Did you know that since 1983, people have needed a trade license to do business? Think of it like a special permission slip from the government that says, You can run this business.
If you’re in business, it’s super important to know about trade licenses. This includes understanding what they are, why you need one, and how to get one. Plus, you’ll need to know which documents are needed to apply for one. We’ve put together this article to help you out.
Interestingly, many business people don’t have a trade license but run big businesses. But, without a license, they can face problems, especially if their business hits a rough patch. It’s like playing a game without following the rules.
In short, if you want to run a business the right way, you need a trade license. It’s your official go-ahead from the government. Now, let’s dive into more details about trade licenses.
What is a Trade License?
Imagine wanting to play a game, but you need a special card to join in. In the business world, that special card is called a trade license.
You need one whether you’re selling tea on the corner, making wooden crafts, or fixing pipes. Without a trade license, big companies won’t hire you.
Think of it this way – just as you need an ID card for more than just voting, you need a trade license for many parts of doing business. For instance, if you want a business bank account, you can’t get one without a trade license.
In short, a trade license is like a golden ticket from the government, giving you the OK to do your business the right way.
Why Trade License?
Imagine you have a great business idea and you want to borrow money to make it big. You head to the bank, excited, but they ask for a trade license before giving you any money. Why?
Banks want to make sure you’re really running a legit business and not involved in anything fishy. No trade license? No loan. Plus, having a license means fewer headaches with the law and more support from the government and other businesses.
And guess what? Having a trade license can also help you earn extra money without doing much. If you own business space, you can keep making money from it safely.
But what if you don’t have a business yet? Some folks buy a license with a small fee, which then lets them kickstart their dream business legally and with less risk.
To put it simply, getting a trade license is like getting a protective shield for your business. It lowers risks, helps you get loans, and offers a smoother path to success for everyone involved.
What Does it Take to Have a Trade License?
So you’re thinking of getting a trade license? Great! Each country has its own rules and steps to get one. The whole idea is to make sure businesses are selling the right things in the right way and to keep a record of who’s doing business.
Here’s what most places will ask you for when you want a trade license
- Your business name and where it’s located.
- What kind of business you have and what you do.
- Details about your taxes and bank.
- Info on who you buy from and sell to.
It’s like signing up for a new club – they just need to know a bit about you first.
What are the Benefits of Trade Licensing?
Having a trade license comes with some cool perks! Here’s why
- Hello, World! – With a trade license, doing business in other countries becomes a breeze. No license could mean missing out on international deals.
- Skip the Fees – You can avoid extra charges, like tariffs, when doing international business with a trade license.
- Be Your Own Boss – Licensing can help you start your own business. This means you decide when you work and how you work.
- Grow Your Ideas – Got a unique idea or invention? With a trade license, others can invest in your brainchild.
- Become the Only One – For license holders, there’s a chance to be the exclusive seller of a product in a particular area without spending too much.
- Know Your Crowd – License holders understand their local customers well. This means they can market in a way that really connects.
In short, a trade license is like a magic key that opens up a world of business possibilities.
What will be the Damage if you do not have a Trade License?
Running a business without a trade license? That’s a big no-no. Here’s why
- It’s Against the Rules – Doing business without a license is like playing a game but breaking all the rules. The government will call it illegal because they didn’t give you the green light.
- Standing Out – Without a license, it’s harder to show that your products are unique and different from others.
- Missing Out on Help – If you find yourself in a tough spot, don’t expect much help from banks or the government. They want to see that license!
- Trust Issues – People trust businesses with licenses. No license might make folks think you’re up to something sneaky.
- Losing Control – Without a license, you won’t have much say over your products. They could be changed or used in ways you don’t like.
- Risky Business – There’s more chance things could go wrong. Think of a license as a safety net for your business.
So, if you’re thinking about skipping the license, think again! It’s a small step that makes a big difference.
How Much Money Does it Take to Trade License?
If you own a limited company and you’ve invested around 1 lakh, you’ll need to pay an annual fee of 1500 rupees. If your business is between Tk 1 lakh to Tk 5 lakh, then the fee is Tk 2000.
Planning to start an e-commerce business? There’s no specific category for that. Instead, you’ll get your license under the IT, software, or general supplier categories. The official fee for this is between 850 to 1700. But if you’re thinking of total costs, including other charges, you might end up spending around 4 to 5 thousand, especially if you hire a firm to assist you.
If you want details about trademarks and your business is in a village or upazila, you should check with the local union parishad. For city businesses, the city corporation office will provide the information.
E-commerce Business Trade License – What’s the Cost?
You can get your e-commerce business licensed under the IT or software category. The government fee for this is typically between 1100 to 1500. But remember, there are other charges like signboard tax and physical visit tax. So, the overall cost might come to around 4-5 thousand.
What Trade License is Required?
Starting a business? One of the first things you’ll need is a trade license. It’s not just a piece of paper; it’s your business’s ID card!
Here’s why it’s super important
- Legitimacy – A trade license makes your business official and trustworthy. It’s like a stamp of approval from the government.
