SEC-S20W4 | My Business Ideas | Registration, License, and Taxes

My Dear Friend is here to participate in Season 20's fourth week engagement challenge. I run a small business in a small shop in my village. So I will try to participate in the contest by sharing my experience and everything with you. Let's look at the points of the detailed post.

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Section 1- We are interested to know about the registration procedure of your business in your country and how you manage it.

Dear friends I run a small business where I run an agent bank as well as provide mobile banking services. Here I have required different types of documents. First of all I needed a trade license to do business. I had to apply to our union council to get this license and spent some money there. Online registration required tin certificates that allowed me to do business. To get a trade license, you have to give information to the Union Parishad about what kind of business you will operate and what kind of goods you will have.

By taking a trade license from Union Parishad to run a business, you will be safe from any kind of case and there will be no issue from government central and local third party. By adopting this strategy I have collected my trade license and collected tin certificate. This is the same process for merchant manufacturers and small industries but there the role of trade license is much greater.

Section 2- Tell us all about the procedure to obtain any licence/permit etc. to run your business.

trade license	tin certificate

Of course my business is approved and registered by Bangladesh government. To operate the bank you must have a permanent arrangement of a shop and if the shop is rented then you must mention the contract. All kinds of documents are required to get approval from Bangladesh Bank, there are National ID Card, Trade License, Nomino, Photo and many more. My business is not company based but I work with many companies.

As this is a small establishment or shop where I run my business, no permission is required, I can do it only through trade license and tin certificate. There is no government-centric or any kind of barrier here. And it didn't take much time for me to prepare all the documents I was able to prepare all my documents in maximum seven days.

However, I had to wait for a long time to take seven banks of United Commercial Bank. For this first all the documents such as copy of trade license ID card copy of nominee photo ID card copy document has to be submitted to Bangladesh Bank. Bangladesh Bank analyzed all the information and documents given to me by the bank through authorization. These activities are completed within three to six months. Moreover, it took some more time to solve the software-centric problems.

Section 3- What is the tax structure for traders/manufacturers

As I currently take service with three-four companies, all the companies are online based and money oriented. I have no product here, only money is the product here. So the tax is paid in online based organizations or companies depending on the company whether it is small or big. As far as I know all companies have to pay 15 percent tax to the government. And that tax is entirely taken from the customer company and me. Below I am mentioning some list charges for bank transaction and there VAT tax and other charges are added. It took screenshots from the agreement.Although these are fixed and have fixed taxes they will not change. Text can be shortened or extended at the end of the set time.

Section 4- What are the options in case you face any tax-related problems?

Important topics are here which I am going to mention. I run a small bank in my village for which I am self sufficient and I don't need any employees here but in future if the scope of the business increases I will definitely need a marketing officer. Of course our country has consumer rights courts and fair laws for consumer rights. Hotline Service of National Consumer Rights Protection Directorate (No: 16121). Online service is available at this number to preserve consumer rights and it is effective.

The most noticeable area of ​​conflict between traders and consumers is over product quality and price. The price of the product fluctuates depending on the location and stability and many times some syndicate traders warehousing others to make more money and the price of the product increases in the market which actually creates conflict between traders and consumers in many cases.

Of course my country has a fair trade policy which is under the National Consumer Protection Directorate. Bangladesh trade policy is according to the trade policy of all foreign trade. Trade policy is effective and ongoing in Bangladesh. Here I am giving a link and sharing the screenshot to see all the activities that are done under the Directorate of Consumer Affairs for the management of trade policy in Bangladesh.

Conclusion

All businesses from small to large businesses are governed by the national laws of Bangladesh which pay more or less taxes everywhere. The legal requirements involved in starting up a business in Bangladesh is well done in areas of registration and licensing as well as taxation. Business Registration involves acquiring a Trade License from the local authority and registration from the Registrar of Joint Stock Companies, and Firms. Coordinates could also be valid for a particular type of operation; some industries need the endorsement from the department of the government to operate legally. Tax regulation is important to know, because every company needs to obtain TIN, and must follow the rules of VAT. In aggregate, compliance with these legal provisions provides for stable operation and compliance with the GDP into the formal sector.