Company Incorporation by Foreign Investors
Available Options For Foreign Investors
Bangladesh government offers different lucrative incentives on Foreign Direct Investment (FDI) in particular, power & fuel sector to meet the increasing need of electricity in this country. Last year Bangladesh was the second largest recipient of FDI in South Asia. According to the UNCTAD World Investment Report 2016, the total FDI in Bangladesh in 2016 was USD 2.235 billion. Foreign investors those who want to promote their business in Bangladesh can establish a subsidiary, a branch office or a liaison/representative office in Bangladesh.
Branch Office
Liaison/Representative Office
Subsidiary Company
Scope of Branch Office
Branch office in Bangladesh carries on substantially the same business and activity as is carried out by its parent Company outside Bangladesh. To establish branch office it must obtain permission from Bangladesh Investment Development Authority (BIDA), formerly known as BOI . There are restrictions on branch offices on making outward remittances and receiving local income. That means all the expenses need to be borne by the parent company and no money can be remitted from this branch office. Though such restrictions may be waved upon application to the BIDA. However, it is easier to windup branch offices compared to a company. It usually takes 3-4 weeks to open up a branch office from the date of submitting all the documents to BIDA.
The cost for opening up a Branch Office is BDT 25,000 and an inward remittance of USD 50000 needs to be remitted to the local bank account of the branch office from the Parent Company after registration of the Branch Office for maintaining operation expenses.
Subsidiary Company
In Bangladesh, a company is incorporated through the Registrar of Joint Stock Companies and Firms (RJSC), i.e. the Company House of Bangladesh. It usually takes 2-3 weeks to register a Company from the date of submitting all the documents to RJSC. The cost of the company depends on the amount of Authorised. For issuance of Incorporation Certificate governmental fees shall be BDT 1000.
The cost for opening up a Branch Office is BDT 25,000 and an inward remittance of USD 50000 needs to be remitted to the local bank account of the branch office from the Parent Company, after registration of the Branch Office for maintaining operation expenses.
Liaison Office/ Representative office
A Liaison Office/ Representative office refers to an establishment which does not get involved in any kind of commercial activity. In general terms, commercial activities mean 'activities relating to income generation'. The Liaison office/ Representative office typically promotes the activities within Bangladesh of the parent office abroad as far as permitted by the BIDA; without getting involved in income generating activities. All the expenses need to be borne by the parent company and no money can be remitted from this branch office. However, these type of offices do not have to pay tax unlike branch offices and companies. It is also easy to windup Liaison Office/ Representative office. The time frame for opening Liaison Office/ Representative office is usually 3-4 weeks from the date of submitting all the documents to BIDA.
Address
Premier FM Heights, 1st floor, House # 88, Road # 10/1 Block- D, Niketon, Dhaka-1212, Bangladesh
Phone
+8802.9853440, 9857879
Hotline
+8801819212002
info@alaminrahman.com
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Address
Premier FM Heights, 1st floor, House # 88, Road # 10/1
Block- D, Niketon, Dhaka-1212, Bangladesh
Telephone: +8802.9853440, 9857879
Hotline: +8801819212002
info@alaminrahman.com
Copyright © 2016 ThemeXpert