Which route fits your Bangladesh plan?
A candid, numbers-based comparison of hiring through an Employer of Record vs registering your own Bangladesh subsidiary — from 6+ years of running both models.
The honest, side-by-side comparison.
Neither route is universally better. Below is the trade-off matrix we use with prospective clients, based on 6+ years of running both models for our customer base.
| Dimension | Own entity (subsidiary) | Employer of Record |
|---|---|---|
| Time to first hire | 8–10 weeks (RJSC registration, TIN, BIN, bank, HR) | 5–7 business days |
| Upfront cost | USD 3,500–6,000 setup + local counsel + banking | USD 0 — no setup fee |
| Monthly recurring | Local finance/HR salary + accounting + auditor (~USD 3–5k) | USD 249 per employee (Starter tier) |
| Ideal team size | 10–15+ employees, planned long-term presence | 1–40 employees, market-testing or fast starts |
| Local control | Full — you own the entity, contracts, IP directly | You direct work + own IP; EOR is legal employer |
| Exit if it doesn't work | Complex wind-up: 6–12 months, ~USD 4–8k | 30-day notice; no exit fee |
| Compliance risk | Yours, in a system where you have no institutional memory | Ours, with a barrister-reviewed template refreshed quarterly |
| Best for | Long-term Bangladesh presence, physical premises, gov contracts | Foreign SaaS/BPO/agency scaling a distributed team |
Pick your own entity if…
- You plan 15+ Bangladesh headcount within 12 months
- You need a physical office/warehouse or government contracts
- You want to raise BDT-denominated debt or equity locally
- You have time (8–10 weeks) and USD 3,500–6,000 in setup budget
Pick EOR if…
- You want to hire 1–40 people distributed remotely
- You need someone on the payroll within days, not months
- You're testing Bangladesh as a talent market before committing
- You'd rather offload compliance risk to a local, licensed partner
Common hybrid path
Many of our clients start with EOR (fast, no upfront cost, low risk) and migrate to their own entity once they cross 15–20 headcount. We handle the migration at no exit fee — often through Rahman & Rahman Associates for the RJSC filing.
Common questions
How much does entity setup in Bangladesh actually cost?
Professional fees typically USD 3,500–6,000 depending on entity type (private limited, branch office, liaison office) and complexity. Government fees for RJSC, name-clearance, TIN, BIN and Trade Licence typically total another BDT 60,000–120,000. Add local counsel, banking KYC and office-lease commitments.
Can I switch from EOR to my own entity later?
Yes. Our MSA runs on a 30-day notice and there's no exit fee. When you're ready, we (a) close out PF / gratuity balances, (b) issue tax-clearance certificates, and (c) with employee consent, transfer the employment contract to your new local entity. Typical migration takes 4–6 weeks.
What is the withholding tax on service fees I pay to EORBangladesh?
Under NBR rules, cross-border service payments to Bangladesh can attract WHT depending on your jurisdiction and the applicable double-tax treaty. Our tax partner A.Q. Khan & Co. issues the required certificates. We map this out during MSA scoping so you know your all-in cost.
Ready to hire in Bangladesh?
Share your role and target start date. We come back within one business day with a costed, compliant plan — no obligations.