Launching a business is all about building something that can stand the test of legal scrutiny, besides passion, ambition, or a killer idea. The right licenses and permits are essential for any business, whether opening a cozy cafe, launching an online shop, or offering professional services. You might feel overwhelmed navigating the legal requirements from general business registrations to specific industry permits. But if you miss any, it can lead to costly fines, forced closures, or operational setbacks.
Let’s walk you through the essential layers of licensing and break down what you need to stay compliant right from the start of your business and how to get a trade license in Bangladesh. Consider this your licensing roadmap to launching a business that lasts, whether setting up in the city or launching internationally.
Essential Licenses and Registrations
Securing the right licenses and completing required registrations is critical whether you’re launching a startup abroad or locally in Bangladesh. Proper licences and registrations will safeguard your operations and credibility, and ensure legal compliance. Here are the most essential licenses and registrations you might need to operate your business locally and globally-
Company Registration
You must register with the Registrar of Joint Stock Companies and Firms (RJSC) to obtain the Certificate of Incorporation for corporations, partnerships, or limited companies. Reserve a unique company name through the RJSC and get a name clearance certificate.
Trade License
A trade license is a mandatory permit that legally authorizes your business operations in Bangladesh. City Corporation, Municipality, or Union Parishad will issue a trade licence, and without one, you can face fines or closure. It is illegal to operate a business in Bangladesh without a trade license.
TIN Certificate
A Tax Identification Number (TIN), a 12‑digit identifier issued by the National Board of Revenue (NBR), proves you’re a registered taxpayer. A TIN is mandatory for various legal and financial activities like filing tax returns for taxable income earners, obtaining or renewing a trade license, registering property, applying for loans, etc.
VAT Registration
VAT registration is another mandatory registration for your business as it will apply to every stage, from raw materials to final sale. A VAT registration will give you access to government tenders, banking services, import/export operations, and major contracts.
Fire License
A Fire License (Fire Safety Licence) issued by the Fire Service and Civil Defence is a must-have permit according to the Fire Prevention and Fire Fighting Act, 2003. It’s a legal requirement for operational approval and trade license issuance. It enhances your business credibility and helps with insurance, stakeholder trust, and regulatory approval.
Import and Export Licenses
You must obtain the necessary registration certificates if your business is involved in international trade. The Import Registration Certificate (IRC) and Export Registration Certificate (ERC) are mandatory to operate the business internationally.
Step-by-Step Guide to Start Your Business
Here is a step-by-step breakdown of how you can start your business in bangladesh-
Choose Your Business Structure
Depending on the business goal, choose the business structure first, whether it is a Sole Proprietorship, Partnership, Private Limited Company, Public Limited Company, Branch Office, or Liaison Office. Each of them has different implications for liability, taxation, and compliance.
Secure Company Registration
Secure your company registration by reserving a unique business name with RJSC, submitting necessary documents, paying stamp duties, and receiving the Certificate of Incorporation.
Open a Business Bank Account
Open a business bank account to manage capital, payroll, and tax filings. To set up a bank account, the banks will ask for necessary documents like TIN, Trade License, etc.
Obtain a Trade License
Obtain a trade license from your local City Corporation, Municipality, or Union Parishad. It will require some paperwork, an application on stamp paper, TIN, lease agreement, director IDs, solvency certificate, and a fee depending on business type and size. The whole process might take 7 days.
Annual Renewal
Ensuring you renew all your licenses annually is the key to uninterrupted operations and compliance with Bangladeshi law. Delays in renewal can trigger monetary penalties or interest, temporary suspension of business operations, and potential legal action or closure for prolonged non-compliance.
Important Considerations
These are considerations you should always have in your mind while operating a business-
Local Laws and Regulations
Always be respectful and have proper knowledge about local laws and regulations when setting up and running your business in Bangladesh. Localized licensing & permitting, follow local use and building codes, and maintain environmental compliance.
Professional Advice
Take professional advice to smooth and legally operate your business in Bangladesh. You should seek professional advice to avoid costly mistakes. A professional service will give you specialized support, guidance for foreign investors, and prevent legal disputes.
Conclusion
Successfully launching a business is about building a strong foundation that ensures long‑term viability, credibility, and peace of mind. License compliance empowers your business and safeguards your operations against legal setbacks to unlocking opportunities like loans, contracts, and government tenders. Business licensing builds resilience and ensures your venture can scale confidently beyond staying lawful.
