Documented contractor payments and local compliance for overseas companies
You approve each invoice; we administer the payment, keep the records and send you a redacted invoice and payment report every cycle. Where you need a local presence, we also act as nominee or resident director, part-time country head or VAT agent.
| Invoice ref | Contractor | Approved by | Payout | Status |
|---|---|---|---|---|
| INV-0142 | Contractor ••41 | Finance lead | Bank ••••4417 | Paid & reconciled |
| INV-0143 | Contractor ••58 | Project owner | Bank ••••0923 | Paid & reconciled |
| INV-0144 | Contractor ••07 | Awaiting approval | Next cycle | After cut-off |
| INV-0145 | Contractor ••63 | Finance lead | Bank returned | Exception logged |
What does compliance and risk mitigation cover here?
For an overseas company working with people in Bangladesh, it means three things: every contractor payment is approved, documented and reconciled; the rules on fees, cut-offs and exceptions are written down before money moves; and the company has a properly appointed local representative, such as a resident director, country head or VAT agent, where Bangladesh law or the business needs one.
Redacted Invoice and Payment Report, Fee Schedule, Payment Cut-offs and Exception Process
Payment administration as a part of redacted invoice and payment report, fee schedule, payment cut-offs and exception process: four documents agreed at the start, so you always know what will be paid, when, at what cost, and what happens when something goes wrong.
Redacted invoice and payment report
Every cycle you receive a report listing each invoice, who approved it, the amount, the payout date and the bank reference, with contractor names and account numbers masked.
Fee schedule
A written schedule of our administration fee, any currency conversion margin and bank charges, agreed before the first payment, so no cost appears for the first time on an invoice.
Payment cut-offs
Fixed dates for invoice submission, your approval and your funding. Anything approved and funded by the cut-off is paid in that cycle; anything later moves to the next one.
Exception process
A written route for late approvals, disputed invoices, returned payments and missing documents, with who decides, how fast, and how each case is recorded.
The four documents are set out in your service agreement and can be changed only in writing.
How Contractor Payment Administration Works
Invoice submission, approvals, funding instructions, supported currencies and payout methods, fees, schedules, reconciliation and records, handled in one monthly cycle.
Invoice submission
- Contractor submits an invoice against the agreed scope of work
- We check amount, period and supporting documents
Approvals
- Your named approver accepts or rejects each invoice
- Every approval is logged with name and date
Funding instructions
- We send one funding request for the approved total
- You transfer by bank wire in a supported currency
Payout
- Contractors are paid to their Bangladesh bank accounts through regulated banking channels
- Payout method and currency follow the contractor’s account
Supported currencies, fees and schedules
You fund in USD or BDT; other currencies can be agreed. Fees and payment dates follow the fee schedule and cut-off calendar you signed off.
Reconciliation and records
Each payout is matched to its invoice, approval and bank reference. Records are kept and available to you and your auditors on request.
What Is Agreed Before the First Payment
These items are fixed in writing at onboarding. The figures depend on your volume and currency, so we quote them for each client rather than publishing one price list.
| Item | What it sets | Who signs off |
|---|---|---|
| Fee schedule | Administration fee per payment cycle, currency conversion basis and bank charges | You, before onboarding |
| Cut-off calendar | Last dates each month for invoice submission, approval and funding | You, before onboarding |
| Approver list | Who in your company may approve invoices, and any amount limits | You; changes in writing |
| Funding currency | USD or BDT, or another currency if agreed | You |
| Payout method | Transfer to the contractor’s bank account in Bangladesh | Contractor, verified by us |
| Report format | Fields in the redacted invoice and payment report and who receives it | You |
| Exception rules | How late, disputed or returned payments are handled and recorded | You and us |
When a Payment Does Not Go to Plan
Every exception follows a written route and is recorded in the next payment report.
Approval arrives after the cut-off
The invoice moves to the next cycle and the contractor is told the new payment date. An earlier off-cycle payment is possible if you request it in writing.
Invoice is disputed
We hold that invoice only, pay the rest of the batch, and log the reason. Payment follows once you and the contractor agree the corrected amount.
