How To Open A Branch Office In Bangladesh
A registered branch office in Bangladesh is an extension of its foreign parent company registered outside of Bangladesh. The status of branch is similar to liaison (representative) office, only exception branch can engage in commercial or revenue generating activities in a limited area with the permission of Bangladesh Development Authority (BIDA)
Characteristics of a Branch office In Bangladesh
- It is an extended version of the foreign parent company.
- The Memorandum and Articles of Association (M&AA) of the parent company/foreign company are the applicable to its management and infrastructure.
- The liabilities of its business-oriented debt and losses have to be incurred by the parent company.
- The branch office must confine its business activities within the Bangladesh Investment Development Authority (BIDA) permission.
- $50,000 must bring to Bangladesh branch office as initial setup and operating cost for 6 (six) months.
- The Bangladesh branch office must bear the same name as parent company, and the name is subject to the approval of the Registrar of Company of RJSC.
Steps and Procedure to Setup a Branch Office in Bangladesh
- Apply to BIDA for Branch 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 of the permission.
- Apply to RJSC (Register of Joint Stock Company of Bangladesh) for registration.
- Apply for other registration and licenses like, trade license, VAT/GST registration, export registration (ERC), import registration (IRC) and etc.
Documents Required Registering a Branch 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 Branch Office in Bangladesh