How to Open Branch Office in Bangladesh
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Our service area: Bangladesh branch office open of foreign company;
- Branch, representative, liaison office set up permission from BOI, BEPZA (free zone area)
- Work permit and directors visa (PI and E Visa)
- Income tax and audited Accounts service
The procedure of branch and liaison office opening in Bangladesh
- Forward an application to BOI (Board of Investment) after filling up
- Collect prescribe form from BIDA office or our office
- Company name shall remain same as parent company, no separate name is need.
- Let, the parent company name is XYZ LIMITED, here the same name will appear.
- Name reservation is not required in Bangladesh for the branch office.
- Be prepare following attested papers from the embassy of Bangladesh and notarized where the parent enterprise is located:
- Incorporation certificate of parent company
- MoA and AoA of the main corporation
- Board meeting resolution from the parent company to set up a liaison office
- Accounting and audit report of the year of parent company
- Provide business activities of the branch office on company letterhead
- Expected date of starting operation in Bangladesh to open a branch office
- Expected initial expenditure information fill up in the prescribed form of BIDA
- Mention in application form source of finance to invest in Bangladesh
- Power of Attorney to appoint the Branch representative in Bangladesh
- Local Representative or his/her representative shall forward all required papers to BIDA to open a branch/liaison office.
- Ensure US Dollar 50 thousand (fifty thousand) to remit in company account in Bangladesh
- Provided that 5 percent additional charge shall be applicable if the said amount is not transferred by 2 (two) months from the date of permission
- Enclose office rent or lease documents
- Enclose foreign manpower list on the letterhead of the company
- To remember, the foreign employment ratio is 1: 5, one foreign is equal to 5 local employees
Timeline of Branch Office Approval
- 30-45 days need from the application date
- As one meeting held once a month, sometimes 2 meeting holds when more applications are submitted
- Additional time or a second meeting might need if the application is rejected for lack of documents
Fees of opening branch and liaison office
- Taka 35000/- Chalan to government, Solani Bank
- Office expenses & disbursement
- Professional Fees might USD 2000 to 4000 depending on the firm you work with.
Post-registration compliance of branch office
- Permission is given for 2 years normally
- Open a bank account in any scheduled bank
- Remit USD 50000/- as a requirement within a maximum of 2 months.
- Do not forget to apply before three months of the period ending to renew the permission along with requiring papers
Apply for PI and E Visa
- Employees and investors both can apply for the visa
- Visa is approved for 1-5 years
- Supporting papers are:-
- Academic certificate and any experience papers
- Appointment letter from the branch office
- Passport and photograph
- New paper advertisement copy
- Branch office open permission copy
- Number of employees list
- Salary as a scheduled appointment of foreign staffs
- Foreign employee is generally appointed as country manager
- Technical and engineer foreign staffs are tax-free for the first 3 years.
Advantages of representative and liaison office
- Tax-free if falls under tax-exempted industry
- Eligible to hire foreign staffs
- Foreign technical staffs are tax-free for the first 3 years depending on the business nature of the Branch
Disadvantages of branch and liaison office
- USD 50000 has to remit at the beginning and renewal
- Permission is approved for 2 years only
- Limited business activities
- Branch and representative office can not sell service and goods without additional approval
Other information of branch and representative office
- Collect Form 18B from the central bank (Bangladesh Bank) to withdraw the remitted amount.
- Remittance amount is allowed to use ONLY for carrying on operation purpose in Bangladesh
- Branch office, liaison, or representative all are the same rules.
- No money can be transferred from a branch office account to any country as a business expense
- Additional permission is needed from Home Ministry to Bangladesh to open a branch office, rep, and liaison office
- Income tax shall be applied to the project base office
- Provided that all 18 terms and condition have to follow by the branch office, representative, and liaison office