Bangladesh welcomes foreign professionals and investors, but working here legally takes two things: the correct visa and a work permit from the proper authority. Entering on a tourist or business visa and then taking up employment is a violation that can lead to fines, deportation and trouble for the employer. Here is how the process works.

Who issues the work permit?

The main visa categories

• E visa (Employment): for foreign nationals employed by a company in Bangladesh.
• PI visa (Private Investor): for foreign shareholders and investors in a Bangladeshi company.
• B visa (Business): for short business visits such as meetings. It does not allow employment.

Conditions the employer must meet

• The company must be properly registered, with a valid trade licence, TIN and, where relevant, BIDA registration.
• The position should be one for which suitable local expertise is not readily available. Employers are generally expected to advertise the post first.
• The foreign employee must have the qualifications and experience for the role.
• Authorities apply a ratio of local to foreign staff. Under BIDA guidelines this has commonly been 20 local employees to 1 foreigner for industrial enterprises and 5 to 1 for commercial offices, with some relaxation in the early period of operation.
• Companies with foreign ownership and branch or liaison offices are usually required to bring in a minimum inward remittance (commonly USD 50,000) as capital or operating funds.

Step-by-step process

1. Visa recommendation: the employer applies online through the authority's One Stop Service portal for an E visa recommendation letter.
2. Visa application abroad: the employee applies for the E visa at the Bangladesh mission in their country, using the recommendation letter and appointment letter.
3. Arrival in Bangladesh: the employee enters on the E visa.
4. Work permit application: the employer applies for the work permit, normally within 15 days of the employee's arrival.
5. Security clearance: the application is sent to the Ministry of Home Affairs for clearance. The permit may be issued subject to this clearance.
6. Visa extension: once the work permit is issued, the employee applies to the Department of Immigration and Passports to extend the visa to match the permit period.

Documents usually required

• Certificate of incorporation, Memorandum and Articles of Association of the employer
• Trade licence, TIN certificate and latest tax return of the employer
• Board resolution approving the appointment, with salary and benefits
• Appointment letter or employment contract
• Copy of the newspaper advertisement for the position, where required
• Passport copy with the E visa and arrival stamp
• Academic certificates, experience letters and CV of the employee
• Passport-size photographs
• Statement of total local and foreign manpower of the company
• Evidence of inward remittance, where applicable

Duration, fees and timelines

A first work permit is usually granted for one year and can be extended on application before it expires. Government fees and processing times are set by each authority and are revised from time to time. Through the BIDA online portal, a complete application is often processed within a few weeks, while security clearance can take longer. Start the extension process well ahead of the expiry date.

Tax obligations

• A foreign employee earning income in Bangladesh must obtain a TIN and file an income tax return.
• The employer must deduct tax at source from salary.
• An income tax clearance is normally needed for a work permit extension and before the employee finally leaves the country.
• Salary may be remitted abroad within the limits set by Bangladesh Bank rules.

Common mistakes

• Starting work on a business or tourist visa
• Applying for the work permit late after arrival
• Letting the visa or permit lapse before renewal
• Changing employer without cancelling the old permit and obtaining a new one
• Paying salary that does not match what was declared in the application

Employing a foreigner without the required permission exposes the employer to penalties under the tax and immigration laws, and the employee to removal from the country.

This article is for general information only and is not legal advice. Requirements, ratios and fees are updated by the authorities, so confirm the current rules with BIDA or the relevant authority, or consult an immigration lawyer. You can find suitable lawyers on Ukilpara.com.