Statutory Registration Services in Bangladesh for Employers
Payrollbangladesh obtains and maintains every registration an employer needs before it can lawfully hire and pay staff in Bangladesh: TIN and withholding-tax registration with the NBR, VAT/BIN, trade licence, the DIFE establishment or factory licence and commencement notice under the Labour Act 2006, provident fund recognition, WPPF and group insurance set-up, and BIDA and Bangladesh Bank formalities for foreign-owned companies. We run the filings, hold the renewal calendar and hand you a complete, audit-ready registration file.
Statutory Registration Services Built for Companies Employing Staff in Bangladesh
We take over everything between “the company exists” and “the company is lawfully able to hire, pay and insure its first employee”. That means the tax, VAT, labour-inspection, municipal, fund and investment-board registrations, in the right order, with the right supporting documents, and with every renewal date diarised. Three kinds of employers use this service:
Foreign companies setting up in Bangladesh
A newly incorporated subsidiary, branch or liaison office has a certificate but cannot yet run payroll: it needs a TIN, withholding registration, a trade licence, the DIFE notice and, as a foreign-owned entity, BIDA registration and Bangladesh Bank reporting. We sequence all of it so the first salary is paid on time. If you have no entity at all, our Employer of Record track employs staff for you under our registrations.
Local companies that have outgrown their paperwork
Trade licence lapsed, DIFE licence never renewed, VAT enlistment never upgraded to full registration, no provident fund recognition although employees have been contributing for years. We audit what you hold, regularise what is missing and put every renewal on one calendar.
Factories, EPZ & economic-zone units
Manufacturing units need the factory licence with layout approval, fire licence and environmental clearance before DIFE will issue, plus WPPF and group insurance once the headcount and capital thresholds are crossed. We assemble the file in the order the inspector expects it.
What Is Included in Our Statutory Registration Services?
Our statutory registration services in Bangladesh cover nine registration groups. They are: TIN and withholding-tax registration; VAT registration or enlistment (BIN); trade licence; DIFE commencement notice and establishment or factory licence; provident fund and gratuity fund recognition; WPPF and group insurance set-up; BIDA registration and Bangladesh Bank reporting for foreign-owned employers; export/import, fire and environmental licences where the business needs them; and a registration calendar with renewal management. We quote a fixed fee per registration or per bundle after a scoping call.
The nine registration groups
TIN & withholding-tax registration (NBR)
We obtain the company’s Taxpayer Identification Number, register it as a withholding entity with the tax circle, and set up the obligations that follow: deduction of tax from salary at the employee’s average rate under s.86 of the Income Tax Act 2023, monthly deposit, and the quarterly withholding return under s.177. We also obtain e-TINs for employees who need one.
VAT registration or enlistment (BIN)
Registration is mandatory once annual turnover exceeds BDT 50 lakh (enlistment for turnover tax between BDT 30 and 50 lakh) under the VAT and Supplementary Duty Act 2012 as amended in January 2025. We file the Mushak application, obtain the Business Identification Number and set up the monthly return.
Trade licence (city corporation / municipality)
Every business premises needs a trade licence from the relevant city corporation, municipality or union parishad under the Local Government Acts of 2009, renewed each fiscal year. We obtain it for the registered office and for each additional branch or site.
DIFE notice & establishment / factory licence
Under s.326 of the Labour Act 2006 the employer must notify the Chief Inspector at least 15 days before starting work, and under rules 353–359 of the Labour Rules 2015 obtain the establishment or factory licence through DIFE’s LIMA portal (Form 77; Form 76 layout approval first for factories; fee by class under Schedule 7; valid one year; 45 working days statutory processing). We prepare the layout plan, fee challan and supporting documents, and manage the inspection and renewal.
Provident fund & gratuity fund recognition
A private-sector provident fund under s.264 of the Labour Act 2006 needs a trust deed, board rules and recognition by the NBR under the Income Tax Act 2023 so that contributions and distributions get their tax treatment. We draft and file the trust documents and obtain recognition; the same for an approved gratuity fund.
WPPF & group insurance set-up
Companies with paid-up capital of BDT 1 crore or fixed assets of BDT 2 crore must set up the Workers’ Profit Participation and Welfare Funds under s.234 of the Labour Act 2006; establishments with 100 or more permanent workers must take out group insurance under s.99. We constitute the fund trustee boards, open the accounts and place the policy.
