What Is a Trade Licence?
A trade licence is a mandatory permit issued by the city corporation (DNCC/DSCC in Dhaka) or municipality (pourashava) authorising a business to operate from a specific premises. No business can legally operate in Bangladesh without a trade licence. It is the most basic business permit and a prerequisite for many other licences and processes.
Who Needs a Trade Licence?
- Every business — office, shop, restaurant, factory, warehouse, clinic, school
- Each branch needs a separate trade licence
- Home-based businesses with commercial activity also need one
- Even NGOs and non-profits operating from a premises need a trade licence
Application Process
| Step | Activity | Detail | Timeline |
|---|---|---|---|
| 1 | Determine ward | Identify which ward and city corporation your premises falls under | Day 1 |
| 2 | Obtain application form | From ward office, city corporation office, or online (some city corps) | Day 1 |
| 3 | Complete form | Business name, type, address, owner NID, TIN | Day 1 |
| 4 | Attach documents | NID copy, passport photo, tenancy agreement or ownership proof, TIN certificate | Day 1 |
| 5 | Pay fee | Fee based on business type and category — pay at designated bank or city corp treasury | Day 1-2 |
| 6 | Submit to ward office | Submit form + documents + fee receipt | Day 2-3 |
| 7 | Verification | Ward councillor or officer may verify premises | 1-2 weeks |
| 8 | Licence issuance | Trade licence issued | 1-3 weeks total |
Fee Structure
| Business Category | Annual Fee (BDT approx.) |
|---|---|
| Small shop / home business | 500-2,000 |
| Medium commercial / office | 2,000-10,000 |
| Large commercial / corporate | 10,000-25,000 |
| Manufacturing / factory | 5,000-50,000+ |
| Bank / financial institution | 25,000-100,000+ |
Annual Renewal
- Renewal period: By June 30 each year (fiscal year alignment)
- Process: Submit renewal form + pay renewal fee
- Late penalty: Surcharge for late renewal — typically 25-50% additional
- Grace period: Some city corporations offer 1-2 month grace period
- Online renewal: DNCC and DSCC have introduced online renewal systems (functionality varies)
Trade Licence as Prerequisite
The trade licence is required for:
- Opening a business bank account
- Applying for fire licence
- Applying for environmental clearance
- Obtaining factory licence (DIFE)
- Foreign company registration (with BIDA)
- Work permit applications for foreign employees
- IRC/ERC (import/export registration)
- Tax identification number (TIN) registration
- VAT registration
Practical Tips
- Apply before starting operations — technically required before you begin business activity.
- Renew on time — late renewal penalties accumulate and can complicate other permit renewals.
- Keep multiple copies — you'll need copies for fire licence, environmental clearance, bank accounts, and tax filings.
- Update for changes — if business type, address, or ownership changes, update the trade licence.
- Display prominently — trade licence should be visible at the business premises.
References
- DNCC — Dhaka North City Corporation
- DSCC — Dhaka South City Corporation
- Local Government (City Corporation) Act 2009
- Municipal Taxation Rules
Insights & Guidance
- Trade licence is mandatory for every business — the most basic permit and prerequisite for fire licence, bank account, environmental clearance, and more.
- Issued by city corporation (DNCC/DSCC) or municipality. Takes 1-3 weeks.
- Renewed annually by June 30. Late renewal incurs 25-50% surcharge.
- Each branch needs a separate trade licence.
- Without a trade licence, you cannot open a bank account, apply for fire licence, or register with BIDA.
The trade licence is the first legal document proving a business exists and operates legitimately. It is required for virtually every other business permit and process. Without it, a business has no legal standing — and all downstream permits are unachievable.
- Operating without one — business has no legal standing.
- Expired — blocks bank transactions, permit renewals, tax filings.
- Wrong category — underpaying fees can result in penalties during audit.
- Current trade licence (displayed at premises)
- Renewal receipt for current fiscal year
- Is the trade licence displayed? Is it current year?
- Is the trade licence current? Has it been renewed for this fiscal year?
- Usually straightforward — local accountant or compliance consultant can handle the application and renewal.