Cabinet gave its approval to arrangements for the ballot, along with a draft business plan, in the confidential section of their meeting on Wednesday, 31 January.
A BID is a defined area, usually around a town centre, in which a levy is charged on all business rate payers, in addition to the business rates bill.
The levy is used to develop projects which will benefit businesses in the local area, with businesses having a say on improvements they feel could be made in their town and identify further contributions they might be prepared to make.
BIDs can then deliver additional projects and services over and above those already provided by public bodies. There are more than 200 BIDs already in place across the country.
Around 350 local businesses would be part of the proposed BID in Nuneaton, which should increase town centre investment by around £1million over the next five years.
A postal ballot will be held during February to enable traders to have their say on the proposal.
Each business would pay a levy based on the rateable value of their premises, with the biggest traders paying the most.
Council Leader Cllr Kris Wilson, Portfolio Holder for Business and Regeneration, said:
“The Borough Council is working hard to help strengthen both of our town centres.
“The progress with the BID is an important step in continuing to build momentum in and around Nuneaton town centre.
“BIDs put more control and influence into the hands of local business owners and traders who know far more about the economy and business than local councils.
“That’s why I am keen for this new partnership to develop and grow.
“The BID will hear ideas from traders who know their patch and know what their customers want. Lots of local traders live locally and understand what makes this town tick.
“We believe this BID will help them shape the future of this part of the Borough, and we remain keen to play our part.
“Also, if businesses in Bedworth want to approach us to consider establishing a BID around the town centre there, then we are certainly open to that suggestion.”