If you’re considering starting a business in Bangladesh, you’ll need to navigate the country’s regulatory landscape. Two key aspects of this process are obtaining a trade license and registering your business. However, it’s important to understand that these are distinct requirements with different purposes. Visit here to register your business or get a new trade license with Shapla Start.
Trade License:
A trade license, sometimes referred to as a Trade License Certificate (TLC), is a document that local city corporations or municipal authorities provide allowing someone to conduct business within a certain territory.
Business Registration:
Business registration, often referred to as company registration, is the legal process of formally establishing a business entity, such as a sole proprietorship, partnership, private limited company, or public limited company.
Key Differences:
- Trade licenses are location-specific and mostly focused on safety and zoning laws, whereas business registration creates your company’s legal identity.
- Businesses with a physical presence, such as restaurants or retail outlets, are usually required to get trade permits; nevertheless, business registration applies to all kinds of businesses.
- While a trade license ensures compliance with local laws, business registration offers certain legal protections and tax advantages.
In conclusion, while they have different functions, trade licenses and business registrations are both essential for running a business in Bangladesh. It is typical for a company to need a business registration to prove its legal identity as well as a trade license to operate at a certain location. Visit here to learn more about different business solutions.