- Support – If things go wrong in your business, having a license means the government recognizes you and can assist.
- Growth – With a trade license, you can tap into new opportunities. It can make expanding your business smoother and simpler.
- Bank Loans – Thinking of getting a loan for your business? Banks will ask for your trade license first.
- Business Partnerships – Want to work with big companies? They’ll want to see your trade license to know you’re legit.
- Trade Associations – To join a business group or association, they’ll often ask if you have a license.
- Official Requirements – Need VAT, tin, or other official documents? You guessed it – you’ll need a trade license.
So, before you dive deep into the business world, make sure you have your trade license ready.
How to Trade License?
Heard getting a trade license is tough and takes forever? Think again! Getting your business licensed can be straightforward and quick.
The game-changer? E-trade licenses. They’ve made the whole process way simpler. You can head over to your local Union Parishad Office, City Corporation, or Municipality to grab one.
And hey, if paperwork’s not your thing, there are loads of consultancy firms ready to help for a fee. So, if you’d rather avoid the hassle, let them handle it for you.
Trade License for Commercial / Corporate Entities
Getting a trade license might seem complex, but we’ve broken it down into easy-to-follow steps
- Pick Up the Right Form – Based on your business type, you’ll need a specific form. For Dhaka City Corporation (DCC), there’s a special form. You’ll often hear terms like “A” and “K” – these are form types. If you’re a commercial business, you’ll need the “K” form. And even though many zones use this “K” form, grab yours from your specific zonal office. Why? Because each zone has its unique seal and officer initials. This form will cost you 3,000 rupees, but it’s priced affordably to support new businesses.
- Local Approval – Once your form’s filled, get it certified by your local ward committee. After this, it goes to the local ward commissioner for a thumbs-up.
- Gather Your Papers – Time to get all your documents ready! Along with the “K” form, you’ll need either a lease receipt (if you’re renting your business space) or a proof of ownership. Don’t forget 3 passport-sized photos of the business owner and any rent receipts or ownership proof you have.
- Get Ready for a Visit – A License Supervisor (LS) will drop by to check out your business and make sure everything you’ve said on the form is accurate.
- Payment Time – Once the LS gives the green light, head to the DCC office. You’ll pay a fee (the amount depends on your business type) and then you can pick up your official trade license.
- Name & Signage Fee – Decide on your business name, and then pay a signage fee. All businesses need to do this. As a guide, traders usually pay about 30% of their license fee for this.
And there you have it! Six simple steps to get your business up and running with the right paperwork.
Trade License for Commercial / Corporate Entities
Setting up a manufacturing company? Here’s a clear breakdown of getting your trade license –
Grab Your Form
Visit your Zonal Office of DCC and get the form. Fill it out with all the required details.
Once your form’s ready, have it certified by your local ward committee. Your local ward commissioner will need to give it a look too.
Get Your Documents Together
Before submitting, gather these essentials
- 3 passport-sized photos of yourself.
- A copy of your electricity bill or house rent receipt.
- An appreciation letter.
- A commitment on 150 rupees non-judicial stamped paper or notarized.
- A fire license from your local fire station.
Meet the Licensing Supervisor (LS)
Expect a visit! The LS will pop by to make sure everything’s in order when you hand in your form.
Pay Up and Get Your License
After the LS gives the go-ahead, go back to the DCC office. Pay the fee (which varies based on your business type) and pick up your license.
Don’t Forget the Signboard Fee!
On top of the license fee, there’s a charge for your business’s signboard. This is typically 30% of your license fee.
Renewing Your License – Easy Peasy!
Keeping your license current is a breeze. Here’s how –
- Update Your License Book – This book’s valid for a year. Bring your expired license to the Trade License Office DNCC. An officer will fill out a demand bill with all the details and hand it back.
What’s a demand bill? Think of it like a bank slip. It’s a booklet with the same details on every page—one for the bank and one for your records.
- Pay the Renewal Fee – Head to the bank mentioned on the demand bill. Pay up, and your license is automatically renewed.
And that’s it! You’re all set to run your manufacturing business with the right paperwork.
What Does it Take to Get a Trade License?
Ever wondered what papers you need to get a trade license? Don’t worry, we’ve simplified it for you!
What You’ll Need
- Photos – Three passport-sized pics of yourself. If there’s more than one business owner, get three photos of each person.
- ID Proof – A photocopy of your voter ID card.
- Rental Agreement – If you’re renting your business space, you’ll need a copy of the agreement. This should be in the name of your business.
- Utility Bill – A recent utility bill or service charge receipt is also needed.
Got Everything? Great! Here’s a Deeper Dive into Other Necessary Documents
- Application Form – Head to Dhaka City Corporation to pick this up.
- Foreigner? Bring along a copy of your passport.
- Ownership Proof – If you own your business space, have proof of this and any tax payments you’ve made.
- More Photos – Yep, another 3 passport-sized photos! Make sure they’re 45mm wide and 55mm high.
- Court Statement – This should follow City Corporation rules.
- Business Basics – You’ll need your Articles of Association (AOA) and Memorandum of Association (MOA).
