How to Hire Employees in Bangladesh as a Foreign Company

Foreign companies can hire employees in Bangladesh in three main ways: engage contractors directly, use a local staffing partner or employer of record that employs the staff for you, or register a local entity. Most start with a partner because it is faster and avoids local setup.

Bangladesh has a young, English-speaking workforce, strong IT and back-office skills and costs well below most other markets. Dhaka is home to a fast-growing outsourcing sector. Our overview of the BPO industry in Bangladesh gives the wider picture.

Your options to hire employees in Bangladesh

1. Independent contractors

Quick and simple for one or two people. But you handle payments, equipment and security yourself, and long-term, full-time contractor arrangements can raise misclassification issues.

2. Staffing partner or employer of record

A local company legally employs the staff, runs payroll and handles compliance. A staffing partner also recruits, provides a secure office and supports HR. This is the most common choice for teams of one to 50 people. See employer of record vs offshore staffing for the difference.

3. Your own local entity

Registering a company with the Registrar of Joint Stock Companies and Firms gives full control, but takes months and needs local accounting, legal and HR support. It usually makes sense only for large, long-term teams.

Employment basics to know

• Labour law: the Bangladesh Labour Act sets rules on contracts, hours, leave and termination.
• Working hours: up to 48 hours a week, with overtime rules above that.
• Holidays: public holidays, including Eid, plus annual, casual and sick leave.
• Festival bonuses: two festival bonuses a year are standard practice.
• Contracts: written appointment letters with job, pay, hours and notice terms.
• Payroll: salaries paid monthly in taka, with income tax withheld where required.

Rules change, so confirm details with local counsel or your partner.

Salaries and cost

Salaries depend on role, skills and English level. Graduates in support or data roles cost far less than in the US or UK, and experienced developers, accountants and medical billers remain good value. Our guide to virtual assistant rates compares costs with India and the Philippines.

Finding good candidates

Strong candidates come from university networks, local job boards such as Bdjobs, LinkedIn and referrals. Test written English and real tasks, not just interviews. A local partner with an active recruiting team saves weeks.

Working hours for US and UK clients

Many offshore teams in Dhaka work night or evening shifts to overlap with US hours, or day shifts that overlap with the UK morning. Plan transport, security and shift allowances for night work.

Steps to get started

1. Define the roles, hours and budget.
2. Choose your hiring route.
3. Recruit and test candidates.
4. Issue written contracts.
5. Set up devices, accounts and security.
6. Train, review and give feedback in the first 90 days.

Why companies choose Bangladesh

• Cost: salaries well below the US, UK and many other offshore markets.
• Talent: a large pool of graduates in IT, business, accounting and healthcare-related fields.
• English: widely used in business, universities and IT.
• Growth: a government-backed push to grow the IT and outsourcing sector.
• Time zone: good overlap with UK mornings and workable night shifts for US clients.

Questions to ask a Bangladesh staffing partner

1. Who is the legal employer, and are you registered locally?
2. How do you handle festival bonuses, leave and overtime?
3. What does your office offer for power backup and internet redundancy?
4. How do you keep night-shift staff safe and supported?
5. What is your average staff tenure?

Working culture in Bangladesh

Bangladeshi professionals are known for loyalty, a strong work ethic and respect for hierarchy. That respect can mean people hesitate to question a manager or admit they are stuck. Make it clear that questions are welcome and that raising problems early is valued. Regular one-to-ones, written feedback and public recognition help build trust. Plan around major holidays such as the two Eid festivals, when many staff travel to their home towns and need leave at the same time.

Infrastructure to check

Ask any office provider about backup power, redundant internet links and secure building access. Good offices in Dhaka run generators or UPS systems and have at least two internet providers, so work continues during outages.

Key takeaways: hire employees in Bangladesh

• You can hire employees in Bangladesh as contractors, through a staffing partner or EOR, or via your own entity.
• Most foreign companies start with a local partner to avoid entity setup and compliance work.
• The Bangladesh Labour Act sets rules for contracts, working hours, leave and termination.
• Plan for two festival bonuses a year, public holidays and salaries paid in taka.
• Test candidates on written English and real tasks, and plan shifts around your time zone.

Hire in Bangladesh with Teamliva

Teamliva (Team Liva) is a Dhaka-based staffing and BPO company that recruits, employs and supports teams for US and UK businesses. See our outsourcing to Bangladesh guide, our best BPO company in Bangladesh page, or contact us.

For the official text of the Bangladesh Labour Act, 2006, see the government's Laws of Bangladesh database.