Employer of Record India for Bangladesh Companies — Expand Indian Operations Compliantly

Bangladesh and India share one of South Asia’s most active bilateral trade corridors — connected by geography, shared culture, and a deeply intertwined textile and garment supply chain. Bangladesh is one of the world’s largest garment exporters, and a significant portion of that supply chain — from yarn and fabric to accessories and packaging — runs through India. Bangladeshi companies with India sourcing, distribution, or market operations often need India-based staff quickly and compliantly. Employer of record India for Bangladesh companies provides exactly this: TMS manages the legal employer function for your India-based workforce, handling all payroll, compliance, and HR administration under Indian law.

Why Bangladeshi Companies Need India EOR

Bangladesh’s garment and textile industry sources yarn, fabric, chemicals, and accessories extensively from India — particularly from Tamil Nadu, Gujarat, and Maharashtra textile belts — requiring India-based sourcing and quality teams
Bangladeshi trading companies with India import-export operations need India-based logistics and customs coordination staff
Cross-border service companies — IT, fintech, and consulting firms — are building India offices to access a larger talent pool and domestic market
Bangladeshi conglomerates diversifying into India market-facing businesses need local sales and operations teams in Kolkata, Delhi, or Mumbai
India’s northeast corridor connectivity and infrastructure investment creates new trade facilitation roles that Bangladeshi companies need to staff in India

India entity setup takes three to six months and ₹15 to 25 lakh per DPIIT and MCA. TMS EOR gets Bangladeshi companies hiring in India within 7 to 10 business days.

What TMS EOR Covers for Bangladesh Companies

TMS manages the complete legal employer function for your India team. Our EOR service covers:

Employment contracts in English — Compliant with applicable Indian state and central laws
Monthly payroll in INR — Salary computation, TDS deduction, payslips, net pay disbursement
Provident Fund — EPF registration, employer and employee contributions, ECR filing, UAN management
ESIC — Registration, monthly contributions, and returns for eligible employees
Professional Tax — State-specific PT deductions and remittances
Gratuity and bonus — Correct statutory provisioning and payment
HR administration — Offer letters, joining documents, leave tracking, F&F settlement

Full compliance scope at Statutory Compliance Services.

5-Step Process to Hire in India from Bangladesh

Requirement brief — Share role, CTC, India city (Kolkata, Mumbai, Delhi, Tamil Nadu cities), and start date
Contract preparation — TMS drafts English-language, India-law employment contracts within 48 hours
Employee onboarding — KYC, PF/ESIC registration, bank verification — 2 to 3 working days
Payroll go-live — Salary credited, TDS deposited, statutory challans paid on schedule
Ongoing management — Monthly payroll, quarterly/annual returns, dedicated TMS HR pod

Compliance Areas for Bangladeshi Companies in India

FEMA compliance — Service fee payments from Bangladesh to TMS India are international remittances governed by FEMA and RBI guidelines
India-Bangladesh bilateral agreements — Trade facilitation agreements between India and Bangladesh govern goods flows; employment of Indian staff is governed solely by Indian labour law
State-specific acts — West Bengal (Kolkata), Maharashtra (Mumbai), Delhi — TMS handles each state’s compliance correctly
PE risk — EOR structure limits permanent establishment risk for the Bangladeshi entity

EOR vs. India Entity Setup for Bangladesh Companies

India entity — ₹15 to 25 lakh, 3 to 6 months, ongoing ROC filing and audit obligations
TMS EOR — Fixed monthly per-employee fee, 7-day start, zero entity maintenance

See India company registration for when a subsidiary becomes appropriate.

Bangladeshi Industries Using India EOR

Garment and Textile — RMG (ready-made garment) exporters needing India-based fabric, yarn, and accessory sourcing managers in Tirupur, Surat, and Mumbai
Trading and Import-Export — Commodity and goods trading companies needing India logistics and customs coordination staff in Kolkata and Delhi
IT and Software — Bangladeshi IT companies building India development and sales teams
Pharmaceuticals — Bangladeshi pharma companies with India API sourcing or market development operations
Consumer Goods — Bangladeshi FMCG companies entering the India market with distribution and sales teams

Why TMS vs. Global EOR Platforms

South Asia expertise — TMS understands the India-Bangladesh trade corridor and the specific employment needs of cross-border businesses
India-only focus — Deep compliance knowledge for every Indian state
20+ years of experience — Serving trading, manufacturing, and services companies since 2004
Kolkata presence awareness — TMS understands the West Bengal compliance environment relevant to Bangladesh-India corridor businesses
Dedicated HR pod — One IST-based contact for all your India HR needs

Frequently Asked Questions

Q1: Can a Bangladeshi garment exporter hire a fabric sourcing manager in Tirupur without an India entity?
Yes. TMS employs the sourcing manager on your behalf. Tamil Nadu compliance is fully managed by TMS. The manager works under your company’s sourcing direction.

