Trade License in Bangladesh: A Complete Overview

The trade license in Bangladesh is the most basic business document there is, and almost every other registration depends on it. It is issued under local government law, for City Corporations under the Local Government (City Corporation) Act 2009 and its tax schedule, and similarly for Pourashavas and Union Parishads under their own legislation.

This overview explains what the license is, who needs it, how it relates to TIN, BIN, IRC and sector licenses, and what it costs to keep one in good standing. For the practical filing steps, see our pages on a new trade license application and on trade licence renewal and amendments.

Who issues a trade license

The issuing authority depends on where the business operates, not where the owner lives. In Dhaka, that means Dhaka North City Corporation (DNCC) or Dhaka South City Corporation (DSCC), divided into zones and wards. Other cities such as Chattogram, Khulna, Rajshahi, Sylhet, Gazipur and Narayanganj have their own City Corporations. Outside city areas, Pourashavas issue licenses in towns and Union Parishads in rural areas.

Businesses inside an EPZ or economic zone deal with BEPZA or BEZA for many permits, so local trade license requirements there can differ. We confirm the applicable authority before any filing.

Who needs a trade license

• Shops, showrooms, restaurants and other retail or service outlets
• Offices of companies, partnership firms and proprietorships
• Factories, workshops and warehouses
• Professional firms and consultancies operating from an office
• Online businesses and e-commerce sellers that operate from a registered address
• Foreign-owned companies and BIDA-approved branch or liaison offices

How the trade license fits with other registrations

The trade license proves that the local authority permits your business at that address. It does not register your company (that is RJSC), does not register you for tax (that is the e-TIN with NBR) and does not register you for VAT (that is the BIN on Mushak 2.1). It also does not replace sector licenses: a pharmacy still needs a drug licence, a restaurant still needs food safety compliance, and an importer still needs an IRC from CCI&E.

In practice the trade license sits in the middle of the chain. RJSC incorporation usually comes before it for companies, and BIN, IRC, bank accounts and tender enlistments come after it, because each of those asks for a copy.

Fees, validity and renewal

Fees are set by each authority's schedule of business types and may vary by size, capital or location. Applicants also pay ancillary charges such as signboard tax where applicable, VAT on the license fee, and in some cases an income tax amount collected at source. Exact figures change with each authority's schedule, so we confirm them at the time of filing.

Every trade license runs to 30 June, the end of the fiscal year, regardless of when it was issued. It must be renewed each year, and late renewal attracts a surcharge that grows with delay.

Risks of operating without a valid license

• Fines and legal action by the local authority, and possible closure during drives
• Inability to open or maintain business bank accounts
• BIN, IRC, ERC and tender enlistment applications rejected or suspended
• Customs and LC transactions held up when the bank finds an expired license
• Accumulated arrears and surcharges when you finally renew

How the process works

1. Identify the authorityWe confirm whether the premises falls under a City Corporation, Pourashava, Union Parishad, or a zone authority.
2. Classify the businessWe map your activities to the authority's business type schedule and confirm the applicable fee.
3. Check the premises papersRent agreement, holding tax receipt and ownership details are checked for consistency with the applicant.
4. File new or renewal applicationWe submit the application online or in person and follow up on verification.
5. Link downstream registrationsOnce the license is issued we use it to complete TIN, BIN, IRC or bank requirements as needed.

Typical timeline: With complete documents, a trade license is usually issued or renewed within a few working days to a few weeks, depending on the authority, the business category and any inspection required.

How Tax & VAT Associates helps

• Advice on the right issuing authority and business category for your activity
• New trade license applications for proprietorships, partnerships, companies and foreign entities
• Annual renewals and changes to name, address, owner or business type
• Alignment of trade license details with RJSC, e-TIN, BIN and IRC records
• Renewal reminders before 30 June each year

Frequently asked questions

Related services

Last reviewed: 6 October 2026. Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.