City Corporations and Buildings
City corporations are the municipal authority for urban areas in Bangladesh. For building owners and occupiers, the city corporation controls trade licences, holding tax, and building assessment. Dhaka is divided between DNCC (Dhaka North City Corporation) and DSCC (Dhaka South City Corporation).
Key Functions for Buildings
| Function | Detail | Frequency |
|---|---|---|
| Trade licence | Required for any business operating from a premises | Annual renewal (June) |
| Holding tax | Property tax based on building area, location, and use | Annual (quarterly instalments) |
| Building assessment | Valuation of building for tax purposes | Periodic reassessment |
| Road maintenance | Access road condition, drainage | Ongoing |
| Waste collection | Municipal solid waste collection | Daily/periodic |
| Birth/death cert | Civil registration services | As needed |
Trade Licence Process
| Step | Activity | Timeline |
|---|---|---|
| 1 | Application to ward office with business details, premises address, NID, passport photo | Day 1 |
| 2 | Fee payment based on business type and size | Day 1 |
| 3 | Verification by ward councillor or designated officer | 1-2 weeks |
| 4 | Licence issuance | 1-3 weeks total |
Fee: BDT 500-25,000+ depending on business category. Renewal: Annual by June 30. Penalty: Late renewal incurs surcharge. Operating without trade licence is a violation.
Holding Tax
- Assessment basis: Annual rental value (ARV) of the property — determined by city corporation assessor
- Tax rate: Percentage of ARV (typically 7-15% depending on city corporation and zone)
- Payment: Annual, payable in quarterly instalments. Discount for early payment.
- Dispute: Assessment can be appealed within 30 days of notice
- Importance: Holding tax receipt is required for trade licence renewal and various government transactions
Practical Guidance
- Trade licence is non-negotiable — every business premises needs one. It is required for opening bank accounts, foreign worker permits, and many other processes.
- Keep holding tax current — arrears accumulate penalties and block other transactions.
- For tenants: Trade licence is typically the tenant's responsibility. Verify your landlord's holding tax is current.
- For FM: Maintain a copy of trade licence and holding tax receipt in the building compliance file.
References
- DNCC — Dhaka North City Corporation
- DSCC — Dhaka South City Corporation
- Local Government (City Corporation) Act 2009
Insights & Guidance
- Every business premises needs a trade licence from the city corporation — renewed annually by June 30.
- Holding tax is the property tax assessed on annual rental value — keep it current to avoid penalties.
- Trade licence is required for bank accounts, foreign worker permits, and many government processes.
- Dhaka is split between DNCC (north) and DSCC (south) — know which corporation your building falls under.
Trade licence and holding tax are basic compliance requirements for any business premises. While they don't address building safety directly, they are prerequisites for many other regulatory processes and demonstrate legitimate business operation.
- Expired trade licence — blocks bank transactions, permit applications, and creates legal exposure.
- Holding tax arrears — accumulating penalties, blocks property transactions.
- Current trade licence
- Current holding tax receipt
- Is the trade licence displayed and current year?
- Is the trade licence current? When does it expire?
- Is holding tax up to date?
- Tax assessment dispute — lawyer or tax consultant familiar with municipal tax processes.