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Work Permits for Foreign Employees in Bangladesh

- Prepared by ACE Advisory

GOVERNMENT FEE NOTE
All government fees stated in this guide are subject to 15% VAT, unless otherwise specified.

1. WHO NEEDS A WORK PERMIT?

A foreign national employed in Bangladesh generally requires an appropriate visa and work permit before commencing employment. For BIDA-regulated entities, the applicable process depends on the nature of the Bangladesh operation.

Bangladesh Operation

BIDA Category

100% foreign-owned project

Foreign & Joint Venture Projects

Joint venture project

Foreign & Joint Venture Projects

Branch Office

Commercial Offices

Liaison Office

Commercial Offices

Representative Office

Commercial Offices

Entities operating under BEPZA, BEZA, BHTPA or other specialized authorities may follow separate procedures. Applications under BIDA are generally submitted through the BIDA One Stop Service (OSS) Portal.

2. BEFORE HIRING A FOREIGN EMPLOYEE

Bangladeshi nationals should generally be given preference. Before recruiting a foreign national, the employer should normally demonstrate reasonable efforts to identify a suitable Bangladeshi candidate.

  • Retain job advertisements, date of publication and details of the position.
  • Keep the online advertisement URL, where applicable.
  • Check the applicable local-to-foreign employee ratio.
  • Maintain an updated manpower statement showing local and foreign employees.
3. VISA RECOMMENDATION

Before applying for a work permit, the employer normally obtains the appropriate visa recommendation from BIDA. Depending on the entity and assignment, relevant categories include E, E1 and P1/PI visas. Typical documents include:

  • BIDA registration/office permission;
  • Corporate documents (MOA, AOA, Incorporation Certificate etc.);
  • Board Resolution;
  • Passport and photograph;
  • Appointment/service/transfer letter;
  • Academic and professional certificates;
  • Recruitment advertisement; and
  • Manpower statement.

Government Fee: No fee | Published processing time: generally, 24 hours / 1 day

4. OBTAIN THE VISA AND ENTER BANGLADESH

After receiving the visa recommendation, the foreign national applies for the relevant visa at the Bangladesh Embassy, High Commission or Consulate. The employee should enter Bangladesh using the appropriate visa. The visa and work permit are separate approvals.

5. APPLY FOR THE WORK PERMIT

The employer should submit the work permit application through BIDA OSS. For a newly arriving foreign employee, the application should generally be submitted within 15 days of arrival in Bangladesh.

Typical documents generally include:

  • Board Resolution;
  • Passport showing the appropriate visa and arrival stamp;
  • Appointment/service agreement;
  • Academic and professional qualifications;
  • Visa recommendation;
  • Manpower statement;
  • Corporate/office documents (MOA, AOA, Incorporation Certificate etc.); and
  • Other category-specific documents.

Particulars

Foreign & JV Projects

Commercial Offices

Government Fee

BDT 10,000/person/year

BDT 10,000/person/year

Approximate processing time

14 working days

14 working days

Commercial Office applications are subject to approval of the Inter-Ministerial Working Committee.

6. WORK PERMIT VALIDITY

A work permit is generally issued initially for one year. If employment continues beyond the validity period, the employer must apply for an extension. An extension is not automatic.

7. WORK PERMIT EXTENSION

An extension application should be submitted at least two months before expiry. The employer should demonstrate the continuing need for the foreign employee, justification for continued employment, efforts to develop a Bangladeshi replacement, training/upskilling arrangements and progress toward localization.

Foreign & Joint Venture Projects: Government Fee BDT 10,000/person/year; processing time 7 working days. An extension may generally be granted for one year or up to two years at a time, subject to applicable approval and security-clearance requirements.

Commercial Offices: Government Fee BDT 10,000/person/year, processing time 7 working days.

8. SECURITY CLEARANCE

Security clearance forms part of the work-permit process. BIDA has introduced a digital security-clearance process through OSS. The employer/foreign employee should ensure submission within the applicable period and monitor the status until clearance is obtained or deemed granted under the applicable procedure. Where an objection is raised, additional documents or a separate review/withdrawal process may be required.

9. AMENDMENT OF A WORK PERMIT

An amendment should be obtained where information or conditions stated in an existing work permit need to be changed, such as designation, salary/benefits, employment terms, passport details or other approved conditions. Approval should be obtained before implementing the change.

