Branch Office Setup
A Foreign Company / Corporation Can Establish a Branch in Bangladesh.A branch office setup in as an augmentation of its parent organization, which means, there will be no different lawful substance set up. Its parent organization is responsible for the branch office’s obligations or some other commitments and exercises.
No activity in Bangladesh that isn’t explicitly approved by BIDA can be directed by a Branch Office. A Branch Office setup is likewise expected to enlist with the Joint Stock Companies and Company Registrar and to follow other lawful conventions recommended by the Companies Act 1994.
We Arrange for Foreign Representative be Utilized in Branch Office
Supporters may apply for Private Investors Visa. Foreign workers can arrangement. To have the option to work in Bangladesh, Foreign representatives need to get a work grant. It is a many section visa and at first, it is legitimate for 90 days however can be expanded a while later.
A branch director can be an outsider however he/she ought to be an occupant in Bangladesh. Likewise, note that the Bangladeshi law restricts a limit of 5% (five percent) of outsider workers in a branch.
Submitting Documents to BIDA
Opening Bank Account to set up branch office
Bangladesh Bank Approval
RJSC Registration for Branch office
Trade License from the Local City Corporation
Streamlined 4 Procedures for Branch Office Setup
1. Validity Period of Approval
The endorsement is generally given to set up a branch to a time of three years and it must be broadened/reestablished. You need to apply for recharging or augmentation somewhere around 2 (two) months before the expiry of the current term. Period of validity of the type approval of the type approval decision.
2. Capital Prerequisite
There isn't least capital prerequisite in Bangladesh for branch office. Notwithstanding, there is a prerequisite for at least US$ 50,000 internal settlement for enrollment of branches workplaces in Bangladesh as this internal settlement should take care of the expense of introductory foundation and a half year's costs for activity.
3. Time Period of Set Up
To set up a branch office in Bangladesh it takes from 60 days (sixty) to 90 days (ninety) altogether. a branch office can participate in business exercises. Be that as it may, to do as such, earlier endorsement from the Bangladesh Investment Development Authority (BIDA) is required.A time period must contain one or more rules.
4. Business Activities
Branch office doesn't have a different legitimate element of its own. This is on the grounds that it's anything but an augmentation of its parent organization. Along these lines, the parent organization is completely liable for the exercises, obligations and commitments of its branch office services and requirements.
Permitted Activities For A Branch Office Setup In Bangladesh
A branch fills in as an augmentation of its parent organization, which means, there will be no different legitimate substance set up. Its parent organization is at risk for the branch office’s obligations or some other commitments and exercises.
One of the main difference between a branch and a contact/delegate office is that with an earlier endorsement from the Bangladesh Investment Development Authority (BIDA), a branch can participate in business exercises. For example, a branch can:
- gather installments in the interest of the parent organization
- have nearby kinds of revenue
- make outward installments from Bangladesh with an earlier endorsement from the BIDA
Employing Foreign Representatives
In the event that you expect to employ any unknown nationals in your branch office setup in Bangladesh, remember that you likewise need to get their work grants.
To have the option to work in Bangladesh, unfamiliar representatives additionally need a work license. It is a different section visa and at first, it is substantial for 90 days however can be broadened thereafter.
A branch supervisor can be an outsider yet he/she ought to be an occupant in Bangladesh. Additionally, note that the Bangladeshi law restricts a limit of 5% of outsider representatives in a branch.
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17 Years of Experience with Registration Requirements For Opening A Branch Office Setup
Compliances to keep up with as a branch
Quarterly return of incomes and expenditures out of remittances received from abroad shall have to be submitted to the BIDA, concerned Bank, National Board of Revenue and Bangladesh Bank with documentary evidences under circular No 01/2009 amended circular No 03/2009 of 30th July, 2009.
The approval letter issued by BIDA, the activities of a Branch office setup shall remain confined to the areas and for the time specified and authorized. Unless the organization wishes to extend its Office past the approval period, they will have to apply for the required renewal / extension in the specified form with correct documentation at least two months prior to the expiry of the current term. Any change(s) of present address shall be intimated to the BIDA for necessary action and approval before the proposed change is carried out.
The permitted Office shall have to obtain clearances/ licenses from the concerned government agencies, as and where required, under the existing rules of the country.
The permitted Office shall have to pay duty/income tax/VAT/revenues and other taxes payable to the government under the existing laws of Bangladesh.
BIN & NBR
To do typical business activities in Bangladesh equal to setting up the branch office, it is basic that the branch office setup has a type of Business Identification Number (BIN). Hence, to get a Business Identification Number, a VAT enrollment should be gotten from the Department of the National Board of Revenue (NBR).
Approval letter issued by BIDA
Generally, the approval of the Bangladesh branch or liaison office requires the following data:
1. The designated form signed by the authorized person applies for the establishment of a branch/liaison office/representative office-4 copies.
2. The memorandum and articles of association of the main/parent company and the company registration certificate.
3. The name and nationality of the main company director.
4. The audited accounts of the major company for the previous fiscal year.
5. The ruleof the company’s board of directors on opening an office in Bangladesh.
6. A given chart of the office, showing the positions that expatriates and local personnel will hold.
7. Details of the activities to be carried out through the branch/liaison office/representative office established in Bangladesh.
FAQ For Foreign Company Set Up Branch Office Setup In Bangladesh
How long to set the branch office up with 1 year cost?
It take 7 weeks year to set up branch in Total Bangladesh. And Business Set up costs in year 1 is 1355134.81 TK
.
For branch office is there any separate legal entity needs to be set up?
A branch is as an extension of its parent company which means there will be no different legal entity establishment is necessary. Its parent company is responsible for the branch office’s debts or any other obligations and activities.
Is it compulsory that branch office has to authorize by BIDA?
Yes Of course, otherwise any branch office that is not particularly authorized by BIDA, can run their operations in Bangladesh.
A Branch Office is also expected to register with the Joint Stock Companies and Company Registrar. Then it meets the terms with other legal formalities prescribed by the Companies Act 1994.
Does a branch office can do Commercial Activities?
A Host company’s branch office can involve in commercial activities with prior BIDA approval. A branch office may have a country source of revenue from the officially allowed business sector in Bangladesh. Furthermore, it also requires the earlier approval of the Inter-Ministerial Committee and justification and anecessary documentation.
Foreign Company Starting a Business in Bangladesh
A branch office in as an augmentation of its parent organization, which means, there will be no different lawful substance set up. Its parent organization is responsible for the branch office’s problems or some other commitments and exercises.