Branch Office Registration In Bangladesh

Branch Office in Bangladesh

For anyone who wants to establish a temporary office in Bangladesh, the branch office is perfect for foreign companies if they are not planning to stay there long-term. Your company will be allowed to operate as an authorized company in Bangladesh if you have done Branch office registration in Bangladesh. Branch offices provide greater liberty and flexibility than liaison offices. The regulatory organization for branch office registration is the BIDA. You will be able to conduct business in Bangladesh only if BIDA permits it, and that will only be done when the purpose of business is specified in the Branch Office application. The branch office is not permitted to do any further activities. The Branch office in Bangladesh can only commence business in the same manner as the parent company. The branch office in Bangladesh has a limited manufacturing capacity, but branch offices can subcontract with the Bangladeshi company. However, the working of a branch office will be restricted to the time specified in the BIDA approval letter.

Activities of Branch Office in Bangladesh that are allowed

There are following activities which are allowed to Branch office in Bangladesh to carry out

• The branch office in Bangladesh can conduct commercial activities will act on behalf of the parent company
• The branch office in Bangladesh may also play the part of a sales representative who acts on behalf of the parent company.
• There are all forms of assistance allowed, like financial and technical, between the parent company and the new Bangladeshi company or with any foreign company that endowments assistance regarding cooperation.
• The branch office in Bangladesh can also provide expert or consulting services. Within the comprehensive limitation of the parent's company job description, the branch office can also act as the contractor or subcontractor.
• Research activities can be undertaken by the branch office in Bangladesh acting on behalf of the parent company.
• To ensure appropriate distribution and marketing, the branch office in Bangladesh can offer sales and after-sales.
• The representative for shipping companies and foreign airlines in Bangladesh can be a Branch office in Bangladesh.
• The branch office in Bangladesh, after getting the necessary approval, can also carry out the import and export business.
• Under the authority or Inter-Ministerial Committee's authorization, the Branch office in Bangladesh can conduct other commercial activities.
• Within ten years of the date, the Branch office in Bangladesh has received permission from the office it requires to engage in the production of goods and services, which is required to establish an industry in Bangladesh.

Documents needed for the Branch Office registration in Bangladesh

The main requirement for the establishment of a Branch office registration in Bangladesh is the approval of the Bangladesh Investment Development Authority (BIDA) to get the approval of the BIDA the required documents are mentioned below

• The Filled application form with the signatures of the authorized person
• The Memorandum of Association (MOA), Articles of Association (AOA), and incorporation certificate of parent company.
• Parent company directors or promoters' names and nationalities
• The last financial year audited accounts of the parent company
• The resolution of the company’s board of directors regarding the opening of a Branch office in Bangladesh
• The proposed organogram of the Branch office includes both expatriates and local personnel.
• All the details of the activities of the Branch office in Bangladesh
• The forwarding letter

There should be an attestation of all the documents, including a forwarding letter and an application by the concerned authority of the particular country or the apex business chamber of the country.

You should translate your documents that are not stated in English; BIDA needs all four copies of each document stated.

Steps for Branch Office Registration in Bangladesh

The average time for Branch office registration in Bangladesh ranges from 50-60 days. The process of the Branch office registration in Bangladesh is as follows: The average time for Branch office registration in Bangladesh ranges from 50-60 days. The process of the Branch office registration in Bangladesh is as follows

Step 1- Obtain BIDA permission

For the Branch office registration in Bangladesh, the following steps, which are mentioned below, should be completed to obtain BIDA permission.

Form an account with the BIDA web portal.

After you deposit the government fee for account creation, you should form the user ID for the account creation.

Filling out Applicant to BIDA

For the branch office registration in Bangladesh, you have to fill out the application and submit it to BIDA online.

EC approval of the application

The BIDA executive committee has two meetings a month. After the decision is made by the executive committee and the documents are checked and verified, BIDA will approve your application; for application, the average time is one month.

BIDA Permission letter

The basic legal document that is sent by the BIDA is an E-mail that needs to be recognized as an approved branch office.

