Thinking of establishing a presence in Bangladesh without fully committing to a subsidiary or branch? A Liaison Office could be exactly what you need. It is the most straightforward, lowest-cost way for a foreign company to set foot in Bangladesh — legally and compliantly.
This guide covers everything: what a liaison office can and cannot do, how to set it up step by step, what documents you need, how much it costs, and how it compares to a branch office.
What Is a Liaison Office in Bangladesh?
A Liaison Office (also called a Representative Office) is a non-commercial presence of a foreign company in Bangladesh. It is not a separate legal entity — it is an extension of the parent company abroad, operating under the parent’s name and identity.
It is registered and regulated by the Bangladesh Investment Development Authority (BIDA) under the Foreign Private Investment (Promotion and Protection) Act 1980.
Key point: A liaison office cannot earn income or conduct commercial business in Bangladesh. All operating costs must be funded by the parent company from abroad.
What Can (and Cannot) a Liaison Office Do?
| ✅ Permitted Activities | ❌ Not Permitted |
| Liaise between parent company and local agents/distributors | Earn revenue or income from Bangladesh sources |
| Collect, compile, and disseminate market/business information | Sign commercial contracts in its own right |
| Attend trade shows, exhibitions, and industry events | Import or export goods on its own account |
| Conduct market research and feasibility studies | Manufacture, sell, or deliver services commercially |
| Coordinate logistics and quality oversight for parent | Remit funds abroad (except unspent inward remittances) |
| Represent the parent at government meetings | Open more than one office without separate BIDA approval |
Liaison Office vs. Branch Office vs. Subsidiary Company
| Feature | Liaison Office | Branch Office | Private Ltd. Co. |
| Separate Legal Entity | No | No | Yes |
| Can Earn Revenue in BD | No | Yes (with BIDA approval) | Yes |
| Commercial Activities | No | Limited | Full |
| Registering Authority | BIDA + RJSC | BIDA + RJSC | RJSC |
| Min. Inward Remittance | USD 50,000 | USD 50,000 | No minimum (USD 50K for work permit) |
| Validity Period | 3 years (renewable) | 3 years (renewable) | Perpetual |
| Corporate Tax | No local income | 27.5% + 20% branch profit tax | 27.5% |
| Best For | Market exploration, coordination | Limited commercial operations | Full business operations |
How to Set Up a Liaison Office in Bangladesh: 4 Steps
Step 1 — Get BIDA Approval
This is the first and most critical step. Apply to the Bangladesh Investment Development Authority (BIDA) using its prescribed form, along with the required documents (see below). All foreign documents must be attested by the Bangladesh Embassy or High Commission in your home country, or by the Apex Chamber of Commerce.
BIDA fee: BDT 25,000 (payable at any Bangladesh Bank or Sonali Bank branch).
Processing time: Approximately 3–4 weeks.
Validity: 3 years from the date of approval. Renewal must be applied for at least 2 months before expiry.
Step 2 — Open a Bank Account and Remit USD 50,000
After receiving BIDA approval, open a bank account in Bangladesh in the name of the liaison office. Within 2 months of BIDA approval, the parent company must remit a minimum of USD 50,000 from abroad into this account. This inward remittance funds the office’s operating expenses — salaries, rent, utilities, and day-to-day costs.
No local income is permitted. The office runs entirely on funds remitted from the parent company.
Step 3 — Report to Bangladesh Bank
The requirement for formal Bangladesh Bank approval has been removed following the amendment to the Foreign Exchange Regulations Act 1947. However, the liaison office must submit a report to Bangladesh Bank within 30 days of receiving BIDA approval. This is a notification, not an approval process.
Step 4 — Register with RJSC
The final step is registration with the Registrar of Joint Stock Companies and Firms (RJSC). Submit the BIDA approval letter, Bangladesh Bank report acknowledgement, and supporting company documents. Upon successful registration, the liaison office is fully established in Bangladesh.
