Why a trade licence matters for online sellers in Bangladesh, typical documents, where to apply and how it unlocks payment gateways.
Many online businesses in Bangladesh start informally from a Facebook page or a home office. As you grow, questions about legal registration come up – especially when you want a merchant payment account, a business bank account or partnerships with suppliers and couriers. One of the most common first steps is getting a trade licence for your online business.
Note: This article is general information, not legal advice. Rules, fees and processes can change and may differ between city corporations and local authorities. Always confirm the latest requirements with the issuing authority or a qualified professional.
What Is a Trade Licence?
A trade licence is a permit issued by a local authority – such as a city corporation, municipality (pourashava) or union parishad – that allows a person or company to carry out a particular business in that area. It is usually renewed periodically.
Why Online Sellers Should Consider a Trade Licence
Payment gateways
Merchant accounts for bKash, Nagad, SSLCommerz and similar services commonly ask for business documents, and a trade licence is frequently among them.
Business bank account
Banks generally require proof of business to open an account in your business name.
Credibility
Suppliers, corporate customers and partners may prefer working with a registered business.
Other registrations
A trade licence is often a starting point for other registrations, such as tax identification or a Digital Business Identity (DBID) where applicable. Check which registrations apply to your business.
Documents Commonly Requested
Exact requirements vary, but applicants are often asked for items such as:
- National ID card of the owner
- Passport-size photographs
- Proof of business address, such as a rental agreement or utility bill
- Holding tax receipt or property documents for the premises, where applicable
- For companies: incorporation documents and related papers
- A completed application form
Some authorities offer online application systems. Check your local authority's website or office for the current list.
General Steps to Apply
- Identify your authority: the one covering your business address.
- Choose the business type/category: online or ecommerce businesses may fall under a specific category; ask the office.
- Prepare documents listed by the authority.
- Submit the application online or in person.
- Pay the fees set by the authority.
- Collect the licence and note its renewal date.
Running a Business From Home
Many online sellers operate from home. Whether you can register a home address and what documents you need depends on local rules. Ask the authority directly, and keep your address consistent across your licence, website and payment applications.
After You Get Your Licence
Apply for payment gateways
With your documents ready, apply for merchant accounts, then connect them to your store via the Multipurc plugins page.
Open a business bank account
Keeping business and personal money separate makes accounting and tax much easier.
Keep records
Maintain records of sales, expenses, courier settlements and refunds. Good records help with tax and with understanding your profit.
Renew on time
Set reminders for renewal to avoid penalties.
Make Your Website Ready for Verification
Payment providers usually review your website before approving a merchant account. Make sure your store includes:
- Business name matching your documents
- Physical address and phone number
- Clear product listings with prices
- Delivery, refund and return policies
- Terms and conditions and a privacy policy
A clean design from the theme gallery and complete policy pages help your application.
Other Registrations to Look Into
- Tax Identification Number (TIN)
- VAT registration, depending on your turnover and business type
- Digital Business Identity (DBID) for ecommerce, where applicable
- Company registration if you plan to form a limited company
Speak with an accountant or adviser to understand which apply to you.
Practical Checklist for Online Sellers
- Confirm which local authority covers your business address
- Ask which business category applies to online selling
- Gather documents requested by the authority
- Keep copies (digital and paper) of everything you submit
- Note the licence number and renewal date
- Use the exact business name from your licence on your website and payment applications
- Open a business bank account once documents are ready
- Ask an accountant about tax and VAT obligations
Common Mistakes
- Inconsistent names: a different business name on your licence, bank account and website can delay gateway approval.
- Missing renewal: expired documents may cause problems with payment providers or banks.
- Relying on hearsay: rules vary by area and change over time, so check with the official source.
- Mixing personal and business money: makes accounting and tax harder.
Example Timeline for a New Seller
A practical order of work might be: build your store and start selling with COD; while sales begin, prepare and submit your trade licence application; once received, open a business bank account; then apply for bKash, Nagad or SSLCommerz merchant accounts and enable them on your store. Each step builds on the previous one, so you keep selling while getting registered.
Why Consistency Matters for Gateways
Payment providers check that your business is genuine. When the business name, address and owner details match across your licence, bank account and website, reviewers can verify you more easily. Display your registered business name in the website footer and on your Contact page, and use the same phone number and email everywhere. Small details like these can make your application smoother and also build trust with customers who want to know who they are buying from.
Keeping Records From Day One
Even before formal registration, keep a simple record of every sale, refund, courier settlement and expense, with dates and receipts. A spreadsheet is enough to begin. When you apply for licences, bank accounts or merchant services, organised records make the process easier and help you answer questions confidently.
Frequently Asked Questions
Is a trade licence mandatory for selling online?
Requirements depend on your business and current regulations. Even when it is not strictly required for small sellers, it is commonly needed for merchant payment accounts and bank accounts. Confirm with the authority.
Can I apply for a trade licence online?
Some authorities offer online applications. Check your city corporation or local authority's website.
Can I start my Multipurc store before getting a licence?
You can build your store and start with methods like Cash on Delivery while you arrange documents for payment gateways.
How often must I renew?
Renewal periods are set by the issuing authority; check your licence.
Build Your Store While You Get Registered
Do not wait to start. Create your Multipurc store today, prepare your products and policies, and add payment gateways once your documents are ready. Find more guides in the Learning Center.