A Step-by-Step Guide to Trade License Registration in Bangladesh: Government Fees and Costs Involved
Bangladesh is a land of opportunities for entrepreneurs who want to set up their business in the country. However, before starting any business operation, it is mandatory to obtain a trade license from the government. Trade license registration is a necessary step for conducting business activities in Bangladesh. Trade license registration in Bangladesh involves a series of steps that can be overwhelming for first-time business owners. In this guide, we will provide you with a step-by-step guide to obtaining a trade license in Bangladesh, along with the government fees and costs involved.
Step 1: Choose the type of business entity
Before applying for a trade license, you need to choose the type of business entity you want to register. In Bangladesh, there are three types of business entities: sole proprietorship, partnership, and private limited company. Each has its own set of requirements, benefits, and limitations.
Step 2: Name Clearance
The next step is to obtain name clearance for your business. You can apply for name clearance online through the Registrar of Joint Stock Companies and Firms (RJSC) website or physically at the RJSC office. The cost for name clearance is BDT 600.
Step 3: Choose the business location
You must have a registered office address for your business. You can either own or rent the space. The location of your business also determines the type of license you need to obtain. For example, if you are starting a restaurant, you will need a food license in addition to a trade license.
Step 4: Drafting the Memorandum and Articles of Association
The Memorandum and Articles of Association (M&A) is a legal document that outlines the objectives, scope, and rules of your business. You can draft the M&A yourself or seek the assistance of a lawyer. The cost of drafting the M&A can vary, depending on the complexity of your business.
Step 5: Obtaining the Digital Signature Certificate
The next step is to obtain a digital signature certificate (DSC) from the Bangladesh Computer Council. The DSC is required for online trade license registration. The cost of obtaining a DSC is BDT 1500.
Step 6: Registering the Business with RJSC
After obtaining the name clearance and DSC, you can now register your business with RJSC. You can do this online or by visiting the RJSC office in person. The cost of business registration varies, depending on the type of business entity you choose.
Step 7: Obtaining the Trade License
After registering your business with RJSC, you can now apply for a trade license from the local City Corporation or Municipal Corporation. You will need to submit the required documents, including the M&A, business registration certificate, and DSC. The cost of obtaining a trade license varies, depending on the location and size of your business.
Step 8: Collect necessary documents
To apply for a trade license in Bangladesh, you will need the following documents:
National ID card (for individual)
Passport (for foreign national)
TIN certificate (Tax Identification Number)
Rent agreement or ownership documents for the business premises
VAT registration certificate (if applicable)
Trade license renewal certificate (if applicable)
Declaration form (provided by the city corporation)
Step 9: Apply for a Trade License
Once you have collected all the necessary documents, you can apply for a trade license. You can obtain a trade license from the city corporation office in your business location. You can either apply online or in-person.
Online application process:
1. Go to the website of your local city corporation office and register as a user
2. Fill in the online application form and upload the necessary documents
3. Pay the fee through online banking or mobile banking
4. Submit the application
In-person application process:
1. Go to the city corporation office in your business location
2. Collect the trade license application form
3. Fill in the form and attach the necessary documents
4. Pay the fee at the designated counter
5. Submit the application
Step 10: Wait for Approval
After submitting the application, the city corporation office will conduct a review and inspection of your business location. If everything is in order, they will issue the trade license within a few days.
Government Fees/Costs Involved
The government fees/costs involved in obtaining a trade license in Bangladesh vary based on the type of business entity and the location of the business. Here is a breakdown of the fees/costs involved:
Sole proprietorship: The government fee for a trade license for a sole proprietorship is between BDT 3,000 to BDT 5,000 (USD 35 to USD 60).
Partnership: The government fee for a trade license for a partnership is between BDT 5,000 to BDT 7,000 (USD 60 to USD 80).
Private Limited Company: The government fee for a trade license for a private limited company is between BDT 10,000 to BDT 20,000 (USD 120 to USD 240).
Trade license renewal fee: BDT 500 to BDT 1,500 (USD 6 to USD 18)
Late renewal penalty: 2% of the trade license fee per month
Advertisement fee: BDT 500 to BDT 2,000 (USD 6 to USD 24)
Obtaining a trade license is a necessary step for starting and conducting business activities in Bangladesh. The process is straightforward and can be completed in a few days.