SEC-S20W4 | My Business Ideas | Registration, License, and Taxes
I am pleased to participate in fourth week of SEC Season-20. Registration, License, and Taxes are mandatory for starting any kind of business. No matter it is big or small. So Let's start,
Section 1- We are interested to know about the registration procedure of your business in your country and how you manage it.
My business is a restaurant business. More specifically, family style restaurants. I am a citizen of Bangladesh and an entrepreneur in Bangladesh can start this business in various ways. Business registration application in Bangladesh is based on the number of investors. It can be Sole Proprietorship or Partnership Business. In the case of Sole Proprietorship Business, the entrepreneur must be 18 years of age and a citizen of Bangladesh. Today I will write about Sole Proprietorship because my business will be a sole proprietorship. The simplest business structure in Bangladesh.
REGISTRATION PROCEDURE for Sole Proprietorship.
In case of Sole Proprietorship business we have to complete two steps for registration.
- Step 1- Proposed business name :
This is a very basic step that needs to be submitted before starting any business. Your Proposed Business Name will also be approved by the Authority if no business has previously been registered under this name. It's an online process. It has to be submitted on Registrar of Joint Stock Companies and Firms (RJSC) portal. This is an online activity so you can do this at home. You must make your business name unique and match your business type.
- Step 2- Obtaining Licenses :
Starting any business requires several licenses. Depending on the type of business, the number of licenses may be more or less, but some basic licenses are required in all cases. My food business requires some extra licenses than other businesses. Since the next section is license related, I will discuss it in Section-II. To get the license of this restaurant business, both online and offline applications are required.
Now come to the point how I will manage it. Since I have been planning this for a long time, the first step is quite easy for me. Actually I have selected few names too. Since it will be a Sole Proprietorship , I will keep it with my own name. I have put option here if any name is already registered then I will have instant alternative option. Below I am sharing some of my options with you.
- Piya's Kitchen
- Family Square
- Food House
Section 2- Tell us all about the procedure to obtain any license/permit etc. to run your business.
➡Trade License: Having a trade license is essential or basic requirement for any business. An application form has to be submitted to the city corporation or local government for this license. It has to be submitted directly and some necessary documents have to be attested. The most essential of these is proof of address (rent document of business premises or any agreement during office rent) NID card of applicant. These trade licenses are of two types. Commercial trade license and industrial trade license. I will apply for commercial trade license. Along with this required fees have to be submitted which depends on the location and size of the restaurant. Once your application is approved by the authority, you will get the trade license. It takes 2-3 weeks to approve. If there are any issues with your document, this process can be lengthy. This license has to be renewed every year.
Starting up a restaurant business in our country actually has to go through several procedures or series of legal and procedural steps to comply with government regulations.
➡ Then you have to apply for a TIN online through the National Board of Revenue (NBR) website . They will provide a number known as TIN number to the business. You will get instant certificate after submitting all required documents.
➡ Food License from Bangladesh Food Safety Authority (BFSA) is very important. The restaurant must comply with food safety standards and regulations set by the Bangladesh Food Safety Authority (BFSA). You can apply directly to BFSA office or their website to get this license. Since my business is dealing directly with food, it is definitely a mandatory license.
➡ Then fire We need Safety and Building Safety clearance from the Bangladesh Fire Service and Civil Defense department.
➡ VAT Registration license is not a mandatory license but if your annual turnover exceeds 3 million BDT, you need to register for Value Added Tax (VAT). Apply for this license by going to VAT office.
➡ Also this business requires some more licenses if you want to bring them under your business. For example:
- Alcohol licence
- Music license
Section 3- What is the tax structure for traders/manufacturers
The tax structure for traders/manufacturers in Bangladesh includes various taxes such as income tax, Value Added Tax (VAT) for a restaurant business.
For sole proprietorship the income tax for a restaurant business is
| Up to BDT 3,00,000 | Exempt |
|---|---|
| BDT 3,00,001 to BDT 4.00.001 | 5% |
| BDT 4,00,001 to BDT 6,00,000 | 10% |
| BDT 6,00,001 to BDT 30,00,000 | 15% |
| Above BDT 30,00,000 | 25% |
For VAT, Restaurants with annual turnover exceeding BDT 3 crore need VAT licences as I mentioned before. So, the VAT recommendations are: If the turnover is below BDT 3 crore, the restaurant is exempt from VAT registration and may pay a turnover tax of 4% instead. (Collected)
Section 4- What are the options in case you face any tax-related problems?
I haven't started my business yet so never faced tax related problem. If I face tax problems there are some options to solve them. Firstly I will always try to keep my tax related information up-to-date. Regular monitoring plays an effective role in solving any subsequent problems. However, if I run into such a problem, I will definitely seek the help of a professional. Those who are administrative can surely resolve such issues within a short period of time. But if I face any kind of minor problem, I will try to solve it. Consul at National Board of Revenue (NBR) office many times problems can be solved. So if I run into a relatively big problem, in that case there is no alternative but to seek the help of a professional. As I haven't started my business yet and haven't faced any such problem, I can't discuss it in detail.
I am inviting my friends @impersonal,
@sohanurrahman @mayberling
Upvoted! Thank you for supporting witness @jswit.
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Thank you for the invitation to participate in the contest. I believe you have worked out in details about the statutory and regulatory requirements of new business particularly Restaurant. You have also decided the name of your restaurant. I hope there will be very delicious and tasty Bengali cuisine in the menu. I sincerely wish you successed in the venture. Regards.
Yes, it take me a long to publish this post. Thanks for your positive response. Hope for the best.
My pleasure 🙏🏾
Tax must be provided to do business in Bangladesh In many cases it is seen that all online based businesses have their taxes deducted automatically like my agent bank transactions Good luck Your contest post has many things which are extra different Refers to something that gives a trader the ability to understand.
আপনার মন্তব্যের জন্য আপনাকে অসংখ্য ধন্যবাদ ভাইয়া। আমি চেষ্টা করছি বিভিন্ন তথ্য ও উপাত্ত প্রোপার সোর্সসহ দেওয়ার চেষ্টা করেছি যেন সহজেই কেউ জাস্টিফাই করতে পারেন। আপনার গুরুত্বপূর্ণ মন্তব্যের জন্য আপনাকে ধন্যবাদ।