Agency of Record (AOR) · Bangladesh

Contractor Onboarding & Contract Management in Bangladesh

Work with Bangladesh-based independent professionals, such as developers, designers, analysts and consultants, without setting up a company here. We run the eligibility checks, paperwork, agreements and records, so every engagement starts clean and stays documented.

Every contractor file includes

  • Eligibility and independence review
  • Identity and business-document collection
  • Signed contractor agreement
  • Written scope of work
  • Confidentiality and IP provisions, where offered
No local entityEngage contractors from your overseas company
One file eachDocuments, agreement and scope kept together
English reportingStatus and records for your head office
USD or BDTWe invoice in the currency that suits you
Quick answer

What is an Agency of Record (AOR)?

An Agency of Record (AOR), also called an agent of record, is a service that lets an overseas company engage independent contractors in Bangladesh without opening a local entity. PayrollBangladesh checks that each person is genuinely independent, collects their identity and business documents, administers the contractor agreement, scope of work and confidentiality and IP terms, and handles invoices and records, while you keep the direct working relationship.

Contractor engagement

Engage Contractors Without a Local Entity

You do not need a Bangladesh subsidiary, branch or liaison office to work with an independent professional here. Your overseas company contracts for the services, and we handle the local administration that makes the arrangement orderly and well documented.

  • No company registration, office lease or local bank account for you
  • The contractor stays self-employed and responsible for their own tax return
  • You direct the deliverables; the contractor decides how the work gets done
  • If a role turns out to look like employment, we move it to our Employer of Record service
Table 1 · Three ways to work with talent in Bangladesh
Item Agency of Record Employer of Record Own entity
Worker type Independent contractor Employee Employee
Local entity needed No No Yes
Legal employer None; contractor is self-employed The EOR provider Your company
Payment basis Contractor invoice Monthly payroll Monthly payroll
Income tax Contractor files own return Withheld through payroll Withheld through payroll
Best for Project or specialist work Ongoing, controlled roles Large, long-term teams
How it works

Seamless Onboarding & Operations

Five steps take a contractor from first conversation to a documented, running engagement, and keep it that way until the work ends.

  1. Scope the engagement

    You share the role, deliverables, duration and budget. We confirm it fits a contractor model.

  2. Review eligibility

    We check the professional works independently and has the right status to invoice you.

  3. Collect documents

    Identity, tax and business documents and bank details are gathered and verified.

  4. Issue the agreement

    The agreement, scope of work and any confidentiality and IP terms are signed before work starts.

  5. Run the engagement

    We track invoices against the scope, keep records current and handle renewals and close-out.

Service coverage

What Our Agency of Record Service Covers

Included: Eligibility review, identity and business-document collection, agreement administration, scope of work, confidentiality and IP provisions where offered.
01

Eligibility review

We confirm the person can work as an independent professional: they set their own hours and methods, use their own equipment, can serve other clients and are paid per deliverable or invoice, not a fixed salary.

02

Identity and business-document collection

We collect and check a national ID card or passport, the Taxpayer Identification Number (TIN) certificate, a trade licence where the contractor trades as a business, and bank account details for payment.

03

Agreement administration

We prepare the contractor agreement from your terms, send it for signature, store the signed copy and track renewal and end dates so no engagement runs without a valid contract.

04

Scope of work

Each engagement gets a written scope listing deliverables, milestones, acceptance criteria and fees, so invoices can be checked against what was agreed.

05

Confidentiality and IP provisions, where offered

Where you provide them, confidentiality, non-disclosure and intellectual-property assignment clauses are built into the agreement and signed before any work or data is shared.

06

Invoices, records and close-out

Invoices are checked against the scope before you approve them. At the end of the engagement we confirm deliverables are handed over and the file is closed.

Who it’s for

Who Uses an Agency of Record in Bangladesh

Companies abroad that need skilled people in Bangladesh for defined work, without the cost and commitment of a local company.

Overseas startups

Building a product team with Bangladeshi developers, designers or testers before committing to an entity.