- Organization Certificate – Proof that your business is legit.
- Partnership Details – If you’re running the business with others, have your partnership agreement ready.
- Work Permit – If required, get a certificate or document from the Investment Board.
- Bank Statement – Show that your business is financially sound.
- TIN Certificate – Lastly, make sure you have this tax-related certificate.
And that’s your checklist! Gather all these, and you’ll be well on your way to getting your trade license.
What is Required for a Trade License?
What Do You Need to Get a Trade License? A Simple Guide
Getting a trade license? You’ll need a bunch of documents. And it’s super important to make sure everything is accurate and in order.
Here’s what you shouldn’t forget
- Application Form – The starting point of the process.
- Your National ID – It’s proof of who you are.
- Tax Receipt – This shows you’ve been paying your holding taxes.
- Your Photo – A recent passport-sized one.
- Promise Note – A declaration on a non-judicial stamp that you’ll follow all the rules of the City and Municipal Corporation.
- Business Basics 4 – If you’re a company, bring along a certified copy of your Memorandum and Articles of Association.
- Incorporation Proof – A copy of your incorporation certificate.
- Are You in a Partnership? – If yes, have your partnership agreement handy.
- Tax Details – Your Tax Identification Number Certificate.
- Rental Agreement – If you’re renting your business space, get a copy of the lease.
- Work Permit – If needed, have a permit from the Investment Development Authority.
- Bank Statement – This shows your business’s financial health.
So, make sure you’ve got all these and remember to be honest. You want your trade license process to be smooth sailing!
And hey, while you’re here, check out some cool ways to earn online
- Earning with just your phone
- Starting a profitable blog
- Monetizing your Facebook activities.
Rules for Online Trade Licensing
If you want to do business, you need a trade license. Here’s what you should know
- Every business, no matter its type, needs this license.
- It’s given by the local city or town where you do your business.
- Got more than one shop or office? You’ll need a license for each place!
- The license is good for one year, but remember to renew it every year.
- There’s a fee to get this license. How much? It depends on your business type.
- If you’re going online, you’ll need to send digital copies of some papers. Want more info? Check the e-trade license link!
What is an e-Trade License?
An e-trade license lets you apply for a business license online. It’s super quick and simple! If you Google “e-trade,” the official government website will show up.
On this site, fill out the application form and pay the needed fee. Then, just wait for your pick-up date. Many people love the e-trade license because it’s so speedy and hassle-free.
E-Trade Licensing Rules
Want an e-trade license? Just follow these easy steps
- Google “e-trade” and find the form.
- Fill it out with your details and info about your business.
- Once done, they’ll text you a date to pick up your license.
- Need more details? Head to www.dscc.gov.bd!
What Trade License is Required for E-Commerce Business?
Do an e-commerce shop or thinking of starting one? Here’s why you should get a trade license
- It helps your business run smoothly.
- Without one, you might face some challenges.
- Every business, whether big or tiny, needs this license.
- It makes your business official and trustworthy.
- The coolest part? You can get your e-trade license online, from the comfort of your home or office.
- So no more running back and forth – just click and get licensed!
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Do you have questions about trade licenses? Drop them in the comments! We’ll be happy to answer right there.
Frequently Asked Questions
A trade license is a special permission from the government that allows individuals or businesses to operate legally. It serves as an official endorsement to conduct business activities.
A trade license is essential for legitimacy and trustworthiness. It is often required by banks for loans, facilitates smoother business operations, provides government support, and allows access to various business opportunities.
Common documents required include –
Business name and address.
Details about the nature of the business.
Tax and bank information.
Information on suppliers and customers.
Benefits include easier international business transactions, avoidance of extra charges in international deals, independence in business operations, potential for investment, exclusive selling opportunities, better understanding of local customers, and eligibility for various business associations.
Operating without a trade license is illegal and may lead to several issues, such as –
Legal consequences from the government.
Difficulty in proving product uniqueness.
Limited support from banks and the government.
Trust issues with customers.
Loss of control over products.
Increased business risks.
Costs vary based on factors like business type and location. For example, an e-commerce business might incur fees ranging from 1100 to 1500, with additional charges for signboard tax and physical visit tax.
E-commerce businesses can obtain licenses under categories like IT or software. The government fee may range from 1100 to 1500, with additional charges. The overall cost, including other fees, might be around 4-5 thousand.
Every business, regardless of type, requires a trade license. The type of license may vary based on the nature of the business, but having one is crucial for legitimacy, growth, and various business dealings.
The process involves filling out the appropriate form, obtaining local approvals, gathering necessary documents, undergoing a business inspection, making the required payments, and obtaining the official trade license. E-trade licenses and consultancy firms can streamline the process.
Essential documents include passport-sized photos, ID proof, rental agreement or ownership proof, utility bills, application form, incorporation proof, partnership details (if applicable), tax-related documents, work permit (if needed), and a bank statement.
An e-Trade License allows individuals or businesses to apply for a business license online. It offers a quick and hassle-free process, allowing applicants to fill out the form, pay fees online, and await the pickup date.