If you run a business in Bangladesh, keeping your Trade License valid and up-to-date is not optional — it is a legal requirement. Failing to renew your Trade License on time can result in hefty fines, business disruption, or even forced closure by local authorities.
In this comprehensive guide, Elahi Legal walks you through the complete Trade License renewal process in Bangladesh — including who issues it, what documents you need, how much it costs, and how to avoid common mistakes.
What Is a Trade License in Bangladesh?
A Trade License is an official permit issued by the local government authority — either a City Corporation, Paurashava (Municipality), or Union Parishad — that authorizes a person or business entity to carry out a specific trade or business within a defined jurisdiction.
Without a valid Trade License, your business is technically operating illegally, regardless of whether you are registered with the RJSC (Registrar of Joint Stock Companies and Firms) or not.
Who Issues Trade Licenses in Bangladesh?
The issuing authority depends on your business location:
- Dhaka North & South City Corporation — for businesses in Dhaka city areas
- Chattogram City Corporation — for Chattogram-based businesses
- Other City Corporations — Rajshahi, Khulna, Sylhet, Barishal, Mymensingh, Cumilla, Gazipur, Narayanganj
- Paurashava (Municipalities) — for businesses in municipal towns
- Union Parishad — for businesses in rural/union areas
When Should You Renew Your Trade License?
Trade Licenses in Bangladesh are issued for one financial year (July 1 to June 30). Renewal must be completed by June 30 of each year.
Important: Renewals submitted after June 30 attract a surcharge/penalty, which increases the longer you delay.
Documents Required for Trade License Renewal
The required documents may vary slightly depending on the issuing authority, but generally include:
- Original Trade License (previous year)
- Copy of National ID (NID) of the proprietor/owner/directors
- Updated tax return / TIN certificate
- Holding tax clearance (proof that municipal/city corporation holding tax is paid)
- Rent agreement or ownership documents of the business premises
- Passport-size photographs of the owner (as required)
- Bank solvency certificate (for certain business categories)
- Fire license / environment clearance (if applicable to your business type)
- Application form (available at the respective City Corporation or Paurashava office)
Pro Tip from Elahi Legal: Always keep certified photocopies of all submitted documents for your own records.
Step-by-Step Trade License Renewal Process in Bangladesh
Step 1: Collect the Application Form
Visit your respective City Corporation or Paurashava office and collect the Trade License renewal application form. Many offices also provide downloadable forms on their official websites.
Step 2: Fill in the Application Form
Complete the form accurately with your current business details — name, address, type of business, and contact information. Any mismatch with your original registration can cause delays.
Step 3: Prepare Required Documents
Gather all necessary documents as listed above. Make sure your holding tax and previous dues (if any) are cleared before applying.
Step 4: Submit Application and Pay the Renewal Fee
Submit the completed form along with supporting documents at the designated counter. You will then be required to pay the Trade License renewal fee, which is calculated based on:
- Nature/type of business
- Capital investment / business size
- Location of business
Fee schedules vary by city corporation and are updated periodically. For reference, fees can range from as low as BDT 500 for small traders to BDT 50,000+ for large commercial enterprises.
Step 5: Receive Acknowledgment Receipt
After submission and payment, you will receive an acknowledgment receipt. Keep this safely — it serves as proof of your renewal application while the license is being processed.
Step 6: Collect the Renewed License
The renewed Trade License is typically issued within 7–15 working days. Some city corporations now offer digital/online tracking of your application status.
Online Trade License Renewal in Bangladesh
Bangladesh is gradually digitizing its licensing system. Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC) have online portals where businesses can initiate renewal applications.
However, for many districts and Paurashavas, the process still requires in-person visits. Elahi Legal can assist you in navigating both online and offline renewal procedures seamlessly.
Penalty for Late Renewal
If you fail to renew your Trade License before June 30, you will be subject to:
- A surcharge of 10–25% on the original renewal fee (varies by authority)
- Possible notices or summons from local authorities
- Risk of business suspension if license lapses significantly
Renewing on time is always more cost-effective than paying penalties later.
Trade License Renewal vs. Fresh Application: Key Differences
| Feature | Renewal | Fresh Application |
|---|---|---|
| Timeline | Annual (by June 30) | One-time at business start |
| Documents | Fewer, streamlined | More extensive |
| Processing Time | 7–15 days | 15–30 days |
| Cost | Lower | Higher (initial fees apply) |
Common Mistakes to Avoid During Renewal
- Letting the license expire without renewal — attracts penalties
- Incorrect business information on the form — causes rejections
- Unpaid holding tax — a mandatory clearance before renewal
- Missing TIN/tax return — increasingly enforced by authorities
- Not updating business address — if you’ve relocated, inform the authority
How Elahi Legal Can Help You
At Elahi Legal, we understand that navigating government procedures can be time-consuming and confusing — especially when you are focused on running your business. Our legal professionals provide:
- End-to-end Trade License renewal assistance
- Document preparation and verification
- Liaison with City Corporation and Paurashava offices
- Legal guidance for businesses facing compliance issues
- Fast-track services for urgent renewals
Whether you are a sole proprietor, a partnership firm, or a limited company, we ensure your Trade License is renewed accurately and on time — every year.
Contact Elahi Legal today and let our experts handle your Trade License renewal without the hassle.
Visit us at: https://elahilegal.com/
Frequently Asked Questions (FAQs)
Q: Can I renew my Trade License if there are outstanding dues? A: You must clear all holding taxes and previous dues before a renewal will be accepted.
Q: What happens if my Trade License is lost? A: You need to file a GD (General Diary) with the police and apply for a duplicate license from the issuing authority before proceeding with renewal.
Q: Is a Trade License the same as business registration with RJSC? A: No. They are different. RJSC registration covers company formation, while a Trade License is a local-authority permit to operate at a specific location.
Q: Can a foreign national or foreign company get a Trade License in Bangladesh? A: Yes, but additional documents and approvals (such as BIDA registration) may be required.
Q: How many Trade Licenses does one business need? A: Each business location requires a separate Trade License.
This article is for informational purposes only and does not constitute legal advice. For specific guidance on your business situation, please consult a qualified legal professional at Elahi Legal.
