Hailed for streamlining e-commerce, now a major hurdle for entrepreneurs?

Obtaining digital business identification has turned out to be the main obstacle to the country's e-commerce sector, alleged the e-Commerce Association Bangladesh (e-CAB), as it sought urgent steps from the commerce ministry to ease the registration process.
In a letter to the Commerce Ministry on 11 October, the association pointed out that 87 per cent of applications for digital business identification are currently being rejected, putting the burgeoning industry in a precarious situation.
Following a series of widespread e-commerce scams involving about a dozen e-shops like evaly, eorange and Dhamaka, which subsequently collapsed, leaving thousands of vendors and customers disgruntled, the government introduced digital business identification in February of last year.
In August of this year, authorities launched a website to facilitate the registration process. Online businesses can get the ID free of cost by applying online to the RJSC.
The aim of business identification was to restore fragile consumer confidence and bring discipline to the country's e-commerce business.
Now, entrepreneurs are required to have this identification number to conduct business on online platforms. Even micro and small entrepreneurs who operate businesses through Facebook pages are mandated to obtain this identification.
A total of 704 digital business identification certificates have been issued in over a year, out of 5,349 applications, according to September data from the Registrar of Joint Stock Companies And Firms (RJSC).
Only 13 per cent of their applications get accepted by RJSC, on grounds of not providing accurate information or not furnishing data for consumers in Bangla.
In the letter to Senior Commerce Secretary Tapan Kanti Ghosh, e-CAB General Secretary Muhammad Abdul Wahed Tomal expressed dissatisfaction with the progress, despite the promising start.
He said that applications are being cancelled due to a lack of awareness among the applicants, while the entire process is being complicated by the addition of various illogical conditions.
In the six-point argument, e-CAB said it is unreasonable to make digital identification mandatory for everyone, as it was initially proposed only for those without a trade licence. Digital business identification requirements should not apply, especially to those who are already registered under the Companies Act and possess digital trade licences.
Initially, e-CAB proposed granting licences to its members after a one-step verification process, as they have already been verified. However, this process has not been included, leaving entrepreneurs in an uncomfortable situation.
Besides, the association claimed that digital identification has made the business more complex, despite promises of streamlining during its launch.
The association expressed its desire to collaborate with the commerce ministry and Registrar of Joint Stock Companies and Firms (RJSC) to approve digital identification for its members under a special scheme.
In conclusion, e-CAB requested that authorities take the necessary measures to make the praiseworthy and unique initiative a support for entrepreneurs rather than an obstacle.

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