Company Lawyer in Bangladesh – Al Amin Rahman & Associates
The due work of a company lawyer in Bangladesh is to proceed with rigorous paperwork. Then finally have an entity registered under the laws of Bangladesh. Bangladesh being an underdeveloped country which encourages foreign investments. The need of expert company lawyers in Bangladesh is imminent to help the foreign investors to avoid any legal complications. In order to run their business seamlessly, we help our clients comply with the provisions of Bangladesh with due diligence and care. The law stipulates three possible ways by which a foreign-investors have entries in Bangladesh. They can either open up a Company or chose to open a Branch/Liaison office. The following passage outlines the procedure a company lawyer in Bangladesh can initiate to have Branch / Liaison office registered in Bangladesh.
Registration Procedure of Branch Or Liaison Offices by a Company Lawyer in Bangladesh
Permission from BIDA and Liaison Office
A Branch or Liaison Office is one of the two options along with the option of setting up a Bangladeshi subsidiary company for foreign investors. This is where the need of a company lawyer comes into play. Failure to comply shall render the registration invalid.
The first thing that needed is the Approval of Bangladesh Investment Development Authority (BIDA) for either setting up a Branch or Liaison office in Bangladesh. A Liaison office of a foreign company has very little activity in Bangladesh. They maintain liaison or simply coordinate between the principal and local agents, etc. The Liaison office once established shall not generate any local source of income in Bangladesh. All expenses for setting up a Liaison office and operating it are basically borne by the parent company established abroad. Amongst others, a Liaison office cannot remit currency outside of Bangladesh. However, can bring money inside Bangladesh from the parent company.
Moving on to Branch office, however, they can engage themselves in commercial activities with prior approval of BIDA. A Branch office can have regional source of income from its approved field of business. However, such is subject to prior approval of the Inter-Ministerial Committee.
Difference between Branch and Liaison office
Activities of a Branch and Liaison office remains limited to the sectors and for the span of period approved in the approval letter issued by BIDA. A good company lawyer in Bangladesh takes such matter into account. They notify their clients for renewal before the expiry. Anyone willing to carry on their office beyond shall have to apply for necessary renewal/ extension. Such application must be made inn the prescribed form with proper documents. And has to be provided at least 2 (two) months prior expiry of its present term. As an estimated establishment cost and 6 (six) months operational expense of a Branch or Liaison office, USD 50,000 has to be remitted inside Bangladesh. Such must be made by following the inward remittance guidelines of the Central Bank of Bangladesh; within 2 (two) months from the date of issuance of the BIDA permission letter. The registering entity opens up an account with the scheduled Bank of Bangladesh. As per the laws of Bangladesh a Branch office and Liaison office shall pay duty/income tax/VAT/revenues and other taxes payable to the Government. If a foreign company is willing to establish more than one office, it has to take separate permission from.
Scope of Work
Since a Branch or Liaison office is a proper legal entity once registered with BIDA, it is not to be considered as a completely separate legal entity. However, can be considered as an extension of the foreign company already established outside of Bangladesh. All the debts and liabilities of the foreign entity of a Branch or Liaison are the debts and liability of the foreign entity.