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