Starting discussion:

 
                  Business is an profit making institution but it should be legal.
A country’s Government always try to bring every single business form
under it’s regulatory frame. Different Governmental division, regulatory
agencies provide legal & conductive rules, regulation & environment to
guide it in a frame work. That’s why before starting any business everyone
has to ensure their legal existence by taking:
                               → License &
                               → Registration
 
   What is License & Registration?
 
                 License refers to the written permission, certificates issued by any
concerned authority, agency& regulator for an specific business form.
 
                Registration means booking information and get registered with
concerned office and get permission to start business
task.                                                
 
Objectives of license & registration:
 
                       ► To bring the business under regulatory frame work.
 
                    ► To encourage enterprises in complying legal formalities &    
                         motivate them to work within legal  environment.
 
                    ►To guide enterprises to follow rules & regulations
 
                    ►To help control to be exercised by controlling and supervising   
                         agencies.
 
                    ►To motivate enterprise to for greater social interest.
 
 
 
 
 
Different types of License & Registration:
 
Trade license:
 
           Trade license means licensing the trade under governmental authority or
regulatory institution. In Bangladesh trade license is issued under local
government. In city area like divisional city ( Dhaka, Chittagong , Rajsahi, khulna ,
Sylhet & Barisal) trade license is issued by city corporation. In other areas it will
be issued by respective pourashava or union parishad.
 
Required Documents for Trade License:
 
1.     In case of general Trade  License –
 
        Attested copy of rent receipt or rental agreement.
 
        Copy of the Holding tax payment receipt.
 
2.    In case of Trade License for Industries –
 
        Everything mentioned in serial no. 1
 
        No objection declaration on the surrounding.
 
        Location Map.
 
        Copy of fire certificate.
 
        Declaration on the judicial stamp of TK 150 – to abide by the rules
& regulation of DCC
 
        One copy of passport size photograph.
 
 
 
 
 
3.    In case of clinic/private hospital-
 
       Permission from the Director General of Health.
 
 
4.    In case of Limited Company –
 
        Memorandum of Article.
 
        Certificate of In-Corporation.
 
5.    In case of Printing Press & Residential Hotel –
 
        Permission from Deputy Commissioner (DC)
 
6.    In case of Recruitment Agency –
 
        License from Manpower Export Bureau.
 
7.    In case of Arms & Ammunition –
 
        Copy of Arms License.
 
8.    In case of Drug and narcotics –
 
        Copy of Drug/Narcotics License.
 
9.    In case of Traveling Agency –
 
        Approval from civil aviation authority.
 
 
 
General information & documents applicable for all
license& registration:
 
                   ◘ File on application prescribed form.
 
                   ◘ Three copies of passport size photos (attested).
 
                   ◘ Name.
 
                   ◘ Father’s & mother’s name.
 
                   ◘ Address.
 
                   ◘ Registered address and form of  organization.
 
                   ◘ No objection certificate from neighbor.
 
                   ◘ Bank solvency certificate.
 
                   ◘ TIN (Tax Identification Number) if he is a tax payer.
 
Fire License:
 
                Fire is a hazard. Precaution need to be taken. Obtaining fire license is
mandatory for an industrial enterprise. It has to be collected after having a trade
license. Providing necessary documents fire license can be collected from the
director Bangladesh fire & civil defense or from respective or concerned authority.
 
TIN (Tax Identification Number:
 
              Tax department under National Board of Revenue (NBR) will provide the
TIN code under section-184 A A. To get other license TIN code of assesses is
necessary. When a businessman applies for VAT registration they are provided
BIN (Business Identification Number).
 
 
VAT registration certificate:
 
               VAT is to be paid by manufacturer, importer, exporter, traders at different
stages working as middleman, service providers who come under the orbit of
section-15 VAT Act – 1991.
 
Certificate from department of Environment:
 
              Permission from Environment dept. is necessary for an industrial
enterprise. It introduces to save environment from pollution through industrial or
factory wastages. To get certificate a industry has to prove it’s activities as
environment suitable. Additional  major documents:
 
                             ▪ Trade license.
 
                             ▪ Factory layout.
 
                             ▪ Affidavit through a notary public in a non-judicial stamp
                               of the worth tk.50 for environment protection, remedy &
                               control and issue of  certificate.
 
Bonded Warehouse License:
 
                  This license issued by custom authority to 100% export oriented
industry. If an enterprise is 100% oriented then it takes license from custom for
duty free import of raw materials and can reduce its cost. Major required
documents:
 
                 ▪ Registration certificate from BOI
 
                 ▪ TIN
 
                 ▪ VAT registration certificate
 
                 ▪ Membership certificate of  BGMEA/BCCMA.
 
