Liaison Office Setup in Bangladesh

Liaison office setup in Bangladesh is mainly an exercise in sequencing. The permission, the bank account, the first remittance, tax registration and foreign staff work permits all depend on each other, and getting the order wrong costs weeks. Foreign companies usually choose a liaison office when they need to coordinate suppliers, monitor production, support a local distributor or prepare for a later investment.

This page focuses on the setup process itself, step by step, and on what has to be in place in the first year. If you are still deciding whether a liaison office is the right vehicle, read our representative office and entry option pages first; if you expect to earn income locally, a branch office or subsidiary is the correct route.

Is a liaison office the right choice?

A liaison office is suited to activities that support the parent's business abroad rather than generating sales here. Buying houses that oversee factory orders, multinationals coordinating with government or distributors, and firms preparing a feasibility study are typical users. The parent should be an established company with audited accounts, because the authority looks at the parent's standing and its ability to fund the office.

• Good fit: sourcing coordination, quality control, market research, partner and government liaison.
• Poor fit: selling, executing service contracts, importing goods for resale or invoicing local clients.
• Sector check: banks, insurers and other regulated financial businesses follow sector-specific approval through their regulator.

Documents for liaison office setup

Prepare the parent's documents early, because notarisation and legalisation at a Bangladesh mission abroad is often the slowest part of the process. Names, addresses and authorised signatories must match across every document.

• Parent's certificate of incorporation and constitutional documents, legalised.
• Board resolution approving the liaison office, its activities and the country manager.
• Audited financial statements of the parent for the latest year.
• Passport copy and CV of the proposed head of office.
• Office rental agreement or letter of intent for premises in Bangladesh.
• Proposed organogram showing local and foreign positions and an expense budget.

Banking and inward remittance rules

Under the Foreign Exchange Regulation Act 1947 and Bangladesh Bank's Guidelines for Foreign Exchange Transactions, a liaison office runs entirely on money sent by its parent. After permission, the office opens an account with an authorised dealer bank and the parent remits the initial amount required by the permission conditions. Each inward remittance should be supported by an encashment certificate from the bank; these certificates are the evidence you will need for renewals, work permits and audits.

The office cannot borrow locally or receive funds from Bangladeshi sources to meet costs. If the office closes, any surplus can be remitted back to the parent through the AD bank once tax and liabilities are settled, following Bangladesh Bank's rules on closure.

First-year compliance checklist

Once open, the office is an employer and a withholding agent under Bangladeshi law, even though it has no turnover.

• Obtain an e-TIN and file the annual income tax return with the relevant Taxes Circle.
• Deduct TDS on salaries, rent, and service fees and file withholding tax returns on time.
• Apply VAT deduction at source (VDS) where applicable and issue Mushak 6.6 certificates.
• Obtain a trade license for the office premises from the city corporation where required.
• Follow the Bangladesh Labour Act 2006 on appointment letters, leave and records for local staff.
• Keep books of account and arrange an annual audit to support renewal.

Common setup mistakes

• Signing a long office lease before permission is granted, then facing changes to the approved location.
• Bringing a foreign manager in on a business visa and letting them work before the work permit.
• Sending remittances without the correct purpose code, leaving the bank unable to issue proper encashment certificates.
• Using a director's personal account to pay early expenses.
• Treating the permission period as indefinite and missing the renewal window.

How the process works

1. Feasibility callWe review your planned activities, headcount and budget and confirm a liaison office is the appropriate structure.
2. Document packWe prepare the board resolution, application narrative and checklist, and review legalised documents before filing.
3. Online applicationWe submit the application through the BIDA One Stop Service portal, pay the prescribed fee and answer queries.
4. Bank account and remittanceAfter permission, we open the AD bank account and coordinate the initial inward remittance and encashment certificate.
5. RegistrationsWe obtain the e-TIN, premises trade license and set up payroll, withholding and VDS procedures.
6. Foreign staffWe process visa recommendation, work permit and security clearance for expatriate staff where needed.
7. HandoverWe hand over a compliance calendar covering returns, audit and renewal dates for the permission period.

Typical timeline: A well-prepared application is often decided within several weeks, and full liaison office setup including banking and tax registration commonly takes two to three months, depending on documents and the authority's processing.

How Tax & VAT Associates helps

• End-to-end liaison office setup project management
• Application drafting and submission on the BIDA OSS portal
• AD bank account opening and remittance documentation
• e-TIN, trade license and withholding tax setup
• Work permit and visa support for expatriate staff
• Monthly bookkeeping, tax returns and renewal filing

Frequently asked questions

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Last reviewed: 6 October 2026. Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.