Step 2- RJSC Certificate

For the Branch office registration in Bangladesh, you have to register your branch office with the Register of Joint Stock Company (RJSC)

Step 3- Trade license

For the Trade License, you have to apply to the local government for conducting Branch Office commercial activities in Bangladesh. To get a trade license, a commercial office address and rental agreement are required.

Step 4- Tax Identification Number

The exclusive 12-digit number, which is termed a Tax Identification Number (TIN), is given by Bangladesh's Income Tax department. You can successfully open a bank account once you have obtained your E-TIN.

Step 5- Bank Account Opening

You have to set up a bank account in any bank in Bangladesh as it is an important requirement.

Step 6- Initial Investment

After two months from the date of BIDA approval, an investment of $50,000 should be remitted.

Step 7- VAT registration

There will be a 13-digit online VAT registration/BIN given to your company after the initial investment is received.

Your registration of the Branch office in Bangladesh will be successful for the daily operations after all the steps are done, and for that, Enterslice is here to help you through the whole process of Branch office registration in Bangladesh.

Minimum Capital for a Branch Office in Bangladesh

Branch offices are not separate Legal entities, so that's why they don't have any minimum capital requirement.

The Branch office in Bangladesh requires a minimum of US$ 50,000 inward payment for each type of entity registered, which includes branches and representative offices. The initial establishment cost is covered by the inward remittance and six months of operating expenses.

Factors to consider before applying for a Branch Office in Bangladesh

Parent companies age

The parent company should be formally registered outside of Bangladesh and should be at least two years old company.

Operation Expenses

The branch office in Bangladesh should cover all its costs by using the payments from the head office or the income earned by the BIDA-approved operations in Bangladesh.

Branch office name & approval

The name must be approved by the Bangladesh Investment Development Authority (BIDA) and must be the same as the parent company.

Bangladesh taxation

All the regular taxes generate revenue, which is why they apply to the Branch office in Bangladesh.

Minimal investment needed

The parent company has to invest no less than $50,000 or six months of the effective costs with the expenditure of initial office set-up cost included.

Foreign employees Employment

If you are planning to hire any foreign residents in your Branch Office in Bangladesh, then you have to keep in mind that you will also need to secure the work permits of the foreign residents.

If someone wants to work in Bangladesh, then you will have to get a work permit. Initially, it is a multiple-entry visa that will be valid for three months, and afterwards, it can be extended. The branch manager of the Branch office can be a foreigner, but he or she should be a resident of Bangladesh. Also, you need to remember that Bangladeshi law limits foreign employees to a maximum of 5% in an office branch.

Compliances in the Branch office in Bangladesh

The letter of approval, which is issued by the BIDA, states that activities of the Branch office in Bangladesh should remain confined to the areas for the time mentioned and authorized. If the organization wishes to extend the office past the approval period, then you will have to apply for the needed renewal in the correct documentation at least two months before the expiry of the current term. The Branch office in Bangladesh, in addition has to maintain the following compliances

• You have to submit to BIDA the quarterly return of income and expenses out of the payments received from abroad, the Concerned Bank, and the National Board of Revenue and Bangladesh Bank with documented evidence under circular No 01/2009 amended circular No 03/2009 of 30^th July 2009.
• You have to inform BIDA if there are any changes to the present address for the required actions and approval before the proposed change is passed out.
• Your allowed office should obtain permission from the concerned agencies, as and where needed, under the existing rules of the country.
• The offices that are permitted will have to pay the duty, income tax, revenues, and other payable taxes to the government under the Bangladesh laws.

What services Enterslice can Provide?

Experience Seamless expansion into Bangladesh with Enterslice's comprehensive Brach Office registration services. Our expert team will navigate the intricate legal landscape while ensuring a swift and compliant establishment and empowering your business growth. Trust Enterslice for hassle-free registration, strategic guidance, and unmatched support, which will unlock boundless opportunities in the Bangladesh market. Gain a competitive edge for the Branch office in Bangladesh with Enterslice, your trusted partner.