Industries
Branch & Liaison Office
BIDA permission, scope of activity, remittance and reporting obligations, and renewals for branch and liaison offices.
In short
Tuhin & Partners handles branch and liaison office set-up in Bangladesh: applying to the Bangladesh Investment Development Authority (BIDA) for permission, defining a scope of activity that matches what the business actually intends to do, opening and operating the required bank accounts, meeting reporting and remittance obligations, and renewing the permission when its term expires. Getting the permitted scope right at the application stage is what avoids problems later.
Key takeaways
- Branch, liaison and representative offices all require permission from BIDA before they can operate.
- Permission is granted for a defined scope and a defined term, and both have to be observed.
- A liaison office cannot earn local income and is funded by remittance from the parent.
- Permissions expire and must be renewed; lapses complicate banking and work permit renewals.
Foreign companies frequently begin in Bangladesh through a branch, liaison, or representative office rather than a subsidiary. Each has a defined permitted scope, and exceeding it creates real regulatory exposure.
We advise on the choice between structures, prepare and file the BIDA permission application, handle Bangladesh Bank and RJSC requirements, and manage the ongoing reporting, remittance, and renewal obligations that attach to each form — including conversion to a subsidiary when operations expand.
Common questions
How long does BIDA permission for a branch office last?
Permission is granted for a fixed term and must be renewed before it expires. Renewal is ordinarily straightforward where the office has kept to its permitted scope and filed its reports, and considerably less so where it has not.
What can a branch office do that a liaison office cannot?
A branch office may carry on the commercial activities its permission specifies and earn income in Bangladesh; a liaison office may only liaise, represent and coordinate on the parent's behalf and cannot generate local revenue.
Does a branch office pay tax in Bangladesh?
Yes. A branch is taxable in Bangladesh on the income attributable to it and carries filing and withholding obligations, and remittance of its profits to the parent is subject to the exchange control and tax clearance requirements.
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