Our London office (Holborn Gate, 330 High Holborn, London, WC1V 7QH) frequently advises clients on entry and operational issues across jurisdictions, including licensing regimes in South Asia. The information below summarises how trade licences are administered in Bangladesh, the principal cost drivers and the role of electronic (e‑trade) services. It is intended as a general reference for international businesses and advisers considering activities in Bangladesh.

Overview: what a trade licence covers

In Bangladesh, a trade licence is the primary municipal authorisation for conducting commercial or professional activity from defined premises. Municipal bodies or City Corporations (and their zonal tax offices) issue licences under local taxation rules. The scope, fee basis and renewal cycles are set locally; for many businesses the trade licence is a precondition for opening a bank account, obtaining utility connections or registering for tax.

How fees are typically set and what affects cost

Fee structures vary materially between municipalities and by business characteristics. Common variables that influence licence fees include:

• type of activity (retail, manufacturing, food services, professional services);
• size and location of the premises (residential, commercial, industrial zones, central business districts);
• annual turnover or assessed rental value where local rules apply; and
• whether the licence is an initial grant or an annual renewal.

For small, informal or micro‑enterprises fees may be modest; larger commercial operations in major cities face higher charges and potentially additional municipal taxes or levies. Local authorities may publish banded schedules, but those should be checked on the relevant municipal website as they are updated periodically.

E‑trade licence systems and practical process points

Many city corporations and municipalities have introduced electronic application and payment routes. Typical features of e‑trade licence portals include online application forms, upload capability for supporting documents, and web‑based fee payment (through designated banks or payment gateways). Benefits include faster acknowledgement, digital receipts and clearer renewal reminders.

Commonly requested documents (varies by authority) may include proof of identity or corporate registration, lease or property papers, a utility bill or tenancy agreement, and a description of the proposed activity. Some sectors require additional sectoral approvals or clearances before a municipal licence can be issued.

Practical checklist

• Confirm the issuing authority for the business location (City Corporation vs municipality).
• Review the local fee schedule and whether fees differ for initial grant versus renewal.
• Prepare corporate or personal identification documents, proof of premises, and any sectoral clearances.
• Check whether an e‑application route exists and set up online payment credentials in advance.
• Coordinate trade licence timing with tax registration, bank account opening and any sectoral permits.
• Factor in potential inspections, late renewal penalties and the need for translations or notarisation of documents.

Considerations for foreign investors

Non‑resident companies should account for additional layers of compliance: corporate registration in Bangladesh (or appointment of a local representative), tax and VAT registration, labour and immigration compliance, and any sector‑specific licences (food safety, pharmaceuticals, import/export). Municipal trade licences operate alongside national regimes and are not a substitute for national permits or registrations.

Jurisdiction and sources

• Ministry of Local Government, Rural Development & Co‑operatives
• Dhaka North City Corporation and Dhaka South City Corporation (for city‑level procedures)
• Bangladesh National Portal (e‑governance information)
• Bangladesh Investment Development Authority (BIDA) (investor guidance)
• National Board of Revenue (NBR) (tax registration and VAT guidance)

General information only; not legal advice and not a substitute for advice on a particular matter.