Trade License Cost Calculator (Bangladesh)
Estimate the cost of a Bangladesh trade license from the base fee for the business type, the VAT and the annual renewal fee.
Recent
Formula
How the calculation works
The calculator picks a base fee according to the business type you select, since city corporations charge retail, food and service businesses differently.
It calculates VAT as the base fee multiplied by the VAT percentage and divided by one hundred.
It then adds the base fee, the VAT and the annual renewal fee to give the total license cost.
Common mistakes
- Forgetting that the fee schedule differs between a city corporation and a municipality, so the same business can pay different amounts.
- Leaving out the renewal charge altogether, since a trade license must be renewed every year and the renewal fee is part of the yearly cost.
When to use it
- New shop owners use it to budget the first year license cost before starting trading.
- Existing businesses use it to check the renewal amount and the VAT that the local authority will charge each year.
Worked example
For a retail shop with a base fee of 1500 taka, 15 percent VAT and a 500 taka renewal fee, the VAT is 225 taka and the total cost is 2225 taka.
Common questions
Is a trade license renewed every year?
Yes, a trade license in Bangladesh must be renewed annually, usually within the first quarter of the year, and the renewal fee is separate from the first issue fee.
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