The liaison office setup is usually registered or established in a country with the purpose of maintaining contact or communication with the country’s commercial resources while the parent company is in the country. It is only a license to conduct business in Bangladesh as an agency responsible for liaising with the parent company and its agents or distributors in the host country. This cannot generate any source of income, nor can it make any profit. On the other hand, unlike the liaison office, once a branch is registered, also this can generate income with the prior permission of the respected authorities in Bangladesh.
Since it is unable to engage in commercial, trade or industrial activities, the liaison office setup must be maintained by the private inward remittance of its foreign parent company.
A contact office is allowed to participate in the accompanying exercises:
If you are a foreign financial backer, we prescribe you to peruse our article on the foreign ventures. It will assist you with understanding the lawful system.
Work with correspondence between the abroad head organization
Advance imports or trades management between countries
Set up monetary and specialized participation among abroad
Address the abroad head organization in Bangladesh.
The unfamiliar parent organization should have a productive history of three years straight and the total assets should be more than $ 50,000 authenticated by their evaluators.
The contact office can not procure any pay in Bangladesh, and the parent organization should fund every one of its tasks. An endeavor from the parent organization is required.
The name should be same as that of the unfamiliar parent organization, and for each new office of such contact office, another endorsement and permit is needed from RJSC.
The annual duty on a Liaison Office can be forced by Bangladesh charge specialists when it is set up that the exchange adds up to business activity through PE.
1. Recommended Application Form properly filled in, marked and stepped
2. MOA and AOA of the Principal Company and Certificate of Incorporation
3. Inspected Accounts of the last monetary year
4. Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh
5. Subtleties of exercises to be led in Bangladesh.
6. Investors subtleties, advertisers and chiefs.
7. Proposed organogram of the workplace.
Thing ii-iv should be authenticated by the Bangladesh Embassy/High Commission of the nation of beginning, Embassy/High Commission of the candidate’s nation of beginning or Apex Chamber of Commerce of the nation of beginning.
The proposed office should initially apply for liaison office setup on the web and afterward present the records to BIDA. 4 duplicates of all records should be submitted to BIDA.
To comprehend with respect to “how to enlist a Liaison Office setup in Bangladesh” the data portrayed beneath would direct anybody. This in regards to enrolling a Liaison office setup in Bangladesh:
The underlying necessity to enlist a contact office in Bangladesh is to get endorsement from the Bangladesh Investment Development Authority.
Every one of the pertinent reports concerning the parent organization, like MOA, AOA, Meeting Minutes of the endorsement, Board Resolution giving the endorsement alongside an application, should be submitted.
Upon endorsement, the Liaison workplaces will keep on working at the supported time referenced in the endorsement letter gave by Bangladesh Investment Development Authority. Moreover, essentially at the very least USD 50,000 should be transmitted to Bangladesh as the extended expense of the essential foundation and a half year functional cost.
The main difference between liaison office setup and branch office is as follows:
Liaison Office setup are not required to pay Income Tax in Bangladesh whereas branch office is subject to taxation laws in Bangladesh
Liaison Office setup cannot undertake any Trading / Commercial activity directly in Bangladesh, whereas branch office is allowed to do trading / commercial activities as permitted by RJSC
The office setup are also subject to Transfer Pricing (International Taxation) Regulation of Bangladesh Income Tax
It is appropriate to note here that Representative Office and Liaison Office setup in Bangladesh are a similar business substance in Bangladesh. In any case, Liaison Office setup is not the same as a Branch Office in their activity and extent of work.
If you need a company lawyer to help register your liaison/Branch office, get an appointment with our Company for further details.
Contact office can proceed with exceptionally restricted exercises. One can do it by keeping up with coordination with the neighborhood specialist, merchants/exporters’ organizations with the Principal. One can do it by means of individual contact, utilizing electronic media or relating work. Once in a while, the contact office gathers business data, order scientific business information, do necessary survey identified with its field of exercises as referenced in their letter of endorsement. The contact office isn’t permitted to acquire from the neighborhood business exercises and the whole foundation, activity. And representative administration cost would need to borne by the Parent organization.
Liaison office setup can do operations in limited activities. Through maintaining coordination with the local agent, one can do it, distributors/exporters’ institutions. Also with the Chief via personal contact, by means of electronic media or corresponding work.
The liaison office setup helps in collecting business information. Moreover, gather analytical business data, and carry out an essential survey related to its ground of activities as mentioned in their letter of approval. Our country does not permit it to receive from the local business activities and the whole establishment, and operations. Also, employee management price would have to borne by the Parent company.
All costs for Liaison Office setup and operating it are basically abided by the parent company which is established abroad.