PEO Offshore Employment in Bangladesh for Foreign Firms

QUICK OVERVIEW

PEO offshore employment is a co-employment model in Bangladesh. A foreign company employs staff here through HRBD. HRBD becomes the legal employer of record. HRBD handles the contracts, monthly payroll and Labour Act 2006 compliance. Your company directs the daily work of the offshore team.

What Does PEO Offshore Employment Cover?

The service covers the full legal-employer role in Bangladesh. HRBD issues and renews the contracts. HRBD runs payroll each month. It deducts income tax at source and files with the NBR. It also keeps provident fund, gratuity and leave records. Your company directs the team. HRBD carries the statutory side under the Labour Act 2006.

Contracts and compliance paperwork for PEO onboarding

Local Employment Contracts

HRBD becomes the legal employer of record in Bangladesh and issues compliant contracts for your offshore staff under the Labour Act 2006.

Payroll and records setup for a new hire in Bangladesh

Payroll, Tax and Records

HRBD runs monthly salary, income-tax deduction at source, NBR filing and statutory records for every offshore employee.

Remote hire integration support from HRBD

Provident Fund and Gratuity

HRBD administers provident fund, gratuity and leave so your Bangladesh offshore employment stays compliant while you manage the work.

Who Uses PEO Offshore Employment?

This model works for three kinds of employer. The first is a foreign company building its first local team. The second is a firm that already has a Bangladesh entity. The third is a startup turning contractors into employees. In each case HRBD becomes the co-employer of record. HRBD holds the contracts, payroll and compliance. Your company keeps day-to-day control.

Foreign Firms Building a Bangladesh Team

Foreign companies use this model to place staff in Bangladesh. They avoid running local payroll and compliance in-house. HRBD becomes the legal employer. HRBD issues the contracts. HRBD handles income tax and provident-fund filing. Your managers keep full control of the team. This suits firms hiring their first people here.

Firms With a Local Entity

Some firms already have, or plan, a Bangladesh entity. Co-employment lets HRBD share the employer role from day one. HRBD runs payroll and keeps statutory records. HRBD handles Labour Act 2006 compliance under your presence. Your team is onboarded and paid correctly. You keep directing the work and giving approvals.

Startups Converting Contractors

Startups that pay Bangladeshi contractors often need to convert them into compliant employees to reduce misclassification risk. HRBD employs them under proper contracts, moves them onto monthly payroll with tax deducted at source, and keeps the statutory records, so the working relationship is documented and lawful from the first month.

Who Handles Each Employment Task?

HRBD handles the legal-employer tasks. Your company handles direction and approvals. HRBD drafts the contracts. HRBD processes payroll. HRBD deducts and files tax. HRBD keeps the statutory records. You set the role. You approve the salary. You manage the daily work. The table below shows the split, task by task.

Who does what in the co-employment model
TaskHRBD handlesYour company provides
Employment contractDrafts, signs and renewsRole, salary and start date
OnboardingCollects records, sets up payrollJob details and reporting line
Monthly payrollCalculates and pays salaryApproves salary and changes
Income taxDeducts at source, files with NBRNot required
Provident fund and gratuityAdministers contributions and accrualsEmployer share, where it applies
Leave and recordsMaintains statutory leave recordsApproves leave requests
Daily workNot applicableDirects and manages the team
Exit and settlementPrepares final dues and recordsConfirms the last working day

Tax deducted at source is deposited under rules administered by the National Board of Revenue.

How Does Offshore Onboarding Work?

Offshore onboarding runs through four clear steps. First you share the role and start date. Then HRBD signs the co-employment agreement and the local contract. Next HRBD issues the contract and collects records. Finally HRBD runs payroll each month. HRBD files tax with the NBR. Every step follows the Labour Act 2006.

How HRBD onboards your offshore staff, step by step
StepStageWhat happens
1Share the roleYou send the role, seniority, salary range and start date.
2Sign the PEO agreementHRBD sets up the co-employment framework and the local contract.
3Onboard the hireHRBD issues the contract, collects records and registers payroll.
4Run monthly payrollHRBD pays salary, deducts tax and files with the NBR each cycle.

