limit for obtaining a trade license.

For example, even if you run a small shop or stall, you still need a trade license.

Additionally, freelancing, online businesses, micro-businesses, and other small or large-scale businesses all require a mandatory trade license.

However, certain small-scale businesses, such as shoe repair on the footpath or small food stalls, which operate based on verbal or temporary permissions, may run without a trade license.

But for permanent businesses, a trade license is mandatory.

Is a Trade License Required in Rural Areas?

Yes, a trade license is required for various types of businesses in rural areas, such as grocery stores, tea stalls, pharmacies, agricultural and livestock businesses, clothing or cosmetic shops, garages, online businesses, brick and cement shops, etc.

However, obtaining a trade license in rural areas is much easier and less expensive compared to urban areas.

How to Obtain a Trade License in Bangladesh?

You can obtain a trade license through two methods. The first method is to apply directly at your local authority office, such as the union council, municipality, city corporation, or upazila parishad.

Alternatively, you can apply for a trade license online. Below, both methods are explained separately, which you can follow to easily obtain a trade license.

Trade License Application Online in Bangladesh

In this section, let’s see how you can apply for a trade license online. Below is a step-by-step guide to the process.

Step 1: Create an Account

• To register for a trade license online, visit the Online Certificate System website.

• On this website, you first need to create an account. To create an account, click on the “Free Citizen Account” option from the menu bar.
• Then, provide your birth registration information or national ID card details.

• Here, select either birth registration or national ID card and enter the required information.
• Once the details are provided, click on the “Register” button.
• In the next step, an OTP code will be sent to your mobile number. Enter the OTP code here to verify your mobile number.
• Once your mobile number is verified, log in to your account.

• A password will be sent to your phone, so use your mobile number and the received password to log in by clicking the “Login” button.

Step 2: Profile Management

After logging in, you need to provide additional information to complete your profile.

• For example, under general information, you need to provide your name, your parents’ names, spouse’s name, email address, and other details.

• Then, provide your current and permanent addresses.
• After filling in these details, you will reach the “Attachments” section. Here, upload your photo and signature.

• Once all the information is provided, click “Submit.”
• This will complete your account setup.

Step 3: Apply for the Trade License

In the third step, you need to start the application process for the trade license.

• From your account dashboard, click on the “Trade License” option.

• Here will be shown which information you need to register.

• Then, provide various details related to your business.
• Under general information, you need to provide the owner’s name, parents’ names, and other relevant details.

• After filling in the general information, you must provide details about your business.
• This includes the business name in both Bengali and English, the type of business, the nature of the business, the start date of the business, etc.

• Make sure to provide accurate information, as any mistakes will require corrections later.
• Therefore, enter the details correctly and proceed to the next step.
• In the next step, you will need to provide the business address details.

• Here, enter the area, district, upazila, and postal code of the business location.
• Finally, click the “Complete” button.
• After this, a preview of all the information you provided will be displayed.
• Double-check to ensure there are no errors. If there are any mistakes, you can correct them at this stage.

• If all the information is correct, click the “Everything is Correct” button to finalize the trade license application.

Step 4: Pay the Application Fee

In the final step of the trade license application, you need to pay the online application fee.

This is not the fee for the trade license itself but a nominal fee for submitting the application online.

Typically, this fee is around 30 taka or more. You can pay this fee using mobile banking services like bKash, Rocket, or a bank account card.

• Select the bKash option, provide the necessary details, and complete the payment.
• Once the fee is paid, you will receive a tracking number.

• Keep this tracking number safe, as it will be required for any future inquiries regarding your trade license.
• Your application will be sent directly to your local union council, municipality, or city corporation.
• If all the information is correct, you will be notified by the local office.
• Once notified, you will need to pay the required fee based on your business type and collect the trade license.

Obtaining a Trade License through the Local Office

As an alternative to applying online, you can also apply for a trade license through your local union council, municipality, or city corporation office.

• To apply through the local office, you need to bring the required information and documents.
• Then, collect an application form from the office.
• Fill out the form with accurate information based on your documents and submit the application.
• However, due to workload and crowds at the local office, there may be some delays in receiving the service.
• Once your application is accepted by the local office, you will need to pay the fee determined by the type of your business.
• After the trade license certificate is prepared, they will notify you, and you can collect the license at the specified time.

Required Information and Documents for a Trade License

To apply for a trade license, you need to submit certain documents. These include:

• A copy of the applicant’s national ID card or birth certificate.
• Two passport-sized photos of the business owner.
• If the business is jointly owned, provide the national ID cards or birth certificates, photos, and an affidavit from both individuals.
• If the shop or office is rented, a rental agreement. If it is owned, land documents or records may be required.
• A certificate from the local union council or ward councilor to prove the business location.
• If your business is large-scale, a TIN certificate may be required.
• Additionally, you need to provide important business-related information, such as the business name, type, location, size, investment amount, number of employees, etc.
• Depending on the type of business, additional documents may be required, which will be communicated later.

Trade License Fees in BD

Now, let’s learn about how much fee you need to pay for a trade license. Generally, the fee for a trade license is determined based on the type of business, its location, size, and capital.

The exact fee for your trade license will be determined by your local office based on the type of your business and communicated to you.

How Long Does It Take to Get a Trade License?

After applying for the license, it may take between 3 to 15 days to receive it. However, this depends on various factors. Let’s take a look at these:

Trade License Renewal

In Bangladesh, a trade license must be renewed once every year. The renewal must be completed by June 30th, as the new fiscal year in Bangladesh begins on July 1st.

If the trade license is not renewed by June 30th, a penalty must be paid. The renewal fee is typically 50%-70% of the original trade license fee.