New Trade License Application in Bangladesh: Online Fees & Steps

Operating any legitimate commercial enterprise, retail storefront, import-export agency, software firm, or consultancy in Bangladesh requires a statutory Trade License (ট্রেড লাইসেন্স). Governed under the Local Government (City Corporation) Act 2009 and the Municipal Taxation Rules, a trade license serves as the fundamental legal recognition granting permission to conduct business within the jurisdiction of a local municipal authority.

Beyond basic municipal permission, a trade license is the prerequisite anchor document required to open a corporate commercial bank account, register for a Taxpayer Identification Number (e-TIN), acquire an electronic Business Identification Number (e-BIN / VAT certificate), and execute commercial contracts.

1. Jurisdictional Authorities & System Types

The procedure, fee matrix, and digital platform for obtaining a trade license depend entirely on the territorial location of your physical office or operating facility:

Jurisdictional Body	Geographic Coverage	Application Platform	Standard Processing Time
City Corporations (DNCC, DSCC, CCC, GCC, etc.)	Dhaka North & South, Chattogram, Gazipur, Rajshahi, Khulna, Sylhet	Online e-Trade License (e-TL) Portal	3 to 7 working days
Pourashavas (Municipalities)	District & Upazila divisional urban towns	Regional Pourashava Revenue Counter / Online	5 to 10 working days
Union Parishads	Rural and semi-urban commercial areas	Union Parishad Digital Center (UDC)	1 to 3 working days
BEPZA & Hi-Tech Parks	Export Processing Zones and IT Parks	One-Stop Service (OSS) Portal	2 to 5 working days

For businesses registered within Dhaka North City Corporation (DNCC) or Dhaka South City Corporation (DSCC), physical paper submissions have been largely superseded by the centralized e-Trade License (e-TL) platform, which issues digitally verified, QR-coded trade certificates.

2. Mandatory Document Checklist by Business Entity

Document requirements vary depending on whether the business operates as a sole proprietorship, registered partnership, or limited liability corporate entity.

A. Sole Proprietorship (একমালিকানা প্রতিষ্ঠান)

National ID (Smart NID) of the proprietor.
Two copies of recent passport-size color photographs.
Commercial rent agreement (ভাড়া চুক্তিপত্র) signed on non-judicial stamp (৳300 denomination) or property holding tax receipt if premises are self-owned.
Recent electricity or utility bill for the commercial office space.
Registered mobile number and email address for digital OTP verification.

B. Partnership Firm (অংশীদারি প্রতিষ্ঠান)

Smart NIDs and passport photos of all operating partners.
Notarized Partnership Deed (অংশীদারি চুক্তিপত্র) on non-judicial stamp.
Commercial premises tenancy agreement and holding tax documentation.
Bank account statement or partnership authorization resolution.

C. Private Limited Company (প্রাইভেট লিমিটেড কোম্পানি)

Certified true copies of the Memorandum of Association (MOA) and Articles of Association (AOA) registered with the Registrar of Joint Stock Companies and Firms (RJSC).
Certified copy of Form XII (List of Directors).
Incorporation Certificate (ইনকর্পোরেশন সার্টিফিকেট).
Board Resolution authorizing a director or officer to apply for the trade license.
Registered office commercial tenancy deed and municipal holding tax clearance.

D. Regulated & Special Category Clearances

Certain commercial sectors require statutory line-ministry approvals before the municipal authority will release the trade license:

Manufacturing & Factories: Environmental Clearance Certificate from the Department of Environment (DoE) and Fire Safety Clearance from Bangladesh Fire Service and Civil Defence.
Restaurants & Food Processing: BSTI quality certificate, sanitary clearance, and food handler medical inspection certificates.
Pharmacies & Drug Stores: Drug License from the Directorate General of Drug Administration (DGDA).
Freight Forwarding & C&F: Custom agent operating license and Bangladesh Bank clearance.

3. Step-by-Step Online Application Procedure (e-TL)

For businesses operating in Dhaka and major metropolitan zones, the online e-TL workflow follows six structured phases:

[Account Creation & NID Verification]
               ↓
[Select Zonal Office & Nature of Trade]
               ↓
[Upload Tenancy Deed & Structural Clearances]
               ↓
[Municipal Revenue Assessment & Invoice Generation]
               ↓
[Digital Payment via bKash / Cards / Net Banking]
               ↓
[Instant Download of QR-Coded e-Trade License]

Step 1: Portal Registration

Navigate to the official city corporation portal (e.g., dncc.etradelicense.gov.bd). Create a citizen profile by entering your Smart NID number, date of birth, and active mobile number. Complete OTP two-factor authentication.

Step 2: Selecting Zonal Revenue Office

City corporations are divided into administrative zones (e.g., DNCC has 10 administrative zones spanning Gulshan, Uttara, Mirpur, Karwan Bazar, etc.). Select the exact ward and zone corresponding to the commercial holding address stated on your rent deed.

