Under the guideline of Bangladesh Investment Development Authority, Dhaka, Bangladesh, the Liaison office of foreign entities can promotes the activities of the parent company within Bangladesh but cannot get involved in any income generating activities. The Liaison office is not permitted to perform any trade, business or industrial activities in Bangladesh. Ultimately, under the rules of Bangladesh Liaison office act as a strait of communication between Parent company abroad and the affiliated parties in Bangladesh.

The difference between Liaison Office and Representative Office are practically none in Bangladesh as they both allowed doing same kind of activities and also limiting their actions through the same guidelines by BIDA.  

Permission from BIDA is required in order to set up a Liaison office of foreign entity in Bangladesh. An application in the prescribed form is required must be send to BIDA in order to seek the permission. The foreign entity must also transfer USD 50,000 to the local office’s account  in Bangladesh.