Super shops have gained significant popularity over the years. Traditionally there have been small daily shops on every alleyway of Bangladesh. But super shops were the first specialized modern integration of everything in a single place. From fresh fish, meat, vegetables to daily groceries, everything can be found under one roof. The growing popularity of the super shops offers a unique opportunity for many to get into the stream. So how to start a supershop business in Bangladesh? This article details everything.
The Regulatory Requirement
Many people will say start with a business plan, choice of place, shop outline, employees, product choice, and whatnot. But in the context of Bangladesh, all of those are secondary. None of these plans will mean anything without the regulatory clearing.
Bangladesh ranks 168th out of 190 countries in the ease of doing business index. Bear on as there are a lot of formalities to get through before a basic outline can be drawn for a super shop. Here is a list of must-have permits and the detailed procedure of getting them.
Choosing a Name
It all starts with the name. However, it cannot be any name. A prospective shop owner must check whether the chosen name is already in use or not. This can be done from the website of the Registrar of Joint Stock Companies or RJSC.
It will cost about 600 BDT to get the name registered. The process starts with filling out the required application form. The name gets approved within one business day if it adheres to all the regulations. The name is allotted to the applicant for a period of 6 months. This document is important for registration with the RJSC.
The Stamp Duty
The stamp duty is paid as a memorandum for shared capital or ownership of the business. A 2500 BDT stamp is used for up to 1 crore of joint capital ownership. This stamp duty is to be paid in designated BRAC bank branches under the account of the Treasury department.
Registering at the RJSC
The stamp duty and the name registration documents will enable you to register with the RJSC. This is to register as a store and a business. For this, a copy of the stamped article and association memorandum needs to be submitted along with 4 different forms. These forms are declaration papers of different business entities as well as business running and returning procedures. There are two costs associated with this process, the filing process costs 1200 BDT and the registration itself costs 3645 BDT. These two amounts need to be combined and paid off at the RJSC.
Getting the TIN
After registering with the RJSC comes the TIN. The Tax Identification Number is a must-have document for every eligible income tax returning individual. Business entity owners naturally fall under this category. The TIN can be obtained from the zonal tax office under the NBR. The process takes up to 4 days but there is no cost associated with getting the TIN.
Company Monogram
A monogram is like a brand. And brand promotion is important to kickstart super shop business. Some of the famous super shops of Bangladesh like Agora, Meena Bazaar, and Shwapno all have their distinct monogram and logo. It is an essential part of creating a unique business identity.
Trade License
This is the most important of all the processes mentioned above. A trade license is the official government declaration that enables a person to engage in any form of trade-related transaction. Normally, a trade license costs 5000 BDT and can take up to 3 days to be issued. It is issued from the zonal city corporation. All the above documents except for the company seal will be required to register for the trade license.
VAT Registration
The VAT registration happens simultaneously with the TIN generation. The process is fairly simple and enables a person to sell different imported and BSTI approved products legally. It is to be noted that buying and selling any goods without is completely prohibited under Bangladesh Law.
These are just the technical aspects of setting up a super shop.
Business Pans to Start a Super Shop
The main activity starts right after getting the legal proceedings done. Lets chek out some key steps:
Selecting a Target Audience
The target of the super shop has always been the middle income, upper middle income, and higher-income households of Bangladesh. This target audience grossly determines the setup, location, and product category of a super shop.
Location
Depending on the target audience the shop location has to be in an easily accessible place. Preferably near the main road or at a junction of alleyways. The median income of the location also determines whether it will be an ideal location for setting up a super shop.
Product Catalog
Super shops are like a one-stop roof for everything. From daily necessities to monthly groceries, a super shop should include everything. But that depends on the scale of the shop itself. Typically, there can be a fresh protein section, frozen item section, fresh vegetable section, and all sorts of snacks and daily goodies.
Product Sourcing
With the trade license and the RJSC registration, a super shop initiator can directly contact the suppliers or producers for products on the shop. The initial proposition can be contract-based selling where the commission would be based on the actual number of products sold. Many super shops sell imported goods and food items. In that case, it becomes important to track the specific importer of the good.
Staff and Store Management
There needs to be a robust store management scheme under an able store manager. It is easy to get sales representatives but it is important to make sure they are well trained. Customers always look for meaningful interaction so these can be a make-or-break aspect for any aspiring super shop.
Final Thoughts
The process of setting up a super shop isn’t easy. But it is not that hard as well. It is just that a person should have the patience to get through the endless barrage of bureaucratic regulation. However, depending on the market understanding and successful coordination, a super shop can easily be a profitable business for many.
Source: United News of Bangladesh