Step 3: Classifying the Nature of Business

Search and designate your commercial activity code from the municipal tariff schedule. Note that broad categories (e.g., “Software Development & IT Services”, “General Trading & Indenting”, “Consultancy & Management”) carry distinct statutory fee schedules. If your business engages in multiple trades, each additional line of business attracts an incremental municipal levy.

Step 4: Document Uploads

Upload clear scanned PDF/JPEG copies of your NID, photographs, commercial rent deed, utility bill, and corporate RJSC papers (for limited companies). Ensure all documents are legible to prevent rejection by the zonal revenue inspector.

Step 5: Assessment & Online Payment

Once submitted, the system generates an electronic assessment invoice comprising:

Base Trade License municipal fee.
15% statutory Value Added Tax (VAT).
Signboard tax (বিলবোর্ড / সাইনবোর্ড কর) calculated per square foot of outdoor company signage.
Fire service and sanitation inspection charges.
Dhaka divisional surcharge (applicable in metropolitan city corporations).

Payments can be completed electronically through MFS gateways (bKash, Nagad, Rocket) or debit/credit cards.

Step 6: Certificate Generation

Upon automated financial settlement, the system instantly renders your official e-Trade License in PDF format containing an encrypted verification QR code and the digital signature of the Zonal Executive Officer.

4. Fee Schedules & Cost Breakdown

Municipal trade license fees in Bangladesh are determined by business classification and physical location. Rural Union Parishads feature nominal tariffs, whereas Dhaka and Chattogram Metropolitan City Corporations charge standardized scheduled fees:

Business Classification	Base Annual Fee (BDT)	15% VAT (BDT)	Approx. Signboard & Surcharge (BDT)	Total Annual Cost Range (BDT)
IT Services, Freelancing & Web Development	৳4,000 – ৳6,000	৳600 – ৳900	৳1,000 – ৳2,000	৳5,600 – ৳8,900
Retail Shop / Commercial Storefront	৳2,500 – ৳5,000	৳375 – ৳750	৳800 – ৳1,500	৳3,675 – ৳7,250
General Trading / Indenting Firm	৳8,000 – ৳15,000	৳1,200 – ৳2,250	৳2,000 – ৳3,500	৳11,200 – ৳20,750
Restaurant / Food & Beverage Outlet	৳6,000 – ৳12,000	৳900 – ৳1,800	৳1,500 – ৳3,000	৳8,400 – ৳16,800
Commercial Import / Export Agency	৳10,000 – ৳20,000	৳1,500 – ৳3,000	৳2,500 – ৳4,500	৳14,000 – ৳27,500
Medium / Heavy Manufacturing Plant	৳15,000 – ৳35,000	৳2,250 – ৳5,250	৳3,000 – ৳6,000	৳20,250 – ৳46,250

Note: Union Parishad trade license fees for small rural shops typically range between ৳500 and ৳1,500 annually.

5. Annual Renewal Cycles & Penalties

A trade license in Bangladesh is valid strictly for one financial year (July 1 to June 30). Regardless of whether you obtain the license in August or March, the certificate expires on June 30.

Standard Renewal Window: July 1 through September 30 of each fiscal year.
Late Renewal Surcharge: Renewing after September 30 incurs a compound monthly penalty (typically 10% to 25% of the base municipal fee depending on city corporation by-laws).
Multi-Year Validity: The Ministry of Local Government now allows 3-year and 5-year multi-year renewals for low-risk service firms, eliminating annual administrative overhead.

6. Common Pitfalls & Rejection Reasons

Using Residential Tenancy Deeds: Municipal zoning laws prohibit issuing commercial trade licenses in purely designated residential holdings without commercial utility meter sanction.
Mismatch with RJSC Entity Name: For private limited companies, the trade license applicant and company name must match the Certificate of Incorporation verbatim.
Unregistered Sub-Tenancy: Sub-leasing space without written sublease authorization from the primary building owner often leads to zonal inspector objections.
Neglecting Signboard Dimensions: Understating outdoor signboard measurements on the portal can trigger retrospective municipal tax penalties during physical field inspections.

Frequently Asked Questions

Can I run an online e-commerce business with a home address trade license?

City corporations allow digital service providers, IT consultants, and home-based e-commerce ventures to obtain trade licenses under home addresses, provided no heavy commercial inventory or customer foot traffic is maintained in residential apartment blocks.

Is a physical inspection mandatory for every trade license application?

For standard IT, consulting, and retail trading firms, city corporations utilize automated algorithmic approval without prior physical inspection. However, manufacturing factories, chemical warehouses, and restaurants are subject to mandatory on-site physical audits by zonal health and revenue inspectors.

Can one individual hold multiple trade licenses in Bangladesh?

Yes. An individual entrepreneur can operate multiple distinct commercial businesses under separate trade licenses, provided each entity maintains appropriate commercial premise documentation and individual books of accounts.