An Employer of Record (EOR) in Bangladesh is a locally registered company that legally employs staff on behalf of a foreign business. The EOR holds the employment contract, runs monthly payroll in taka, withholds income tax for the National Board of Revenue (NBR) and administers Provident Fund, gratuity and festival bonuses, while the client directs the employee's daily work.
Can a foreign company hire in Bangladesh without a local entity?
Yes. A foreign company can employ staff in Bangladesh without incorporating by using an Employer of Record: the EOR's Bangladeshi entity signs the employment contract and carries the statutory obligations, while the foreign company manages the work. This avoids RJSC registration, BIDA approval and a local bank account.
Incorporation is still the better route when you expect a large, long-term headcount, need to sign local customer contracts in your own name, or plan to hold assets in Bangladesh. The EOR vs entity setup comparison sets out the break-even, which for most of our clients falls at around 15 permanent employees. Whatever the route, you remain responsible for directing the work, setting pay, approving leave and managing performance; the EOR is responsible for the employment relationship and its statutory administration.
What does EORBangladesh do as the legal employer?
EORBangladesh issues and holds the employment contract, pays salary in BDT each month, withholds and remits income tax to the NBR, administers Provident Fund, gratuity and festival bonuses, keeps the statutory records required by the Bangladesh Labour Rules 2015, and handles onboarding, leave and offboarding.
- Employment contract and appointment letter aligned with the Bangladesh Labour Act 2006 as amended, with IP-assignment and confidentiality clauses for your benefit
- Monthly BDT payroll, payslips and bank transfers; income-tax deduction at source, monthly remittance and the annual salary certificate for each employee
- Provident Fund (8% of basic, employer-matched) and gratuity administration; two festival bonuses per year under Rule 111 of the Labour Rules 2015
- Leave records, working-hours records and service book entries in the forms prescribed by the Labour Rules 2015
- Laptop leasing, co-working seats in Dhaka and group health cover, arranged at cost on request
- Offboarding, notice administration and final settlement within 30 days of the last working day
What do you keep control of?
You keep the manager, the objectives, the tools and the work product. You set the salary and benefits budget, approve leave and expenses, run performance reviews and decide on promotion, and you own the intellectual property the employee creates under the contract's assignment clause.
Who should consider an EOR in Bangladesh?
- Companies hiring their first one to 15 employees in Bangladesh before committing to an entity
- Companies converting Bangladesh contractors into employees to remove misclassification risk
- Companies with a customer project or support function in Bangladesh that needs staff on the ground quickly
- Companies that already use a global platform but want a local employer, a fixed fee and a Dhaka contact
How does the onboarding timeline work?
A typical hire moves from a confirmed offer to a signed contract and payroll registration in 5–7 business days. The main variables are how quickly the candidate supplies the national ID, e-TIN and bank details, and whether the package needs restructuring into basic wage and allowances.
- Day 0 — Offer confirmedYou send the role, salary, start date and candidate details. Within one business day we return the BDT package and employer-cost estimate.
- Day 1–2 — Contract issuedThe employee receives an employment contract from EORBangladesh; you receive the services-agreement schedule for that hire.
- Day 2–5 — Documents and registrationNational ID, e-TIN and bank details are collected; the employee is added to payroll, Provident Fund and the statutory registers.
- Day 5–7 — Start dateThe employee begins work under your direction. First BDT salary is paid on the last working day of the month, pro-rated.
How does a local EOR differ from a global platform?
Comparison of routes to employing staff in Bangladesh. Set-up and monthly figures are typical ranges observed across our engagements in 2025–26.
| Criterion | Own entity (RJSC/BIDA) | Local EOR (EORBangladesh) | Global platform | Contractor |
|---|
| Legal employer | Your new subsidiary | EOR Bangladesh Limited | Platform's partner entity | None (misclassification risk) |
| Time to first hire | 8–12 weeks | 5–7 business days | 7–14 business days | Days |
| Set-up cost | USD 4,000–8,000 plus paid-up capital | None | Often USD 0–500 onboarding | None |
| Monthly cost | Office, accounting, audit, secretarial: USD 2,500+ | Fixed USD 299 per employee | USD 499–699 per employee | Invoice |
| Compliance risk | Yours to manage | Carried by EOR as employer | Carried by partner entity | High if misclassified |
| IP ownership | Direct | Assigned to you by contract | Assigned to you by contract | Depends on contract |
| Exit cost | Liquidation, 12–18 months | 30 days' notice | Notice period, often 30–90 days | Low |
This page is informational only and is not a substitute for licensed legal or tax advice in Bangladesh or in your own jurisdiction. Statutory figures are quoted from the Bangladesh Labour Act 2006 as amended, the Bangladesh Labour Rules 2015 and current NBR rules, and were reviewed by Farhana Rahman, LL.M on 1 September 2026.