Trade licence, DBID and registration for an online business in Bangladesh

Nobody starts an online business because they enjoy paperwork, and most Bangladeshi sellers put it off as long as they can. Then the bKash merchant application asks for a trade licence, the courier asks for the same, the payment gateway wants a TIN, and the store launch that was supposed to happen this week waits for a document that takes weeks to issue.

This guide explains what the pieces are, which ones you actually need and when, and the order to get them in so they do not block anything. One important note first: this is a practical overview, not legal or tax advice. Rules, fees and forms are set by government bodies and change; where we describe a process, confirm the current version with the issuing office or a professional before relying on it.

Selling from a Facebook page versus a website

Many sellers begin on a Facebook page, taking orders in Messenger and payments on a personal bKash number, with no registration of any kind. Whether that is compliant is a question for the authorities; whether it scales is not — it stops the moment you want a merchant account, a courier contract, a payment gateway or a proper website.

A website changes the picture because everything a website connects to asks for a business identity:

• bKash merchant account and payment gateway — business documents, a trade licence at the top of the list (how to open one).
• Courier merchant accounts with Pathao, Steadfast, RedX and others — business identity documents, typically including a trade licence.
• Aggregator gateways such as SSLCommerz — trade licence, TIN, bank account.
• Marketplaces such as Daraz — their own seller onboarding, again usually anchored on a trade licence.
• A business bank account — trade licence and TIN.

So the trade licence is not a formality; it is the key that opens every other door. Get it first.

The trade licence

What it is. A licence to operate a business in a specific locality, issued by the local government body: a City Corporation in the major cities (Dhaka North, Dhaka South, Chattogram and others), a Pourashava (municipality) in towns, or a Union Parishad in rural areas. It names the business, the owner, the address and the type of business, and it is renewed annually.

Who needs it. In practice, any sole proprietorship that wants to be treated as a business — which is what an online store is. A registered company or partnership also needs one for its business address, on top of its registration with the Registrar of Joint Stock Companies (RJSC). Most small online stores are sole proprietorships and need only the trade licence.

What is typically asked for. Requirements vary by issuing office, but applications commonly involve:

• The owner's NID and photographs.
• Proof of the business address — a holding tax receipt for a property you own, or a rent agreement (sometimes with the landlord's tax receipt) for a rented one. A home address can generally be used for an online business; ask the office how it treats home-based businesses.
• A TIN certificate — see below — which city corporations commonly require.
• The business name and a business category. There is usually a category for online or IT-enabled business; the category affects the fee.
• The application form and fee, which is set by the issuing body and varies by category and location.

Dhaka's city corporations, among others, have online application systems; other offices may still be paper-based. Ask the local office or check its website for the current process.

Practical advice. Choose a business name you will use everywhere — website, bKash, bank, courier — and spell it identically on every form. Keep the licence renewed; an expired licence causes the same problems as no licence when a gateway re-verifies you.

The Digital Business ID (DBID)

The government's digital commerce guidelines introduced a registration specifically for online businesses: the Digital Business Identity, administered under the Ministry of Commerce. It is intended to give every ecommerce and social-commerce business — including Facebook-page sellers — a unique, verifiable identity.

What it involves. Registration through the DBID portal with the business's details, the owner's identity, and the online presence being registered — website addresses and social media pages. A trade licence and the owner's NID are among the documents typically required; check the portal's current list.

Why it matters. Beyond compliance, a DBID is an identity you can display on your store to show customers you are a registered business, and it is increasingly referenced by platforms and payment providers. Treat it as the second document to obtain, after the trade licence it depends on.

TIN and BIN

These are tax registrations, issued by the National Board of Revenue (NBR), and they are different things.

TIN (Taxpayer Identification Number). Your income tax identity, obtained online through NBR's e-TIN system for free. City corporations commonly require it for a trade licence, banks require it for a business account, and gateways ask for it. Every business owner should have one; it is quick to get and costs nothing. Having a TIN means filing an annual income tax return — budget for a professional's help with that if you are unfamiliar.

BIN (Business Identification Number) — VAT registration. This registers you for VAT. Whether and when an online business must register depends on its turnover and activity under the VAT law, and the thresholds and rules are updated periodically. Do not guess: ask a tax professional or the local VAT office what applies to your business. Some counterparties — larger corporate customers, certain marketplaces — may ask for a BIN regardless.

Company registration — do you need it?

Most small online stores do not. A sole proprietorship exists as soon as you have a trade licence in your name; there is no separate registration. Partnerships and limited companies register with the RJSC, which brings limited liability, easier investment and more formal accounts, along with more paperwork and cost. Consider it when you have partners, plan to raise money, or reach a size where liability protection matters — not on day one.

The order to do it in

1. e-TIN — online, free, immediate. Start here because the trade licence may need it.
2. Trade licence — your local City Corporation, Pourashava or Union Parishad. Allow weeks, not days.
3. Business bank account — with the trade licence and TIN. Needed for gateway and courier settlements.
4. bKash merchant account and gateway — with the trade licence, NID, TIN and bank details. Start as soon as the licence is issued; approval takes time.
5. Courier merchant accounts — in parallel with bKash.
6. DBID — register your website and pages once the trade licence exists.
7. VAT registration if applicable — on professional advice.

Do steps 1 to 3 before you announce a launch date. Steps 4 and 5 are what your launch actually waits on.

What this has to do with your store

Nothing about the store itself requires these documents — you can build your storefront, add products and design your checkout on Eazifiy today with just an email address. What requires them is connecting the store to the outside world: your bKash merchant credentials under Payment Methods, your courier API keys under Courier settings, an SSLCommerz account for cards and Nagad. The sensible sequence is to build the store while the paperwork is in progress, so that the day the bKash gateway is approved you paste the credentials and go live.

Once registered, put your trade licence number and DBID in your store's footer or About page — they are trust signals to customers who are, rightly, cautious about new online shops.

Frequently asked questions

Can I get a trade licence for a business run from home? Generally yes for an online business, using your home address as the business address, though the issuing office decides how it treats home-based businesses and what proof of address it accepts. Ask before applying.

How long does a trade licence take? It depends on the office and the completeness of your application. Plan for weeks and start early; it is the document everything else waits on.

Do I need a trade licence to sell on a Facebook page? The digital commerce guidelines and DBID registration apply to social-commerce sellers too, and any merchant account you open will ask for one. Practically, if you intend to run a business rather than sell occasionally, get one.

What does a trade licence cost? The fee is set by the issuing body and depends on the business category and location. Check with your local office for the current schedule rather than relying on figures quoted online.

Is the DBID mandatory? The guidelines position it as the registration for digital commerce businesses. Check the DBID portal for the current requirements and register once your trade licence is in hand.

Ready to build the store while the paperwork moves? Every Eazifiy plan lets you set up your storefront, products and checkout immediately and connect payments and couriers when your accounts are approved, and the first 2 months are ৳200 a month on any plan — see pricing or the full feature list.