It is possible that expanding your firm into new territories can be a rewarding venture; Still, navigating the legal requirements of countries other than your own can be challenging In case you are thinking of setting up a branch office in Bangladesh, you have come to the right place.
This guide will guide you through the entire process, beginning with gaining an understanding of the legal framework and ending with the completion of the appropriate documentation. If you follow these methods, you will be well on your way to creating a profitable presence in this dynamic industry.
Gain an understanding of legal frameworks
To successfully expand your business operations in Bangladesh, you need to have a well-defined understanding of the legal framework that governs foreign companies. The Companies Act of 1994 is a law that governs the process of registration of branch offices in Bangladesh as well as their operations.
For the purpose of establishing a branch office within the country, foreign enterprises must obtain approval from the Registrar of Joint Stock Enterprises and Firms (RJSC) in accordance with this Act.
Find a suitable location
Finding the ideal site for your branch office in Bangladesh is essential for your company’s success in the country. There are several criteria you should consider, including accessibility, infrastructure, and proximity to your target market.
Dhaka city, which serves as the capital of Bangladesh, is a preferred choice for many organizations due to its convenient location and strong infrastructure. On the other hand, other major cities like Chittagong and Khulna also have attractive growth opportunities.
Arranging for required documents
To go through the process of registering your branch office in Bangladesh you need to collect a number of documents to provide to RJSC. These examples include:
Memorandum and Articles of Association: A copy of the original memorandum and articles of association certified as authentic.
Board Resolution: A resolution passed by the Board allowing the opening of branch offices elsewhere in Bangladesh.
Power of Attorney: A power of attorney granted to a local representative authorizing that representative to act on behalf of the corporation.
The parent firm’s audited financial statements for the previous year are referred to as the financial statements shown here.
A lease agreement for office premises in Bangladesh is referred to as an office lease agreement.
Implementation of application process
After you have acquired all the required documentation it is time to send your application to RJSC. You have the option of completing this task online at RJSC’s office or on their website.
Additionally, you must pay the appropriate registration fee in addition to submitting your application form and any supporting documents. Once RJSC receives your application, they will check the documentation and if everything is in order, they will issue a registration certificate for your branch office.
To Register a Branch Office in Bangladesh: Frequently Asked Questions
Although my firm is not incorporated in Bangladesh, is it possible for me to set up a branch office in Bangladesh?
yes; International businesses are able to set up branch offices in Bangladesh, provided they meet certain requirements and obtain clearance from RJSC.
How long does it take on average to register a branch office in Bangladesh?
Depending on how complete your application is and the amount of work RJSC is currently doing, the registration process may take four to six weeks to complete.
I have a branch office in Bangladesh; Is it necessary for me to identify a local representative for that office?
yes, international businesses need to appoint a local representative who will act as an interface between the Bangladesh branch office and the authorities.
Are there any restrictions on the activities that a branch office can engage in in Bangladesh?
In terms of operations, branch offices in Bangladesh are allowed to participate in the same operations as their parent organizations, provided they comply with local area rules and regulations.
How does the operation of a branch office in Bangladesh affect the tax results of the business?
Branch offices in Bangladesh are considered liable for corporate income tax, which is now levied at a rate of 25% on the profits they generate.
In future, will it be possible for me to convert my branch office into a subsidiary?
A branch office in Bangladesh is likely to be converted into a subsidiary business; However, this option is subject to obtaining permission from RJSC and complying with the necessary legal conditions.
Moving your company operations to Bangladesh presents you with a wealth of attractive options for development and expansion. You will be able to confidently handle the registration process and create a successful presence in this dynamic market if you follow the steps given in this guide. Remember that you should always ensure that you comply with local rules and regulations and that you should seek professional advice if you encounter any difficulties along the route.