Q2: How does TMS invoice Bangladeshi clients — in BDT, USD, or INR?
TMS invoices in USD or INR. Payment from Bangladesh to India via international wire transfer follows RBI FEMA remittance guidelines. TMS provides the necessary documentation for your bank’s remittance process.

Q3: Can a Bangladeshi IT company hire developers in Dhaka-adjacent West Bengal through TMS?
TMS covers employees across India including West Bengal. For Kolkata-based employees, West Bengal Shops and Establishments Act and applicable central laws apply. TMS manages all West Bengal-specific compliance.

Q4: Is there any restriction on Bangladeshi companies hiring Indian nationals through EOR?
No. Hiring Indian nationals through a TMS EOR arrangement has no nationality restrictions. The employment relationship is between TMS (as employer) and the Indian national employee, with your Bangladeshi company as the service client.

Q5: How long does the TMS onboarding process take for a Bangladeshi client’s first India hire?
From engagement confirmation to the employee’s first working day, the process takes 7 to 10 business days. This includes contract preparation, KYC collection, PF/ESIC registration, and payroll setup. In urgent cases, TMS can compress this to 5 business days.

Hire in India from Bangladesh — Start in One Week

TMS gives Bangladeshi companies a fast, compliant, and cost-effective route to building India teams without entity complexity.

Contact TMS for a Bangladesh-to-India EOR proposal. See also EOR in India and EOR services overview.

Bangladeshi Companies Hiring in India — What to Know

India and Bangladesh are immediate neighbours and fellow SAARC members, sharing a long land border, a common time zone, and close commercial ties across textiles, pharmaceuticals, technology services, and trading. The geographic proximity and shared working hours make India a practical location for Bangladeshi companies to build teams for technology development, customer support, and operations support. An Employer of Record allows a Bangladeshi company to engage India-based staff compliantly without itself incorporating an India entity. TMS provides Bangladeshi clients with India-law-compliant employment and payroll administration, backed by 20+ years of operating experience and presence across 100+ cities.

India Employment Law for Bangladeshi Employers

Bangladeshi employment practices governed by the Bangladesh Labour Act 2006 have no application to employees based in India. While the two countries share regional and legal heritage, India operates its own employment framework: 29 central labour laws being consolidated into four Labour Codes, supplemented by state-specific legislation. Bangladeshi employers should plan for India statutory benefits administered as employer obligations.

Statutory Benefits: India employers contribute to the Employees’ Provident Fund (12% of basic salary by the employer), the Employees’ State Insurance scheme where wage thresholds apply, and Professional Tax in the relevant state; TMS administers all of these.
Gratuity: The Payment of Gratuity Act 1972 entitles employees to a lump-sum gratuity after five years of continuous service.
Termination Notice: Notice periods are typically 30–90 days; establishments with 100 or more workers require prior government approval for retrenchment under the Industrial Disputes Act 1947.
Non-Compete Clauses: Post-employment non-competes are largely unenforceable in India under Section 27 of the Indian Contract Act 1872.
FEMA Compliance: Cross-border payments from the Bangladeshi company to TMS India for EOR services must comply with the Foreign Exchange Management Act and RBI guidelines on inward remittances; TMS structures invoicing under the correct purpose code for management and technical services.

Tax & DTAA Considerations for Bangladesh-India Employment

The India-Bangladesh Double Tax Avoidance Agreement provides that salary income earned by a resident of India for employment exercised in India is taxable only in India — the Bangladeshi company does not withhold Bangladeshi income tax for India-based employees on India payroll. TMS deducts India TDS monthly under Section 192 of the Income Tax Act and files quarterly returns. Bangladeshi companies should be aware of Permanent Establishment exposure: under Section 9 of the Income Tax Act and the DTAA, if India-based employees habitually conclude contracts on behalf of the Bangladeshi entity, the Indian tax authorities may assert a PE. The TMS EOR structure, under which TMS India is the sole legal employer, is the standard mechanism used to contain this risk.

