How to Register a Branch Office in Bangladesh
As per the procedure to register a branch office in Bangladesh, it must be noted that branch office registration in Bangladesh does not create a separate legal business entity in Bangladesh, while being materially separated from the organization's main office or parent office. A Branch office shall be part of a company or, more specifically, an organization. A Branch office represents the owning company to its full taxability and legal liability in relation to the operation of the Branch office.
Foreign investors or entities who are planning for a short-term project in Bangladesh may register a branch office in Bangladesh. The information presented below shall guide as to how to register a branch office in Bangladesh.
The primary requirement in order to proceed as to how to register a branch office in Bangladesh is to get the approval from the Bangladesh Investment Development Authority (BIDA) which was previously known as BOI.
There are some certain terms and condition in regards to the approval and operation of the Branch office in Bangladesh. Any foreign nationals who is wishing to work at the branch office must avail the work permit from the BIDA. An amount equivalent to US$50,000 thousand must be remitted to Bangladesh at a commercial bank as the estimated cost of initial investment and operational cost for the 6 months. Besides, this amount must be remitted within the two months from the date of issuance of the BIDA permission letter. It is not obligatory to keep US$50,000 always in the Bank account, however; in case of time extension or renewal it has to be maintained.
Scope of Branch Office in Bangladesh
In Bangladesh, Representative office & Liaison office are the same. However, registration of branch office in Bangladesh has more scope & flexibility than Liaison office or Representative office. In Bangladesh, a Branch office of a foreign company may engage in commercial activities with prior approval of BIDA and other relevant authorities.
With the prior approval of the concerned ministry upon submitting the sufficient supporting documents, a Branch office may finance their entity from the local source of income. However, they are only allowed to business activities under the limited field of business as approved in their certificate of incorporation. The operation of a Branch office shall be confined to the period of time mentioned in the approval letter issued by BIDA.
If the company intends to continue beyond their approved period of operation, they will have to apply for necessary renewal/ extension submitting the required documents. It is to be noted that they must submit the application for renewal at least 2 (two) months before the expiry of the ongoing period. If you need a company lawyer to help register your liaison office, get an appointment with our Company lawyer for further details.
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