Operation of Branch/Liaison/ Representative /Project offices
and other places of business in Bangladesh by foreign companies



Scope of works:

Establishment of Branch/Liaison/Representative/Project office /Joint Venture/Consortium/ Association or any other place of business for carrying out any activity of a trading, commercial or industrial nature, different types of works related to projects awarded by parent company etc. in Bangladesh.

Policy Framework
  • Bangladesh Investment Development Authority (BIDA) Act-2016.
  • Guidelines for Granting Permission for Establishment of Foreign Commercial Offices in Bangladesh, Providing Recommendations of Visas and Issuing Work Permits to Foreign Workers, 2023, issued by Bangladesh Investment Development Authority (BIDA).
  • Foreign Exchange Regulation Act (FERA), 1947, amended up to 9th September, 2015.
  • Guidelines for Foreign Exchange Transactions (GFET), 2018, issued by Bangladesh Bank.
  • The Companies Act, 1994.
  • FE Circular and FE Circular Letters issued by Bangladesh Bank.
Setting up offices & reporting to Bangladesh Bank

Foreign companies may get permission from Bangladesh Investment Development Authority (BIDA) or other competent authorities to establish Branch/Liaison/Representative/Project Office/JV/ Consortium/Association in Bangladesh. After getting permission, they can open Foreign Currency Account & Local Currency Account in the name of said office in any AD bank operating in Bangladesh and shall report to Foreign Exchange Investment Department (FEID), Bangladesh Bank after fulfilling required conditions mentioned in the permission letter within stipulated time.

Renewal of office permission, changes of office address etc. & reporting to Bangladesh Bank

As per ‘Guidelines 2023’ issued by BIDA, renewal of office permission, changes of office address etc. have to report to FEID, Bangladesh Bank.

Change of nominated ADs

Each B/L/R/P office shall have only one nominated AD through which all inward and outward remittances have to be executed and all payments payable abroad and receivable from abroad shall be monitored and reported to Bangladesh Bank.
B/L/R/P office can open and operate two or more local currency accounts in different branches of same bank or any other bank by obtaining NOC from the nominated AD. Information related to local currency accounts shall be notified to FEID, FEOD and concerned offices of Bangladesh Bank through the nominated AD.

Mode of operations for debiting and crediting accounts

As soon as branch offices start to generate income, they may apply to BIDA for waiver of condition no-7 for depositing local income. Liaison & Representative office, may also approach to BIDA or BB for crediting their local currency accounts on special purpose like sale proceed of scrap materials, sample products etc.
ADs are authorized to remit profits of branches of foreign firms and companies operating in Bangladesh, subject to post facto checking in BB within 30 days of remitting profit with waiver of condition no-8 from BIDA.
ADs are required to obtain prior approval from BB to remit profits of JV operating in Bangladesh.

Repayment of loan from parent company

In case of repayment of Working Capital loan from parent company, branch Offices have to take prior approval from FEID, Bangladesh Bank.

Closure of offices and repatriation of residual balance

After getting closure permission from BIDA, B/L/R/P/JV offices, etc. has to report to FEID, BB within stipulated time mentioned in the letter. If any balance remains in their accounts, may repatriate to head office abroad with prior permission from BB.

References:
  • • GFET, 2018: Vol 1, Chapter-10, Para-28 & 31
  • • GFET-2018, Vol 1, Chapter-13, Para-1
  • • GFET-2018, Ch-17, sec-II
  • • FEID Circular Letter no.2 dated:19/09/2019
  • • FEID Circular letter 1, dated 16/05/2021
  • • FE Circular Letter No. 12 dated 20/05/2021.
  • • FEID Circular no.01, dated 13/12/2023