Branch Office Service in Bangladesh: Setup & Requirements Guide
A growing number of foreign companies want a presence in Bangladesh without immediately forming a local company. A branch office is one of the most common ways to do that. It lets a foreign parent operate in the country under approval from the regulator, carry out defined commercial activities, and serve local clients — while remaining an extension of the parent company rather than a separate business. This guide explains what a branch office service actually is, what it can and cannot do, how to register one, and the situations where a different structure would serve you better.
What a Branch Office Is?
A branch office is a local operating presence of a foreign company. Legally, it is not a separate entity — it is the same company, operating in Bangladesh under permission from the authorities. That distinction matters: because the branch and the parent are one legal person, the parent is responsible for the branch’s obligations and liabilities. A branch office is also activity-limited; it may only carry out the activities approved by the regulator when permission is granted. It is not a blank cheque to do any business locally, and it is not the same as incorporating a Bangladeshi company.
Branch Office vs Liaison Office vs Subsidiary
Foreign companies entering Bangladesh generally choose between three structures. The right one depends on whether you need to earn local revenue, how much liability protection you want, and how permanent your presence is.
|
Structure |
Can earn local income? | Separate legal entity? |
Typical use |
| Liaison / representative office | No — coordination and liaison only | No | Market research, communication, sourcing oversight |
| Branch office | Yes — within BIDA-approved activities | No (extension of parent) | Delivering approved services/contracts locally |
| Locally incorporated subsidiary | Yes — broad commercial scope | Yes (limited liability) | Long-term, full-scale local operations |
1.Liaison / representative office: A liaison office cannot earn income in Bangladesh. It exists to coordinate, communicate, and represent the parent. Its running costs are met by inward remittance from the parent. It’s the lightest-touch option when you don’t yet need to transact locally.
2.Branch office: A branch office can carry out the commercial activities the regulator approves and can invoice for them, which is its main advantage over a liaison office. It remains tied to the parent, so it doesn’t provide the liability separation a subsidiary does.
3.Locally incorporated subsidiary: A subsidiary is a Bangladeshi company owned by the foreign parent. It is a separate legal entity with limited liability, broader commercial freedom, and its own tax identity. It involves more setup than a branch but is usually the cleaner choice for a permanent, full-scale operation.
Documents You’ll Typically Need
While the exact checklist depends on current regulator requirements, applications generally include the parent company’s incorporation and constitutional documents, board resolutions authorising the branch, audited financials, details of the proposed activities and local address, and identification for the authorised representatives — usually with proper attestation. Preparing clean, attested documents up front prevents most delays.
Why Choose Our Branch Office Service?
Choosing the right service provider can make the branch office registration process faster, easier, and fully compliant with Bangladesh’s legal requirements. Our experienced corporate and legal professionals handle every stage of the process, from preparing documentation to obtaining the necessary approvals and registrations. We provide complete documentation support, transparent pricing with no hidden costs, and expert guidance on regulatory compliance. With our dedicated client support, you can expect a hassle-free experience while we help you establish and maintain your branch office efficiently.
Our Branch Office Services
We provide end-to-end assistance for establishing and maintaining a branch office in Bangladesh, including:
- Branch office approval from BIDA
- Preparation and submission of registration documents
- RJSC filing and documentation (where applicable)
- Tax Identification Number (TIN) registration
- VAT/BIN registration (if required)
- Corporate bank account opening assistance
- Trade license assistance (where applicable)
- Work permit and visa assistance for foreign employees
- Ongoing regulatory compliance and annual reporting support
Opening a branch office in Bangladesh enables foreign companies to expand their presence in a growing market without establishing a separate legal entity.
Tax, Remittance, and Ongoing Compliance
A branch office’s income earned in Bangladesh is taxable locally, and the branch must meet ongoing filing and compliance obligations with the tax authority (NBR) and RJSC. Remittance of earnings abroad is permitted within the applicable foreign-exchange rules administered through the banking channel. Because tax rates, remittance conditions, and filing requirements are set by the authorities and change periodically, treat current verification as part of your setup — not an afterthought.
When a Branch Office Is the Wrong Choice
A branch office is not always the smartest structure, and it’s worth being honest about that before you apply:
- You don’t need local revenue. If your presence is purely liaison, research, or coordination, a liaison office is lighter and cheaper — a branch adds obligations you won’t use.
- You want liability protection. A branch is not a separate legal entity, so the parent carries its liabilities. If shielding the parent matters, a locally incorporated subsidiary is the better vehicle.
- Your activities are broad or long-term. If you plan a permanent, full-scale operation that goes beyond a defined set of approved activities, a subsidiary gives you cleaner commercial freedom and tax identity.
- Your scope may change quickly. A branch is tied to its approved activities; if you expect to pivot often, the approval process can become a recurring constraint.
Choosing the structure that fits your actual activity — rather than defaulting to a branch because it sounds simplest — saves cost, liability exposure, and rework later.
A branch office lets a foreign company operate in Bangladesh under BIDA approval and RJSC registration, carry out approved commercial activities, and remit eligible earnings — while remaining part of the parent rather than a separate entity. It suits defined, approved activities; it’s the wrong fit when you need no local revenue (use a liaison office) or want liability protection and broad scope (use a subsidiary). Get the activity description and entity choice right at the start, and verify current thresholds, tax, and remittance rules with the relevant authorities before you commit.
FAQ
1 Is a branch office a separate legal entity in Bangladesh?
No. A branch office is an extension of the foreign parent company, not a separate entity, which means the parent remains responsible for the branch's liabilities. If you need limited liability, consider a subsidiary.
2 Can a branch office earn income in Bangladesh?
Yes, within the activities approved by BIDA. This is the main difference from a liaison office, which cannot earn local income and exists only for coordination and representation.
3 What approvals are required to open a branch office?
Permission from BIDA first, followed by registration with the RJSC, then local steps such as a bank account, TIN, and trade licence. Specific requirements and documents are set by the authorities and should be confirmed at the time of application.
4 Branch office or subsidiary — which should I choose?
Choose a branch office for a defined, approved set of activities tied to the parent. Choose a subsidiary for a permanent, broad operation where limited liability and an independent tax identity matter.