Documents Required
For BIDA Application (4 copies of each, attested):
- Prescribed BIDA application form — duly filled, signed, and sealed
- Memorandum and Articles of Association of the parent company
- Certificate of Incorporation of the parent company
- Names and nationalities of directors/promoters of the parent company
- Board Resolution authorising the opening of a liaison office in Bangladesh
- Last financial year’s audited accounts of the parent company
- Projected organogram showing proposed local and expatriate staff
- List of intended activities on company letterhead
For RJSC Registration:
- BIDA approval letter
- Bangladesh Bank report acknowledgement
- Certified copies of MoA and AoA
- Full address of parent company’s principal registered office
- List of directors and secretary of the parent company
- Name and address of a Bangladeshi representative to receive legal documents
- Full address of the liaison office in Bangladesh
Cost and Timeline Summary
| Stage | Cost | Timeline |
| BIDA Application Fee | BDT 25,000 (~USD 230) | 3–4 weeks |
| Bangladesh Bank Notification | No fee | Within 30 days of BIDA approval |
| RJSC Registration | BDT 3,000 – 5,000 (approx.) | 5–7 working days |
| Inward Remittance (operational fund) | Min. USD 50,000 | Within 2 months of BIDA approval |
| Total Govt. Fees (excl. remittance) | ~BDT 28,000–30,000 | 6–8 weeks end to end |
Ongoing Compliance Obligations
Once operational, a liaison office must meet the following ongoing requirements:
- Quarterly income and expenditure reports submitted to BIDA, the concerned bank, NBR, and Bangladesh Bank
- Tax Identification Number (TIN) and VAT Business Identification Number (BIN) must be obtained from NBR
- Withholding tax deducted on rent, salaries, and service payments — remitted to government
- Expatriate employees must file personal income tax returns in Bangladesh
- Security clearance from the Ministry of Home Affairs is required for office renewal and expatriate work permits
- Any change of office address must be reported to BIDA before the change is made
- Apply for renewal at least 2 months before the 3-year validity expires
Frequently Asked Questions
Can a liaison office earn money in Bangladesh?
No. A liaison office cannot generate any local income or revenue. All operating costs — staff salaries, rent, utilities — must be funded by inward remittances from the parent company abroad.
What is the difference between a liaison office and a branch office?
A branch office can conduct limited commercial activities and earn income in Bangladesh (with BIDA approval). A liaison office is strictly non-commercial — it can only coordinate, communicate, and represent the parent company.
How long does BIDA approval take?
Typically 3–4 weeks from the date of complete document submission. The full setup process — BIDA to RJSC — takes approximately 6–8 weeks.
Is the liaison office a separate legal entity?
No. It is an extension of the parent company and is not legally separate. The parent company is fully liable for all activities of the liaison office.
Can a liaison office hire local and foreign staff?
Yes. A liaison office can employ both local Bangladeshi staff and expatriate foreign nationals. Expatriates require work permits from BIDA, which are subject to security clearance from the Ministry of Home Affairs.
What happens if I want to upgrade to a branch or subsidiary later?
You would need to apply for a separate BIDA approval for a branch office, or register a new private limited company with RJSC. The liaison office registration itself does not automatically convert. We RegisterCorp BD can manage the full transition for you.
Set Up Your Liaison Office with We RegisterCorp BD
We RegisterCorp BD handles the entire liaison office setup process from start to finish — BIDA application, document attestation guidance, Bangladesh Bank notification, and RJSC registration. We work with foreign companies across all sectors and have a proven track record of first-attempt BIDA approvals.
Whether you are exploring the Bangladesh market for the first time or establishing a coordination hub for your supply chain operations, we make the process straightforward and stress-free.
Contact RegisterCorp BD today for a free consultation.
Disclaimer: This article is for general informational purposes only and does not constitute legal or regulatory advice. Rules and fees are subject to change. We recommend seeking professional guidance specific to your situation.
