(Before starting this post, I think I should give you a clarification. A Liaison Office and Representative Office, refer to the same thing in Bangladesh. In this post, I will mention them as Liaison Office only.)
A Liaison Office need to a get a Tax Identification Number (“TIN”). Some of the foreign investors become surprised to hear that. They ask, why? I get this question quite often. I don’t blame them. Let me explain.
According to the policy of the Board of Investment (“BOI”):
A Liaison/Representative Office of a foreign Company can only maintain liaison/coordination between principal and local agents, distributors/exporters’ institutions through correspondences, personal contracts and other electronic media. Such organizations can also collect, compile analyze and disseminate business information related to its field of activities as mentioned in the approval letter. This sort of foreign office will have no local source of income in Bangladesh. Establishment costs, all operational costs including remunerations of the expatriates and local employees of the concerned Liaison or Representative office will have to be met on receipt of remittances from the head office abroad. No outward remittances of any kind from Bangladesh sources will be allowed except the amount brought in from abroad (the unspent part).