How To Register A Liasion Office In Bangladesh
A liaison office is suitable for foreign companies that wish to set up an administrative office to explore business opportunities in Bangladesh or coordinate activities on behalf of its parent company. A liaison office does not have any legal status and thus, cannot be engaged in any commercial or revenue yielding activities, or enter into any contracts or transactions.
Characteristics of a Liaison office In Bangladesh
- The liaison (representative) office must confine its activities only to market-related research, building trade contacts, handling product inquiries, coordinating, and participating in trade shows and exhibitions.
- It must not be engaged in any trading activities, including signing any business contracts, issuing invoices and receipts, opening or receiving letters of credit, or providing any service for a fee.
- The Memorandum and Articles of Association (M&AA) of the parent company/foreign company are the applicable to its management and infrastructure.
- The regularity or licensing authority of the liaison (representative) office is Bangladesh Investment Development Authority (BIDA).
- A liaison office must bring $50,000 to Bangladesh as initial setup and operating cost for 6 (six) months.
- The Bangladesh liaison (representative) office must bear the same name as the head office, clearly stating that it is a liaison (representative) office, and the name is subject to the approval of the Registrar of Company of RJSC.
Steps and Procedure to setup a Liaison Office or Representative Office in Bangladesh
- Apply to BIDA for Liaison office permission.
- Obtain permission letter for branch office from BIDA.
- Apply for Tax Registration.
- Open an operational bank account in Bangladesh.
- As statutory requirement an amounting USD 50,000 shall bring to Bangladesh by 2 (two) months.
- Apply to RJSC for registration.
- Apply for other registration like trade license or VAT/GST (if required).
Documents Required Registering a Liaison of Representative Office in Bangladesh
- Certified copy of the passport for all directors of the foreign company
- Photograph of all directors of foreign company
- Certified copy of incorporation certificate, MOA&AOA, auditors report for last FY, Tax registration details of the foreign company
- A board resolution to take the decision to open a liaison office in Bangladesh, authorizing a specific individual to sign necessary registration documents on behalf of the foreign company
- A board resolution to select the bank in Bangladesh to open an operative bank account and the bank signatories
- Deceleration of non-commercial activities conducted in Bangladesh under the liaison office
- Bangladesh liaison office organization chart
Pros and Cons of Liaison Office in Bangladesh