How TMS Manages India EOR for Bangladeshi Companies

TMS onboards India employees for Bangladeshi companies within 2–3 weeks of receiving confirmed hire details. The shared India-Bangladesh time zone allows real-time coordination during onboarding and ongoing payroll cycles. Salary is disbursed to employees in Indian Rupees as Indian law requires, with monthly summaries provided in INR and BDT equivalent.

Candidate Onboarding (Days 1–5): TMS issues an India-law-compliant employment contract, collects statutory documents (PAN, Aadhaar, bank details), and registers the employee under EPF, ESIC where applicable, and Professional Tax.
Payroll Structuring (Days 5–10): TMS designs a cost-to-company structure optimised for India tax efficiency, aligned with the compensation approved by the Bangladeshi company.
Monthly Payroll & FEMA-Compliant Invoicing (Ongoing): TMS processes payroll, deposits EPF and ESIC contributions, deducts and deposits TDS, files quarterly returns (Form 24Q), and raises FEMA-compliant invoices to the Bangladeshi company.
Compliance Reporting (Monthly): TMS provides a consolidated monthly report covering per-employee cost breakdown, statutory contributions, leave balances, and compliance calendar items, with a BDT equivalent for the client’s finance team.

Frequently Asked Questions — Bangladeshi Companies Hiring in India

We are in the same time zone as India. Does that simplify working with a TMS EOR team?

Yes. India and Bangladesh share the same working hours, so coordination during onboarding, payroll review, and day-to-day management happens in real time, without the lag common in transcontinental EOR arrangements. TMS account teams operate on India business hours, which align closely with yours.

Can our India employees be paid in Bangladeshi Taka?

No. Indian employees must be paid in Indian Rupees through an India bank account. EPF, ESIC, Professional Tax, and TDS are all computed and deposited in INR, and the Payment of Wages Act requires wages in Indian currency. TMS disburses salary in INR and invoices your company, with a BDT equivalent shown for reference only.

Does India’s labour law differ much from the Bangladesh Labour Act we are used to?

Yes. Although the two countries share regional heritage, India operates a separate framework — 29 central labour laws being consolidated into four Labour Codes, plus state-specific Shops and Establishments legislation governing leave, working hours, and termination. Statutory benefits such as EPF, ESIC, and gratuity are India-specific obligations. TMS, as the Indian legal employer, manages full compliance with this framework so your team does not need to interpret it.

How Bangladeshi Companies Position Teams Across India

Bangladeshi companies enjoy two practical advantages when building India teams that few other foreign employers share: a shared time zone — Indian Standard Time is just thirty minutes behind Bangladesh — and close geographic proximity, which makes occasional in-person visits straightforward. This shapes how teams are built. Rather than treating the India team as a remote outpost, many Bangladeshi employers run it as a closely integrated extension of their head office, with daily working hours that align almost completely.

Sector patterns are clear. Textile and ready-made-garment exporters most often place quality-control, merchandising and sourcing roles in established Indian textile and apparel clusters, where proximity to fabric mills and trims suppliers matters. IT and software firms favour Kolkata and Bengaluru, with Kolkata being a natural fit given its closeness to Bangladesh and a shared linguistic and cultural context that eases onboarding. Trading and import-export businesses tend to start with documentation, logistics-coordination and vendor-management roles, frequently in West Bengal so the team sits near cross-border trade routes.

Typical first hires are modest and function-focused — a quality lead with two or three inspectors, or a small software pod with a team lead and a few developers — which keeps the engagement low-risk while the working relationship is established. TMS, in operation since 2006 with more than 8,500 employees deployed for over 450 clients, helps Bangladeshi companies choose locations and role mixes that make day-to-day coordination simple rather than treating distance as a problem to be managed.

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HEAD OFFICE

1003-04, 10th floor G-Square Business Park, Jawahar Road, Opposite Railway Station, above Kalyan Jewellers, Ghatkopar East, Mumbai – 400077

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Contact TMS:

+91-224-149-8942
+91-224-896-7640

+91-913-602-4090

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For Jobs:
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