Bank returns the payment
We confirm the account details with the contractor, verify them again and pay in the next run. The return and the fix appear in the report.
Documents are missing
No payment is made to a contractor whose identity, tax or bank documents are incomplete. We chase the documents and tell you what is outstanding.
Funding is short
We pay invoices in the order you set and report which ones wait for the balance. Nothing is paid from our own funds on your behalf.
Amount differs from the scope
Invoices above the agreed scope or approver limit go back to you for a second approval before payment.
Nominee/Resident Director, Part-time Country Head, and VAT Agent for Non-resident Companies
Some overseas companies need a named person or agent in Bangladesh. We provide these roles under a written mandate that sets out exactly what the person may and may not do.
Nominee / Resident Director
A Bangladesh-resident individual who sits on the board of your local company to meet filing, signing and banking needs.
Acts only within a written nominee agreement and board instructions from you.
Part-time Country Head
A senior person in Dhaka for an agreed number of days a month: dealing with banks, regulators, landlords and local partners for you.
Reports to your head office and has no authority beyond the mandate.
VAT Agent for Non-resident Companies
A non-resident business that supplies services in Bangladesh without a place of business there registers through a VAT agent approved by the National Board of Revenue.
The agent handles VAT registration and returns and shares liability for the VAT due, so the mandate is written carefully.
Compliance Risks We Help You Reduce
The most common ways overseas companies get into trouble when they work with people in Bangladesh, and what we do about each.
| Risk | What can go wrong | How we reduce it |
|---|---|---|
| Undocumented payments | Payments with no invoice or approval trail are hard to defend in an audit or tax review | Every payout is matched to an invoice, a named approval and a bank reference |
| Worker misclassification | A contractor who works like an employee may be treated as a worker under the Bangladesh Labour Act 2006 | Eligibility review before onboarding; employment-like roles move to our Employer of Record service |
| Unapproved spend | Invoices paid above scope or by the wrong approver | Approver list, amount limits and second approval for anything outside scope |
| VAT exposure | Non-resident service suppliers without a VAT agent can face VAT dues and penalties | NBR-approved VAT agent service and documented VAT returns |
| No local signatory | Bank, filing and regulatory work stalls without a person in Bangladesh | Nominee or resident director and part-time country head under written mandates |
| Personal data leakage | Reports shared widely expose contractors’ names and bank details | Redacted reports by default; full detail only to named recipients |
Compliance and Contractor Payments in Bangladesh: Frequently Asked Questions
How can an overseas client approve invoices and arrange documented contractor payments?
Contractors submit invoices against their agreed scope of work. We check each one and send it to your named approver, who accepts or rejects it. After the cut-off we send one funding request for the approved total, you pay it by bank wire, and we pay each contractor to their Bangladesh bank account through regulated banking channels. Every payment is matched to its invoice, approval and bank reference and listed in a redacted invoice and payment report.
What is a redacted invoice and payment report?
A report of every invoice and payment in the cycle, showing amounts, approvers, dates and bank references, with contractor names and account numbers masked so it can be shared with finance teams and auditors.
What happens if we approve an invoice after the cut-off?
It is paid in the next cycle and the contractor is told the new date. If you need it paid earlier, you can request an off-cycle payment in writing.
Which currencies can we fund in?
USD or BDT as standard; other currencies can be agreed during onboarding. Contractors are paid to their bank accounts in Bangladesh.
Are fees fixed in advance?
Yes. The administration fee, currency conversion basis and bank charges are written into the fee schedule you approve before the first payment.
Do non-resident companies need a VAT agent in Bangladesh?
A non-resident business that supplies services in Bangladesh without a place of business there registers for VAT through an agent approved by the National Board of Revenue. The agent files returns and shares liability for the VAT due.
What does a nominee or resident director do?
Sits on the board of your Bangladesh company to meet signing, filing and banking needs, acting only within a written nominee agreement and your board instructions.
How is this different from an Employer of Record?
Here contractors stay self-employed and we administer their payments. With an Employer of Record we become the legal employer of your staff and run payroll, tax and Labour Act compliance.