Bangladesh Bank has simplified the bank account opening process for small traders, dropping trade license requirements. The name of the account will be 'Personal Retail Account' or 'Private Retail Account'. This account can be opened in banks, mobile financial services (MFS), e-wallet service providers, and payment service providers (PSP). Individual small entrepreneurs can transact through such an account for commercial purposes, said Bangladesh Bank. Also read: Tax return document not needed for loans up to Tk 20 lakh: NBR The central bank revealed this information in a discussion with Asian Development Bank on Saturday. A personal retail account can be opened only after submitting the documents required for e-KYC in bank account opening. There is no cost to open this account. Besides, loan will also be available on the basis of transaction. Even if the account is in MFS, the cash-out cost will be less. Director of the Payment System Department of Bangladesh Bank, Masbaul Haque, told UNB that there is opportunity to open a ‘personal retail account’ without a trade license. Also read: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman The central bank has issued such a directive to encourage the growth of small business sector. According to Bangladesh Bank’s circular, no trade license will be required to open an ‘individual retail account’. E-KYC and necessary documents to open a bank account have to be submitted. It will be managed like a current account. This account can be used for commercial purposes, Bangladesh Bank sources said. Read Export Development Fund loans can be repaid in instalments from now on However, a maximum of Tk 10 lakh per month can be transacted through this account. The one-time status of this account will be maximum Tk 5 lakh. Micro and small traders such as grocers, floating food vendors, bus-CNG-rickshaw drivers, street vendors, sellers of various products and services on Facebook, or service providers engaged in various marginal professions can open this account. A copy of the national identity card and proof of profession are required to open the account. Trade license is not mandatory for professional credentials. A valid document issued by the local public representative or the relevant business association is required. All banks, MFS, and PSP service providers in the country will open this account free of cost, said the central bank. Read How to Get a Trade License in Bangladesh?

A trade license is one of the most important documents when it comes to conducting business in Bangladesh. It essentially validates a person or an organization as a business entity under Bangladeshi law and enables them to engage in any form of transaction. Needless to say, acquiring a trade license for legal business conduction is a must. But how to obtain a trade license in Bangladesh and what are its categories? Let's find out. Types of Trade License Trade license was enacted as a singular authoritative document to conduct any form of business transaction. With time, the process came to include different non-profit, foundations, NGOs, and other similar organizations in its wings. The process and requirements of trade license have been outlined in The Companies Act of 1994. It has been further detailed in the Municipal Taxation Ordinance of 1986 and The City Corporation Ordinance of 1983. Read Online Hajj Registration from Bangladesh: Procedure and Costs Depending on the business, types, channels, and serving sector, trade licenses can be categorized into 1200 different types. All of these are active under the current legislative regulation. However, for ease of understanding, trade license can be broadly categorized into 3 types – The General Trade License The general trade license applies to all types of small and medium scale businesses. The government has outlined a set revenue and transaction limit to be eligible for the general trade license. Basically, every other form other than the latter two here will fall under general trade license. Commercial Trade License A commercial trade license is required for any kind of registered business entity in Bangladesh. The business can be set up under a personal name or as a separate entity. This applies to retail stores, super shops, and different kinds of suppliers. Read Bangladesh Smart National ID Card Correction Process: Payments and Necessary Documents The Manufacturing Trade License Almost all the large conglomerates of Bangladesh hold this license. As the name suggests, any business that engages in the production and distribution of goods falls under this category. Any business with a production facility or factories and industries is eligible for the manufacturing trade license. Process of Obtaining a Trade License There are a few fundamental differences between each of the trade license classes. As a result, there are differences in their application process, authority, and required documents. The application process for each trade license is outlined below. Application Process for General Trade License The general trade license issuing authority is the local government. Depending on location, it can be either city corporation office/ward council/ UP office or municipal authority. Read How to Get E-Passport in Bangladesh: Things you need to know There are a few key documents to be attached with the general trade license application form. These include – NID of the applicant, TIN, VAT registration, incorporation certification, bank statement, and clearance certificate from BIDA. These are the must-have documents for the application. Depending on the nature of the business, the issuing authority may require additional documents as well. The process starts with submitting the application form along with the above attachments. After that, the concerned authority will dispatch the application for inspection. After successful inspection, the business needs to deposit the required fee. Read How to Start a Tea Stall Business in Bangladesh? It takes about 3 to 5 days after application to obtain the provisional license. Application Process for Commercial Trade License The commercial trade license is issued by the city corporation or the zonal offices under it. For other localities, the equivalent office issues the commercial trade license. All the required documents mentioned in the general trade license are also applicable for the commercial trade license. However, there are some additional requirements as a commercial trade license is issued against a business entity. Read Visa Free Country List for Bangladeshi Passport Holders in 2021 The applicant needs to attach tax certification, partnership agreement (for multiple ownership), and a copy of passport if any authoritative position is held by a foreign individual in the business. Applicants first need to obtain the K form from the city corporation or the zonal office. The rest of the application procedure is similar to the general trade license application. However, there is an additional 50 BDT charge for the license book collection. There is an additional signboard fee which is 30% of the accrued license fee relevant to the business type. Read How Does Inflation Affect Business, Professionals, Mass People in Bangladesh? Application Process for Manufacturing Trade License The application authority for manufacturing trade license is again the city corporation or the relevant zonal offices under it. There are some additional document requirements along with the standard ones mentioned above. First off, the applicant needs to provide a copy of the NOC from the local neighborhood/ward authority. Then there is the Fire Safety License. A copy of MoA and AoA should also be attached to the application. For the manufacturing trade license, the I form should be collected from the relevant office. The rest of the process is exactly similar to the commercial trade license application process. Read How to Start a Bakery Business in Bangladesh? Application Process for E-Trade License The E-Trade license introduced digitization of the trade license process of Bangladesh. The three types of trade licenses are obtained through the E-Trade license system.  Within its scope, the relevant city corporations and zonal offices provide trade licenses. To get started, the applicant has to visit the E-Trade license website which operates under the Local Government Division. From there, the applicant needs to select the “New Registration” option. The following page will contain a form for the personal details of the applicant. The subsequent page will contain a form detailing the business type and details. The applicant needs to correctly input the information in the relevant box. A digital copy of the required attachments mentioned above needs to be uploaded along with the application based on the type of trade license. After successful completion of the process, the application will be forwarded for verification. Concurrently, a tracking number will be generated for the applicant to check the status of the application. Read 10 Minutes School: Road to $2 Million Seed Funding After verification, the applicant needs to pay the required fee and collect an online copy of the provisional license. Applicants can renew, reissue and even surrender their trade license from the same website. Final Thoughts The trade license is an essential document that enables any person to conduct business and other dealings legally in Bangladesh. Every concerned business should obtain its trade license to avoid any form of legal trouble. Read Work from Home Business Ideas for Moms, Housewives in Bangladesh

