More than 85pc fail to earn certification

A total of 1,458 digital businesses have been registered under Digital Business Identification (DBID) in the last three years since its inception in 2021, according to DBID statistics.

On the other hand, more than 85 per cent of e-commerce companies that submitted applications for digital business identity certification failed to get it due to 'complex provisions' set by the authorities concerned.

Since 2022, the DBID platform has so far received 10,218 applications, but only 1458 business firms have become successful in getting it, which is only 14.76 per cent, according to the Registrar of Joint Stock Companies and Firms (RJSC) that is hosting the platform.

On February 6, 2022, the then commerce minister launched the DBID system, which aims to unify the fragmented businesses in Bangladesh. The platform focuses on enabling organisations, local and foreign business entities, micro merchants and financial institutions to register their businesses digitally and receive a unique BID.

According to the RJSC, applications of a total of 9,825 digital business firms were so far disposed of, while 8,367 applications were turned down due to the absence of proper documents. A total of 392 applications are now under scrutiny by the DBID platform.

The e-commerce sector insiders opined that complex and lengthy registration process is the reason for such a high number of failures. The way the RJSC is providing certificates to the existing digital platforms would take decades to complete the process.

A former leader of e-Commerce Association of Bangladesh (e-CAB) admitted that the registration process is going on slowly, with many members yet to apply. There are some 2,000 e-commerce companies under the association.

He said many companies are applying repeatedly as they are being rejected due to complex process of applications. As per the Ministry of Commerce (MoC) documents, the number is above 2,500. However, the number could be more than 50,000, considering Facebook and different other social media platforms.

The number of online businesses has increased significantly in the country during the coronavirus pandemic. At present, there are around 2,000 web-based enterprises and 50,000 Facebook-based entrepreneurs, according to a survey of the Centre for Policy Dialogue (CPD).

The e-CAB leader said they discussed the certification-related issues with the MoC and requested it to simplify the process.

He said most of the applications were rejected on one or two grounds, such as providing national identification (NID) number of the home owner where the business is located. "It is natural that a home owner will not provide his/her NID to a tenant. So, we've requested the MoC to withdraw the provision," he added.

An official of the RJSC said most of the applications were rejected due to not explaining the businesses' terms and conditions in Bangla on their websites or social media pages. Many firms applied for certification without even reading the guidelines concerned, he added.

After the Evaly scam, the MoC initiated the DBID registration system in February 2022 to establish discipline in the e-commerce sector as well as to increase customers' faith.

The process was formally launched in May last year following a number of amendments in the guidelines as well as terms and conditions for certification.

According to the guidelines, all e-commerce businesses, including the Facebook-based ones, have to register, and these would not be allowed to operate without DBID.

A DBID can be obtained even without a trade licence given that the entity has an official website or social media page. Furthermore, any e-commerce or f-commerce platform can obtain a DBID number by using the company chairman's NID.

Applicants must display the terms and conditions of their digital business in Bangla on their websites.

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

The RJSC under the MoC is responsible for issuing the registration. The ministry's Central Digital Commerce Cell looks after the e-commerce companies.

An applicant company will get a DBID card if it is a member of the SME Foundation, the e-CAB, or any other government-approved trade association. A single DBID card will be issued even if a digital commerce firm has several branches.

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