BIDA registration & Bangladesh Bank reporting
Foreign-owned companies register with the Bangladesh Investment Development Authority, which also underpins work-permit applications for expatriate staff, and report share issuance to non-residents to Bangladesh Bank through the authorised dealer bank. We file both and keep the evidence for the remittance file.
ERC / IRC, fire & environmental licences
Where the business imports, exports or manufactures: the Import and Export Registration Certificates from the Chief Controller of Imports and Exports, the fire licence from Fire Service & Civil Defence under the Fire Prevention and Extinction Act 2003, and the Environmental Clearance Certificate from the Department of Environment — all of which DIFE asks for before issuing a factory licence.
Registration calendar & renewal management
One register of every licence, its number, issuing office, expiry and renewal lead-time, with the DIFE half-yearly (Form 80, by 15 July) and yearly (Form 81, by 15 February) returns, the quarterly withholding returns and the trade-licence renewal on it. We file each on time and send you the receipt.
Compliance frame: Income Tax Act 2023 ss.86 and 177 (nbr.gov.bd; employer TDS guide, MiHCM); VAT and Supplementary Duty Act 2012 as amended by the Ordinance of January 2025 (DFDL update); Bangladesh Labour Act 2006 ss.99, 234, 264, 326, 333 and Labour Rules 2015 rules 352 and 362 (official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd; Jural Acuity compliance summary); DIFE licensing: LIMA — official licence portal of the Department of Inspection for Factories and Establishments (Form 77 licence application, Form 76 layout approval); rules 353–359, one-year validity, 45/20 working-day processing and late-renewal surcharges per DIFE’s official licence obtaining, renewal and amendment guideline (Schedule 7 fee table by class); VAT thresholds also confirmed by PwC Worldwide Tax Summaries. Thresholds change with each Finance Act and Labour amendment; we confirm the figure in force on the day we file.
What Are the Statutory Registration Rules for Employers in Bangladesh? Key Facts at a Glance
We test every registration file against these facts, and we tie each one to its source. Where a figure is a Payrollbangladesh service standard rather than law, we say so.
| Item | Position | Source |
|---|---|---|
| Salary tax deduction | Employer deducts at the employee’s average rate of tax on estimated employment income | Income Tax Act 2023, s.86 |
| Withholding-tax return | Quarterly — 25 October, 25 January, 25 April, 25 July; annual salary statement with the October return | Income Tax Act 2023, s.177 (MiHCM employer guide) |
| Deposit of deducted tax | Within two weeks of the end of the month of deduction (July–May); accelerated in June | Income Tax Rules under the Income Tax Act 2023 (MiHCM employer guide) |
| Late withholding return | Penalty: the higher of 10% of last assessed tax or BDT 5,000; late deposit carries 2% monthly interest, up to 24 months | Income Tax Act 2023 (MiHCM employer guide) — confirm current figures with the Act |
| VAT registration threshold | Annual turnover above BDT 50 lakh (5 million); enlistment for 4% turnover tax at BDT 30–50 lakh; standard rate 15% | VAT & SD Act 2012 as amended; PwC Worldwide Tax Summaries, Bangladesh corporate — other taxes (reviewed July 2026); DFDL |
| Commencement notice to Chief Inspector | At least 15 days before starting work; written approval before using, changing or extending premises as a factory | Labour Act 2006, s.326; Labour Rules 2015, rule 352 |
| DIFE licence | Form 77 via LIMA (Form 76 layout approval first for factories); valid one year from grant; statutory processing 45 working days for a new licence, 20 for renewal or amendment; fees per Schedule 7 by class and headcount plus 15% VAT; late renewal surcharge 25% (within 3 months), 50% (3–6 months), 100% (6–12 months), cancellation after 1 year | Labour Act 2006, s.326; Labour Rules 2015, rules 353–359 and rule 355(2) as amended 2022; DIFE official licence guideline (portal.gov.bd) |
| Periodic returns to DIFE | Half-yearly Form 80 by 15 July; yearly Form 81 by 15 February | Labour Act 2006, s.333; Labour Rules 2015, rule 362 |
| Group insurance | Compulsory for establishments with 100 or more permanent workers | Labour Act 2006, s.99 |
| WPPF | Paid-up capital ≥ BDT 1 crore or fixed assets ≥ BDT 2 crore; 5% of net profit to the funds | Labour Act 2006, s.234 |