The Commerce Ministry has recently completed its task of formulating a set of Standard Operating Procedures for the e-commerce industry. Yet the muted response to the SOPs reflect the significantly deeper concerns  surrounding the industry, that have come to light recently in the form of troubling revelations about some of its biggest players, most notably Evaly, that have come straight from investigations carried out by an authority as important as Bangladesh Bank. Given the seriousness of some of these concerns and allegations, a set of guidelines rooted in global best practices, that would essentially allow the rapidly growing industry to regulate itself.  Firms would be responsible for implementing the SOPs within their own organisations, while a failure to do so would not carry the threat of incurring a legal penalty. None of the SOPs in that sense would be legally binding.  Also read: Potential of e-commerce hemmed in by bottlenecks Although this kind of light-touch approach can be entertained in a situation where the assumption is that one is dealing with good faith-actors, the recent revelations regarding Evaly, that include possible money laundering, have effectively blown the credibility of such a working assumption out of the water. It suggests the more prudent route forward for harnessing the sector's potential may well be regulatory oversight by a competent authority. 

The Dhaka North City Corporation (DNCC) will not provide trade license or holding numbers to the buildings which will not install separate fire safety system from now on, declared Mayor of Dhaka North City Corporation Atiqul Islam on Sunday. The Mayor came up with the remarks while attending a virtual discussion programme organized by the Save the Children. Also read: Councillors found occupying canals to lose post: DNCC Mayor More than 40 organisations are working to reduce risk factors and for disaster management in the capital which is one of the most densely populated metropolitan cities of the world, Atiqul said. Stating that “Evidently necessity of cooperation between these organisations in risk management is undoubtedly great”, the mayor assured of providing necessary assistance as per the capability of DNCC.    Also read: 13 illegally occupied canals to be recovered: DNCC Mayor He also urged all to follow the 18-point health protocols issued by the government to contain the rapid spread of Coronavirus.