 
 
Membership certificate of trde association:
 
                 A business man or an enterprise may become a member of chamber of
commerce. It is voluntary but registration with such association can bring many
benefits. For import & export registration certificate this membership is
mandatory.
 
◘ Registration of company:
 
                 Registration of a company means registration of it’s –
 
                              ▪ Memorandum of association MOA &
 
                              ▪ Articles of association AOA.
 
                              ▪ The list of directors & and their all information.
. 
                              ▪ The approval of directors agreement about directing
                                    and  minimum subscription etc.
 
Under company act-1994, the authority of company registration a company can get
registered.
 
 
 Import registration certificate:
 
                   Import of raw material, machineries and other  materials may be
necessary for an industrial enterprise. Import may be made by manufacturer or
trader. So import registration certificate may be two types:
 
▪IRC for commercial purpose
 
▪IRC for industry.
 
 
 
 
 
 Export registration certificate:      
                                                                                         
                   For commercial exporters & manufacturing enterprises exporting their
products need to take export registration license from concerned authority. It will
be renewed after one year.
 
Registration with EPB(Export Processing Bureau):
 
                   Garments, textiles & other concerned parties are to register themselves
with EPB submitting ERC, payment receipt, trade license etc.
 
BSTI( Bangladesh Standard & Testing Institution) license:
 
                   To ensure the quality and standard product Govt. of  Bangladesh has
set up standard and testing institution and wants to safe guard the interest of
consumer specially for essential products. So manufacture needs to take license
from the this instituite.
 
Patent & Trade Mark registration:
 
                    Patent & Trade Mark is to be registered under trade mark act-1940.
Registration provide safety of manufacturer from dishonest traders who can copy it
a leading to unhealthy competition in one hand, depriving consumers to get their
original products. Additional required documents:
                           ▪ Valuation of Trade Mark or Patent, paying requisite fee.
 
                           ▪ Design of patent or trade mark.
 
                           ▪ TIN
 
                           ▪ Quality of product, ingredients to be used.
 
 
Other license & registration:
  
                      ◘ Registration with inspector of factories.
 
                      ◘ Certificate of approval of building plan.
 
                      ◘ Utility: water, gas, electricity connection.
 
                      ◘ Documents essential for telex, fax & telephone.
 
                      ◘ 0pening a bank account.
                      .
                      ◘ Registration with BOI
                     
                      ◘ Listing of share in stock exchange.
 
                      ◘ Registration of firm.
 
 
 
Conclusion:
                  
                   In the end ,we can say that License & registration is an essential legal
document of any form of business. After licensing or registering a business can get
legal existence. On the other hand, Government or concerned authority can make
up a control panel for the whole business environment. They can gather overall
statistics of the economic condition of the country. So, every business organization
should take license and registration  under the regulatory frame of the country.
 
 
 
 
 
                                     
                                   
 
 
 
                                     Case Study
 
 
 
   Open case no. 1:
 
In 2009, a cirtain export company of Bangladesh sent a group of in businessman to
the United States for purchase of equipment.In New york , both parties reached an
oral agreement on such items as specifications, unit price, and quantity. Upon
leaving, the group indicated to the other party that, when they go back to Dhaka ,
they would draw a contract, which would become effective after being signed by
both parties. After going to Dhaka , the group found that th clients withdrew their
import of the equipement, and thus the contract was not signed and the L/C was
not opened either. The US side urged the bd side to perform the contract, otherwise
they would lodge a claime with the BD side in the US .
 
 
            ◙Opinion:
 
In our opinion Bangladeshi export company should signed the contract &
open L/C and overall they should complete the contract as they promise.
 
                    Although Bangladeshi company didn’t any written agreement it may
do the deal as because:
 
                  ► The BD company already withdrew their import of the                   
                       equipment.
 
                  ► According to business ethics.
 
                ► To avoid legal obstacle.
 
                ► To maintain a strong & reliable relationship.
 
                ►For the reputation of business & country.
 
 
  
 
Open case no. 2:
 
A Bangladeshi export company sent on june 1 an offer to a business living in
Italy, stipulating for the reply to reach them before june 10. the Italian businessman
cabled his acceptance of the offer on june 08 because of the delay by the post
office, the acceptance did not reach the BD company till on the morning of june
11. And before receiving the acceptance , the BD company was informed that the
prices of the said products were rising rapidly.
 
 
 
              ◙Opinion:
 
In our opinion Bangladeshi export company should try for new customer.
                                        
          ▪The reasons for this opinion is :
 
                              ► The Italian company already late to reply.
 
                              ► If it trades with Italian company it has to trade with
                                  previous value.     
 
                              ► New customer will agree to deal with present price.
 
                              ► It will not face confusion about price determination.