How to Register a Branch Office in Bangladesh (2025)

A branch office in Bangladesh functions as an extension of its foreign parent company and does not hold a separate legal identity. The parent company remains fully responsible for all liabilities, obligations, and actions of the branch office. With prior approval from the Bangladesh Investment Development Authority (BIDA), a branch office may engage in commercial operations, including revenue-generating activities. For setting up or handling such matters, consulting a renowned law firm in Dhaka like Kazi Law Chamber, ensures compliance and strategic guidance. Our commercial lawyers in Dhaka and company lawyers in Dhaka offer tailored legal advice in Dhaka, making us one of the best law firms in Dhaka. The office can:

• Collect payments on behalf of the parent company.
• Earn revenue locally from approved sectors.
• Make outward payments from Bangladesh (with BIDA’s prior approval).

Registration Process

The steps in registering a branch office is similar to those of opening a Liaison Office, starting with obtaining approval from the Bangladesh Investment Development Authority (BIDA), followed by opening a Bank Account and $50,000 investment, and then registration with the RJSC. For smooth setup and compliance, Kazi Law Chamber, a renowned law firm in Dhaka, provides expert support.

Post-registration:

· Bangladesh Bank’s Approval: While the need for 18B approval by the Bangladesh Bank has been eliminated, the branch office must report to the Bangladesh Central Bank within 30 days of receiving BIDA’s approval.

· Trade License: To conduct business legally, apply for a trade license from the local city corporation. This process typically takes 3-4 days and costs around USD 100. The following documents are needed:

a) Copy of Memorandum and Articles of Association

b) Photo of the Managing Director/ Chairman

c) TIN (Taxpayer Identification Number)

d) Rental agreement of the office space

e) Business nature and description

· Tax Identification Number (TIN): Once BIDA approval is obtained, the next step is to secure a Tax Identification Number (TIN) from the National Board of Revenue (NBR). This TIN is essential for tax compliance, even though the liaison office is not involved in income-generating activities.

· VAT Registration: Following the remittance of funds, the office must register for a 13-digit VAT Identification Number (BIN). This allows the liaison office to comply with any relevant tax obligations.

· After setting up the bank account and registering for VAT, the liaison office may require additional licenses or permits, depending on the nature of its operations. These include export-import licenses from local authorities, fire safety certificates, environmental clearances, etc. if applicable.

Profit Repatriation

Branch offices can repatriate profits to the parent company at the end of the fiscal year, but this requires Bangladesh Bank’s approval. Taxes must be cleared before repatriation, and a request for profit remittance must be submitted to the Bangladesh Bank through the branch’s bank. Our company lawyer in Dhaka and commercial lawyer in Dhaka ensure full compliance, making us the best law firm in Dhaka.

Hiring Foreign Employees

Foreign employees can be hired in Bangladesh with a limit of 5% for commercial offices and a 1:5 ratio for industrial firms. A work permit and a 3-month Private Investors Visa (extendable) are required. Kazi Law Chamber, the best law firm in Dhaka, provides expert support through top employment lawyer in Dhaka, commercial lawyer in Dhaka, and banking and finance lawyer in Dhaka.

Validity and Renewal

Branch office approvals are usually valid for three years and must be renewed two months before expiry. Renewal requires resubmission of key documents to BIDA for approval.