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trade license

🏢 Trade License: The First Step to Running a Business in Bangladesh

Introduction:

In Bangladesh, obtaining a trade license is mandatory for operating any kind of business. It’s not just a legal formality—it’s a symbol of official recognition and trust by the government. While many entrepreneurs may overlook its importance initially, a trade license is one of the key pillars of a structured and compliant business.

What is a Trade License?

A trade license is an official permit issued by a local government authority (City Corporation, Municipality, or Union Parishad) that allows a person or organization to legally operate a business in a specific area.

Why is a Trade License Important?

✅ To get legal recognition

💳 To open a bank account for your business

🏗️ To participate in tenders or government projects

💼 To register for VAT and income tax

📈 To build customer trust and business credibility

Where and How to Get a Trade License?

You must apply for a trade license from the Union Parishad of the area where your business is located.

Required Documents:

National ID (NID)

Passport-size photographs

Business name and address

Rental agreement or proof of ownership of the business premises

Previous trade license (for renewal)


Application Process:

Collect the prescribed application form

Fill in the details and attach required documents

Submit the application and pay the necessary fees

After verification, the trade license is issued

Many city corporations now offer online application facilities as well.

Trade License Renewal:

A trade license must be renewed every fiscal year, starting from July 1. Failure to renew on time may result in penalties or fines.

What Happens Without a Trade License?

Operating a business without a valid trade license is a punishable offense under the law. Authorities may impose fines or even shut down your business. Moreover, you won’t be able to access formal services like banking, tax filing, or participating in government-related work.

Conclusion:

A trade license is more than just a piece of paper—it is your business’s proof of legitimacy, protection, and long-term viability. By properly obtaining and renewing your trade license, you establish yourself as a responsible and forward-thinking entrepreneur.