Frequently asked questions about hiring in Bangladesh

Yes. A foreign company can employ staff in Bangladesh without incorporating by using an Employer of Record. EORBangladesh's Bangladesh entity signs the employment contract and carries the statutory obligations, while the foreign company directs the day-to-day work. This avoids RJSC registration, BIDA approval and a local bank account.

Onboarding through EORBangladesh typically completes in 5–7 business days once the role, compensation and the employee's national ID and e-TIN are confirmed. We issue a compliant employment contract, register the employee on payroll and set up statutory deductions; you supply the job description and start date. Incorporating a local entity, by comparison, usually takes 8–12 weeks.

Yes. An EOR is a Bangladesh-registered company that employs staff under the Bangladesh Labour Act 2006 and provides their services to a client under a commercial agreement. The employment relationship, payroll and statutory contributions sit with the EOR entity. EORBangladesh's structure has been reviewed by Rahman & Associates, Dhaka, and a written opinion is available to clients on request.

Permanent-establishment (PE) risk depends on what your staff do and on the tax treaty between Bangladesh and your country, not only on the employment model. An EOR keeps the employment relationship local, which removes one common trigger (registering as an employer), but activities such as habitually concluding contracts on your behalf can still create exposure. We flag PE-sensitive roles at onboarding and recommend tax advice in both jurisdictions.

EOR Bangladesh Limited (RJSC C-176452/2019) is the legal employer. It signs the employment contract, pays salary in BDT, withholds income tax for the NBR and administers statutory benefits. You direct the work, set objectives and manage performance day to day.

Yes. When you incorporate through RJSC and BIDA, employment transfers to your new entity with the employee's consent and a new contract. We handle the offboarding, final settlement and continuity of service records, and our incorporation advisory service supports the registration. Engagements run on 30 days' notice with no transfer fee.

Yes. Remote work for a foreign manager is the most common EOR arrangement in Bangladesh and covers about 80% of the staff we employ. The employee is employed in Bangladesh, paid in taka and covered by local law; reporting lines, tools and objectives are set by your company.

Where a Provident Fund is constituted, the Act provides for an employee contribution of not less than 7% and not more than 8% of basic wages, matched equally by the employer (Bangladesh Labour Act 2006, s.264). EORBangladesh operates a constituted fund at the 8% rate for all EOR employees. Gratuity is a minimum of 30 days' wages for each completed year of service, rising to 45 days' wages per year where service exceeds 10 years (Bangladesh Labour Act 2006, s.2(10)), paid on exit and accrued monthly in your invoice.

Employers deduct income tax at source from salary under NBR rules and remit it monthly, issuing each employee an annual salary certificate. Current rules provide a tax-free threshold of BDT 375,000 for individuals (higher for women, senior citizens and persons with disabilities) and progressive rates of 5% to 30% above it (Finance Act 2026, FY 2026–27). Rates change with each Finance Act; EORBangladesh applies the current schedule and issues the certificate in July each year.

In Bangladeshi taka (BDT) to a local bank account, as required for resident employees. You are invoiced in USD, GBP or EUR at the Bangladesh Bank published rate on the invoice date, with no FX mark-up and the BDT amounts shown line by line.

Yes. Payroll outsourcing is available to companies with a Bangladesh entity from USD 45 per employee per month (minimum USD 250 per month). We calculate, produce payslips, prepare bank files and withholding returns, and maintain the statutory registers; your entity remains the employer.

Changes (new joiners, leavers, variable pay) are due by the 20th of the month; salaries are paid on the last working day of the month, within the seven-working-day limit set by s.123 of the Labour Act. Income tax is remitted to the NBR and Provident Fund contributions are deposited by the 15th of the following month.

Incorporation runs through RJSC name clearance, document filing and certificate issue, followed by trade licence, e-TIN, VAT registration, bank account with capital remittance and, for foreign investment, BIDA registration. Total elapsed time is typically 8–12 weeks for a wholly foreign-owned private limited company. An EOR hire completes in 5–7 business days.

It depends on the fixed cost of running an entity (office, statutory audit, accounting, company secretary, annual filings — typically USD 30,000 or more a year in Dhaka) against the EOR fee multiplied by headcount. At USD 299 per employee the crossover is around 15 employees; at the volume rate of USD 249 it is closer to 20. The right answer also depends on how long you expect the team to exist. We run the comparison for your numbers on request.

Yes. Bangladesh permits wholly foreign-owned private limited companies in most sectors, with BIDA registration for foreign investment; a small number of sectors are reserved or require a local partner or licence. We confirm the position for your sector with Rahman & Associates before you commit.

Annual return and audited accounts filed with RJSC, corporate income-tax return with the NBR, monthly VAT and withholding returns where applicable, annual trade-licence renewal, and labour-law records for employees. These obligations exist whether you employ one person or one hundred.

No. A PEO co-employs staff with a client that is already a registered employer in the country. A foreign company with no Bangladesh entity cannot be a co-employer, so the EOR model, where the provider is the sole legal employer, is the applicable option.

EORBangladesh operates as an Employer of Record: our Bangladesh entity is the sole legal employer. For clients that already have a Bangladesh entity we provide payroll outsourcing and managed HR services, which is the closest equivalent to PEO-style support.

Yes. Employees of an EOR are employees under the Bangladesh Labour Act 2006 and receive the statutory entitlements it provides: leave, working-hours protections, festival bonuses, Provident Fund and gratuity.

A staffing agency supplies temporary or contract workers, usually for short assignments, and often owns the relationship with the worker. An EOR employs staff you selected, for as long as you need them, under your management, with IP assigned to you. See recruitment and remote teams for how sourcing and EOR combine.

Your company. Employment contracts issued by EORBangladesh include IP-assignment, confidentiality and non-solicitation clauses that assign work product to the client, and our client services agreement confirms the assignment and adds an NDA. We will align the clause wording with your group standard where Bangladesh law allows.

Yes. EOR Bangladesh Limited is registered with the Registrar of Joint Stock Companies and Firms (RJSC) under C-176452/2019, holds e-TIN 4521-6683-7712 and Trade licence TRAD/DSCC/041125, and has its registered office at Road 1, House 36, Block E, Banasree, Rampura, Dhaka 1219, Bangladesh.

Our 22-person HR, payroll and compliance team works from our Banasree office in Dhaka. Client calls are taken in English during office hours (GMT+6) and by appointment outside them; we run a 14:00–23:00 desk for clients in the Americas.

Compliance pages are reviewed by Farhana Rahman, LL.M, Advocate, Supreme Court of Bangladesh; Head of Compliance, and dated. Statutory figures are quoted with their section of the Bangladesh Labour Act 2006 and re-checked after every Finance Act.

Yes. Rahman & Associates (Dhaka) advises on employment and corporate matters and issues client opinions; Ahmed Karim & Co., Chartered Accountants, audits our accounts and the client trust account through which salaries are paid.