PEO in Bangladesh for Employers With Their Own Entity

QUICK OVERVIEW

A Professional Employer Organization (PEO) in Bangladesh is a service partner that runs payroll, statutory deductions, HR records and labour-law compliance for a company that already holds a Bangladesh entity. Your company stays the employer under the Bangladesh Labour Act 2006. HRBD delivers this PEO service from Dhaka under a written service agreement, with every filing checked by its compliance team.

One PEO Partner for Your Bangladesh Entity

HRBD acts as the single PEO partner for your Bangladesh entity: one service agreement, one payroll lead, one compliance reviewer. The four facts below fix what that partnership covers before any scoping call, so your finance and legal teams know where the boundaries sit.

✓Built for companies that already hold a Bangladesh entity; companies without one are directed to the Employer of Record service.

✓Your company remains the employer under Bangladesh law; HRBD administers the employment, it does not employ.

✓Every payroll, deduction and statutory filing is reviewed by the HRBD Head of Compliance before release.

✓Scope, records and monthly sequence are fixed in a written service agreement before the first payroll run.

ON THIS PAGE

Who uses it Our commitments What it covers Six-step onboarding Governing laws PEO or EOR Resources FAQ

Get a PEO Quote

Who Uses a PEO in Bangladesh?

Three kinds of employer use the HRBD PEO service, and each already holds a Bangladesh entity. The service is scoped to that entity: HRBD runs the monthly payroll, the statutory deductions and the HR records, and the entity keeps every employment decision. Smaller teams get a dedicated scope on the PEO solutions for SMEs page; the three profiles below describe what each buyer receives.

Foreign Subsidiaries

A subsidiary registered in Bangladesh gets a payroll and compliance function without building a local HR team. You receive: monthly payroll and payslips, tax at source deposits, statutory registers, appointment letters aligned to the Labour Act 2006, and a single compliance report for the parent company. HRBD runs this arrangement under the Pro Co-Employer service for foreign subsidiaries.

Branch Offices

Offices approved by the Bangladesh Investment Development Authority employ local staff under the same labour law as any company. You receive: payroll for local and expatriate staff, work permit coordination, leave and benefit administration, and records kept in the form the office needs for its own reporting. Branch and liaison offices are covered by the same Pro Co-Employer service.

Local SMEs

A local company that has outgrown spreadsheet payroll gets a repeatable monthly process and a named compliance reviewer. You receive: payroll, tax at source, provident fund and gratuity administration, and HR policy templates. The detailed scope for smaller teams sits on the PEO solutions for SMEs page.

Four Commitments in Every HRBD PEO Agreement

Four commitments sit in every HRBD PEO agreement, written as obligations rather than as marketing language. Each one names what HRBD is answerable for, which law the work is built on, what happens to your records if the engagement ends, and how employee data is handled. They are the terms your finance and legal teams check before signing.

Accountability

A named HRBD compliance reviewer signs off every payroll and every filing. If a filing is late or wrong because of HRBD, HRBD corrects it and records the correction in your compliance log.

Continuity

Your entity stays the employer, so a change of provider never breaks service records, accrued leave or gratuity. HRBD hands over complete registers if the engagement ends.

Jurisdiction

Every process is built on Bangladesh law: the Labour Act 2006, the Labour Rules 2015 and the Income Tax Act 2023. HRBD does not apply foreign PEO templates to a Bangladesh entity.

Confidentiality

Employee data is used only for payroll, statutory filing and HR records, is accessed by named staff, and is returned on written instruction. The confidentiality clause sits in the service agreement itself.

What Does the PEO Service Cover?

The PEO scope is defined by boundaries, not by a menu of add-ons. The five lines below state what sits inside the monthly service for your Bangladesh entity and what sits outside it; the four service lines that follow show how HRBD delivers each part.

✓Covers monthly payroll, payslips and tax deducted at source for every employee on your Bangladesh entity, run by the HRBD payroll processing in Bangladesh team.

✓Covers appointment letters, service records and leave registers in the form the Labour Rules 2015 require.

✓Covers provident fund and gratuity administration where your entity operates them, and festival bonus calculation.

✓Covers onboarding and exit records, including final settlement calculations prepared for your approval.

✓Does not cover corporate tax returns, accounting, visa sponsorship in the HRBD name, or employment decisions.

HRBD prepares the appointment letter and service record in the form the Labour Rules 2015 require, so the file is complete before work starts.
New hires are briefed on payroll dates, leave rules and tax at source, which removes the questions that otherwise reach your managers.
Follow-ups in the first months resolve document gaps and record corrections while they are still simple to fix.

