A Liaison Office in Bangladesh serves as a vital bridge for foreign businesses seeking to establish a presence in the country without engaging in direct commercial activities. Its primary purpose is to facilitate communication and coordination between the parent company and stakeholders in Bangladesh, including clients, partners, and regulatory bodies. Liaison Offices are typically set up to gather market intelligence, explore business opportunities, promote the parent company’s products or services, and represent the company in discussions with local entities. They play a crucial role in building networks, enhancing brand visibility, and understanding the dynamics of the Bangladeshi market.
However, Liaison Offices are restricted from engaging in any revenue-generating activities within Bangladesh. They are solely permitted to perform non-commercial functions, such as disseminating information, conducting feasibility studies, and overseeing implementation of projects or partnerships on behalf of the parent company. This structure is ideal for foreign companies that aim to establish a strategic foothold in Bangladesh while evaluating the market potential for future investments. Setting up a Liaison Office requires prior approval from the Bangladesh Investment Development Authority (BIDA) and adherence to regulatory compliance. By serving as a communication hub, a Liaison Office paves the way for long-term business ventures in the growing economy of Bangladesh.
A liaison office serves as a bridge between a foreign parent company and local entities or stakeholders in Bangladesh. The primary objective is to facilitate communication, promote the parent company’s interests, and explore potential business opportunities without directly engaging in commercial or income-generating activities.
By design, liaison offices are non-commercial entities, meaning they cannot engage in trading or income-generating activities directly.
The establishment and operation of a liaison office in Bangladesh are governed by several laws and regulations. Key authorities involved include:
Foreign entities must strictly adhere to these regulatory requirements to operate a liaison office in Bangladesh legally.
Registering a liaison office involves securing permission from relevant authorities. In 2025, the following updates to the registration process may impact applicants:
Foreign companies must meet certain prerequisites before applying for a liaison office in Bangladesh. The basic requirements include:
Here is a step-by-step guide to registering a liaison office in Bangladesh:
Submit an application to BIDA, including all required documents such as:
Once the application is reviewed and approved, BIDA will issue a permission letter. This approval is typically valid for three years and must be renewed.
Set up a local bank account to receive remittances from the parent company for operational expenses. Initial funding must align with the projected budget submitted to BIDA.
File necessary documents with the Bangladesh Bank to comply with foreign exchange regulations.
Although liaison offices are non-commercial entities, obtaining a TIN from the National Board of Revenue (NBR) is mandatory for administrative purposes.
Lease or rent office space and establish a physical presence. Ensure compliance with local laws regarding labor and safety standards.
The scope of a liaison office is limited to specific non-commercial activities such as:
The liaison office acts as a stepping stone for businesses aiming to explore the Bangladeshi market.
While a liaison office offers numerous advantages, it also comes with notable limitations:
Ans: A liaison office in Bangladesh is a representative office of a foreign entity established to facilitate communication, conduct market research, and promote the parent company’s interests. It is not permitted to engage in any direct commercial or income-generating activities.
Ans: Permitted activities include:
Ans: Liaison offices are non-commercial entities and are generally not subject to corporate income tax in Bangladesh. However, compliance with tax registration and reporting requirements is mandatory.
Ans: Conditions include:
Ans: Additional requirements may include:
Ans: No, a liaison office or branch office is not a separate legal entity. These offices operate as extensions of the foreign parent company and must comply with specific regulatory guidelines.
If you have specific queries about setting up a liaison office in Bangladesh, feel free to reach out to us directly. We’re here to help.
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