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Branch Office Setup In Bangladesh: Obstacles And Overcoming

Author: Outsourcing Bd
by Outsourcing Bd
Posted: Jun 07, 2022

5 Challenges Of Setting Up Branch Office In Bangladesh

There will be no distinct legal organization established because a branch is an extended version of its parent corporation. The parent firm is responsible for the branch office setup and its debts and other obligations. A branch office cannot conduct any business in Bangladesh that is not briefly permitted by Bangladesh Investment Development Authority.

A liaison office in Bangladesh must also incorporate with the Joint Stock Companies and Corporate Registrar, as well as follow the Companies Act 1994's other legal requirements.

Principle Points:

  1. A branch office setup is an effective approach for major corporations to meet the needs of its customers for face-to-face engagement.

  1. Depending on the demands of the company, a liaison office in bangladesh may composed of a single person or may be staffed.

  1. It's not uncommon setting up branch office in Bangladesh in close vicinity to one another in densely populated urban areas.

5 Common Challenges Faced In The Industry (Infographic)

  1. Inefficient Communication Between Branches: Liaison office registration causes information to spiral among offices until they reach the target recipient - likely too late.

  1. Important Data Not Reaching Everyone: It's critical that everyone is on the same page while setting up branch office in Bangladesh. Emailing can be a hassle whenever it comes to contacting several people — and getting their feedback.

  1. Less Knowledge: This is a critical issue, especially while setting up branch office in Bangladesh that is geographically separated and difficult to monitor.

  1. Time And Cost Consuming: Once branch office setup is complete, traveling from one office to the other, attempting to keep things under control, is time-consuming and expensive.

  1. Employee Conflict: In a liaison office in Bangladesh, employees resent other groups simply because they do not regard them as our own; this is terrible since you want all of your employees to consider themselves as one entity.

Impacts Of Setting Up Branch Office In Bangladesh


  1. Attracting New Customers: Setting up branch office in Bangladesh can attract and retain more new consumers.

  1. Economies of Scale: More efficiency and stability result from branch office setup, as well as cheaper costs per unit for transportation, supplies, personnel, and energy.

  1. Diversified Market: A new liaison office registration leads to increased profits and sales, as well as the ability to reinvest in the firm and affect market price.


  1. Capital Requirement: When a company's resources grow and it invests money, a branch office setup has a disadvantage. It's because the amount of funds accessible for business operations is limited.

  1. Resource Division: Setting up branch office in Bangladesh carries the danger of spreading resources too thin.

  1. Quality Compromised: You need to divide your workforce and distribute management responsibilities with liaison office registration. Quality may be harmed as a result of the separation of locations and responsibilities.

Barriers In Bangladesh Market

  1. Work Permit: Documents required for liaison office such as work permit for foreign workers take a long time period to get processed.

  1. Manpower Recruitment: Branch office setup requires recruiting a whole new staff for the operations which is time and cost consuming.

  1. Visa Processing: Liaison office registration involves applying and obtaining visa for foreign workers who will be placed here in managerial positions.

Overcoming The Challenges Of Liaison Office Registration

  1. Other chat-like platforms, such as Slack, can be used to speed up company communication while setting up branch office in Bangladesh.

  1. Trello, a well-known collaboration platform that manages project workflow using Kanban boards, is required for branch office setup.

  1. Turbine, a web-based technology that replaces practically all paperwork in workplaces, is required for the liaison office in Bangladesh.

  1. After liaison office registration, you can do teleconferences with your team using products like Zoom, WebEx, and Adobe Connect.

Facilities You Will Get While Working With Us

  1. Focusing On Core Activities: As we take care of all the documents required for liaison office, you can focus on your business’s core operations.

  1. Maintaining Less Expense: Outsourcing liaison office registration to us allows you to save unnecessary costs in the process.

  1. Promoting Growth: If the expense of expanding to handle such operations yourself is too high, would take too long to implement, or would cause bottlenecks in your business model, outsourcing branch office setup services may be a viable solution.

  1. Obtain Risk Management: Outsourcing branch office setup services to us ensures the company’s continuity while lowering the danger of a substandard level of operation, even if just for a short period of time.

Final Words

It is critical to recognize that expansion can be a disruptive factor. If you're ready to expand your business, we'll carefully plan and analyze it several times. While setting up branch office in Bangladesh, we design a growth plan for your company. In this manner, you can avoid complications that may arise as a result of a company's expansion.

About the Author

Business Incorporation - Company Registration service in Accounting, Auditing, Advisory, Finance, Accounting, Tax Vat Oursourcing Services.

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Author: Outsourcing Bd

Outsourcing Bd

Member since: May 17, 2022
Published articles: 40

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