| Provident fund | Private-sector PF under s.264; NBR recognition needed for tax treatment; mandatory on request of two-thirds of workers in establishments of 100+ since the 2026 amendment | Labour Act 2006, s.264 as amended by the Labour (Amendment) Act 2026 (TBS report on the Bill’s passage); NBR recognition under the Income Tax Act 2023 |
| General penalty for breach of the Labour Act or Rules | Imprisonment up to 3 months, fine up to BDT 25,000, or both | Labour Act 2006, penalty provisions (Jural Acuity summary) |
| Trade licence | Required per premises; renewed each fiscal year | Local Government (City Corporation) Act 2009 and Local Government (Paurashava) Act 2009 |
| Registration bundle turnaround | TIN, withholding and trade licence in 2–3 weeks; VAT 1–2 weeks; DIFE licence governed by the 45-working-day statutory window; fund recognition 6–10 weeks — office bundle 6–10 weeks, factory bundle 10–14 | Payrollbangladesh service standard for our own filing time; DIFE processing time is statutory (official guideline) and office-dependent |
Why Do Employers Choose Payrollbangladesh for Statutory Registration?
Because a registration done out of sequence — a DIFE application without a fire licence, a PF trust without NBR recognition, a VAT enlistment when full registration was due — costs more to unwind than to do right. We register from the payroll desk outward, so every number we obtain is the number payroll will use next month.
Right order, first time
Trade licence before TIN circle allocation, fire and environmental clearance before the factory licence, BIDA before the work permit. We hold the dependency map so nothing is refused for a missing prerequisite.
Payroll-tested registrations
We run payroll for the companies we register. The TIN, BIN, PF recognition and fund accounts we obtain are set up exactly as the monthly TDS deposit, VAT return and PF contribution need them.
One calendar, no lapses
Every licence number, expiry and return date sits on one register that we work from. Late-renewal surcharges on the DIFE licence and penalties on withholding returns are avoidable, and we avoid them.
Statute-cited, not folklore
Each registration on your file is tied to the section that requires it — s.86, s.177, s.99, s.234, s.264, s.326 — so when a threshold or a fee changes, we know which line to update.
Fixed fee per registration
One price per registration or bundle, scoped by entity type, sites and headcount, with government fees passed through at cost against the treasury challan; no hourly billing.
Single point of accountability
One registration lead per client and one compliance reviewer who signs off the file before we hand it over, and who owns every renewal after that.
How Does Our Statutory Registration Process Work?
Our statutory registration process in Bangladesh runs in six steps. They are scoping and gap audit, document assembly, tax and VAT registrations, municipal and labour-inspection licences, fund and investment-board registrations, and hand-over with the renewal calendar. A standard office bundle completes in 6–10 weeks and a factory bundle in 10–14, with DIFE’s 45-working-day statutory processing window as the long pole.
- 01Scoping & gap audit. We confirm entity type, ownership, sites, activity and headcount, list every registration the law requires for that profile, and check which you already hold and whether each is current. You receive a gap list with the legal basis for each item.
- 02Document assembly. Certificate of incorporation, memorandum and articles, board resolution, lease deed, NID or passport of directors, layout plan and photographs — collected once, attested where required, and reused across every application.
- 03Tax & VAT registrations. TIN, withholding-entity registration with the tax circle, employee e-TINs, and VAT registration or enlistment with the Business Identification Number. Then we configure the monthly deposit and quarterly return cycle in payroll.
- 04Municipal & labour-inspection licences. Trade licence for each premises; the s.326 notice to the Chief Inspector; the DIFE establishment or factory licence through LIMA, with fire and environmental clearances obtained first where the activity needs them; inspection attended.
- 05Fund & investment-board registrations. Provident and gratuity fund trust deeds and NBR recognition; WPPF trustee board and accounts; group insurance policy; BIDA registration and Bangladesh Bank share-issue reporting for foreign-owned employers.
