Why You Should Open A Branch Office

Setting a branch office of a foreign company in Bangladesh allows an investor to conduct business there. A branch office functions similarly to a firm, with the exception that it can only conduct business in regions that the Bangladesh Development and Investment Authority ("BIDA") has approved. After three years, the permission to function as a branch office must be renewed.

Branch office services refer to the various support functions and operations provided by a central office to its branch offices located in different geographical locations. These services are designed to ensure that the branch offices can operate efficiently and effectively while maintaining consistency with the central office’s policies and procedures.

Let's Investigate the Issues

We recognize how critical it is for you to be able to work securely and support the health and well-being of your employees and customers during the COVID-19 pandemic without contributing to the virus’s transmission. We are aware that many businesses in this industry are currently closed for business due to government regulations.

Even though many of our customers have branch offices, we spoke with them and discovered that their most pressing concerns may be divided into numerous categories. We  realized this and have produced a variety of tools to assist business owners. Our employer of record tools provides various types of services which can help you solve those problems.

Our Provide Services To Set Up A Branch Office

1. The first step is to submit documents to BIDA:

The very first step in building a local branch in Bangladesh is to get BIDA clearance.The following documents must be presented to BIDA in order to receive permission.

2. Open a bank account in order to open a branch office:

After gaining approval from BIDA, the next step is to open an account in Bangladesh. This is because establishing a branch office does not require a minimum paid-up capital.

3. Approval by the Bangladesh Bank:

The branch office must report to the Central Bank of Bangladesh after gaining approval from BIDA. During 30 days of the approval, a report shall be submitted.

4. RJSC Branch Office Registration:

Finally, after receiving clearance both from Bangladesh Bank and BIDA, the branch office must be registered with the RJSC. This registration is an important step  for the branch office setup. 

5. File an income tax return and register for VAT:

To get a Business Identification Number, you must first obtain a VAT registration certificate from the Ministry of a National Board of Revenue (NBR). It is completely free to apply for VAT registration.

Benefits Of Setting Up A Branch Office

1.Cost Effective: Money is playing a key role in your Business. You can  Reduce investment costs and office costs by setting us this type of office. 

2. Save Time : Time saving is most essential part of Business. You can use that time to complete other work. So, save your time and focus on your passion.

3.Grow Faster: By setting up a Branch Office you can Put your full focus on growing the business and make it known to the people of other culture and countries.

4. Market Insights: Branch offices can provide businesses with valuable insights into local markets, including customer preferences, market trends, and competition, which can inform strategic decision-making.

5. Risk Diversification: By operating in multiple locations, businesses can diversify their risks and reduce the impact of any unexpected events that may occur in a particular region or market.

Obstacles To Overcome

1. Not Everyone Gets Important Information:

‍It’s critical that everyone in a fresh branch office is on the same level. People have been utilizing emails to disseminate information within the firm for years. However, this is far from the most effective answer to the communication problem. Important information should be managed otherwise the chances of risks would be more. 

2. Branches do not communicate effectively with one another.

In every organization with a "headquarters" or "main office," this is an unwanted quirk. Normally, any information is submitted to the headquarters, and branch managers anticipate that it will be forwarded to the relevant section. Now the email is circling offices until it reaches the destination recipient – which will most likely be too late.

3. You don’t have a good understanding of what’s going on in the branch offices:

‍This is a critical issue, especially for workplaces that are geographically separated and difficult to monitor. Knowledge about the office setup in other places is necessary before establishing it. It’s critical for information to travel all the way to the floor of the system, but it’s equally critical for it to return the other way.

Legal Advice To The Clients

A business entity is not a separate legal organization. This is due to the fact that it serves as an extension of its parent corporation. As a result, the parent firm is completely liable for the branch office’s conduct, debts, and responsibilities.

Providing legal advice to clients is an essential service that a branch office can offer to its clients. To ensure that the legal advice provided is effective, it is crucial to understand the client’s needs, goals, and expectations. This requires effective communication with the client to gain insight into their situation. 


Branch office services play a crucial role in expanding and supporting the operations of a company. They provide a localized presence that allows businesses to reach new markets, enhance customer relationships, and improve operational efficiency.

By establishing branch offices, companies can gain a deeper understanding of local markets, cater to specific customer needs, and establish a strong brand presence in different regions.

Branch offices offer a range of services, including sales and marketing, customer support, technical assistance, and administrative functions. These services enable companies to effectively serve their customers, provide timely support, and ensure smooth operations.

Additionally, branch offices can act as distribution centers, allowing businesses to manage inventory, logistics, and supply chain activities more efficiently.

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