HRBD drafts service rules, leave policies and grievance procedures that match the Labour Act 2006 and your group standards.
Organisation design and grading are reviewed so that pay structures, allowances and benefits are consistent and defensible.
Managers receive practical guidance on discipline, transfers and separations so that decisions stay inside the law.

Payroll registers, tax at source deposits and provident fund records are reconciled line by line against source documents.
Each gap is listed with the rule it affects and the correction required, so the entity can close it before an inspection.
A signed compliance statement from the HRBD Head of Compliance supports board reporting and group audit requests.

Gratuity, provident fund and leave encashment liabilities are calculated and tracked so year-end provisions are not a surprise.
Restructuring, transfers and closures are costed under the Labour Act 2006 before a decision is taken, not after.
Payroll tax treatment of allowances and benefits is reviewed against the Income Tax Act 2023 to avoid reassessment.

Start With a PEO Call

A short call settles whether a PEO or an Employer of Record fits your situation, what records HRBD needs from your entity, and how the monthly sequence will run. You speak to the payroll lead and the compliance reviewer who would handle your account, not to a sales desk, and you leave with a written scope to review.

+8809606999121

info@hr.com.bd

Get a PEO Quote

How Does Onboarding Run?

PEO onboarding runs in six steps, from the entity check to the first monthly compliance report, and HRBD keeps the sequence identical on every engagement. Timelines are agreed at the scoping stage rather than promised in advance, because pace depends on headcount and on how complete your existing records are. Each step is signed off in writing before the next begins.

We confirm your Bangladesh entity type, registration status, headcount and current payroll arrangement, and list the records needed for takeover. Companies without an entity are routed to the Employer of Record service at this stage.

HRBD issues a written service agreement that fixes scope, records, confidentiality terms and the monthly sequence. Your entity signs as the employer; HRBD signs as administrator. Nothing is processed before signature.

Appointment letters, salary structures, tax identification numbers, leave balances and bank details are collected through a secure transfer and reconciled against your existing registers before any payroll is run.

Appointment letters, service rules and leave policies are checked against the Bangladesh Labour Act 2006 and the Labour Rules 2015. Gaps are listed for your decision, and HRBD drafts the corrections you approve.

Salary components, deductions, provident fund and gratuity treatment are configured, and the tax at source calculation is set up in the name of your entity with its National Board of Revenue references in place.

Each month HRBD runs payroll, issues payslips, deposits tax at source, updates the statutory registers and sends a compliance report signed by the Head of Compliance, so your entity holds a complete record at all times.

Which Bangladesh Laws Govern a PEO?

A PEO in Bangladesh has no statute of its own. The work is governed by the same laws that bind any employer, and HRBD applies them to your entity rather than to itself. The table names each obligation, what HRBD administers for it, and the source it rests on.

The Bangladesh Labour Act 2006 and the Labour Rules 2015 govern wages, leave, benefits, records and termination. The Income Tax Act 2023 governs tax deducted at source, administered by the National Board of Revenue (NBR). Workplace inspection sits with the Department of Inspection for Factories and Establishments (DIFE), and work permits for foreign nationals are issued by the Bangladesh Investment Development Authority (BIDA). HRBD keeps these duties current through its Bangladesh labour law compliance service.

Obligation	What HRBD administers	Governing source
Wages and payslips	Monthly computation, wage register, payslips	Bangladesh Labour Act 2006
Tax at source	Monthly deduction, deposit and annual salary statement	Income Tax Act 2023, NBR
Leave and festival bonus	Leave registers and bonus calculation	Labour Rules 2015
Provident fund and gratuity	Contribution and accrual records where operated	Bangladesh Labour Act 2006
Appointment and service records	Appointment letters and service books	Labour Rules 2015
Foreign national staff	Work permit coordination before payroll starts	BIDA

Monthly PEO Compliance Cycle

The monthly cycle is the same for every HRBD PEO client. Each stage produces a named record, and the record is what your entity holds if a regulator, an auditor or a group finance team asks for evidence. Statutory windows are met inside the cycle; the exact dates are set in your service agreement.

Stage	When in the cycle	Record produced
Payroll computation	Before the pay date	Wage register and payslips
Tax at source deposit	After the pay date, inside the statutory window	Deposit challan in the entity name
Register update	After each payroll run	Leave, attendance and service records
Compliance report	Month end	Report signed by the Head of Compliance
Annual salary statement	After the income year closes	Statement filed with NBR

Do You Need a PEO or an EOR?

The choice turns on one fact: whether your company holds a Bangladesh entity today. A PEO administers employment for an entity you already have. An Employer of Record employs staff on your behalf when you have none. HRBD offers both, and the scoping call confirms which one applies before any agreement is drafted.

