Over 85pc applicant e-com firms fail to get digital ID certification

More than 85 per cent of e-commerce companies that submitted applications for obtaining digital business identity (DBID) certification failed to get it due to 'complex provisions' set by the authority concerned.

Since February last year, the DBID platform has so far received 5,384 applications for the certificate. But only 708 business firms have become successful in getting it, which is only 14.10 per cent, according to the Registrar of Joint Stock Companies and Firms (RJSC).

On February 6, 2022, Commerce Minister Tipu Munshi launched the DBID system. It is a digital platform under the RJSC that aims to unify the fragmented businesses in Bangladesh.

The platform focuses on enabling organisations, local and foreign business entities, micro merchants, financial institutions, etc to register their businesses digitally and receive a unique BID.

According to the RJSC, applications of a total of 5,021 digital business firms were disposed so far, and 4,313 applications were rejected due to lack of proper documents. Some 363 applications are now under scrutiny of the DBID platform.

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

Mohammad Sahab Uddin, vice president of the e-Commerce Association of Bangladesh (e-CAB), admitted that the registration process is going on slowly, as many of the association members have not applied yet.

There are some 2,000 e-commerce companies under the association. 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 vice president 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 the most of the applications were rejected due to not explaining the businesses' terms and conditions in Bangla on their website or social media page.

Many firms applied for certification without even reading the guideline 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 guideline as well as terms and conditions for certification.

According to the guideline, 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 availed 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 website.

The guideline 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 the authority to issue 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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