Why Employ Offshore Staff Through HRBD?

Employers choose HRBD for three reasons. The first is accountability. One named HRBD owner runs your account. The second is jurisdiction. Every contract and filing follows Bangladesh law. The third is continuity. Payroll and compliance keep running through staff changes. Together these let a foreign firm run a compliant team without its own local setup.

1

Accountability

Each offshore employment file has a named HRBD owner, so responsibility for contracts and payroll sits with one local partner.

2

Confidentiality

Salary, identity and personal records stay inside HRBD systems and are shared only with your authorised contacts.

3

Continuity

Payroll and compliance continue through staff changes, so your Bangladesh team keeps running without gaps.

Does Support Continue After Onboarding?

Yes. The service covers the whole employment cycle. It does not stop after the first day. HRBD keeps paying salary and issuing payslips. HRBD files income tax each month. HRBD keeps provident fund, gratuity and leave records. HRBD also handles audits, renewals and final settlement. You direct the work. HRBD keeps the employment lawful.

After onboarding, HRBD keeps the employment running every month in Bangladesh, so nothing lapses:

  • ✓Salary paid and payslips issued
  • ✓Income tax deducted and filed with the NBR
  • ✓Provident fund and gratuity records kept
  • ✓Leave and attendance records maintained

You direct the work while HRBD stays accountable for compliance across the whole engagement:

Where Can Employers Check the Rules?

Official sources. Employers can check the rules in Bangladesh primary sources and HRBD guides. The main law is the Bangladesh Labour Act 2006. Tax duties fall under the National Board of Revenue. Foreign hiring needs work-permit and investment approvals. The pages below explain each area in plain words. Each one links to the official source.

Bangladesh Labour Law Compliance

A plain summary of contract, leave, provident fund and gratuity duties.

Work Permit and Visa Processing

The route for foreign nationals working in Bangladesh.

Employment Contract Management

How HRBD drafts, reviews and renews offshore employment contracts.

Tax and NBR Filing

How salary tax is deducted and deposited under NBR rules.

What Do Foreign Firms Ask About PEO?

Foreign firms ask the same core questions about offshore employment. What is the model? How does it differ from an Employer of Record? Who is the legal employer? What does it cost? How do you choose a provider? Each answer below opens with the direct reply. Anything specific to your company is settled in the consultation.

What is PEO offshore employment?▾
PEO offshore employment is a co-employment model in which HRBD acts as the legal employer in Bangladesh for the staff of a foreign company. HRBD manages contracts, payroll and compliance, while the client company directs the daily work of the offshore team.
How is PEO different from EOR?▾
PEO co-employment suits a company that has, or plans, a local entity in Bangladesh, while an Employer of Record needs no entity because HRBD becomes the full legal employer. Both models let a foreign firm run a compliant offshore team in Bangladesh.
Who is the legal employer of the staff?▾
HRBD is the legal employer of record in Bangladesh and holds the employment contracts, payroll and statutory duties. The client company keeps operational control and directs the daily tasks of the offshore employees throughout the engagement.
Can we hire without a local entity?▾
Yes. If you have no entity in Bangladesh, the HRBD Employer of Record service becomes the full legal employer instead of PEO co-employment. You can hire, onboard and pay staff in Bangladesh without setting up a company first.
How is PEO cost structured in Bangladesh?▾
PEO cost in Bangladesh has two parts: a service fee for the co-employment administration and the statutory cost of employment, which covers provident fund, gratuity and any workers fund contribution. The total moves with headcount, salary level and role, so HRBD gives a written cost breakdown after a short scoping call, letting you see the full figure before any agreement is signed.
How do I choose a PEO in Bangladesh?▾
Choose a PEO that is a registered legal employer in Bangladesh, handles Labour Act 2006 compliance directly, and names one accountable owner for your account. Check how payroll, tax filing and personal records are managed. HRBD covers each of these as the co-employer of record.

Build Your Offshore Team in Bangladesh

Send the role and start date you have in mind, and HRBD will outline the co-employment setup.

Reviewed by Romana Akther Shila

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