Particulars

Foreign & JV Projects

Commercial Offices

Typical documents

Re-appointment/revised appointment letter; latest work permit; Board Resolution; relevant other supporting documents

Office permission; first/latest work permits; Board Resolution; passport copies where applicable; revised employment documents; expatriate’s (foreign employee’s) tax clearance

Government Fee

BDT 3,000/person

BDT 3,000/person

Published processing time

3 days

3 days

10. CANCELLATION OF WORK PERMIT

A work permit should be cancelled when the foreign employee resigns, is transferred, ceases employment or otherwise no longer requires the permit. Cancellation should form part of the employer's formal offboarding process. The employer should also ensure applicable income-tax obligations are settled and relevant departure requirements are met.

11. COMMERCIAL OFFICE- CANCELLATION

BIDA's current Commercial Office service provides a specific cancellation process.

  • First and latest work permits.
  • Company income-tax clearance and expatriate income-tax clearance.
  • Previous years' tax certificate, where applicable.
  • Resignation letter/transfer order, Board Resolution and acceptance/release letter.
  • Passport showing latest departure seal and air ticket.
  • Updated list of local employees trained by the expatriate.

Government Fee: No fee | Published processing time: 3 days

12. FOREIGN & JOINT VENTURE PROJECTS- CANCELLATION

The current BIDA Foreign & Joint Venture Projects webpage does not provide a clearly differentiated cancellation fee/checklist; the information currently displayed under the cancellation heading appears to overlap with the new work-permit service. Accordingly, the applicable government fee and document checklist should be verified through BIDA OSS at the time of submission.

The employer should nevertheless be prepared to provide relevant documents such as first/latest work permits, resignation/transfer documentation, Board Resolution, tax clearance, passport/departure evidence and other documents requested by BIDA.

13. EMPLOYER'S COMPLIANCE CHECKLIST

Stage

Checklist

Before employment

☐ Confirm BIDA category ☐ Check manpower requirements ☐ Conduct local recruitment, where required ☐ Retain evidence ☐ Obtain Board approval ☐ Obtain visa recommendation ☐ Obtain visa

New work permit

☐ Confirm visa/arrival stamp ☐ Prepare passport & qualification documents ☐ Prepare manpower statement ☐ Prepare corporate/tax documents ☐ Submit within 15 days, where applicable ☐ Pay government fee & VAT ☐ Submit through OSS ☐ Complete security-clearance requirements

Extension

☐ Check expiry ☐ Apply at least 2 months before expiry ☐ Prepare justification ☐ Prepare localization/replacement plan ☐ Maintain training records ☐ Update documents ☐ Pay government fee & VAT ☐ Complete security-clearance requirements

Amendment

☐ Identify change ☐ Obtain Board approval ☐ Prepare revised documents ☐ Submit through OSS ☐ Obtain approval before implementing change ☐ Pay government fee & VAT

Cancellation

☐ Obtain resignation/transfer/release documents ☐ Board approval ☐ Settle tax liabilities ☐ Obtain tax clearance ☐ Submit cancellation ☐ Verify OSS fee ☐ Ensure departure ☐ Retain evidence



14. AT A GLANCE- BIDA WORK PERMIT SERVICES

Service

Foreign & JV Projects

Commercial Offices

New Work Permit

BDT 10,000/person/year | 14 working days

BDT 10,000/person/year | 14 working days

Extension

BDT 10,000/person/year | 7 days

BDT 10,000/person/year | 7 days

Amendment

BDT 3,000/person | 3 days

BDT 3,000/person | 3 days

Cancellation

No fee | 3 days

No fee | 3 days



GOVERNMENT FEE NOTE
All government fees stated in this guide are subject to 15% VAT, unless otherwise specified.

IMPORTANT
BIDA may revise fees, processing times, forms, documentary requirements and OSS procedures from time to time. Employers should verify the applicable requirements in the BIDA OSS Portal before submitting an application.

Source: BIDA Guidelines and current BIDA OSS service information for Foreign & Joint Venture Projects and Commercial Offices.

Disclaimer
This document is prepared by ACE Advisory for general reference only. It provides a simplified overview of the legal framework and should not be relied upon as formal legal or tax advice. Readers are encouraged to consult ACE Advisory or qualified professionals before taking any specific course of action.