When you’re ready to expand your company to a new location such as Bangladesh, you have plenty to take care of. You need to hire the right employees, set up your Bangladesh payroll, and give out the correct benefits to all employees. However, before you can do all of this, you have to establish a subsidiary in the country. Globalization Partners can help you from the beginning by acting as the Employer of Record, taking the burden of payroll compliance off your shoulders and onto our own.
Taxation Rules in Bangladesh
As an employer, you have to make sure you are staying up on all of Bangladesh’s payroll taxation rules. The country follows a progressive tax rate ranging from 10 to 30%, but there isn’t any social security tax. Employers are responsible for a 35% corporate tax rate as a non-listed entity or a 25% tax as a publicly listed entity.
Different industries have their own taxation rules that you need to pay attention to. For example, ready-made garment manufacturers may pay a corporate income tax of only 14% if they meet certain requirements. Cigarette makers, cell phone manufacturers, and other industries may also see varying tax rates.
Bangladesh Payroll Options for Companies
You have four main Bangladesh payroll options to choose from:
- Remote: If you choose remote payroll, you will add your employees in Bangladesh to your parent company’s payroll. However, the different groups of employees will follow different tax codes, laws, regulations, and more.
- Internal: An internal Bangladesh payroll option is great for larger companies that are committed to the country. This option will require more HR staff, a larger budget, and additional resources to learn about Bangladesh tax code and employment law.
- Bangladesh payroll processing company: You can also choose to work with a Bangladesh payroll processing company that handles your payroll for you. Your company will still be held liable, however, for any mistakes that company makes.
- Bangladesh payroll outsourcing: Choose Bangladesh payroll outsourcing with Globalization Partners for the greatest benefit. We can handle your payroll and also take on matters of compliance, so you won’t have any worries about the process.
How to Set Up a Payroll in Bangladesh
Before you can set up your Bangladesh payroll, you need to establish a subsidiary. The entire process can take months before you’re even ready to hire employees and run your payroll. Instead, you can work with Globalization Partners to take the process down from a few weeks to a few days. We can hire employees to work on your behalf and ensure you’re compliant with your payroll, compensation, and more.
Globalization Partners recommends drafting a written employment contract that includes entitlement and termination terms for every employee. For example, clerical workers get a six-month probationary period, while other employees get a standard three-month probation. Termination requires giving employees a 120 day written notice for monthly rated workers or 60 days for all other workers. Every employee is entitled for 30 days of pay for each year they worked for the company.
Payroll Processing Company in Bangladesh
Globalization Partners will make setting up your Bangladesh payroll easier, without all the hassle of compliance. Contact us today to learn more.