Choose a PEO when

✓You already hold a Bangladesh entity, such as a private limited company, branch or liaison office

✓You want to remain the legal employer of your staff and keep every hiring and termination decision

✓You need payroll, tax at source, statutory filings and HR records run for you each month

✓You want a named compliance reviewer at HRBD to sign off every filing before it leaves

Choose an EOR when

✓You have no Bangladesh entity yet and do not plan to incorporate before hiring

✓You need staff on payroll before incorporation is complete

✓You want HRBD to be the legal employer on your behalf under Bangladesh law

✓Read the Employer of Record in Bangladesh page and the EOR vs PEO comparison

Where Do Employers Find Compliance Resources?

These references sit alongside the PEO service rather than inside it. Employers use them to prepare records before the scoping call, to brief internal teams on Bangladesh employment duties, and to keep day-to-day practice aligned between monthly reports. HRBD maintains each of them on this site.

HR Compliance Checklist for Bangladesh Payroll Tax Compliance and Filing Work Permit and Visa Processing Employee Onboarding in Bangladesh

Frequently Asked Questions

These are direct answers to the questions finance and legal teams ask before signing a PEO agreement, written so the first sentence of each answer is the answer itself. Anything the list does not cover is settled at the scoping call, where scope, records and sequence are fixed before any work begins.

Is a Bangladesh entity required for PEO?

Yes. A PEO in Bangladesh works only with a company that already holds a local entity, such as a private limited company, a branch office or a liaison office. The entity remains the employer, and HRBD administers payroll and compliance on its behalf. Companies without an entity are served through the HRBD Employer of Record service instead.

Who is the employer under a PEO?

Your company is the employer. Under the Bangladesh Labour Act 2006 the appointment letter, the service record and the statutory duties sit with the entity that engages the worker. HRBD acts as administrator under a service agreement: it prepares, files and records, while decisions such as hiring and termination stay with you.

Does Bangladesh law recognise co-employment?

No. The Bangladesh Labour Act 2006 has no co-employment concept of the kind used in the United States. It recognises an employer and, in defined cases, a contractor. HRBD therefore describes its PEO service as outsourced HR and payroll administration for your entity, not as shared employment, and drafts the service agreement on that basis.

Who files income tax under a PEO?

The entity files and HRBD prepares. Tax deducted at source from salaries is computed by HRBD each month, deposited in the name of your entity with the National Board of Revenue, and reported in the annual salary statement. Your entity keeps its own tax identification number, so nothing is filed under the HRBD name.

How long does PEO onboarding take?

Onboarding time depends on headcount and on how complete your employee records are. HRBD fixes the sequence at the scoping stage: entity check, service agreement, data transfer, contract alignment, payroll setup and first run. Each stage is signed off in writing before the next begins, so the timetable is agreed with you rather than promised in advance.

Can we switch from another PEO provider?

Yes. HRBD takes over from an existing provider through a documented handover: current payroll registers, tax deposit records, leave balances and appointment letters are collected and reconciled before the first HRBD payroll run. Your employees keep their service continuity and accrued benefits because the employer, your entity, does not change.

How is employee data kept confidential?

Employee data is held under a confidentiality clause in the service agreement, with access limited to the named HRBD payroll and compliance staff assigned to your account. Records are used only for payroll, statutory filing and HR administration. The data belongs to your entity and is returned or deleted at the end of the engagement on written instruction.

Does the PEO handle work permits?

Work permits are handled as a linked service, not inside the PEO scope. Foreign nationals on your Bangladesh entity need a work permit from the Bangladesh Investment Development Authority before payroll can start. The HRBD work permit and visa team processes the application, and the PEO team adds the employee to payroll once approval is issued.

What does the HRBD PEO not cover?

The PEO does not employ your staff, does not sponsor visas in its own name and does not make hiring or termination decisions. It also excludes accounting, corporate tax returns and company secretarial filings, which sit with other HRBD services. The PEO scope is payroll, statutory deductions, HR records and labour-law compliance for your entity.

10.

What happens after we send an enquiry?

HRBD replies with a scoping call invitation. On the call you confirm your entity type, headcount and current payroll setup. HRBD then sends a written scope and service agreement for review. Once signed, the onboarding sequence on this page starts with the entity check, and you receive a named payroll contact and a named compliance reviewer.

Reviewed by Romana Aktar, Head of Compliance, HRBD

Payroll, statutory filing and labour-law compliance for PEO clients, Bangladesh.

Statutory sources: the Bangladesh Labour Act 2006, the Labour Rules 2015 and the Income Tax Act 2023. Primary reference: Bangladesh Labour Act 2006 (official text).

Start Your PEO Onboarding With HRBD

Start PEO Onboarding