How to Start a Tea Stall Business in BD?

Tea has been a popular drink in Bangladesh since the British era. While tea was extensively produced in this region to export to European countries, the people of this region gradually came to adopt drinking tea. It became so popular that tea can be considered a staple drink in the daily life of Bengalis. As a huge number of people in Bangladesh consume tea every day, tea stall or store business had thrived as a popular small scale business for decades. To this day, it is still a profitable business to consider. So how to start a tea stall business in Bangladesh? Let's find out.

The northern and northeastern region of Bangladesh has been the home ground of tea production in this region. There are about 166 tea estates in Bangladesh which also boasts the world's largest unobstructed tea garden. Since British time, Bangladesh has been a major exporter of processed tea. However, exports have been on the decline over the last few years.

Yet the decline didn't have much of a significant impact on tea production. Why so? Because tea consumption has more than doubled in the last few decades locally. Currently, the local tea market stands at an astounding 3,500 crore BDT market cap. As of 2019, the total tea consumption in Bangladesh stood at 95.2 million Kg which brings the average per capita consumption to 294 cups per year.

This stat alone proves the popularity of tea in Bangladesh. Thanks to its easy availability and cheap cost, tea didn't become a product of a certain economic class. Rather people from every economic denomination happen to enjoy this drink. This has paved the way for wide scale business opportunities centering on tea.Many people living in the city area do not take the trouble of preparing tea themselves. And the practice is understandable. A cup of tea is available for as little as 5 BDT from roadside tea stalls. That is why floating tea stalls are a popular sight at almost every corner of Dhaka streets.

Moving on from the roadside floating tea stalls, several boutique tea places sell tea in a more refined and cozier environment. One such place is the Halda Tea Valley situated in Gulshan and GotCha in Mohakhali. The high consumption rate and easy availability of tea have several meanings for a business. A tea stall business is almost sure to bring profit. And the high concentration of tea stalls does not hamper the business simply because there are too many people consuming tea.

Tea stalls in Bangladesh can be divided into several categories. There are floating tea stalls, permanent roadside grab-and-go tea stalls, and upscale boutique tea places. A floating tea stall doesn't require any form of regulation or permission to get started. It is considered as part of the informal economy. Even though every form of business in Bangladesh requires a minimum trade license, the small-scale turnover of individual floating vendors allows them to stay out of the regulation.

But a proper tea stall business starts with a proper restaurant-like store setup. Anything beyond a permanent store to boutique places is all regulated by the Bangladesh Hotels and Restaurant Act 2014. As part of the regulation, there is a certain minimum requirement that a business must follow. And that includes -

The Tax Identification Number or TIN is the first and foremost document required to be eligible to start a business. The TIN effectively recognizes a person as a tax-paying citizen of the country. Some subsequent documents related to opening a tea stall would require TIN as a standard attachment.
The TIN is issued from the zonal office of the NBR. A requesting person can apply for the TIN from the zonal office of their permanent address. TIN generation is completely free and it generally takes 3-4 working days to get issued.

Trade License is the minimum required to conduct any form of commercial transaction. A permanent tea stall with employees and a kitchen will fall under the category of restaurant and hence trade license is a must.The process of obtaining a trade license is fairly easy. It is recommended to apply for a trade license from the permanent address just like the TIN. The trade license application has to be made to the zonal city corporation office.

 Generally, a counselor will review the application and forward it to be approved. After approval, there will be a business inspection to verify the application declarations. A provisional license can be issued in 3-4 days of application. The trade license fee is 5000 BDT which is to be submitted along with the application. Every business entity has to register for VAT certification regardless of the product they are selling. The process of obtaining a VAT certification is fairly simple. The application can be done simultaneously with the TIN generation. There is not any cost associated with the process.