Every paper a Bangladeshi business needs, in order

Most people get these in the wrong order and waste a month. Here is what each paper is for, and the order that works.

The short version: trade licence, then TIN, then bank account. Those three open nearly every door. VAT and company registration come later, and only if you need them.

1. Trade licence

What it is. Permission from your local government to run a business. It is the first paper, and almost everything else asks to see it.

Where. Your city corporation ward office if you are in a city, or your union parishad if you are not. Take it to the office your business address falls under, not the one nearest your house.

What you need. Your national ID, passport photos, and proof of the business address. If you rent, the rent agreement or a letter from the owner. If you work from home, that is usually fine for a small trading business.

Cost. Estimate: 1,000 to 10,000 taka depending on the kind of business and the area. A small online trading business is at the low end. There are also stamp and form fees.

Renewal. Every year, in the first months of the financial year. Renewing late costs a penalty. Put it in your calendar.

2. TIN certificate

What it is. Your Taxpayer Identification Number. It is how the tax office knows who you are.

Where. Online at the NBR website. You do it yourself.

What you need. Your national ID and a phone number. That is it.

Cost. Free. It takes about fifteen minutes and you get the certificate the same day.

The part people miss. Having a TIN means you have to file a return every year, even in a year you earned nothing. Filing nothing is not the same as filing zero. Missing it builds up a penalty quietly.

3. Bank account in the business name

What it is. A current account with your business name on it. Not your personal savings account.

Why it matters. Payment gateways, wholesale suppliers, and any loan will all ask for one. Running the business through your personal account also makes your tax return much harder than it needs to be.

What you need. Trade licence, TIN, national ID, photos, and a letter on your business letterhead asking to open the account. Some banks want somebody who already banks with them to introduce you.

Cost. Estimate: 1,000 to 5,000 taka to open, plus a minimum balance the bank sets.

4. VAT registration (BIN)

What it is. Your Business Identification Number for value added tax.

Do you need it? Not everybody does. You need it if your turnover crosses the threshold the NBR sets, if you want to sell to companies or the government, or if you want to import. Many small online shops do not need it in year one.

Where. Online through the NBR VAT system.

Cost. Free to register. The cost is the work afterwards: a monthly return, every month, whether you sold anything or not.

Get advice first. Registering when you did not have to means a monthly job forever. Talk to an accountant before you do it.

5. Company registration with RJSC

What it is. Turning your business into a private limited company at the Registrar of Joint Stock Companies.

Do you need it? Not at the start. A sole proprietorship with a trade licence is enough to sell, take payments, and open a bank account. You want a company when you have partners, when you are taking outside money, or when you want your personal savings kept separate from the business debts.

The steps. Clear the name you want with RJSC, prepare the memorandum and articles, pay the stamp duty and the fees, then file. Most people use a lawyer or a firm for this.

Cost. Estimate: 15,000 to 40,000 taka in fees, plus what the lawyer charges. It depends on your authorised capital.

Time. Estimate: two to four weeks if nothing goes wrong.

After. A company has to keep books, hold a yearly meeting, and file a yearly return. That is real work. Do not register a company because it sounds better than a proprietorship.

The order that works

1. Trade licence
2. TIN, the same week
3. Bank account, once you hold the first two
4. Start selling
5. VAT only when you actually need it
6. Company registration only when the business is big enough to need it

What to do this week

• [ ] Find out which ward office covers your business address
• [ ] Get your TIN online today, it is free
• [ ] Ask two banks what they need for a business current account
• [ ] Put your trade licence renewal date in your phone calendar

Fees and rules change, and different offices ask for slightly different things. Every number here is an estimate. Check with the office before you go, and talk to an accountant about anything to do with tax.