Agencies and consultancies

Bringing in specialists for client projects on a fixed scope and timeline.

Established companies

Testing the Bangladesh talent market with a few contractors before hiring employees.

Platform-to-direct moves

Moving a freelancer you found on a marketplace onto a direct, documented contract.

Contractor or Employee? The Check We Run First

An agreement that says “contractor” does not settle the question. If the day-to-day reality looks like a job, the person may count as a worker under the Bangladesh Labour Act 2006, and the protections of that Act may apply. That is why eligibility comes first.

Signs of a genuine contractor

  • Paid for deliverables or milestones on an invoice
  • Chooses working hours, location and methods
  • Uses their own computer, software and internet
  • Free to work for other clients

Signs it may be employment

  • Fixed monthly pay and fixed office hours
  • Day-to-day supervision like a staff member
  • Works only for you, with no end date
  • Receives leave, bonus or other staff benefits

Where the signs point to employment, we recommend moving the person to our Employer of Record service rather than continuing as a contractor.

FAQ

Agency of Record in Bangladesh: Frequently Asked Questions

Straight answers to what overseas clients ask before engaging a contractor in Bangladesh.

How can an overseas client onboard and contract a Bangladesh-based independent professional?

Through an Agency of Record. You tell us the role, deliverables and budget; we review whether the person is genuinely independent, collect their national ID or passport, TIN certificate, any trade licence and bank details, and prepare a contractor agreement with a written scope of work and, where you offer them, confidentiality and IP clauses. Once both sides sign, work starts, and we track invoices and records until the engagement ends. No Bangladesh entity is needed.

What is an Agency of Record (AOR)?

An Agency of Record (AOR), also called an agent of record, is a service that lets an overseas company engage independent contractors in Bangladesh without opening a local entity. PayrollBangladesh checks that each person is genuinely independent, collects their identity and business documents, administers the contractor agreement, scope of work and confidentiality and IP terms, and handles invoices and records, while you keep the direct working relationship.

Is an Agency of Record the same as an Employer of Record?

No. An Agency of Record works with independent contractors, who stay self-employed, invoice for their work and file their own tax returns. An Employer of Record becomes the legal employer of employees and runs payroll, tax withholding and Labour Act compliance for them. Contractors fit project or specialist work; employees fit ongoing roles you supervise day to day.

Do we need a company in Bangladesh to engage contractors through you?

No. Your overseas company engages the contractor for services, and we handle the local administration: eligibility checks, document collection, agreements, scope of work and records. You do not need to register a company, open a local bank account or lease an office.

Which documents does a Bangladeshi contractor need to provide?

A national ID card or passport, a Taxpayer Identification Number (TIN) certificate, a trade licence if they operate as a registered business, bank account details for payment, and a recent CV or portfolio. We verify each document and keep it in the contractor’s file.

Who is responsible for the contractor’s income tax?

The contractor. Independent professionals in Bangladesh file their own income tax returns under the Income Tax Act 2023. Some IT and IT-enabled service income is exempt for set periods under the Act’s Sixth Schedule, so contractors should confirm their own position with a tax adviser. You do not run payroll tax for a genuine contractor.

How are contractors in Bangladesh paid?

Against invoices. The contractor invoices for completed deliverables, we check each invoice against the agreed scope, you approve it, and payment is made to the contractor’s bank account in Bangladesh through regulated banking channels. We invoice you in USD or BDT.

How do you protect our confidential information and intellectual property?

Where you provide them, confidentiality, non-disclosure and IP assignment clauses are written into the contractor agreement and signed before any work begins or any data is shared. The signed agreement stays on file, and at close-out we confirm deliverables have been handed over.

What happens if a contractor role starts to look like employment?

We flag it. Fixed monthly pay, set office hours, close supervision or staff benefits are signs the person may be treated as a worker under the Bangladesh Labour Act 2006. In that case we recommend moving them to our Employer of Record service, where they are employed properly with payroll and statutory benefits.