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Bangladesh PEO: Benefits & Best Services in 2024

VERDICT: The leading Bangladesh PEO in 2024 is Horizons. With strong talent networks and expert support staff on the ground, Horizons will have your Bangladesh team up-and-running within days. 

Key Takeaways

  • Bangladesh PEOs facilitate business entry into Bangladesh by managing HR functions.
  • Co-employment with a Bangladesh PEO reduces the need for a local entity.
  • Using a PEO in Bangladesh can lead to quicker market access and risk mitigation.
  • The top 5 Bangladesh PEOs in 2024 are Horizons, Ace Advisory, Remunance, Skuad and Atlas. 

What is a Bangladesh PEO?

In Bangladesh, Professional Employer Organizations (PEOs) offer valuable HR outsourcing services tailored for international businesses looking to expand or establish their presence in-country. 

PEOs provide a co-employment arrangement where they undertake various administrative and HR responsibilities. Key services include:

  • Payroll Processing: Ensuring employees are paid accurately and on time.
  • Compliance: Navigating the complex web of local employment laws and regulations.
  • Benefits Administration: Managing employee benefits efficiently.
  • Onboarding: Streamlining the process of integrating new employees into the company.

The distinction between PEO and Employer of Record (EOR) services is also crucial. A PEO enters a co-employment arrangement with the client company, handling HR tasks. At the same time, an EOR becomes the legal employer of the client’s workforce, generally used for risk mitigation and legal compliance.

Many providers in Bangladesh use the terms PEO and EOR interchangeably. 

Businesses opting for PEO services in Bangladesh may benefit from partnering with a Professional Employer Organization, which can lead to cost savings, risk mitigation, and compliance with employment laws, thanks to the pooled resources and HR expertise these organizations provide.

Top 5 Bangladesh PEOs

  1. Horizons: Horizons is an international PEO platform with a strong reputation for supporting global businesses expanding into Bangladesh.  They offer tailored Bangladesh expansion solutions, including visa support and recruitment, alongside their PEO services. For the breadth of their Bangladesh offering, Horizons is our choice as the Best Bangladesh PEO in 2024. 
  2. Ace Advisory are a professional services firm providing a range of Bangladesh business expansion and hiring solutions. Alongside PEO and EOR services, Ace Advisory can support your company with incorporation in Bangladesh, business process outsourcing, tax and accounting services. 
  3. Remunance: Remunance is a global PEO provider with a strong focus on hiring in South Asia. One differentiator is that Remunance also offer subsidiary incorporation services for companies that seek to have a legal entity in Bangladesh. 
  4. Skuad: Skuad are a PEO SaaS solution long-recognized as one of the more cost-effective hiring solutions in Bangladesh and throughout the region. 
  5. Atlas: Atlas provide international PEO solutions with a difference: They have a wholly-owned entity in every country of hire. This makes them a strong option in Bangladesh and elsewhere were an international company wishes to avoid working with subcontractors. 

What Are the Benefits of Expanding and Hiring in Bangladesh?

PEO services are primarily used in Bangladesh by international companies looking to expand into and hire talent there. So why would a global company choose Bangladesh as a hiring location?

First of all, Bangladesh’s economy has been one of the fastest-growing in the world, with the World Bank reporting an average growth rate of around 6% annually over the past decade. This growth is primarily fueled by a robust manufacturing sector and a burgeoning middle class.

Second, the country’s strategic location as a bridge between South and Southeast Asia adds to its appeal for businesses looking to tap into both markets. 

Third, the government of Bangladesh has initiated various policies to attract foreign investment, including tax incentives, export processing zones, and simplified business procedures. The World Bank’s Ease of Doing Business Index has noted improvements in areas such as starting a business and obtaining credit, making the country increasingly business-friendly.

Video: The Secret of Bangladesh Business Success

Benefits of Using a PEO in Bangladesh

Utilizing a Professional Employer Organization (PEO) in Bangladesh can streamline the complex process of managing employment responsibilities for companies looking to operate within or expand into the country.

1. Compliance With Local Laws

A PEO ensures that companies stay up-to-date with Bangladesh’s employment laws, which are crucial for avoiding legal pitfalls. They handle the complexities of local labor legislation and regulatory compliance, reducing the risk of non-compliance penalties.

2. Ease of Market Entry

Companies can establish a presence in Bangladesh quickly through a PEO, without the need to set up a legal entity. This speeds up the market entry process, allowing businesses to launch operations and hire employees in a timely manner.

3. Cost Savings

By delegating HR functions to a PEO, companies can experience significant cost savings compared to setting up and maintaining their own HR departments. PEOs provide a scalable solution that can adjust to the changing needs of the business.

4. Focus on Core Business

Partnering with a PEO allows companies to concentrate on their core business objectives by offloading HR responsibilities. This includes the administration of payroll, benefits, and ensuring the well-being of their workforce, leading to increased productivity and focus.

How PEOs Operate in Bangladesh

In Bangladesh, Professional Employer Organizations (PEOs) offer a strategic partnership to handle complex employee management tasks for businesses, enabling them to allocate more resources toward growth-oriented activities.

1. Employee Leasing

PEOs in Bangladesh enable businesses to lease employees, which helps small and medium-sized enterprises instantly access an established workforce. This model allows companies to bypass the lengthy recruitment and hiring process. In practice, the PEO becomes the legal employer, handling various employee-related responsibilities and liabilities.

2. Human Resources Management

PEOs provide comprehensive human resources management services, supporting companies in Bangladesh to manage their HR functions more effectively. This includes but is not limited to employee benefits administration, worker’s compensation, and compliance with local labor laws. Through HR management, PEOs help businesses maintain a productive work environment.

