Management a business without a trade license is a crime in the eyes of law. Before doing any business, you have to take a trade license first. According to the rules of Municipal Corporation Taxation Rules, 1986 (1), if you want to conduct commercial operations in the city corporation area, then you must take a trade license. If someone does business without it, then a lawsuit may be filed against him.
Not only for the legal requirements you will have to take a license, but there is an another reason on it. This trade license is useful for a business enterprise. For example, trade license is very necessary in order to take bank loans, open bank accounts, go to business-related business dealer and more. On the other hand, a trade license was issued from the municipality and union parishad in the country. Let’s know how to get this trade license in Bangladesh. Generally, licenses are given in three to seven business days.
How to get trade license in Bangladesh
There are two different types of forms for trade license collection. Forms identified as ‘IForm’ and ‘KForm’. Each form price is 10 taka. If business is small or general, then ‘Form I’ and for the big business ‘Form K’ have to be taken.
Trade license fee generally depends on the type of business and size. There is only one type of fee for ownership organization, and another for the joint venture company. Usually, the license fee ranges from a minimum of 200tk to a maximum of 26 thousands taka. The only way to know what the fees will be for an organization is to go to the Revenue Office and collect the necessary documents. Because the fees are decided by the National Board of Revenue (NBR), Bangladesh reviewing the documents submitted. However, a fee prescribed is signboard fee. The license fee will be 30% as per the signboard fee.
The validity of each trade license is one year. After 1 year it has to be renewed again. Please note that you will have to apply for renewal of the license within the next three months of expiry. For this, contact the regional officer with the current trade license. The amount of license renewal fee is equal to the new license fee. And the name of the bank for the deposit of the fees was mentioned in the form.
Additional information addition
If the application of a trade license is applied, firstly propose the name of the company. The concerned authorities see if the name has been allocated to anyone. If not allocated, licenses are given in that name. As a result, no one else gets the opportunity to manage the business in that name. The following information is provided in the trade license application form –
The name of the applicant, the name of the parent or husband, the name of the mother, the permanent address, current address, business organization or factory or company name and address, date of commencement of business, business type, amount of approved or paid up capital (applicable to limited institution), business place itself Or rent and business organization signboard details.
Papers required for trade license
- Copy of ordinary trade license – certified rental receipt or copy of rental contract and copy of holding tax payment
- Trade license for industrial organization- as (1) and
* There is no objection to the peoples live there
* Location Map
* Copy of Fire Certificate
* A copy of the passport size photograph
- Clinic / Private Hospital – the permission from the Director General of Health Directorate.
- In case of limited company – Article memorandum, Corporation Certificate.
- In case of printing press and residential hotel – the license from the Deputy Commissioner (DC).
- In case of recruitment agency – License from manpower export bureau.
- For arms and ammunition related organizations – Copy of arms license.
- Drugs and Drugs – Copy of Drug / Drug License.
- Traveling Agency – approval from Civil Aviation Authority.
Due to false or incomplete information, the terms and conditions mentioned in the license do not agree to the rules and regulations of the city corporation , the license may be canceled. Apart from this, legal action may be taken against the license holder. However, before accepting any arrangement, the recipient should be given the opportunity to show cause.