NID sufficient for securing digital business ID

People can no longer operate e-commerce businesses in the country without having a digital business identification (DBID) number, which can be availed even without a trade license given that the entity has an official website or social media page, according to new guidelines in this regard.

As per the rules set by the commerce ministry, any e-commerce or f-commerce platform can now obtain a DBID number using the company chairman's national identification number.

Dubbed as the "digital business identification (DBID) registration guideline 2022", the measure aims to help recognise digital commerce platforms and entrepreneurs as valid business entities.

Upon receiving an application, the Office of the Registrar of Joint Stock Companies and Firms (RJSC) will verify whether the company bears the same name as any other company with a registered DBID, which much be unique for each organisation.

Applicants must display the terms and conditions of their digital business in Bengali on their website.

The guideline also made it mandatory for online businesses to show their registered DBID number on their official website or social media page.

The guideline comes five months after the introduction of the DBID in February, when it was launched by the commerce ministry with a view to checking irregularities in the sector.

It aims to streamline the sector and bring back customers' trust following widespread fraud that unfolded last year.

Over 25 e-commerce platforms had offered hefty discounts against advance payments but only to cheat customers out of huge sums of money.

According to a Bangladesh Bank report, the controversial e-commerce platforms collectively received Tk 6,050 crore in just four months last year. Most of their customers and merchants have not been able to get their money back since then.

Amid the subsequent customer outcry and criticism over state agencies' inaction, the government initiated a crackdown in the second half of 2021.

It started with the arrest of E-orange owners Sonia Mahzabin and her husband in August last year for allegedly embezzling Tk 1,100 crore.

Rapid Action Battalion then arrested Mohammad Rassel, chief executive officer of Evaly, and his wife Shamima Nasrin, chairman of the company, in mid-September.

Nasrin has since gotten out on bail. On July 4 last year, the commerce ministry issued the Digital Commerce Operation Guidelines, 2021.

It stipulates, among other things, that if the online platform and delivery destination are within the same city, the handover must be made within five days.

The commerce ministry said the existing entities which are running digital commerce business will have to apply for DBID within 90 days of the publication of the guideline.