If you’re a foreign company planning to expand in Bangladesh, opening a branch office is one of the smartest moves you can make. It lets you operate locally, sign contracts, and manage projects, all without creating a new company from scratch. Now, you might be wondering how to open a branch office in Bangladesh.
In short, you need to get approval from BIDA (Bangladesh Investment Development Authority), complete registrations with Bangladesh Bank and RJSC, and then apply for tax and local compliance. The process takes around 4–6 weeks if your documents are ready.
But let’s be honest. For many investors, the paperwork and steps can feel confusing at first. Don’t worry. In this guide, we’ll break everything down in detail so you’ll know exactly what to do, from the very first document to your final business approval.
What is a Branch Office in Bangladesh
A branch office is an extension of your parent (foreign) company. It’s not a separate company. It works under your parent firm’s name and legal identity. You can do business in Bangladesh only within the scope approved by BIDA.
For example, you can trade, provide services, or do marketing, but you can’t start manufacturing unless it’s allowed. The branch office acts as your local arm in Bangladesh, representing your parent company’s interests.
Why Choose a Branch Office in Bangladesh
A branch office is ideal if you want to explore the Bangladeshi market without setting up a full subsidiary.
Here’s why many investors choose this model:
- Direct control: The parent company stays in full charge of operations.
- Easier setup: No need to create a new local company structure.
- Market testing: You can test your products or services before a large-scale investment.
However, it also comes with limits. The parent company is responsible for the branch’s liabilities, and your activities must follow the approved scope.
Prerequisites and Eligibility to Open a Branch Office in Bangladesh
Before you start, make sure your company meets the basic requirements. This will save time later.
1. Parent Company Requirements
Your foreign company should be legally registered and have at least 2 years of business experience. You’ll need audited financial statements for the last 2–3 years.
2. Defined Business Scope
You must clearly mention what activities your branch will do in Bangladesh, like marketing, consulting, or trading. Only these will be approved by BIDA.
3. Minimum Fund Requirement
You must bring at least USD 50,000 into Bangladesh within 2 months of getting BIDA approval. This money covers setup and operational costs.
4. Verified Documents
All your documents (like the incorporation certificate, MOA, AOA, and board resolution) must be in English and attested by the embassy or your home country’s authority.
5. Local Office Address
You’ll need a physical address in Bangladesh, with a rental or lease agreement, for the application.
8 Step-by-Step Process: How to Open a Branch Office in Bangladesh in 2025
Let’s go step by step so you know exactly what to do from start to finish.
Step 1: Apply to BIDA (Bangladesh Investment Development Authority)
The BIDA approval is the first and most important step. Without it, you can’t legally operate.
Details:
- Visit the BIDA online portal and create an account.
- Fill out the application form for branch office registration.
- Attach all required documents, including:
- Parent company’s Certificate of Incorporation
- Memorandum and Articles of Association
- Board Resolution authorizing the branch
- Audited Financial Statements of the last 2–3 years
- List of directors/shareholders
- Details of proposed activities in Bangladesh
- Local office address
- Pay the application fee (usually around USD 300).
- Once submitted, BIDA reviews the file. They may ask for clarification or hold a short meeting.
If everything is fine, you’ll receive a BIDA Approval Letter. This is your legal permit to move forward.
Step 2: Open a Bank Account and Remit the Required Funds
After getting BIDA approval, you must open a bank account in Bangladesh and bring in the required money.
Details:
- Use the BIDA approval letter along with the MOA/AOA, parent company documents, and identity of account signatory(s) to open a bank account in Bangladesh.
- Remit US$50,000 (or more) within 2 months of BIDA approval. This is a mandatory inward remittance to cover initial costs.
- If you fail to remit within 2 months, you may need to pay a penalty (e.g., an additional 5% monthly) per the rules.
- The funds should be used only for establishment and operational expenses in Bangladesh, not for unrelated purposes.
Step 3: Notify the Bangladesh Bank
Once you get your BIDA approval, the next step is to inform the Bangladesh Bank. This is required under Bangladesh’s foreign exchange laws.
Earlier, foreign companies had to apply for approval using something called Form 18B. But the rules have now changed. You don’t need full approval anymore.
Instead, you must report to the Bangladesh Bank within 30 days after receiving your BIDA permission. This means you’re simply notifying the central bank that your branch office has been approved and will be operating in Bangladesh.
This step is very important because it keeps your branch compliant with the Foreign Exchange Regulation Act and the Guidelines for Foreign Exchange Transactions. Basically, the Bangladesh Bank wants to make sure all foreign companies are following the rules for how money enters and leaves the country.