- 06Hand-over & renewal calendar. A complete registration file with every certificate, number and challan, plus the calendar of renewals and periodic returns. Finally, we either run that calendar for you under our Statutory Compliance service or hand it to your team.
Which Registration Checks Do We Own for Every Employer in Bangladesh?
We check every registration file we hand over against this list, and again at each renewal. If any item fails, our reviewer holds the file until we fix it.
Nine checks on every registration file
- ✓TIN active and linked to the correct tax circle, withholding-entity status confirmed, and the s.86 average-rate deduction configured in payroll before the first salary run.
- ✓Quarterly withholding returns diarised for 25 October, 25 January, 25 April and 25 July under s.177, with the annual salary statement attached to the October return.
- ✓VAT status matches turnover — enlistment upgraded to full registration when turnover crosses BDT 50 lakh, and the monthly return cycle set.
- ✓Trade licence held for every premises and renewed before the fiscal-year deadline, with the business description matching what the company actually does.
- ✓s.326 notice served at least 15 days before commencement and the DIFE licence issued in the right class for the headcount, with the renewal booked ahead of expiry to avoid the 25–100% surcharge.
- ✓DIFE returns filed — Form 80 by 15 July and Form 81 by 15 February — and the registers the inspector checks (Form 6 identity cards, Form 7 service books, Form 8 worker register, Form 9 leave register) in place.
- ✓Thresholds monitored — group insurance at 100 permanent workers (s.99), WPPF at BDT 1 crore paid-up capital or BDT 2 crore fixed assets (s.234), provident fund obligations in establishments of 100+ — so each is set up before, not after, the threshold is crossed.
- ✓Fund documents complete — trust deed, rules, trustee board, NBR recognition letter and separate bank accounts for PF, gratuity and WPPF.
- ✓Foreign-ownership formalities evidenced — BIDA registration certificate and Bangladesh Bank acknowledgement of share issuance on file, because the remittance of dividends and expatriate salaries will be refused without them.
Primary sources: official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd; Income Tax Act 2023 — National Board of Revenue; Jural Acuity — key labour law compliances (ss.5–9, 325–326, 333; rules 19–24, 352, 362); LegalSeba — DIFE factory licence guide (Form 77, LIMA, fee classes); The Financial Express — proposal to extend DIFE licence validity to five years; DFDL — VAT threshold amendments.
Which Statutory Registrations Apply to Which Employer in Bangladesh?
Not every employer needs every registration. The table shows what a typical office, a factory and a foreign-owned company each need, and which items only switch on at a headcount or capital threshold.
| Registration | Local office / services company | Factory / manufacturing unit | Foreign-owned subsidiary or branch |
|---|---|---|---|
| TIN & withholding registration (NBR) | Required | Required | Required |
| VAT registration / enlistment (BIN) | Above BDT 50 lakh turnover (enlist at 30–50 lakh) | Almost always required | Above BDT 50 lakh turnover; often required for input credit |
| Trade licence | Required per premises | Required per premises | Required per premises |
| s.326 commencement notice | Required | Required, plus written approval of the premises as a factory | Required |
| DIFE licence | Shop / establishment class | Factory class by headcount, with layout plan | Shop / establishment or factory class as applicable |
| Fire licence & environmental clearance | Fire licence for the premises; ECC only for listed activities | Both, before the factory licence | As for the activity |
| Provident & gratuity fund recognition | When a fund is set up; mandatory on request at 100+ workers | Usual at scale; mandatory on request at 100+ workers | When a fund is set up |
| WPPF (s.234) | At BDT 1 crore paid-up capital or BDT 2 crore fixed assets | Almost always triggered | At the same thresholds |
| Group insurance (s.99) | At 100 permanent workers | At 100 permanent workers | At 100 permanent workers |
| BIDA registration & Bangladesh Bank reporting | — | If foreign-owned | Required; also underpins expatriate work permits |
| ERC / IRC | Only if trading across the border | Usually both | If importing or exporting |
Related: Work Permit Support for expatriate staff once BIDA registration is in place, and Tax Planning for the salary structure that the TIN and withholding set-up will run.
