How to do trade license and renewal in Bangladesh

A Trade License is an official permit issued by local government bodies in Bangladesh, granting legal authorization for businesses to operate within their respective jurisdictions. The issuing authorities and their corresponding areas are as follows:

  • Dhaka City Corporations (DNCC and DSCC): For businesses within Dhaka city.
  • Municipalities (Pourashavas): For other urban areas.
  • Union Parishads: For rural businesses.

This license ensures compliance with local regulations under the section 82-90 of Local Government (City Corporation) Act, 2009 and section 42-48 of The Municipal Corporations (Taxation) Rules, 1986.

When to obtain a trade license?

In Bangladesh, you must obtain a trade license before launching any business, whether it’s commercial, manufacturing, or in the food sector. This foundational permit must be secured in advance of opening, regardless of the business type or location. The government classifies trade licenses into three official categories:

  1. Commercial Trade License – For general business activities like retail, trading, or service provisions (e.g., shops, offices).
  2. Industrial Trade License – Required for manufacturing units, factories, or industrial operations.
  3. Food-related Trade License – Specifically for businesses in the food sector, such as restaurants, hotels, or food processing plants.

How to apply for a trade license?

  1. Register as a new user
  2. Upload the following documents in the prescribed format:
    • Owner’s photograph
    • Photocopy of National Identity Card (NID)
    • No Objection Certificate (NOC)
    • Proof of capital (e.g., Memorandum and Articles of Association for limited companies)
    • Proof of ownership (title deed) or rental agreement if the premises are leased
    • Updated holding tax payment receipt (if applicable)
    • Copy of fire service and civil defense license (required for industrial or factory premises)
    • Any additional identity or clearance documents as specified
  3. The Licensing & Advertisement Supervisor will verify the application.
  4. The application is forwarded to higher authority for final approval.
  5. Upon approval, the applicant receives an SMS and email with payment instructions.
  6. After fee payment, the printed trade license is dispatched via post or courier; alternatively, the applicant may log in and download and print it directly.
  7. For non-sensitive businesses, the trade license is auto-generated immediately after payment.

Processing Time: Approximately 3 working days.

 

How to renew a trade license?

To renew your trade license online in Bangladesh, please follow these steps:

  1. You need to apply through your existing user account.
  2. For first-time applications, you must upload a scanned copy of your manual license in the specified format.
  3. The Licensing and Advertisement Supervisor will verify your application, and upon approval, it will be sent to higher authorities for final approval.
  4. Once approved, you will receive an SMS and email with payment instructions.
  5. After payment, the printed trade license will be delivered to your address via post or courier, or you can log in to your user account to print it directly.

Processing Time: Approximately 2 working days.

Cost of trade license & renewal of trade license in Bangladesh

The cost varies depending on the nature and category of business, as determined by the local authority’s schedule of fees.

Validity

  • A trade license is valid for one fiscal year(July to June).
  • Must be renewed annually before 30th June.

 Consequences of not renewing

Fines and penalties
Late renewal triggers automatic surcharge fees and potential fines that increase over time.

Legal enforcement actions
Operating without a valid license can lead to mobile court appearances, legal summons, or forced closure of business operations.

Operational restrictions
Without a valid trade license, businesses may be barred from entering contracts, securing banking services, or participating in tenders.

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