Liaison office set up process is easier and straightforward compare to setting up a branch office or limited Company in Bangladesh. This article explains how to set up a liaison office/ representative office in Bangladesh. In addition, this article will reflect the cost and the documents required for setting up a liaison office.
Liaison office, Branch office & Subsidiary Company
- 1 Liaison office, Branch office & Subsidiary Company
- 2 Cost for permission
- 3 LEGAL ADVICE ON COMPANY MATTER AT CLP
Liaison office and Branch office are almost the same. However, a liaison office cannot conduct any business or any income earning activities in Bangladesh. But a Branch Office with having proper permission can do so. If you want to know about setting up a branch please click here. On the other hand, a limited company or subsidiary company can do full-fledged business in Bangladesh. If you are interested to know how to set up a limited company or subsidiary company, please visit here.
Step by step process for setting up Liaison Office in Bangladesh
Step one: Permission from BIDA
In order to set up a Liaison Office, permission from Bangladesh Investment Development Authority (BIDA) is required. Now what must be done to get the permission from BIDA? The foreign investor will have to submit application in the prescribed form along with the documents listed below. It is to be noted that the documents must be attested by the Bangladesh Embassy/High Commission of the country of origin or Apex Chamber of Commerce of the country of origin.
The documents (4 copies of each) that must be submitted to BIDA are:
- Apply in a prescribed form, duly filled in, signed and sealed,
- Memorandum of Association and Articles of Association of the principal Company;
- Incorporation Certificate of the principal Company;
- Nationalities and name of the directors/promoters of the principal Company;
- A board resolution for opening a Liaison office in Bangladesh;
- Last financial year’s audited accounts of the principal company;
- Projected organogram of the office viewing the posts to be occupied by local personnel as well as expatriates;
- List of activities on the Company letterhead of the proposed office.
Cost for permission
To get the permission from BIDA to set up a Liaison Office a fee of BDT 25,000 (twenty five thousand take only) will have to be deposited. The deposit can be made to any branch of Bangladesh Bank or Sonali Bank.
The average time needed for submission and getting the approval is one month.
Time period of Validity of the License
The License/ permission of BIDA for a Liaison Office will be valid for a period of 3 (three) years. You have to apply for renewal or extension at least 2 (two) months before the expiry of the current term. Again the renewal will be done by applying to BIDA.
Step Two: Bank Account Opening
After getting the approval from BIDA, a bank account must be opened in any bank in Bangladesh. The bank account is required at this stage because as inward remittance an amount of foreign exchange equivalent to US$ 50,000 (fifty thousand dollars) or more must be brought in Bangladesh. Such must be done within 2 (two) months from the date of issuance of the BIDA permission.
Step three: Bangladesh Bank Approval
Lately Bangladesh Parliament has amended the Foreign Exchange Regulations Act 1947. Now the requirement of 18B Approval from Bangladesh Bank has been removed. Pursuant to the amendment, after receiving approval from BIDA, the Liaison office need to report to the Central Bank of Bangladesh. Such a report should be made with 30 (thirty) days of the approval.
Step four: RJSC Registration
Lastly, after obtaining an approval from both Bangladesh Bank and BIDA, the last step is to register the Liaison office with the RJSC.
Documents to be submitted to RJSC
- BIDA and Bangladesh Bank approval letter
- In addition, Certified copies of the Memorandum of Association and Articles of Association
- Full address of the registered or principal office of the company
- List of the directors and secretary (if any) of the company
- The name and address of a Bangladeshi who may represent the company in processing and accepting documents
- The full address of the office of the company in Bangladesh
Once this is done, the formation of a Liaison Office in Bangladesh will be completed.
LEGAL ADVICE ON COMPANY MATTER AT CLP
The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced at dealing with company matters along Liaison office set up process in Bangladesh. For queries or legal assistance, please reach us at:
Phone:+8801700920980 (WhatsApp). +8801947470606. Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.