A foreign company intending to expand its business to Bangladesh, usually have option either to choose Equity-based entry mode or Non-equity-based entry mode.

Incorporating a subsidiary company is considered as Equity-based entry mode and setting up a Branch or Liaison office is called non-equity-based entry mode.

Equity-based Entry / Incorporate a Subsidiary:

  • Foreign Investors can register or incorporate a fully-owned subsidiary or a joint venture;
  • Incorporate companies are governed by Register of Joint Stock Companies and Firms and regulated under the companies Act 1994;
  • Incorporated subsidiary company is considered as a separate legal entity then its parent;
  • For further information, incorporation procedures and requisite documentation please visit the page Subsidiary Company Registration.

Non-equity-based Entry / Setting up of Branch or Liaison Office:

  • Setting up a Branch of Liaison office by registering with BIDA (Bangladesh Investment Development Authority);
  • As the licensing authority, a branch and a liaison office must comply the regulations of BIDA;
  • For further information, BIDA permission procedures and requisite documentation, please visit the page Registration of Liaison Office and Registration of Branch Office.

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