3. Payroll and Tax Administration

Efficient payroll and tax administration is a critical service offered by PEOs in Bangladesh, ensuring that employees are paid accurately and on time. PEOs manage the intricacies of tax deductions, filings, and ensure compliance with Bangladesh’s tax regulations, reducing the risk for their client businesses.

Managing human resources, payroll, and tax can be complex processes in Bangladesh due to regulatory requirements; however, through partnership with PEOs, companies can navigate these tasks more smoothly.

Legal Framework for PEOs in Bangladesh

The legal landscape in Bangladesh mandates PEOs to align with robust legislative requirements, ensuring compliance, defining employment contracts, and adhering to termination procedures. These organizations are instrumental in helping companies navigate the complexities of Bangladeshi employment law.

1. Regulatory Compliance

In Bangladesh, PEOs must ensure strict adherence to the national labor law, which includes regulations on minimum wage, working hours, and employee benefits. Compliance with the Bangladesh Labor Act 2006 is pivotal for PEOs operating within the country. They must also stay current with changes to the law to manage their client’s human resource functions effectively and legally.

2. Employment Contracts

Employment contracts in Bangladesh are governed by the Labor Act, which stipulates that all terms and conditions of employment should be clearly outlined in a written agreement. This includes the job description, salary details, and leave policy. It is crucial that PEOs draft comprehensive contracts that protect both the employer’s and employee’s interests, while also ensuring that the contract terms are enforceable under Bangladeshi law.

3. Termination Procedures

Termination of employment in Bangladesh is regulated under the Labor Act, requiring specific procedures to be followed. PEOs must handle terminations in a manner that complies with the statutory notice period and severance pay guidelines. Formal procedures include providing a valid reason for termination and ensuring that the process is documented to prevent any legal disputes.

Challenges Faced by PEOs in Bangladesh

Professional Employer Organizations in Bangladesh operate within a dynamic environment that presents distinct challenges. The complexity of navigating local employment laws, understanding cultural practices, and adapting to economic conditions are core hurdles these entities face.

1. Cultural Considerations

Language and Communication: Effective communication is a significant challenge for PEOs in Bangladesh; multiple dialects and a preference for indirect communication styles can impede clear understanding. Navigating these nuances is crucial for successful HR operations and employee relations.

Workplace Norms and Etiquettes: Bangladesh has a unique set of workplace norms, such as hierarchical structures that influence decision-making and interpersonal relationships, which PEOs must adeptly manage to foster a cohesive work environment.

2. Bureaucratic Hurdles

Regulatory Compliance: The regulatory framework governing employment in Bangladesh can be complex and multifaceted. PEOs need to ensure full compliance with the labor laws, which can be resource-intensive and require a deep understanding of local legal systems.

Business Registration and Setup: Establishing a business presence in Bangladesh often involves navigating a web of bureaucratic processes. With time-consuming paperwork and procedural delays, PEOs must have the patience and local expertise to manage these administrative barriers.

3. Economic Fluctuations

Market Volatility: Economic conditions in Bangladesh can fluctuate, impacting employment trends and business stability. PEOs must stay informed and agile, adapting their strategies to mitigate the effects of market volatility on their operations and the businesses they support.

Currency and Inflation Risk: Fluctuating currency values and inflation rates present financial challenges for PEOs managing cross-border payments and maintaining cost-effective services while ensuring competitive employee compensation.

Selecting the Right PEO in Bangladesh

When entering the Bangladesh market, identifying a Professional Employer Organization that aligns with your company’s specific requirements is crucial. This selection process demands a comprehensive evaluation of your needs, a thorough comparison of available PEO services, and diligent research into each potential provider.

1. Assessment of Needs

The first step in selecting the proper PEO is to determine the specific needs of your business. These requirements may range from payroll and benefits administration to HR compliance and risk management. A clear understanding of the business’s needs will steer the selection process towards a PEO that offers tailored solutions.

2. PEO Services Comparison

Next, businesses should compare the services of potential PEOs. Essential factors for comparison may include:

  • Range of services offered (HR, payroll, benefits administration)
  • Expertise in local labor laws and regulations
  • Technological capabilities (e.g., self-service platforms, integrations)
  • Pricing models and transparency

This stage often involves creating a comparison table for a side-by-side evaluation.

3. Due Diligence

Finally, thorough due diligence is imperative. Companies should investigate the potential PEO’s:

  • Track record and reputation in the market
  • Financial stability
  • Client testimonials and case studies
  • Certifications and compliance standards

A meticulous due diligence process will provide businesses with the confidence to engage with a PEO that is not only capable but also reliable.

Choosing a PEO Provider in Bangladesh

When hiring a Bangladesh-based team it is important to choose a cost-effective hiring method which complies completely with local labor and tax regulations. A Bangladesh PEO solution saves around 85 percent of the cost of hiring in-country (compared to setting up a local subsidiary), and protects your company from employment-related liabilities. 

Our picks for the best Bangladesh PEOs in 2024 are Horizons, Ace Advisory, Remuance, Skuad and Atlas.  


A Bangladesh PEO provides a fast and efficient way for foreign companies to start operations in that country without the need for setting up a local subsidiary. The PEO takes care of all HR-related activities, including hiring, payroll, benefits administration, and compliance with local laws.

A Bangladesh PEO is your co-employer in that country, while an Employer of Record (EOR) is the legal employer of your team in that country. In practice, these two terms are used interchangeably. 

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.