Setting up a liaison office in Bangladesh takes four steps — BIDA approval, a local bank account, Bangladesh Bank reporting, and RJSC registration — for a BDT 25,000 fee, with approval typically taking one month. A liaison (or representative) office lets a foreign company maintain a presence in Bangladesh without trading, and it’s the simplest foreign-entity setup available. This beginner’s guide covers what it can and cannot do, every step, the documents, and the costs.
What Is a Liaison Office — and What Can It Do?
Direct answer: a liaison office is a non-trading presence a foreign company opens in Bangladesh to facilitate and promote its parent company’s activity and serve as a communication link between the foreign parent and companies in Bangladesh. It cannot engage in commercial or industrial activity, and it survives on inward remittances from its overseas parent. Permitted activities are limited to:
Maintaining liaison and coordination between the principal and local agents, distributors, and exporters — through correspondence, personal contact, and electronic means.
Collecting, assembling, analysing, and disseminating business information within its approved sphere of activity, as specified in the approval letter.
Operating with no local source of income — the parent firm covers all setup and operating costs, including compensation for expatriate and local staff.
No remittances from Bangladesh sources are allowed, except for funds brought in from abroad.
If a non-trading presence is too limited for your plans, compare it with the full options in our guide to company formation in Bangladesh.
How to Set Up a Liaison Office in Bangladesh: The 4-Step Process
Direct answer: approval flows through BIDA first, then a bank account, then Bangladesh Bank, then RJSC — in that order.
Get permission from BIDA. The Bangladesh Investment Development Authority must approve the office. Submit the required documents in four copies (listed below). The fee is BDT 25,000, payable at any Bangladesh Bank or Sonali Bank branch, and approval typically takes one month.
Open a bank account. After BIDA approval, open an account with a Bangladeshi bank.
Report to Bangladesh Bank. Following BIDA approval, the office must report to the Central Bank of Bangladesh within 30 days. (Note: the Foreign Exchange Regulations Act 1947 has been amended, so confirm current reporting rules.)
Register with RJSC. Once cleared by both BIDA and Bangladesh Bank, register the office with the Registrar of Joint Stock Companies. Completing this finalises the setup.
The RJSC step is the same registry that handles full incorporations — see the company registration method for how it works across entity types.
What Documents, Cost, and Timeline Should You Expect?
Direct answer: budget BDT 25,000 and roughly one month for BIDA approval, plus a 30-day Bangladesh Bank reporting window — against a licence valid for three years. Here’s the summary:
Item
Detail
BIDA approval fee
BDT 25,000 (paid at Bangladesh Bank or Sonali Bank)
BIDA approval time
Typically 1 month
Bangladesh Bank reporting
Within 30 days of BIDA approval
Licence validity
3 years
Renewal
Apply at least 2 months before expiry, through BIDA
Documents required for BIDA (four copies): the completed, signed, and sealed application form; the parent company’s Memorandum and Articles of Association; the parent’s Certificate of Incorporation; the nationalities and names of the parent’s directors/promoters; and a board resolution authorising the liaison office in Bangladesh. For RJSC registration: the approval letters from BIDA and Bangladesh Bank, certified copies of the Memorandum and Articles, the full address of the registered/primary office and the Bangladesh office, and a list of directors and secretaries. Not sure what the parent’s incorporation certificate must show? See the certificate of incorporation explained.
Is a Liaison Office Right for You — and FAQ
Direct answer: compared with establishing a branch office or a limited company, a liaison office is easier and more straightforward to set up — making it the natural entry point for a foreign company testing the Bangladesh market before committing to a trading entity. When you’re ready for that next step, our company incorporation and corporate secretarial services teams can guide the transition.
Can a liaison office earn income in Bangladesh?
No — a liaison office has no local source of income and cannot engage in commercial or industrial activity. All costs are funded by the parent company through inward remittances from abroad.
How much does it cost to set up a liaison office?
The BIDA approval fee is BDT 25,000, paid at any Bangladesh Bank or Sonali Bank branch, with the parent company covering all other setup and operating expenses.
How long is the licence valid?
Three years. Apply for renewal or extension through BIDA at least two months before the current term expires.
How is a liaison office different from a branch or limited company?
A liaison office is non-trading and simplest to set up; a branch or limited company can conduct business but requires more process. For definitions, see the proper meaning of business incorporation.
