Many small business owners face legal problems because they do not know the rules. These problems can cause fines, business closure, or loss of money. This guide explains common legal issues in simple language and shows how to avoid them.

 

Step 1: Running Business Without Proper Registration

Common problem:

  • Operating business without Trade License
  • No business registration or documents

How to avoid:

  • Collect Trade License from City Corporation, Municipality, or Union Parishad
  • Renew Trade License every year
  • Keep license copy in business place

 

Step 2: Not Having TIN or VAT Registration

Common problem:

  • Doing business without TIN
  • Ignoring VAT registration when required

How to avoid:

  • Register for TIN from NBR
  • Register for VAT (BIN) if business turnover crosses VAT limit
  • Use correct TIN and BIN in documents

Official help:
https://nbr.gov.bd/
https://vat.gov.bd/

 

Step 3: No Written Agreement With Clients or Suppliers

Common problem:

  • Verbal agreements only
  • Payment disputes
  • Client refuses to pay

How to avoid:

  • Always use written agreements
  • Mention payment terms clearly
  • Keep signed copies of contracts

 

Step 4: Employee-Related Legal Problems

Common problem:

  • No appointment letter
  • No salary record
  • No leave policy

How to avoid:

  • Give simple appointment letter
  • Maintain salary and attendance records
  • Follow basic labor rules

 

Step 5: Tax Non-Compliance

Common problem:

  • Not filing tax returns
  • Paying tax late
  • Incorrect tax calculation

How to avoid:

  • File income tax return every year
  • Submit VAT returns on time (if applicable)
  • Keep tax payment receipts

 

Step 6: Using Someone Else’s Brand or Content

Common problem:

  • Copying brand name or logo
  • Using pirated software
  • Copying content from internet

How to avoid:

  • Choose a unique business name
  • Use licensed software
  • Register trademark if possible

 

Step 7: Poor Record Keeping

Common problem:

  • No invoices
  • No expense records
  • No proof of payment

How to avoid:

  • Maintain simple sales and expense records
  • Keep invoices and receipts
  • Use notebook or Excel

 

Step 8: Ignoring Local Laws and Regulations

Common problem:

  • Violating zoning rules
  • Environmental issues
  • Health and safety violations

How to avoid:

  • Follow local authority rules
  • Keep workplace clean and safe
  • Take required permissions

 

Where to Get Legal Help

 

Final Advice for Entrepreneurs

Register your business properly.
Use written agreements.
Pay taxes on time.
Keep records safely.
Ask for professional or government help when needed.