Branch Office Open in Bangladesh

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

Procedure of branch and liaison office open in Bangladesh

  • Forward an application to BOI (Board of Investment) after filling up
  • Collect prescribe form from BOI office or our office
  • Company name shall remain same as parent company, no separate name is need.
  • Let, parent company name is XYZ LIMITED, here same name will appear.
  • Name reservation is not required in Bangladesh for branch office.
  • Be prepare following attested papers from embassy of Bangladesh and notarized where parent enterprise is located:
  • Incorporation certificate of parent company
  • MoA and AoA of the main corporation
  • Board meeting resolution from 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 in company letterhead
  • Expected date of starting operation in Bangladesh to open branch office
  • Expected initial expenditure information fill up in prescribed form of BOI
  • Mention in application form source of finance to invest in Bangladesh
  • Power of Attorney of the lawyer or attorney or legal representative
  • Attorney shall responsible to forward all required papers to BOI to open 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 said amount is not transferred by 2 (two) months from the date of permission
  • Enclose office rent or lease documents
  • Enclose  foreign manpower list in letterhead of company
  • To remember, foreign employment ratio is 1: 5, one foreign is equal of 5 local employees

Time Line of Branch Office Approval

  • 30-45 days need from application date
  • As one meeting hold once in month, sometimes 2 meeting holds when more applications are submitted
  • Additional time or second meeting might need if application is rejected for lack of papers

Fees of opening branch and liaison office

  • Taka 35000/- Chalan to government, Solani Bank
  • Office expences of Taka 10000/-
  • Professional Fees might Taka 30000-50000

Post registration of branch office

  • Permission is given for 2 years normally
  • Open bank account in any schedule bank
  • Remit USD 50000/- as requirement within maximum 2 months.
  • Do not forget to apply before three months of period ending to renew the permission along with require papers

Apply for PI and E Visa

  • Employees and investors both can apply for visa
  • Visa is approved for 3-5 years
  • Supporting papers are:-
  • Academic certificate and any experience papers
  • Appointment letter from branch office
  • Passport and photograph
  • New paper advertisement copy
  • Branch office open permission copy
  • Number of employees list
  • Salary as schedule of appointment for foreign staffs
  • Foreign employee is generally appointed as country manager
  • Technical and engineer foreign staffs are tax free for first 3 years.

Advantages of representative and liaison office

  • Tax free
  • Eligible to hire foreign staffs
  • Foreign technical staffs are tax free for first 3 years

Disadvantages of branch and liaison office

  • USD 50000 has to remit at beginning and renewal
  • Permission is approved for 2 years only
  • Branch office is not permissible to receive or credit any payment from customers
  • Limited of business activities
  • Branch and representative office can not sale service and goods

Other information of branch and representative office

  • Collect form 18B from the central bank (Bangladesh bank) to withdraw the remit amount.
  • Remittance amount is allowed to use ONLY for carrying on operation purpose in Bangladesh
  • Branch office, liaison or representative all are same rules.
  • No single money can transfer from branch account to any country
  • Additional permission is need from Home Ministry to Bangladesh to open branch office, rep and liaison office
  • Income tax shall be applied on the project base office
  • Provided that all 18 terms and condition have to follow by the branch office, representative and liaison office
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