In Bangladesh, every formal business entity must obtain formal approval from the relevant office of City Corporation or Municipality (Union Parishad, Pouroshava, upazila, or zila parishad) of the respective district to commence operations. This approval is granted in the form of a Trade License, and the legal foundation for this prerequisite is outlined in the Local Government (City Corporation) Act 2009 and the Municipal Taxation Rules of 1986. Operating a business without a valid trade license is considered illegal in Bangladesh. To secure a trade license successfully, entrepreneurs must complete the relevant form and submit their application through the appropriate office of the relevant authority.
The applicant shall require choosing the correct form depending on the type of business and area where the business is located. Previously the process of obtaining a trade license in Bangladesh was conducted manually. However, with the advent of digitalization, the application process of trade license has transitioned from analog to an electronic (e-trade) license system. The Specific Objectives of this research project are to identify and analyze the factors influencing business owners’ decisions to pursue Trade License (TL) with a focus on understanding the key drivers and barriers shaping their choices, to assess and quantify the costs associated with obtaining Trade License (TL) and explore the user experiences of businesses in obtaining TL, to investigate the impact of digitization on the efficiency and user experience of providing Trade License (TL) services, to understand how digitalization affects asymmetric power and asymmetric information between government and citizens and to understand if digitalization of government services can disrupt even the lowest level syndicates operating in government offices. This research aims to provide insights into the economic implications and challenges faced by businesses in compliance with TL regulations and will explore the extent to which digitization has influenced the overall process of obtaining TL, analyzing both positive and negative aspects and identifying potential areas for improvement.
Serial No: 262
Theme: Governance and Legal Issues
Research Method: Mixed Method
Partner: United Nations Development Programme (UNDP)
Starting Year: 2024
Study Area: DNCC, DSCC, Municipality (Singair, Savar), Manikganj Union, Chattogram, Khulna and Rajshahi
