Trade License In Bangladesh: How to Obtain E-Trade License in Bangladesh

Trade License In Bangladesh

Trade license means “permission to trade,” through which the local government grants permission to a person to conduct business. You must have this license to do any kind of business in Bangladesh legally.

Trade License In Bangladesh

This license is governed by the Local Government Act of 2009. Incidentally, the Local Government Act of 2009 has three laws 1. City Corporation 2. Municipality 3. Union Parishad.

The local government carries out many expenses by issuing these trade licenses. Several terms and conditions must be followed to get this trade license, which is available after applying through a certain process.

Why Trade License is Required

If you want to do business anywhere in Bangladesh, you need a trade license; no one can claim to be a businessman without a trade license. Moreover, his business activities are illegal, and he can be punished. So the first condition of any business is to have a trade license.

Moreover, if you want to make your business a little bigger, if you want to improve it, if you want to get a license for business needs, you need to take a trade license to conduct your activities.

Without a trade license, you cannot legally be a trader, and you will not get any trading opportunities anywhere.

Type of Trade License

Trade licenses commonly have many types. Now let’s find out all the types of trade licenses in Bangladesh.  All types of businesses require a trade license; a list is given below for your convenience.

  • Proprietary or Proprietorship Businesses\Partnership business
  • Company
  • To open a branch office of any type of business
  • A clinic or private hospital
  • Printing press
  • Residential hotel
  • Recruiting agency
  • Arms and ammunition
  • In the case of medicines and drugs
  • Any type of factory
  • Any kind of office
  • Import-export or supplier, etc

Required Documents for a Trade License

We know that business is of various types and levels. So different types of businesses require different types of documents. Generally, what is required in a proprietorship or proprietary business is required in all others.

Also, special permits are required for specific businesses. Let’s take a closer look at what documents are required to obtain a trade license for any business.

Proprietorship/Proprietary Business (General Business)

  • Attested photocopy of shop rent agreement.
  • Photocopy of utility bill and up-to-date holding tax return if own shop.
  • 3 copies of the passport-size photograph of the applicant.
  • Voter ID Card.

Partnership Business

  • Attested photocopy of shop rent agreement.
  • Photocopy of utility bills and up-to-date holding tax returns in case of own shop.
  • Agreement letter of partnership or partnership business in the amount of TK.
  • 3 copies of the managing partner’s ID card and guest ID card.


  • Attested photocopy of shop rent agreement or if own shop/premises utility bill and updated. Photocopy of the Holding Tax Receipt.
  • Company Charter/Certificate of Incorporation Memorandum and Articles of Association.
  • 3 photocopies of the managing director and a photocopy of his voter ID card.


  • Copy of Proprietorship or Company document (depending on the type of business) along with environment clearance.
  • Design/location map of the proposed factory/factory with the surrounding location/settlement details.
  • No objection letter from the owner of the proposed factory/plant adjacent to the location.
  • Fire service license.
  • Commitment to comply with the rules and regulations of Dhaka City Corporation.

Industrial Establishments

  • Proprietorship, partnership, or company documents (depending on the type of business), along with an environmental no-objection letter
  • A map showing the location of the institution
  • Certificate of Firefighting Preparedness
  • Undertaking under the judicial stamp of TK 150 to comply with DCC rules
  • 1 copy of the passport-size photograph.

Clinic or Private Hospital

  • Approval of the Director General of the Health Department

Trade License Cost in Bangladesh

Different types of trade licenses cost different quantities of money. The cost of a trade license depends on the license type and where you are licensing.

If you do business with Dhaka City Corporation, you usually must spend 6-10 thousand taka to collect a trade license. But if one wants to do more than one type of business under one name, then the cost will be added per holding.

But if someone opens a company, he can do all kinds of business under one license at a low cost.

Process of Obtaining a Trade License

Now let’s know about the processing system for getting a trade license for any business. If you want to license your trade yourself, you must follow the step-by-step process.

First step

Finding the right office The first thing you need to know is which local government office your business falls under. So, find the right office first and apply for it.

Second step

Form collection. There are two different forms for obtaining a trade license. The forms are known as the ‘I form’ and ‘K form.’ The cost of each form is 10 TK.

If the business establishment is trim or general, then ‘Form I’ is to be taken, and in the case of big business, ‘K Form.’ The license should be obtained from the regional office to which your establishment belongs.

Third step

Submission of forms, information, and documents. In this step, you must submit the form with the required information, documents, etc., as per your business type.

Four Step

Deposit money. In this step, you must pay the fee and VAT deposit to the concerned bank. So, first, know about the fee and complete your payment.

Fifth Step

In this step, an officer of your local government or a person authorized by him will visit your establishment and check whether the type of business, size, address, etc., are correct.

Sixth Step

Obtaining a trade license. If all your previous steps are correct, you will come to this step and get the trade license.

Trade License Renewal in Bangladesh

It should be remembered that a trade license is not only required but also has to be renewed every year.

You have to renew your trade license every year in July. In this case, there is no point in calculating when you got the trade license; you have to renew the trade license every new financial year.

You will incur the exact cost plus VAT to renew. TK 3000 source fee will be added. This fee changes from time to time, so research before paying. And there are some additional costs.

So, I hope you have a clear idea about a trade license from today’s article. I hope you will benefit from this article for making a trade license for your business. For any help with the trade license, please comment to us through the comment box below. Thank you.