Should You Handle Statutory Registration In-House or Use Payrollbangladesh? Direct Comparison
Most companies hand registrations to whoever is free — an accountant, an office manager, a lawyer for one item — and discover the gaps at an inspection, a bank remittance or a work-permit application. The rows below are the failure points we are hired to remove.
| Dimension | In-house / ad hoc | Payrollbangladesh (outsourced) |
|---|---|---|
| Scope | Whatever the last adviser mentioned; thresholds (s.99, s.234, VAT) discovered late | Full gap audit against the statute for your entity type, sites and headcount |
| Sequence | Applications refused for missing prerequisites (fire licence, layout approval, trade licence) | Dependency map followed; prerequisites obtained first |
| Documents | Re-collected and re-attested for every application | Collected once, attested once, reused across all filings |
| Fees | Paid through intermediaries without challans; no audit trail | Government fees at cost against treasury challans on file |
| Renewals | Lapses found at inspection; DIFE surcharge of 25–100%, withholding-return penalties | Single calendar, renewals filed ahead of expiry, receipts delivered |
| Link to payroll | Registrations and payroll set up by different people; TDS and PF mismatches | Registrations configured directly into the payroll we run |
| Legal change | Noticed when a notice arrives | Each Finance Act and Labour amendment mapped to the affected line on your file |
| Accountability | Split across accountant, lawyer and office staff | One registration lead and one compliance reviewer |
Need the registers, returns and inspections kept current after registration? See Statutory Compliance and Corporate Payroll Service.
What Determines the Price of Statutory Registration Services in Bangladesh?
Three things set the price of statutory registration in Bangladesh: the entity type (local, factory or foreign-owned), the number of premises, and the headcount, which fixes the DIFE licence class. We charge a fixed professional fee per registration or bundle on that basis; government fees, stamp duty and VAT on licence fees are passed through at cost against the challan. After a scoping call we issue a written quote.
| Bundle | Fit | What’s included |
|---|---|---|
| Office | Services companies, agencies, NGO country offices, new local companies | TIN and withholding registration, employee e-TINs, VAT registration or enlistment, trade licence, s.326 notice and DIFE establishment licence, fire licence, registration calendar |
| Factory | Manufacturing, EPZ and economic-zone units | Office bundle + factory layout approval, environmental clearance, factory-class DIFE licence with inspection, ERC/IRC, WPPF and group insurance set-up, DIFE half-yearly and yearly returns |
| Foreign-entity | Subsidiaries, branches and liaison offices of foreign companies | Office or Factory bundle + BIDA registration, Bangladesh Bank share-issue reporting, provident and gratuity fund trust and NBR recognition, hand-off to Work Permit Support for expatriate staff |
All bundles include the gap audit, a compliance review before hand-over and the renewal calendar. Running the calendar month to month is quoted separately under Statutory Compliance; company formation is quoted under Startup Registration.
Frequently Asked Questions — Statutory Registration in Bangladesh
Eleven questions employers ask us
What do statutory registration services in Bangladesh include?
Statutory registration services in Bangladesh obtain and maintain the government registrations an employer must hold to hire and pay staff lawfully: TIN and withholding-tax registration with the NBR, VAT registration or enlistment, a trade licence, the DIFE commencement notice and establishment or factory licence, and, where thresholds apply, provident fund recognition, WPPF, group insurance and BIDA registration.
Payrollbangladesh delivers these as fixed-fee bundles — Office, Factory or Foreign-entity — with a gap audit first, government fees at cost, and a renewal calendar at hand-over.
Which registrations does a new company need before it can pay its first employee in Bangladesh?
Four at minimum: a company TIN registered as a withholding entity for salary tax deduction under s.86 of the Income Tax Act 2023; a trade licence for the premises; the notice to the Chief Inspector at least 15 days before work starts under s.326 of the Labour Act 2006; and a bank account, which needs the first two.
VAT registration, the DIFE licence, fund recognition and BIDA registration follow in the first weeks depending on turnover, headcount and ownership.
Is VAT registration mandatory for an employer in Bangladesh?
Only when turnover requires it. Under the VAT and Supplementary Duty Act 2012 as amended in January 2025, registration and a Business Identification Number are mandatory once annual turnover exceeds BDT 50 lakh, and enlistment for turnover tax applies between BDT 30 and 50 lakh; below that, registration is voluntary but often useful for input credit and tenders.