If your branch plans to send any money abroad, for example, profit remittance, royalty payments, or service fees, you must follow the exact conditions mentioned in your BIDA permission letter and the Bangladesh Bank’s circulars.
Step 4: Register the Branch with RJSC (Registrar of Joint Stock Companies and Firms)
Registering with RJSC makes your branch office legally recognized in Bangladesh.
Details:
Prepare all required documents:
- BIDA approval
- Bangladesh Bank letter
- MOA and AOA
- Parent company incorporation papers
- List of local representatives
- Submit to RJSC and pay the necessary fees.
Once approved, RJSC will issue your Certificate of Registration.
Step 5: Obtain a Local Trade License
Every business in Bangladesh needs a trade license from the city corporation or municipality. Apply to the local city corporation where your office is located.
Submit:
- RJSC documents
- Rental agreement
- Passport photos and ID copies of authorized persons
- Business activity details
You’ll receive a Trade License valid for one year. Renew it annually.
Step 6: Get Tax and VAT Registration
Register for both income tax and VAT so you can pay taxes and operate legally.
Details:
- Apply for a TIN (Taxpayer Identification Number) from the National Board of Revenue (NBR).
- Register for VAT/BIN (Business Identification Number) if your services or goods are taxable.
- Maintain proper tax records and submit regular tax returns as per the Bangladesh tax law.
Step 7: Hire Staff and Get Work Permits for Expatriates
You can hire both local and foreign staff, but expatriates need official work permits.
Details:
- Apply for work permits for foreign employees through BIDA.
- Submit supporting documents, like a passport, an employment contract, and educational certificates.
- You’ll also need security clearance from the Ministry of Home Affairs.
The general rule is to keep local employees as the majority, usually 5 locals for every 1 foreign staff.
Step 8: Maintain Compliance and Renewal
After setup, your branch office must follow ongoing compliance rules and renew approvals.
Details:
- BIDA approval is valid for 3 years. Apply for renewal at least 2 months before it expires.
- Submit annual and quarterly reports on your branch’s financials and operations to BIDA.
- Keep all tax filings and audit reports up to date.
If you change your office address or scope of work, inform BIDA and RJSC.
Allowed and Disallowed Activities for Branch Offices
| Allowed Activities | Not Allowed |
| Commercial trading and service activities approved by BIDA Import and export (with necessary licenses) Marketing and liaison services Consultancy and professional services Subcontracting production to local manufacturers | Direct manufacturing without special permission Activities outside your approved business scope Using foreign funds for unapproved purposes |
Timeline and Cost Estimate
| Process Stage | Estimated Time | Estimated Cost |
| BIDA Approval | 30–45 days | USD 300–500 |
| Bank Account & Fund Remittance | 10–15 days | USD 50,000 (minimum inward remittance) |
| Bangladesh Bank Notification | 1–2 weeks | Minimal |
| RJSC Registration | 10–15 days | USD 200–400 |
| Trade License | 3–5 days | USD 50–100 |
| Tax and VAT Registration | 5–7 days | Free or nominal |
| Total Duration | 60–90 days | Around USD 51,000 (including setup fund) |
Tips and Best Practices
- Hire a local trusted company lawyer familiar with BIDA and RJSC procedures.
- Prepare your documents early cause attestation takes time.
- Keep your parent company’s financials clean and audited.
- Plan your fund transfer carefully. Delays can cause fines.
- Track all renewal dates for BIDA and trade licenses.
- Maintain transparency in accounts and compliance to avoid penalties.
How Nashir Ahmed Kushol Can Help You
I’m Nashir Ahmed Kushol, a trusted Corporate and Company Lawyer in Bangladesh with over 10 years of hands-on experience. I specialize in business law, company registration, foreign investment, tax, property, and corporate compliance.
I can help you handle all your business and legal needs in Bangladesh from start to finish. No matter if you want to set up a new company, open a branch office, or manage foreign investment, my team and I make the process smooth and stress-free.
We take care of company registration, BIDA approvals, RJSC filings, tax, property, contracts, and compliance. If you are a foreign investor, I’ll handle all government procedures and documentation so you can focus on growing your business.
And if any dispute or legal issue arises, I’ll stand by you with practical, results-driven legal support to protect your company and your peace of mind.
Wrapping Up
So, that’s all about how to open a branch office in Bangladesh. Opening a branch office in Bangladesh in 2025 is a structured process, but once you understand the steps, it becomes simple. You start with BIDA approval, bring in the required funds, register with RJSC, and complete local compliance.
Bangladesh offers strong growth opportunities for foreign companies, from manufacturing and tech to services. If you plan to expand, setting up a branch office is a smart first move.
If you need professional help or want a smooth registration process, work with a local legal or business consultant who knows the BIDA system well. It will save time, money, and frustration.
