How To Open A Branch Or Liaison Office In Bangladesh?
For international investors intending to establish a presence in Bangladesh, one of the two alternatives is to open a branch or a liaison office. The other option is incorporating a Bangladeshi subsidiary company. If you are a foreign investor, we recommend you to hire our services on Business set up. It will assist you in comprehending Bangladesh’s legal framework for foreign investment. Approval of Bangladesh Investment Development Authority (BIDA) is the primary requirement for setting up a Liaison or branch office in Bangladesh.
Note: Bangladesh Is South Asia’s Fastest Growing Economic Country. More Than 75% foreign companies now want to invest or open Liaison or branch office’s here.
Key Facts About Branch Office
1. With BIDA’s prior clearance, a foreign company’s branch office can participate in commercial operations.
2. With BIDA’s previous approval, a branch office may have a local source of revenue from recognized business operations in Bangladesh.
Key Facts About Liaison Office
1. A foreign company’s Liaison/Representative Office is limited in what it may do, which includes as specified in the permission letter, collect, assemble, analyze, and distribute business information pertaining to its sphere of activity.
2. In Bangladesh, a Liaison/Representative office will have no local source of revenue. The parent firm will be responsible for all setup and operations expenditures, including compensation for expatriates and local workers of the Liaison or Representative office.
3. Except for the cash brought in from Bangladesh, no external remittances of any type branch or liaison office will be permitted.
A Branch Or Liaison Office Is A Type Of Business Entity
When registered with the BIDA in Bangladesh, a Liaison or branch office near me becomes a legal organization. It is regarded as a subsidiary of the foreign corporation rather than an independent legal entity. Apart from a Bangladeshi subsidiary business, a Liaison or branch office’s parent firm is implicitly accountable for all of the Branch or Liaison Office’s obligations and liabilities.
1. Name: The name of the Bangladeshi branch office or liaison office must match the international company’s name.
2. Structure and Activities: The Memorandum and Articles of Association of a foreign corporation govern the shareholders, the firm’s structure, and its activities. The Branch or Liaison Office does not have its own Memorandum and Articles of Association.
3. Office Address: A Liaison or branch office in Bangladesh must have an office address.
Required Documents For BIDA Approval
For the approval of a Branch Office Or Liaison Office in Bangladesh, the following documents/information are required:
1. 4 copies of an application for the formation of a branch/liaison/representative office in the appropriate form, signed by the authorized person.
2. The principal/parent company’s Memorandum and Articles of Association, as well as its Certificate of Incorporation.
3. Names and nationalities of the primary company’s directors/promoters.
4. The preceding fiscal year’s audited financial records of the principal firm.
5. Resolution of the company’s board of directors addressing the opening of an office in Bangladesh.
6. The proposed office organogram, illustrating the positions that will be filled by both expats and locals.
7. Details of the operations that would be carried out through the proposed Bangladesh branch/liaison/representative office.
8. The concerned Bangladesh mission/mission of the respective nation in Bangladesh/respective country’s apex business chamber/local business chambers must certify to the forwarding letter documents (items 2-5).
-Before submitting any papers that are not in English, they must be translated into English.
-All documentation must be provided to BIDA in four copies.
-After analyzing the above-mentioned papers, BIDA may request further documentation.
Fees To The Government:
A fee of BDT 25.000 must be payable by bank Money Order, with an original copy supplied to the BIDA..
Timeline And Procedure For Registration
The procedure is now available online. All papers should be uploaded to BIDA’s online site, and hard copies should be supplied afterwards. After properly analyzing all information, BIDA employees will submit the application and supporting documents to the Inter-Ministerial Committee. The Inter-Ministerial Committee meets twice a month on average. The typical time frame is one month or less.
Opening Bank Account
A bank account must be created in any Bangladeshi bank after gaining clearance for a Branch office or Liaison office. Within 02(two) months after the date of issue of the BIDA approval letter, an amount of foreign exchange equivalent to 50,000 or greater must be brought in as inbound remittance in Bangladesh.
Notification To The bank Of Bangladesh
After that, within 30 days after receiving approval from BIDA, the newly approved Branch Office, Liaison Office, or Representative Office must report to Bangladesh Bank. The Bangladesh Bank does not allow any branch, liaison, or representative office to submit this report directly to them. Instead, it should be done through the Branch Office’s, Liaison Office, or Representative Office’s bank. As a result, after receiving clearance from BIDA, the newly approved Branch Office, Liaison Office, or Representative Office must create a bank account as soon as possible.
Register With Registration Of Joint Stock Companies (RJSC)
Registration with the RJSC is essential after receiving clearance from both Bangladesh Bank and BIDA. For this reason, the following documents will be required:
1. BIDA’s approval letter.
2. Bangladesh Bank’s approval letter.
3. A certified copy of the company’s memorandum and articles of incorporation, or other legal documents.
4. The full address of the company’s registered or primary office.
5. A list of the company’s directors and secretaries, if any.
6. The name and address of one or more people residing in Bangladesh who are authorized to receive service of process and any notice or other document necessary to be served on the firm on behalf of the company.
7. The full location of the company’s headquarters in Ballades, which would be used as the company’s primary business location in Bangladesh.
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Contact Us Today
We are a prominent liaison office setup service provider in Bangladesh. Maintaining liaison/coordination between principal and local agents, distributors/exporters’ institutions through correspondences, personal contracts, and other electronic media, as well as specified in the approval letter, are just a few of the activities that a foreign company’s Branch or Liaison Office can do.
Please contact us if you require expert assistance with a branch office, liaison office, or foreign investment.