Thresholds move with Finance Acts, so we confirm the figure in force on the day we file.
What is the DIFE licence and does an office need one, or only a factory?
Both need one. DIFE licenses factories and also shops, offices, banks and other establishments under the Labour Act 2006 and Labour Rules 2015, with a fee class set by headcount, so an office needs an establishment licence just as a factory needs a factory licence. Applications go through DIFE’s official LIMA portal on Form 77.
Factories additionally need layout approval on Form 76, written approval of the premises, a fire licence and an environmental clearance before DIFE issues the licence.
How long does statutory registration take in Bangladesh?
An office bundle completes in six to ten weeks and a factory bundle in ten to fourteen. TIN, withholding registration and a trade licence take two to three weeks and VAT one to two; the DIFE licence runs on its statutory 45-working-day window (20 for renewal); fund recognition takes six to ten weeks.
Our own filing time is the part we control; government processing varies by office and season, and we tell you as soon as a date is at risk.
When does an employer in Bangladesh have to set up a provident fund, WPPF or group insurance?
Three triggers under the Labour Act 2006: group insurance is compulsory at 100 permanent workers (s.99); the Workers’ Profit Participation and Welfare Funds apply once paid-up capital reaches BDT 1 crore or fixed assets BDT 2 crore (s.234); and a provident fund under s.264 is required on written request of two-thirds of workers in establishments of 100 or more.
The provident fund trigger dates from the 2026 amendment. We monitor all three thresholds on your file and constitute each fund before the threshold is crossed.
What happens if a registration lapses or was never obtained?
Penalties stack. Late DIFE renewal attracts a 25%, 50% or 100% surcharge on the fee; a late quarterly withholding return costs the higher of 10% of last assessed tax or BDT 5,000, plus 2% monthly interest on late deposits; and breach of the Labour Act or Rules can bring up to three months’ imprisonment or a BDT 25,000 fine.
Beyond penalties, a missing BIDA registration blocks work permits and dividend remittance, and a lapsed trade licence blocks bank facilities. We regularise what is missing and put every item on one calendar.
What does a foreign-owned company have to register that a local company does not?
Two things in addition to the standard set: registration with the Bangladesh Investment Development Authority, which is also the foundation for expatriate work-permit applications, and reporting of share issuance to non-resident shareholders to Bangladesh Bank through the authorised dealer bank, which is what later allows dividends and expatriate salaries to be remitted.
We file both as part of the Foreign-entity bundle and keep the acknowledgements in the remittance file.
Do you also incorporate the company, or only register it as an employer?
Incorporation — name clearance, RJSC registration of a company, branch or liaison office permission from BIDA — is a separate service, our Startup Registration. This page covers everything that comes after the certificate of incorporation: the tax, VAT, municipal, labour-inspection, fund and investment-board registrations that make the entity a lawful employer.
Clients who need both get one quote and one document pack across the two services.
Which returns and renewals follow from these registrations each year?
Four recurring cycles: monthly TDS deposit and the quarterly withholding return under s.177 of the Income Tax Act 2023; the monthly VAT return once registered; the DIFE half-yearly return on Form 80 by 15 July and yearly return on Form 81 by 15 February under s.333 of the Labour Act 2006; and the annual trade-licence and DIFE-licence renewals.
All of them sit on the calendar we hand over, and our Statutory Compliance service runs that calendar for you if you prefer.
Which other Payrollbangladesh services pair with statutory registration?
The most common pairings are Startup Registration for the incorporation that comes before, Statutory Compliance for the returns and renewals that come after, the Corporate Payroll Service that runs on every number we obtain, and Tax Planning for the salary structure the withholding set-up will process.
Foreign employers add Work Permit Support once BIDA registration is in place and, where no entity exists yet, the Employer of Record track.
Need Every Employer Registration in Place Before Your First Payroll?
Get a fixed quote for statutory registration services in Bangladesh and a free gap audit of the registrations you already hold against the Income Tax Act 2023, the VAT & SD Act 2012 and the Labour Act 2006 — no obligation.
Payrollbangladesh · Rupayan Shopping Square, Suite 610, Bashundhara R/A, Dhaka 1229 · +880-1711-990010 · info@payrollbangladesh.com