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NetworkBD Offer No. #1 Representative Office Setup Solution In Bangladesh
NetworkBD provides Representative Office Setup services in Bangladesh. We have the knowledge and experience to help you set up a representative office for your foreign firm — it’s never been easier.
If you don’t want to open a local business, you should hire a local representative office setup services, either on commission or as an agent. A local agent can handle Bangladeshi bureaucracy and be in charge of factory quality control and container management. The principal’s and agent’s rights and responsibilities are outlined in the 1972 Contract Act. Most agency agreements include a clause allowing either party to terminate the relationship with reasonable notice. Although most agents work for multiple buyers, it is not uncommon for agents to sign a contract with a single buyer. This is somewhat that can be worked out. You can choose a representative office setup in Bangladesh easily if you want more control over your activities.
Securely & Legally Setup Your Representative Office With NetworkBD
A foreign company’s representative office can only perform a few tasks, such as maintaining liaison/coordination with local agents and distributors/exporters’ institutions, as well as collecting, compiling, analyzing, and disseminating business information related to its field of activities as specified in the approval letter. In Bangladesh, a representative office setup will have no local source of income. The parent company abroad will be responsible for all startup and operational costs, including salaries for expatriates and local employees of the Liaison or Representative office. Except for the amount brought in from abroad, no outward remittances of any kind from Bangladesh sources will be permitted. Our team Provided you the representative Office Setup services for Representative Office. We also offer the best business setup services.
5 Legal Procedures For Representative Office Setup In Bangladesh
The process of representative Office Setup can be time-consuming and costly. The following are the 5 steps in the registration process:
1. Approval by the Board of Investment (BOI):
All documents should be physically or electronically submitted to the BOI. Your request will be judged by the Inter-Ministerial Committee if all documents are submitted in accordance with the requirements. The Committee will go over the documents and may request additional information or a physical presentation. The committee will give their approval if they are satisfied. The Inter-Ministerial Committee meets twice a month on average. Expect a one-month or less turnaround time. For the first three years, approval is usually given to open a representative office setup. A fee of Tk. 25,000 must be paid to the Bank of Bangladesh or Sonali Bank in order to obtain a BoI approval.
2. Opening a bank account
A bank account must be opened in any Bangladeshi bank after obtaining approval for a representative Office Setup. Within two months of the issuance of the Board of Investment permission letter, an amount of foreign exchange equivalent to US$ 50,000 or more must be brought in as inward remittance in Bangladesh. Within thirty days of receiving permission from the BoI, you must contact the Bangladesh Bank.
3. Registration of Register with Joint Stock Companies and Firms (RJSC)
Registration with the RJSC is required after receiving approval from both the Bangladesh Bank and the BOI. This procedure can be found here.
4. TIN (Tax Identification Number) from the National Board of Revenue:
Under Bangladeshi law, the permitted office must pay duty, income tax, VAT, revenues and other taxes to the government. According to the Bangladesh Income Tax Ordinance, 1984, taxes must be deducted at source when paying office/house rent, salaries, and bills for purchased goods, services and contract work and then deposited into designated government accounts. Enterprises must obtain a Taxpayer Identification Number (TIN) from the National Board of Revenue in order to deduct taxes at source and VAT. TIN is very important for representative office setup.
5. Employees from other countries
Under section 18(A) of the Foreign Exchange Regulation Act, 1947, you must obtain work permits from the BoI and permission from Bangladesh Bank if you intend to employ foreign workers in your office. Foreign nationals will be granted work permits only if they have received security clearance from the Ministry of Home Affairs. Under the existing Visa policy, the Ministry of Home Affairs must provide security clearance within 45 days of the issuance of the permission letter. Otherwise, the concerned agencies will be treated as having no objections to the issuance of the visa.
The foreign company must obtain separate prior permission from the Board of Investment to open more than one permitted branch or liaison office in Bangladesh. Once registered with the BOI in Bangladesh, a branch or representative office becomes a legal entity. It is regarded as a subsidiary of the foreign corporation rather than a separate legal entity. The parent company of a branch or representative office is implicitly liable for the branch or representative office setup debts and liabilities. This type of business, like all other businesses in Bangladesh, requires a trade license from the City Corporation or municipality.
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FAQs For Representative Office Setup Services In Bangladesh
What are the requirements to register a Representation Office in Bangladesh for a newly established company ?
Representative offices in Bangladesh can be established by foreign parent companies that have existed for three years or more. It must also have a maximum headcount of five employees.
What is the role of a Representative Office?
The purpose of a Representative Office is to conduct market research. A Representative Office cannot engage in trading or profit-generating activities. Its staff strength should be reasonable and kept to a minimum. A Chief Representative Office must be appointed from the head office who will relocate to Bangladesh.
Do we have to visit Bangladesh to register Representative Office?
It is not necessary to visit Bangladesh in order to set up a Representative office. We can work with you via email and document couriering in order to accomplish the task. It is possible to open a bank account in Bangladesh, however, if you wish to do so. Most banks require interviewing stakeholders, and the process can be made much smoother if you meet the bank officer face-to-face. We can schedule meetings at our office for most banks. The bank will conduct a phone interview in the event that you are not able to visit Bangladesh, and the due-diligence process may take longer.
Does a Representative Office application require approval?
Yes, the application must be approved by authorities. If your overseas company is an established company, and your intended activities fall within the scope of activities allowed for a Representative Office, there shouldn’t be any problems getting approval.